China International Marine Containers (Group)
Co., Ltd.
2010
Semi-Annual Report
24 August 2010
Chairman of the Board: Fu YuningImportant Statement
The Board of Directors, the Board of Supervisors, directors, supervisors and senior
executives of China International Marine Containers (Group) Co., Ltd. (hereinafter referred
to as “the Company”) hereby undertake that the information and data contained in this report
are free from false records, misleading statements or significant omissions, and shall assume
individual and joint liabilities for the factuality, accuracy and integrity of the contents in this
report.
Eight directors should be present at the Board meeting and actually all of them did.
Mr. Fu Yuning, the Chairman of the Board, Mr. Mai Boliang, the President
of the Company and Mr. Jin Jianlong, the General Manager of Financial
Management Dept., hereby undertake that the financial report enclosed in
this semi-annual report is true and complete.
The semi-annual financial report 2010 of the Company has not been audited.
Contents
Ⅰ. Company Profile…………………………………………………………………………1
Ⅱ. About Changes in Share Capital and Shares Held by Major Shareholders………3
Ⅲ. Directors, Supervisors and Senior Management Staffs……………………………6
Ⅳ. Report of the Board of Directors………………………………………………………7
Ⅴ. Significant Events……………………………………………………………………25
Ⅵ. Financial Report (Unaudited)…………………………………………………………30
Ⅶ. Documents for Reference…………………………………………………………239China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
1
Ⅰ. Company Profile
(I) Company Profile
1. Company name:
In Chinese: 中国国际海运集装箱（集团）股份有限公司（abbreviated “中集集团”）
In English: CHINA INTERNATIONAL MARINE CONTAINERS (GROUP) CO., LTD （ abbreviated
“CIMC”）
2. Registered address: CIMC R&D Center, 2 Gangwan Avenue, Shekou, Nanshan District, Shenzhen
Office address: CIMC R&D Center, 2 Gangwan Avenue, Shekou, Nanshan District, Shenzhen
Zip code: 518067
Internet website: http://www.cimc.com
3. Legal representative: Fu Yuning
4. Secretary to the Board: Yu Yuqun
Contact Address: CIMC R&D Center, 2 Gangwan Avenue, Shekou, Nanshan District, Shenzhen
Tel:（86）755-2669 1130
Fax:（86）755-2682 6579
E-mail: shareholder@cimc.com
Representative for securities affairs: Wang Xinjiu
Tel:（86）755-2680 2706
Fax:（86）755-2681 3950
5. Newspapers designated by the Company for information disclosure: “China Securities Journal”, ”Securities
Times”, “Shanghai Securities News” and “Ta Kung Pao”
Website designated by CSRC for information disclosure: http://www.cninfo.com.cn
Places where the semi-annual report is made available: Board secretary’s office and Financial Management
Dept
6. Stock exchange on which the Company are listed: Shenzhen Stock Exchange
Stock short form and code:
CIMC (中集集团) 000039
CIMC B (中集B) 200039
(II) Key accounting data and financial highlights
Unit: RMB’000
30 Jun. 2010 31 Dec. 2009 Increase/decrease (%)
Total assets 54,579,932 37,358,383 46.10
Owners’ equity attributable to
shareholders of listed company 14,368,798 14,198,208 1.20
Share capital 2,662,396 2,662,396 0
Net asset per share attributable to
shareholders of listed company
(Yuan/share)
5.3969 5.3329 1.20China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
2
Jan.-Jun. 2010 Jan.-Jun. 2009 Year-on-year increase/decrease
(%)
Gross revenue 1,129,318 1,146,527 -1.50
Operating profit 1,318,665 1,177,908 11.95
Total profit 912,556 825,850 10.50
Net profit attributable to shareholders
of listed company 736,305 -361,489 303.69
Net profit attributable to shareholders
of listed company after deducting nonrecurring
gains and losses
0.3428 0.3102 10.50
Basic EPS (Yuan/share) 0.3428 0.3102 10.50
Diluted EPS (Yuan/share) 6.35% 6.32% 0.03
ROE -2,777,738 1,471,474 -288.77
Net cash flow arising from operating
activities -1.0433 0.5527 -288.77
Net cash flow per share arising from
operating activities (Yuan/share) 1,129,318 1,146,527 -1.50
Unit: RMB’000
Items of non-recurring gains and losses Amount
Gains and losses from non-current asset disposal -47
Governmental subsidy 35,492
Investment income form disposal of tradable financial assets,
liabilities and available-for-sale financial assets 97,581
Recognized investment income from stock equities held before
the acquisition date of enterprise combination not under the same
control realized step by step through more than one transactions
-131,246
Investment income recognized from turning available-for-sale
financial assets to jointly-operated enterprises 40,403
Gains and losses from external entrusted loans 314
Net amount of other non-operating incomes and expenses 153,902
Less: impact on tax from items above 12,664
Non-recurring gains and losses affecting net profit of minority
shareholders -7,484
Total 176,251
Return on equity and earnings per share for the first six months of 2010 based on the different
profit indexes:
ROE（%） EPS（RMB Yuan）
Profit for the report period
Fully diluted Weighted
average Fully diluted Weighted
average
Net profit attributable to common shareholders
of the Company 6.35% 6.37%
0.3428 0.3428
Net profit attributable to common shareholders
of the Company after deducting non-recurring
gains and losses 5.12% 5.14%
0.2766 0.2766
Net profit and net assets calculated in the light of the two different accounting standards and
accounting systems (PRC GAAP and IFRS) and relevant difference：
Unit: RMB’000
Net profit
Jan.-Jun. 2010
Net assets
As at 30 Jun. 2010
Amount under PRC GAAP 912,556 14,368,798
Adjustment as per IFRS:
Other 341 -4,669
Amount under IFRS 912,897 14,364,129China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
3
Ⅱ. About Changes in Share Capital and Shares Held by Major Shareholders
(I) Change in shares of the Company
Unit: share
Prior to change Increase/decrease (+/-) Subsequent to change
Number
Propor
tion
(%)
Issua
nce of
New
share
Bonu
s
shar
e
Other Subtotal Number
Propor
tion
(%)
I. Shares subject to trading
moratorium 620,177 0.02 0 0 0 0 620,177 0.02
1. Shares held by the State
0 0 0 0 0 0 0 0
2. shares held by state-owned
corporation 0 0 0 0 0 0 0 0
3. Shares held by other
domestic investors 0 0 0 0 0 0 0 0
Including: Shares held by
domestic non-state-owned
corporations
0 0 0 0 0 0 0 0
Shares held by domestic natural
person 0 0 0 0 0 0 0 0
4. Shares held by foreign
investors 0 0 0 0 0 0 0 0
Including: Shares held by
foreign corporations 0 0 0 0 0 0 0 0
Shares held by foreign natural
person 0 0 0 0 0 0 0 0
5. Shares held by senior
management 620,177 0.02 0 0 0 0 620,177 0.02
II. Shares not subject to trading
moratorium 2,661,775,874 99.98 0 0 0 0 2,661,775,874 99.98
1. RMB ordinary shares
(A-share) 1,231,297,165 46.25 0 0 0 0 1,231,297,165 46.25
2. Domestically listed foreign
shares (B-share) 1,430,478,709 53.73 0 0 0 0 1,430,478,709 53.73
3. Overseas listed
foreign shares 0 0 0 0 0 0 0 0
4. Others
0 0 0 0 0 0 0 0
III. Total number of shares
2,662,396,051 100.00 0 0 0 0 2,662,396,051 100.00
(II) About shareholders
1. Total number of shareholders by the end of reporting period
As at 30 June 2010, the Company has 217,544 shareholders in total, including 179,956 ones
of A-share and 37,588 ones of B-share.
2. About shares held by shareholders as at the end of reporting periodChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
4
(1) Shares held by the top ten shareholders
Name of shareholder Nature Total number
of shares held
Shareholding
ratio (%)
Number of shares
subject to trading
moratorium
Number
of
pledged
or frozen
shares
1 CHINA MERCHANTS (CIMC)
INVESTMENT LIMITED
Foreign corporation 665,599,037 25.00% 665,599,037 0
2 COSCO CONTAINER INDUSTRIES
LIMITED
Foreign corporation 580,491,880 21.80% 580,491,880 0
3 CMBLSA RE FTIF TEMPLETON ASIAN
GRW FD GTI 5496
Foreign corporation 75,182,779 2.82% 75,182,779 0
4 HTHK/CMG FSGUFP-CMG FIRST STATE
CHINA GROWTH FD
Foreign corporation 38,355,782 1.44% 38,355,782 0
5 Bank of China—Harvest Sustaining Openended
Securities Investment Fund
Domestic nonstate-
owned
corporation
27,827,725 1.05% 27,827,725 0
6 LONG HONOUR INVESTMENTS
LIMITED
Foreign corporation 25,322,106 0.95% 25,322,106 0
7 China Construction Bank—China Prosperous
Selected Stock Securities Investment Fund
Domestic nonstate-
owned
corporation
21,256,587 0.80% 21,256,587 0
8 INDUSTRIAL & COMMERCIAL BANK OF
CHINA—E FUND VALUE GROWTH
MIXED SECURITIES INVESTMENT FUND
Domestic nonstate-
owned
corporation
18,900,000 0.71% 18,900,000 0
9 Bank of China—E Fund Shenzhen Stock
Exchange 100 Index Stock Fund
Domestic nonstate-
owned
corporation
15,746,088 0.59% 15,746,088 0
10 BIAL/HSBC GLOBAL INVESTMENT
FUNDS CHINESE EQUITY
Foreign corporation 14,375,589 0.54% 14,375,589 0
Note: 1. COSCO Container Industries Limited and Long Honour Investments Limited are
related parties and parties acting in concert. COSCO Container Industries Limited is a
wholly-owned subsidiary of COSCO Pacific Limited, which is a controlled subsidiary under
COSCO. Long Honour Investments Limited is a wholly-owned subsidiary of COSCO (H.K.)
Group (COSCO HK), which is a controlled subsidiary under COSCO. The two companies—
COSCO Container Industries Limited and Long Honour Investments Limited—and other
shareholders are not parties acting in concert as prescribed in the Administrative Measures for
Information Disclosure of Shareholding Changes of Listed Company Shareholders.
2. It is unknown whether there exists related-party relationship among other shareholders or
whether they are acting-in-concert parties as prescribed in the Administrative Measures for
Information Disclosure of Shareholding Changes of Listed Company Shareholders.
(2) Shares held by the top ten shareholders not subject to trading moratorium
Shares held by the top 10 shareholders of A-share
Seri
al
No.
Name of shareholder
Number of shares not subj
ect to trading moratorium
held by the shareholder
1 COSCO CONTAINER INDUSTRIES LIMITED 432,171,843
2 Bank of China—Harvest Sustaining Open-ended Securities Investment Fund 27,827,725
3 China Construction Bank—China Prosperous Selected Stock Securities
Investment Fund 21,256,587
4 INDUSTRIAL & COMMERCIAL BANK OF CHINA—E FUND VALUE
GROWTH MIXED SECURITIES INVESTMENT FUND 18,900,000
5 Bank of China—E Fund Shenzhen Stock Exchange 100 Index Stock Fund 15,746,088China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
5
6 Industrial & Commercial Bank of China—China Southern Composition Selected
Stock Securities Investment Fund 12,546,978
7 Invesco Asset Management Limited—Invesco PRC Series Equity Fund 11,679,644
8 Industry & Commercial Bank of China—Rongtong Shenzhen Stock Exchange
100 Index Stock Fund 10,030,271
9 Bank of China—Dacheng Blue Chip Sustaining Securities Investment Fund 9,517,852
10 China Minsheng Banking Co., Ltd.—Orient Selected Mixed Type Fund 8,259,878
Shares held by the top 10 shareholders of B-share
Seri
al
No.
Name of shareholder
Number of shares not
subject to trading
moratorium held by the
shareholder
1 CHINA MERCHANTS (CIMC) INVESTMENT LIMITED 665,599,037
2 COSCO Container Industries Limited 148,320,037
3 CMBLSA RE FTIF TEMPLETON ASIAN GRW FD GTI 5496 75,182,779
4 HTHK/CMG FSGUFP-CMG FIRST STATE CHINA GROWTH FD 38,355,782
5 LONG HONOUR INVESTMENTS LIMITED 25,322,106
6 BIAL/HSBC GLOBAL INVESTMENT FUNDS CHINESE EQUITY 14,375,589
7 TEMPLETON EMERGING MARKETS INVESTMENT TRUST 12,801,432
8 CACEIS BK LUX S/A CARLSON FUND MGT CO 12,148,334
9 TOYO SECURITIES ASIA LIMITED-A/C CLIENT. 9,440,217
10 BBH BOS S/A FIDELITY FD - CHINA FOCUS FD 9,202,263
3. Particulars about change in controlling shareholder and actual controller
There exists no controlling shareholder and actual controller in the Company, which are
remained unchanged in the reporting period.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
6
Ⅲ. Directors, Supervisors and Senior Management Staffs
(I) Change in shares held by directors, supervisors and senior management staffs during
the reporting period
Name Office title Number of shares held Reason for change
Mai Boliang President
494,702
No change
Li Ruiting Vice-president
329,802
No change
Liu Xuebin Vice-president
2,400
No change
(II) Change in directors, supervisors and senior management staffs
Upon nomination by President Mr. Mai Boliang, Mr. Yu Ya was engaged as a new vice
president for a term of three years. Independent directors of the Company issued their
independent opinions on this matter that it was agreed to engage Mr. Yu Ya as a vice
president. At the 3rd Meeting in 2010 of the 5th Board of Directors convened on 19 Mar. 2010,
a resolution was made to engage Mr. Yu Ya as a vice president of the Company.
Mr. Qin Rongsheng, a shareholder-representative independent director of the 6th Board of
Directors, resigned from his position due to personal reason. And Mr. Ding Huiping was later
nominated by the Board as a candidate for the shareholder-representative independent
director with a term up until the expiration of the 6th Supervisory Committee. At the 2009
Annual Shareholders’ General Meeting held on 26 Apr. 2010, a resolution was made to elect
Mr. Ding Huiping as the shareholder-representative independent director.
Upon nomination by President Mr. Mai Boliang, Ms. Zeng Beihua was engaged as GM of the
Capital Management Dept. for a term of three years. Independent directors of the Company
issued their independent opinion of consent to the nomination and qualifications of Ms. Zeng
Beihua. At the 1st Meeting in 2010 of the 6th Board of Directors held on 26 Apr. 2010, a
resolution was made to engage Ms. Zeng Beihua as GM of the Capital Management Dept..China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
7
IV. Report of the Board of Directors
（Ⅰ） Discussion and analysis
1. Analysis for operating performance and financial data
Unit: RMB thousand
Item Amount in current
period
Amount in same
period last year
Increase/decrease ratio
(%)
Operating income 21,237,889 9,442,276 124.92
Operating profit 1,129,318 1,146,527 -1.50
Net profit attributable to equity holders of
the Company 912,556 825,850 10.50
Net cash flow from operating activities -2,777,738 1,471,474 -288.77
Net increase in cash and cash equivalents -373,580 749,228 -149.86
The market demand for dry cargo container in the first half of the year had a quick upswing
with the product sales doubled; vehicle business also showed good performance in terms of
main products sales due to domestic market demand; the offshore engineering business
engaged by Yantai Raffles was included in the consolidated financial statements in the first
quarter. Therefore, the recognized operating income for the Company is RMB
21,237,889,000, which jumped 124.92 percent over the same period last year; the business of
dry cargo container in the first half of the year turned losses into gains, and experienced
substantial profit growth; the overall profitability of other primary services were also
improved. In the first half of the year, the Company reversed the provision for obsolete stocks
of RMB 591 million withdrew in the last year. As a consequence, the net profit attributable to
equity holders of the Company was RMB912,556,000, which increased 10.50 percent over
the same period last year.
Comparing to the same period last year, the dry cargo container production of the Company
gradually returned to normal operations, with a remarkable rally in the accounts receivable
and the expense for material purchase, which provided a noticeable rise in the working
capital scale, therefore, the net cash flow produced by operating activities of the first half of
the year dropped apparently. With the influence of expansion of operation scale and increase
of capital and expenditures, the level of debt ratio of the Company rebounded compared with
the year end of 2009. The total liability ratio was 67.67% in the first half of the year, while
the debt/equity ratio was 2.09.
Unit: RMB Thousand
Amount in
current
period
Amount in
same
period last
year
Change
ratio Cause analysis
Trading financial
assets 207,525 91,772 126.13%
Due to the change of fair value of trading financial assets
and the Yantai Raffles’ inclusion in the consolidated
financial statementsChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
8
Notes receivable 2,840,889 1,690,845 68.02%
Mainly because of the constant growth of the road
transport vehicle business, which generated a considerable
income increase year on year
Accounts
receivable 9,452,740 3,862,604 144.72%
Mainly because of the production recovery of the container
business of the Group, which generated a considerable
sales income increase year on year, and Yantai Raffles’
inclusion in the consolidated financial statements
Advance to
supplier 2,285,425 1,073,559 112.88%
Mainly because of the production recovery of the container
business of the Group, which caused an increase in the
purchase expenses, and Yantai Raffles’ inclusion in the
consolidated financial statements
Other
receivables 2,056,296 1,123,489 83.03%
Mainly because of Yantai Raffles’ inclusion in the
consolidated financial statements
Inventory 12,292,760 6,753,566 82.02%
Mainly because of the production recovery of the container
business of the Group and Yantai Raffles’ inclusion in the
consolidated financial statements
Other current
assets 625,779 276,242 126.53% Due to the increase of pending deduct/prepaid taxes
Current portion
of non-current
assets
895,083 394,036 127.16% Due to the increase of finance lease receivables
Construction in
progress 1,027,001 573,269 79.15% Mainly because of Yantai Raffles’ inclusion in the
consolidated financial statements
Short-term
borrowing 9,487,318 4,157,477 128.20% Mainly because of Yantai Raffles’ inclusion in the
consolidated financial statements
Notes payable 2,009,654 1,226,091 63.91%
Mainly because of the production recovery of the container
business of the Group, which caused an increase in the
purchase expenses
Accounts
payable 11,004,332 4,462,255 146.61%
Mainly because of the production recovery of containers of
the Group, which caused a lot more purchases, and Yantai
Raffles’ inclusion in the consolidated financial statements
Advance
collections 2,324,263 1,270,602 82.93% Mainly because of the year-on-year increase in accounts
received in advance for real estate
Selling
expenses 558,349 312,102 78.90%
Mainly because of the production recovery of containers of
the Group and Yantai Raffles’ inclusion in the consolidated
financial statements
Financial
expenses 252,090 118,148 113.37%
Mainly because of the production recovery of containers of
the Group and Yantai Raffles’ inclusion in the consolidated
financial statements
Loss from asset
devaluation 29,344 208,131 -85.90% Mainly because of the write-off and reversing of inventory
revaluation reserve in current yearChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
9
Investment
income -57,021 1,432,563 -
103.98%
Mainly because a substantial income was obtained by
selling China Merchants shares last year and the said
available-for-sale financial assets were not sold at such a
large scale in the current period
Unrelated
business income 194,848 34,579 463.49%
Due to the influence of inclusion of negative goodwill
produced by the Yantai Raffles in the current profits and
losses
Cash received
from sales of
goods or
rendering
services
17,168,426 9,975,566 72.10%
Mainly because of the production recovery of containers of
the Group and Yantai Raffles’s inclusion in the
consolidated financial statements
Cash paid for
goods or
receiving
services
16,810,031 7,897,741 112.85%
Mainly because of the production recovery of containers of
the Group and Yantai Raffles’ inclusion in the consolidated
financial statements
Proceeds from
sell of
investment
12,112 1,515,455 -99.20% Mainly because of the sales of stocks of China Merchants
Bank in the first of quarter of 2009
Receipts from
loan 8,700,457 3,636,639 139.24%
Mainly because of the production scale expansion of
containers, the growing financing needs and Yantai
Raffles’ inclusion in the consolidated financial statements
2. Discussion and analysis of material events
(1) Global economic recovery and influence
The global and Chinese economics maintained stable growth in the first half of 2010. Fueled
directly by the re-stocking demand of Europe and the United States, the global containerized
trade showed a quick recovery, and the increase of volume of containerized trade was
expected to rise to 10.9% from 5.2%. The container throughput of China ports increased by
9.0% in the first half of 2010 compared with the same period last year. The shipping
companies was attempted to meet the demands of container shipping and the updating of old
container accumulated over the last year by constantly increasing the capacity, which
promoted the great increase container purchase quantity. In addition, in order to alleviate the
cost pressures brought by the financial crisis, the shipping companies generally reduced the
speed of ship, thereby to decrease the container turnover, aggravate the lack of containers,
while increase the demand of containers. The strong and quick rebounding of demands
boosted the dry cargo container price and profitability of the entire industry. The container
manufacturers gradually recovered the idle capacity in the first half year, however, due to the
labour shortages, material supplies, production scheduling and other reasons, the practical
capacity recovery of entire industry was slower.
Looking from the next 1-2 years, the global economy is generally optimistic for recovery,
however, the Europe is still lingering since the influence of the debt crisis, while the U.S.
economy tends to weaken again. For this, the global economy continues to fluctuate in the
short term, but is unlikely to hit the bottom for the second time. According to the forecast by
shipping institutions, the additional container shipping capacity will be over 3 million TEU in
the two year. As the rate of traffic volume recovery was lower than the capacity growing rate,
as well as for the concerns of the absorption of excessive capacity, saving of fuel costs,China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
10
carbon emissions reduction and other considerations, the shipping companies are expected to
remain at a low shipping speed. The replacement volume of container in the two years will
reach 1.4 million TEUs and 1.8 million containers.
In the long term, the recovery and stability of global energy demand, high level of oil prices,
the tendency of gas resources development turning to deep-sea, all of which will help to
strengthen the investment growth of global offshore engineering equipment industry. After
bottoming out in the global economy, the International Energy Agency (IEA) raised its
forecast on global energy demand, in which, the global energy demand between the year of
2009 to 2030 will increase at a growth rate of 1.5% per year, and the oil is expected to
account for the largest proportion of the global energy sources till 2030. China's development
of deep-sea petroleum and gas resource shows a huge potential, and the offshore engineering
equipment industry is expected to enter into the rapid development stage in the next 2-3 years.
The demand of global offshore engineering equipment will maintain a growth momentum in
the next 3-5 years.
In April 2010, the offshore drilling platform of British Petroleum (BP) in the Gulf of Mexico
was subject to explosion and oil-well leakage, which will to some extent influence the
America's energy policy and global oil resources use pattern, and thereby to influence the
global offshore engineering equipment market. For one thing, the offshore oil exploitation of
some countries and regions will be more cautious; the sovereign governments strengthen
inspection and supervision to the offshore oil and gas exploration; for another, the
development trends and directions of marine will also be affected, while the reliability and
security of offshore drilling, as well as the equipments and technologies used for production,
storage and transportation will be placed in a more important position. For another, the
drilling platforms currently used are mostly built in the 80s of last century, as the use of old
platform may decrease the efficiency and may create many potential safety hazards. The oil
spill may also accelerate the updating of old platform, and provides influence to the market
demand for offshore drilling platforms.
（2）Changes in investment of domestic macroeconomic policy and its demand and their
impacts
Benefited from the sustainable growth of domestic economy and investment, the special
vehicle industry in the first half of 2010 continued the demand prosperity stage since second
half year of 2009. The country continued to implement moderately easy monetary policy, the
launches of large infrastructural projects brought by the implementation of 4-trillion
investment plans, all of which directly pulled the demands in dump trucks, mixers and other
construction vehicles; in recent years, the policy effects of implemented “reform of fuel tax”
and “Charging by weight” are deepened continuously, while the increase of road freight and
cargo turnover boosted the sales growth of road carrier vehicles.
Although China's economic growth in the second half year will slow down, the moderately
easy monetary policy will still be maintained, and the efforts on domestic demand expansion
and structural adjustment will be strengthened. The demands on the basic investment
including acceleration of urbanization process, disaster recovery reconstruction and logistics
will be continued. The domestic market demand of special vehicle is expected to drop
slightly in the second half after the supernormal growth in the first half year, while the overall
market demand will not slump. The annual aggregate demand will continue to increase
greatly year-on-year, and the overseas market is still difficult to show the significant
improvement in the second half year.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
11
China has promised: the GDP carbon dioxide emissions by 2020 will drop 40% -45%
compared with 2005, which indicates that there has tremendous space for the development of
China's clean energy, and also presupposes that consumption of natural gas has experienced
the rapid growth period. The Government is developing and implementing a number of
policies, which provide the support to the clean energy and low carbon, environmental
protection, advanced manufacturing and high-tech industries. For China's future primary
energy consumption structure, the proportion of natural gas is expected to increase from
about 4% to 8%. As China's natural gas supply can not meet the growing demand, the import
volume of liquefied natural gas continues to grow. Research shows that China's demand for
LNG in the next 10 years will maintain rapid growth. To comply with the above trends, the
Group's energy equipment business department will continue to place great importance on the
development of natural gas storage and transport equipment market.
(3) Changes in government industrial policies and regulations and their impacts
The Chinese government has gradually recognized the great significance of the development
of offshore engineering equipment industry towards national energy strategy, industrial
upgrading and cultivation of new economic growth point. Offshore engineering equipment
manufacturing industry is expected to be included in the national 12th "Five-year Plan" and
12th five-year plan for strategic emerging industry, which will be is favorable to the orderly
and healthy development of offshore engineering industry. The offshore engineering business
of the Group will also receive the policy support and benefit from it. In July 2010, the
National Resources Offshore Oil Drilling Platform R&D Center got stationed into the Group.
After completion, the R & D Center will enhance the Group’s overall capacity of offshore
engineering technology experiments, R&D capabilities, thereby to provide impetus to the
improvement of localization level of China’s offshore engineering supporting equipment.
The country will continuously improve the emission standards of commercial vehicle. With
the gradual implementation of compulsory industry standards of State IV emission and fuel
consumption, it will necessarily strengthen the competition and reshuffle of heavy truck
industry, leading the industry and products to the directions of energy-saving, environmental
protection and low-carbon. With the constant increase of market demands on new technology
and high value-added products, the competitions for domestic private vehicles, as well as the
application of large tonnage, high-grade and new technology development of heavy truck
market will become increasingly apparent. The State IV emission standards will enter the
pilot and full implementation phase since 2010 based on the timetable of national emission
standards. The country stops the type approval of national-wide State III heavy truck since
January 1, 2010, and stops the sales and registration since January 1, 2011. The “Limits and
Measurement Methods of Operating Vehicle Fuel Consumption” issued by the Ministry of
Communications has been implemented since March 1, 2010. And, the Ministry of Industry
and Information Technology issued the "Fuel consumption test methods for medium and
heavy-duty commercial vehicles" (Exposure Draft) on June 1, 2010.
(Ⅱ) Company operation state
1. Major business activities and conditions
(1) Operating income distribution based on industries and regionsChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
12
Amount unit: RMB’000
Based on business
types Operating income Operating cost Gross margin (%)
Container 7,944,658 6,814,703 14.22
Road transport
vehicle 9,134,078 8,046,754 11.90
Energy chemical
equipment 1,938,268 1,564,264 19.30
Offshore engineering 1,764,176 1,516,829 14.02
Airport equipment 24,923 15,877 36.30
Others 593,471 386,681 34.83
Combined offset -161,685 -98,379
Total 21,237,889 18,246,729 14.08
Based on business
region Operating income Prop. accounted in the
operating income (%)
Growth comparison of operating
income (+/ - %)
America 5,238,277 24.66 472.06
Europe 4,059,940 19.12 69.44
Asia 10,801,319 50.86 79.24
Other regions 1,138,353 5.36 989.08
Total 21,237,889 100.00 124.92
(2) The Group’s operation conditions of primary business during the reporting period shall be
as follows:
The Company and its subsidiaries (hereinafter referred to as the "Group") is principally
engaged in the modernized transport equipment, energy, chemical, liquid food equipment,
manufacturing of offshore engineering equipment, as well as service business including the
design, manufacturing and services of international standard dry cargo container, reefer
container, regional special container, tank container, container flooring, road tank trucks, gas
equipment and static tanks, road transport vehicles and airport equipment. Additionally, the
Group is also specialized in manufacturing of logistics equipment and railway cars, real estate
development and other services. Currently, the volume of production and sales of Group's
standard dry cargo container, reefer container and tank container rank the first place around
the world; the Group is also the largest manufacturer of road transport vehicles in China, as
well as one of China's major offshore engineering equipment enterprises.
The products accounted for more than 10% of the Group’s total operating income or profit
are container products and road transport vehicles. See above table for the main product sales
revenue and gross profit in the first half of 2010.
—— Container Service
Benefited from the strong recovery in demand, the Group’s sales of container, in particular
the dry cargo container increased significantly.The price of dry cargo container was also
15%-20% higher than the beginning of year.The accumulative sales of various containers in
the first half of the year were 482,800 TEU, which increased by 777.74% over the same
period the last year. Where, the accumulative sales of general dry cargo container reached up
to 425,300 TEU, Which increased substantially compared with the same period last year.
Total sales of 33,000 reefer containers TEU, which increased by 40.29% over the same period
last year. The cumulative sales of special containers (not including tank container, pallet
boxes) reached to 24,500 units, 9.44% lower than the same period last year. The operating
income of container service in the first half year was RMB 7,944,658,000, which increased
by 246.17% over the same period last year. The net income was RMB 508,561,000, which
jumped 243.69% compared with the same period last year, and in which the general dry
container sales was RMB 5,165,428,000, increased substantially over the same period lastChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
13
year, and thus allowed the dry container service to turn loss into gain; the reefer container
sales was RMB 1,076,966,000, increased by 18.02% over the same period last year; the sales
of special containers (not including pallet) was RMB 1,523,058,000, which jumped 49.86%
over the same period last year. In addition to container manufacturing, the Group is also
engaged in container services including storage, maintenance, refurbishment, as well as the
new services such as trade-in and old container modification. The treatment capacity of
containers by terminal handling service was 2.3088 million TEU in the first half year, which
grew 4.53% over the previous year; the container repair volume was 211,600 TEU, which
was 37.26 percent higher than the last year.
The economic fluctuations brought by the global financial contributed to the drastic
fluctuations of container industry in recent two years. In this regard, the Group strengthened
its capacities for industry changes and market forecast, while it also improved the
responsiveness to supply chain and employment. With respect to the acceleration of market
change, quick demand recovery, relative shortage of labor in the first half, the Group’s dry
container production base served in a rapid response manner, and took effective measures to
restore the production, and thus seized the market opportunities.
By following the concepts of low-carbon, environmental and ecological protection, the Group
continued to expand the application of SGIL technology (S-Secure, G-Green, I-Intelligence,
L-Light) in terms of container service, where the “safe, green, intelligence and lightweight”
represented the future direction of the products. The Group also actively explored the
modular construction, modification and recycling of second-hand containers and other new
business models, to promote the upgrading of container industry. Following Zhuhai’s
completion of "energy-saving students' dormitory," a sectional construction project that
created the largest number of containers for recycling in China in 2009, it again won the
purchase contract of greenway project by Shenzhen Municipal Government. The supporting
service facilities of “Greenway Networks” are constructed by using the old mobile container
modification portfolio. In May, the Group subsidiaries signed a five-year purchase agreement
with respect to modular housing strategy with BHP Billiton, which was a new milestone for
Group’s modular housing business. In the first half of this year, the Group made progress in
terms of application of container intelligent security technology. As a supplier of container
security devices, the E-seal independently developed and manufactured by CIMC
participated into the EC-China Smart and Secure Trade Lanes Pilot Project (SSTL) in April
2010, which uses the container security devices independently developed and manufactured
by China, to enable China to take the initiative in the standard preparation of container
security device and smart container technology, while guarantee our trade and customs data
security. In June, the national standard of container RIFD system developed by Shenzhen
CIMC SSC passed the examination meeting of national committee for standardization of
freight container.
Look into second half of the year, the third quarter will still be the peak season for container
trade, dry box, and the Group’s dry cargo container orders received in third quarter has been
fully engaged. Container price is expected to go up 30-35% in the third quarter compared
with the beginning of the year; while the market demand for reefer containers will be also
optimistic.
—— Road Transport Vehicle
China’s special vehicle industry in the first half has continued the demand prosperity sinceChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
14
the second half of last year. The demands on the engineering vehicles such as dump truck,
concrete mixing and transporting car and bulk cement truck have been close to the yearly
level of last year; at the same time, with the rapid recovery of domestic road freight and port
container throughput, the dry bulk cargo and container transport semi-trailer market
experienced a substantial year-on-year growth. As influenced by the foreign economic
downturn or low base, the export market’s stimulus to the overall demand of special vehicles
of the Group were not noticeable.
The Group completely seized market opportunities in the first half, by which the growth of
sales volume, revenue and profit of road transport vehicles business was much higher than
the expectations. The cumulative sales of road transportation vehicles was sold 83, 000 units
(sets) in the first half, which created a new historical record by 85.27 percent higher than the
last year; with the sales revenue of RMB 9,134,078,000, which offered a comparative growth
of 104.96 percent; the net profit was RMB 394,052,000 increasing by 157.75 percent over the
same period last year. And the gross margin increased slightly when comparing with the last
year.
The vehicles, the overall market share of the Group still kept the top position in the first half
of this year, where the market share of container transport semi-trailer, bulk cement truck and
other five major product categories kept its leading position in domestic market. New product
expansion has also made significant progress, while the sanitation truck (including equipment)
market has experienced a historic leap.
CIMC VehicleGroup was dedicated to pass the internal upgrade and proper allocation of
resources in the first half, while emphasize on the operational efficiency of assets and
profitability. The marketing, production, procurement, technology and other core
competencies of vehicle services have improved sharply. With respect to the optimization of
marketing system, the Group attempted to improve the marketing efficiency and strengthen
control of channels through the adjustment of marketing organizations, incentive and restraint
mechanism reconstruction. It also worked for realizing appreciation for customers, to
demonstrate the service philosophy of one-stop life cycle; with regard to the technology, it
adhered to promoting the basic research and development of product standardization and
lightweight, while actively encouraged the joint development of modern manufacturing and
logistics industry, and assisted the Ministry of Transportation to solve the technical problems
related to drop and pull transport, which achieved initial progress and played an exemplary
role for the industry; for the supply chain management, it continued to deepen the basic
management, and vigorously promote the centralized purchase, expand the collaborative
advantage, while strengthen the research on steel and parts industry, organize the
procurement in a timely and appropriate manner. Zhumadian CIMC Huajun Vehicle Co., Ltd.
has achieved mass production in the cast iron cast steel production line with remarkable
results.
In the second half, the Group will be based on market demand expansion and updating of
China's logistics equipment, while place great importance on the overall operational
efficiency of vehicle service, strengthen the market development and supply chain
management of key products, as well as the coordination of each production base, thereby to
further optimize the interaction of business and products between Sino-America and ECChina.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
15
In the first half year of 2010, the heavy truck project with 45% equity held by one of the
company subsidiaries-CIMC Vehicles Group was well in the progress. The truck joint project
was officially launched in March 2009, with the total investment of RMB 3 billion in Phase I,
including C & C Trucks Co., Ltd. and Yuchai Union Power Co., Ltd. The heavy truck aims to
become the world-class supplier for heavy truck products and services, while creating the
renowned brand trusted by customers. The investment for heavy truck is RMB 2 billion in
Phase I, and is expected to improve the productive capacity with 30,000 heavy trucks after
put into production in 2011. In April 2010, the samples of heavy truck including the 6 × 4
tractor, lightweight tractor, concrete mixer truck, high-strength damp truck launched in Auto
China, which has aroused great attention by the industry. The group then conducted the
itinerant exhibitions and promotions for the dominant vehicle models. The engine product
matched with the heavy truck was jointly initiated and set by the C & C Trucks and Guangxi
Yuchai Union Power with the registered capital of RMB 500 million, in which the C & C
Trucks holds 45% of equity. The investment for Phase I is RMB 800 million, and the annual
output capacity of the engine is 60,000 units, including the engine cylinder block, cylinder
head and installation/commissioning production line. It is scheduled to be completed by the
end of 2010.
The Joint Trucks defined the development strategy of "leading the domestic technology while
following the overseas advanced technology", to build a new heavy truck technology
platform. The heavy truck products are positioned in the middle and high-end international
market and high-end domestic market. For the road vehicles (such as tractor), the target
market is the intercity transportation and logistics market and port container transportation;
for the engineering vehicles (i.e. dump truck, mixer truck, etc.), the target market is set for the
urban construction and infrastructure. The 6K series supporting engine, jointly developed by
Yuchai and Austrian’s engine design company, is independently developed by taking the new
engine model as example, and its emission has met the Euro VI standard. The heavy truck
project with respect to key components (including engines, transmissions and axles) and
critical system assembly is able to be developed jointly in collaboration with the domestic
suppliers of proprietary brands, to establish the industry chain with core competitiveness.
The Joint Trucks is established in a joint model and characterized by its advantage of "China
element". Apart from the CIMC, Chery Automobile and Yuchai Group, the Fast Group and
Fuhua are also the strategic core members of such project. All of these companies are the
China’s largest manufacturers in logistics equipment and special vehicles, automobile, diesel
engine, heavy truck transmission, as well as axles, respectively. The heavy truck company
established by these five companies is able to gather the resource advantages and operation
management of each company, and thus to form the comprehensive competitiveness with a
higher starting point.
—— Energy, Chemical, Liquid Food Equipment and Service Business
As the world is recovering from the recession gradually, China’s import and export, and
commercial manufacturing industry also enjoy a fast recovery. The market demand of energyChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
16
equipment especially natural gas and chemical equipment bounce back dramatically.
However, the warming of liquid food industry is relatively lagged due to weakening
European market and slower domestic investment.
The operating income from energy, chemical, liquid food equipment business reaches RMB
1,938,268,000 in the first half year, a growth of 17.54% over the same period last year. The
net profit amounts to RMB10,881,000, a slight increase over the same period last year, with
operating income from energy (natural gas) equipment business being RMB992,908,000, an
increase of 51.7% over the same period last year; from chemical equipment business, RMB
432,011,000, an increase of 36.0% over the same period of previous year; and from liquid
food equipment business, RMB 207,280,000, an decrease of 40.5% over the same period last
year.
The gross profit rate of energy chemical equipment service business of CIMC Enric is
decreased by 0.7% to 18.8% (the same period in previous year: 19.5%) due to slight dropping
of the gross profit rate of energy chemical business. Thereinto, the gross profit rate of energy
business falls by 1.9% to 21.6% (the same period in previous year: 23.5%) which is caused
by the falling gross profit rate of natural gas storage and transportation products in this field
that is to increase market shares. The gross profit rate of chemical business has dropped from
10.5% in last year to10.3%, mainly due to the relatively high fixed production costs, such as
labor cost and depreciation expense, which reduce the gross profit rate. As for liquid food
business, its gross profit rate has gone up to 23.2% this year from 20.3% in 2009 mainly
because of cost reduction of materials brought by sound engineering management and
effective cost control.
At present, the production bases of CIMC’s energy chemical equipment are mainly located in
six cities around China, including Nantong and Zhangjiagang in Jiangsu Province,
Shijiazhuang and Langfang in Hebei Province, Jingmen in Hunan Province and Bengbu in
Anhui Province, while the production plants of liquid food equipment are mainly situated in
Emmen and Sneek in Holland, Randers in Danmark, and Menen in Belgium. In the first half
year, Jingmen Hongtu (CIMC Jingmen Hongtu Special Aircraft Manufacturing Co., Ltd.)
began to expand production line, and accept orders of energy chemical storage tanks. It is
estimated that its production capacity would be doubled when it is completed in the end of
this year. TGE Gas Company, whose 60% of shares are held by Jingmen Hongtu Corporation,
is a leading independent contractor of large-scale contracts for offshore projects in the world.
It boasts 27 years of experience in storage, disposal and transportation of gases like natural
gas and petrochemical. The participation of TGE Gas enhances CIMC’s global strategy
system in equipment and service areas of energy chemical and food, making up the technical
blank in these fields at home.
The energy chemical products and service are available over China, Southeast Asia, Europe,
and North America. The liquid food products and service mainly focus on European market.
At present, it has explored customers in China and enjoyed a sound development. CIMC is
committed to building an extensive and stable customer network, especially the heavy
industrial giants and customers with huge potential. CIMC’s key customers include wellknown
enterprises at home and abroad, such as CNPC, XinAo Gas (XinAo Gas Holdings
Limited.), Sinochem International Corporation, EXSIF, TAL International and Cronos. InChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
17
addition to China, countries in Central Asia, Southeast Asia, and South America are
promoting the application of natural gas equipment. To seize overseas business opportunity
and to diversify the income sources, CIMC is expanding its three key businesses into the
mentioned abroad energy chemical equipment market. In 2009, TGE Gas Company
successively won the bids for Portugal LNG Receiving Station EPC (Engineering,
Procurement and Construction) contract for storage tanks and Zhejiang LNG Receiving
Station EPC contract for storage tanks. Currently, these projects have framed well.
As regard to energy chemical and liquid food equipment business, CIMC will continue to be
committed to comprehensive solutions of providing excellent products and add-value
business to maintain continuous growth. CIMC’s LNG storage and transportation equipment,
such as gas station, satellite station, peak-shaving station, 10,000-cubic meter LNG terminal
is to boost the prosperity of LNG. At present, CIMC has been engaged in developing lightweight
products. The intelligent liquid containers (including liquefied natural gas) first
promoted by CIMC last year have produced positive responses in market. CIMC is devoted
to the development of LNG equipment, such as 10,000-cubic meter storage tanks and 50,000-
cubic meter LNG storage.
Having gone through the market demand downturn last year, chemical equipment business is
recovering obviously with the global economy. CIMC will adopt flexible pricing strategies,
and introduce products in different specification to satisfy the different sales demands in
different regions. When standard tank containers face increasingly fiercer competition,
marketing strategy will be mainly aimed at demands of special tank containers.
CIMC's liquid food equipment business is expanding its target market from Europe to Asia,
especially China, of which beer production outfit business may embrace a quite promising
prospect. In the recent five years, beer consumption per capita in China has kept an annual
growth of 6.5％, with its growing speed exceeding other mature market. Blessed with leading
technology and high reputation of “Holvrieka”, CIMC believes that transferring the
production of liquid food storage and transportation equipment will reduce costs, gaining
more competitiveness for products and service.
CIMC attaches greater importance to research and development, seeking for opportunity to
cooperate with top universities and scientific research academies. Except for more innovation
of hi-tech products, CIMC will enhance its expansion in Engineering Procurement and
Construction (EPC) market.
In the first half year, ICMC mainly fixed on the internal integration and management
upgrading after massive acquisition. In the following half year, it will continue to raise the
synergy effects of acquired projects, and furthest increase shareholder return.
—— Offshore Engineering Business
Singapore CIMC Raffles Offshore Ltd. (SCRO), a subsidiary company of CIMC, and its
subsidiary company: Yantai CIMC Raffles Offshore Ltd (YCRO) is one of the top offshore
equipment manufacturers in the world, actively taking part in the competition over
international offshore business market. The company’s products range from Jack-up drillingChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
18
platform, Semi-submersible drilling platform to offshore attached ship. Offshore business is
one of CIMC’s key businesses. It will become a principal profit growth point for CIMC.
After the acquisition of unconditional cash offer of own accord over Yantai Raffles Offshore
Ltd. in January, Singapore CIMC Raffles Offshore Ltd. (SCRO) has been included into
CIMC's consolidated financial statements. The share CIMC holds of SCRO reaches 50.01%.
In the first half year, the operating income from offshore business is RMB 1,764,033,000
with RMB 103,013,000 of net profit.
In July, CIMC offered shares for its subsidiary company SCRO, 50.01% of whose shares is
held by CIMC, to raise nearly USD 10 million. After its offering shares in August, the shares
held by CIMC go up to 50.98%. This share offering is aimed to strengthening the
infrastructure facilities in shipyards, building new shipyards, improving the asset balance
structure, and raising funds for the future investments and operation.
In 2010, the business objective for Raffles is to accomplish deep sea drilling platform
projects, which is significant for the development of CIMC’s offshore business and domestic
trades. By January, the 30,000-ton self-discharging bulk carrier is completed. At present, it is
preparing for COSL1# and two semi-submersible drilling platforms of Schahin H200.
Projects of COSL1# and Schahin H200 are expected to carry out their trial trips in August
and September, the last part of work before its completion.
During the first half year of 2010, CIMC has successfully finished a series of work including
healing up of Schahin H193 project, installation of main engines and propellers of COSL1#
and Schahin H200, and tilt tests. Production efficiency has been greatly improved through the
construction. In March, YCRO healed up the hull and pontoon for the second semisubmersible
drilling platform contracted with Brazil Schahin Oil and Gas Group with a crane
that weights 20,000 tons. This marks China enterprises have been equipped with international
top general contracting integration capability for deep sea semi-submersible drilling platform.
Currently, YCRO has established its product line mainly of semi-submersible drilling
platform, self-discharging drilling platform and offshore attached ship. As for the future
product development, YCRO will enhance its experience in the existing order of semisubmersible
drilling platform to increase high-end product market share; it will perfect its
basic design of self-discharging drilling platform, and strengthen standardized work to
achieve a standardized construction; it will give full play to the product technology and
construction of offshore ships, and actively construct special ships to raise productivity and
expand production line.
In respect of construction base layout and capacity improvement, at present, YCRO has been
defined as the central dispatch and debug base; Hanyang, Shandong Province, subsection
construction base; and Longkou, Shandong Province, the construction base of Jack-up
drilling platforms. In October 2009, YCRO finished its acquisition of LSOEC (Longkou
Sanlian Offshore Engineering Co., Ltd.) and establishment of management team, starting theChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
19
construction of Jack-up drilling platform project. Yantai deepwater terminal also began with
its construction, with the full completion of the first phase deepwater terminal infrastructure
building, which makes it possible for 5 platforms operate at the same time. The second phase
deepwater terminal project has been started in May. When the first and second phase projects
are completed, 9 platforms can operate at the same time. The second phase of Hanyang
subsection plant construction is expected to be finished by the end of 2011.
In respect of platform research and design, CIMC has established Yantai CIMC Offshore
Research Institute and Shanghai CIMC Offshore Research and Development Center. In July,
the National Energy Bureau awarded the second group of national energy research and
development (experiment) centers. CIMC is awarded the National Resources Offshore Oil
Drilling Platform R&D (experiment) Center which means that CIMC has been equipped with
national level position in offshore industry in some aspects, gaining the qualifications to
undertake important offshore equipment research, experiments and manufacturing. This is to
strengthen CIMC’s leading status in offshore industry at home, providing a broader space for
its development of national energy. In August, CIMC terminated its acquisition of Friede
Goldman United, an offshore engineering design company. CIMC believes that the
termination of acquisition will not exert any profound impacts on the development of
offshore business. Taking the opportunity of being awarded as the national energy offshore
gas drilling platform research and development (experiment) center, CIMC will continue to
enhance the establishment of CIMC Offshore Engineering Research Institute, drawing more
high-end talents, to create an international top offshore engineering equipment design and
research platform. YCRO has succeeded in applying for the research topic of “Offshore
Engineering Equipment Assembly Construction Technology Research” set up by the Ministry
of Industry and Information Technology and the Ministry of Finance.
In respect of market order, China has 8 semi-submersible drilling platforms in construction, 6
of which are being constructed by YCRO, according to statistics. Besides, YCRO still enjoys
other order of 5 Jack-up drilling platforms and 3 offshore ships. In January 2010, YCRO,
together with its partners: TSC, and Momentum Engineering Ltd., won the lease and
management contract of a Jack-up drilling platform in Caspian, Turkmenistan by Dragon Oil
Group. YCRO is responsible for the construction of this platform which is expected to
complete in the fourth quarter of 2011.
Though the global economy seems to recover in the first year of 2010, it is expected to
remain a conglutinative market state in the second half year, since the long-term lingering
crude price, which gives rise to cautious investments in international offshore industry, and
more trial actions. At home, the offshore industry may grow more important since it will be
brought into the state 12th Five-year Plan for emerging industry. The state will certainly carry
out a series of supporting policies to sustain the fast and healthy development of offshore
industry. In international market, Raffles has established solid business relationship with
many famous companies in this trade in offshore regional markets like North Europe, Middle
East, Russia, Brazil, and West Africa, to improve its industrial influence. In the future,China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
20
Raffles will mainly explore the said segmented regional markets. However, in domestic
market, it will continue to consolidate the relations with the three major gas companies,
paying attention to investment demands and business opportunities to achieve a substantial
breakthrough.
At present, the global market, especially high-end offshore products, has still been dominated
by South Korea, and Singapore, the traditional offshore business powers. However, because
of its lower price and improvement of design and construction capacity, offshore business
now experiences a trend of moving to China, providing both opportunities and challenges for
CIMC’s offshore business.
—— Airport Equipment Business
In the first half year, the world financial crisis has shown its negative impacts on civil
aviation and airport construction in the world. The international market is till in a relatively
shrinking phase. Since CIMC Tianda (Shenzhen CIMC – Tianda Airport Support Ltd.) has
postponed the completion date of over 90% projects in accordance with customer demands,
CIMC Tianda earned RMB 24,923,000 of operating income in the first half year of 2010, a
dramatic drop of 91.81% compared with the same period last year.
In domestic market, government has increased the investment in infrastructure construction
including building new airports and expanding the existing ones. Due to the reduction of
large-scale projects, the market demands for airport equipment keep stable on the whole, with
a slight drop.
Despite the world trade competition becomes harsher, and the fact that ThyssenKrupp in
German, JBT in America, and Hyundai in Korea are all competing for China market, CIMC
Tianda's status in the global market is rising on the whole. In domestic market, with fiercer
competition, the price is reduced accordingly.
In the first half year, CIMC Tianda has won 15 contracts of boarding bridges at home and
abroad, with an order of 100 boarding bridges newly added. During this half year, the market
demands from domestic aviation cargo accommodation system are just as normal.
Looking forward to the second half year, domestic aviation industry is likely to keep
continuous growth since government has increased the investment of infrastructure
construction and carried out policies to stimulate the domestic demands, which keep the
airport construction scale at a high level on the whole, so does the market demands of
boarding bridges. CIMC Tianda has boasted strong international competitiveness, and the
number of orders from overseas market is expected to increase to a great extent. Except for
the consolidation of boarding bridge market, CIMC Tianda also actively develops other
related businesses and products, such as solid garage, special airport vehicles, and so on. The
increasing demand of sedan parking supporting equipment will bring more business
opportunities for the solid garage products by CIMC Tianda. In addition to the ice equipment,
the special airport vehicles are going to roll out in market by the end of this year.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
21
—— Other Business
Logistic equipment and service business: CIMC is committed to providing special logistic
equipment and comprehensive logistic solutions for customer from different trades. Our
logistic equipment products mainly include pallet containers for automobiles, logistic, foods,
chemical, and agriculture, stainless steel IBC（Intermediate Bulk Container) applicable in
chemical and foods fields, and various special logistic equipment, such as wind power
product logistic, and commercial car assembly logistic equipment.
In the first half year, CIMC has achieved RMB 429,198,000, an increase of 153.31% over the
same period last year, with the net profit of RMB 32,253,000, an increase of 843.33% over
the same period last year.
Real estate development business: Real estate business by CIMC includes 40% share in
“Zhendi” by China Merchants Property (Shanghai) and another two land projects in
Yangzhou which are going well. Due to the income confirmation time problems, the
operating income reached RMB 4, 596,000 in the first half year.
Railway equipment business: Dalian CIMC Railway Equipment Co., Ltd., a subsidiary
company of CIMC, is devoted to the development of railway equipment business. In the first
half year, its operating income is RMB 790,000, dropped by 29.08% compared with the same
period last year.
2. No share-participating company's investment income has exerted over 10% impacts
on CIMC’s net profit during the report period.
3. Problems and Solutions in Operation
(1) Difficulties and Problems
In June 2010, the People’s Bank of China declared to advance the exchange rate regime
reform and to enhance the exchange rate flexibility. From now on, the exchange rate of RMB
may be more flexible, and the two-way fluctuation may be more obvious accordingly. But the
international financial market still remains unstable. Therefore, financially, it will exert
certain negative impacts on CIMC’s business in domestic market and some overseas
markets including Dollar area and Euro area.
In the first half year, European debt crisis still has continued. Economy in Euro area and
America, even the entire world, still faces with some unstable factors. European, American
and Chinese economy is expected to slow down, which may put CIMC’s import and export
business, and overseas business under certain pressure.
(2) Solutions
In a long run, CIMC will be prepared for the RMB exchange rate fluctuation by making
according arrangements in investments, asset security, and ways to avoid exchange risks. It
will carry out dynamic adjustment to reduce risks, and there would not be severe impacts.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
22
Though the global economy may still have fluctuation in a short term, the trend of recovering
will not be affected, and there is slim chance for a double dip. CIMC will continue to regulate
business and organizational structure, implement the overall strategy upgrading, increase
investment in research and development, improve management, and raise business efficiency.
Taking the opportunity of domestic economy structure readjustment, CIMC continues to
enhance risk control, ensuring its healthy development and sustainable growth of core
businesses.
(Ⅲ) Information about Company’s Investments
1. Use of Raised Fund
None.
2. Non-raised Fund Investments
None.
1) Equity Investment
① Purchase of share: CIMC paid RMB 836 million to purchase the shares of Raffles.
② Registration of new companies
Unit: RMB million
Company Currency Registered
capital
Completion
in the fist
half
year(％)
Equity Business scope
1 CIMC Group Finance Co.,Ltd. RMB 500 100% 100%
Be responsible for the home and foreign
currency business of CIMC member units,
including business of financing consultation,
proceeds receipt and payment, providing
surety, consignment loan, entrusted
investment, bill acceptance and discount,
internal account transfer, settlement, deposit
and loan, financing and leasing, and borrowing
money among banks.
2 Shenzhen CIMC Investment
Holdings Co., Ltd. RMB 75 100% 100%
Nature of business: container service industry.
Business scope: equity investment, the sale and
lease of containers, container houses and the
related parts, project development of container
houses and their attached facilities, installation,
decoration and related consultation service,
and import and export business.
3 Chengdu CIMC Vehicle
Co.,Ltd. RMB 60 100% 100%
Sales: cars (not including passenger cars fewer
than 9 seats), automobile parts, metal
materials, hardware, electromechanical
equipment, chemical products (not including
hazardous chemicals); ground and tier lease;
storage service (not including agricultural
machinery); property management and related
service; import and export of goods and
technology(not including those prohibited by
laws and administrative regulations. And those
restricted by laws and administrative
regulations are allowed to sell with
permission.)
③ Capital increase for subsidiary companies and associated companies
Unit: RMB millionChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
23
Item Capital increase amount
For subsidiary companies:
CIMC Vehicle Finance and Leasing Co., Ltd. 41
Wuhu CIMC Ruijiang Automobile Co., Ltd. 23
For associated companies:
C＆C Trucks Co., Ltd. 135
2) Other Investment
RMB 137.76 million of net disbursement in CIMC fixed assets scale (including projects in
construction)
(Ⅳ) Comparison between actual business performance in report period and planning at
the beginning of the period
In the first half year, there is no significant variance between actual business performance in
report period and planning at the beginning of the period.
(Ⅴ) Expected change of net profit from January to September 2010
It is estimated that from January to September 2010, the net profit attributable to the
shareholders of parent company will be increased by around 150%-200% over the same
period last year.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
24
V. Significant Events
(I) Explanation on Corporate Governance
During the report period, the Company ever searched and perfected the corporate governance
in accordance with the relevant provisions such as the Company Law of the PRC, the
Securities Law of the PRC and Administrative Rules for Listed Companies, etc and new
regulations and documents issued by China Securities Regulatory Commission, Shenzhen
Securities Regulatory Bureau and Shenzhen Stock Exchange, so as to enhance standard
operation. According to regulations and rules on corporate governance of listed companies,
the Company completed, in an active and timely manner, corporate governance rectifications,
specific examinations and rules formulation required by regulatory authorities. The Company
formulated the Management Rules for External Users of Information and the Mechanism for
Responsibility Locating in Major Errors in Annual Report Disclosure. And it also gave
lectures to all directors, supervisors, senior executives and shareholders holding over 5%
shares on relevant regulations.
In the report period, the Company carried forward the internal control system building project.
Upon a systematic examination on the original system, the Internal Control System of CIMC
was improved according to the Basic Standards for Enterprise Internal Control issued by the
Ministry of Finance and other four ministries and committees, which took effect since 30 Mar.
2010 upon review of the Board of Directors.
The Company is quite independent of two principal shareholders, namely China Merchants
International Ltd. and COSCO Pacific Ltd. and other related enterprises in business, human
resources, assets, organization and financial affairs, which fully ensured its independent
operation.
There is no discrepancy between actual corporate governance and the requirements specified
in relevant documents of CSRC.
(II) Implementation of profit and dividend distribution plan for 2009 and interim profit
distribution for 2010
The Profit and Dividend Distribution Plan for Year 2009 was approved at the 2009 Annual
Shareholders’ General Meeting on 26 Apr. 2010. According to the Plan, a dividend of RMB
1.2 (tax included) will be distributed for every 10 shares based on the total current share
capital of 2,662,396,051 shares.
Up until the end of the report period, all dividends had been distributed. For more details, see
the public notice on the dividend distribution implementation published on China Securities
Journal, Shanghai Securities News, Securities Times and Hong Kong Ta Kung Pao dated 17
Jun. 2010.
The Company will not distribute profit or turn capital reserves into share capital for the first
half of 2010.
(III) Significant arbitration and lawsuit of the Company during the report period
There was no significant arbitration or lawsuit of the Company during the report period.
(IV) Securities investment and equity of other companies held by the Company
1. Securities investment
Unit: RMB’000
No. Stock
variety
Stock
code Name for short
Initial
investment
amount
(RMB’000)
Number of
shares held at
period-end
(unit: share)
Book value at
period-end
Proportion in
total securities
investment at
period-end (%)
Profits and
gains in
report
periodChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
25
1 H
share 368 Sino-trans
Shipping 21,582 2996500 7,836 5.43 -1,576
2 S
share G05.SI Goodpack 108,325 13500000 110,260 76.39 36,865
3 A
share 601318 China PingAn 23,577 500000 23,405 16.22 -172
Other securities investment held at the
period-end 2,834 2,834 1.96
Profits or losses of securities sold in the
report period
Total 156,318 144,335 100.00 35,117
2. Equity of other listed companies held by the Company
Unit: RMB’000
3. Equity of non-listed financial enterprises and companies to be listed held by the Company
Naught
(VI) Significant acquisition or sale of assets that occurred in the report period
On 18 Jan. 2010, the Company accomplished the voluntary unconditional cash tender offer to
Yantai Raffles Shipyard Limited (later renamed “CIMC Raffles Offshore (Singapore)
Limited”) and made Yantai Raffles a controlled subsidiary under CIMC.
For more details, please refer to the Public Notice on Progress on Voluntary Unconditional
Cash Tender Offer to Yantai Raffles Shipyard Limited by Subsidiary of CIMC (Public Notice
No.: [CIMC]2010-001) disclosed on China Securities Journal, Securities Times, Shanghai
Securities Times, Hong Kong Ta Kung Pao and www.cininfo.com dated 20 Jan. 2010.
(VI) Significant Related transaction
There was no significant related transaction in the Company during the report period
(VII) Significant contract and its implementation
1. Significant trusteeship, contracting and leasing in the report period
For details about contracted business to affiliated subsidiaries of the Company, please refer to
Notes of the Financial Statements.
2. Significant guarantee contracts
During the reporting period, the Company provides the guarantees to shareholding
subsidiaries and for vehicles business to any other party, which all are the guarantees for the
loans occurred for supporting production and operation of the Company. As of 30 Jun. 2010,
the guarantees are as follow:
Stock
code
Short form of
stock
Initial
investment
amount
Equity
proportion
in that of
this
company
Book value at
the period-end
Profit and loss
in the report
period
Change in the owners’
equity in the report period
600036 China Merchants
Bank 25,461 0.06% 149,580 11,240 -57,211
600999 China Merchants
Securities 57,518 1.00% 663,260 -145,039
OEL Otto Energy Ltd 13,880 1.19% 5,862
Total 96,859 818,702 11,240 -202,250China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
26
Unit: RMB Ten thousand
Guarantees provided by the Company for external parties (excluding those for subsidiaries)
Total guarantee amount in the report period 16,800
Total guarantee balance at the period-end 78,502
Guarantees for subsidiaries
Total guarantee amount provided for
subsidiaries in the report period
60,801
Total balance of the guarantee amount
provided for subsidiaries at the period-end
237,473
Total guarantee amount of the Company (Including the guarantee for the subsidiaries)
Total guarantee amount 315,975
Proportion of the total guarantee amount in
net assets of the Company 21.59%
Among which:
Guarantee amount provided for the
shareholders, actual controller and other
related parties
Guarantee amount directly and indirectly
provided for the guaranteed with an assetsliability
ratio over 70%
111,900
Amount of the total guarantee exceeding 50%
net assets of the Company
Total amount of the three types of guarantees
above 111,900
CIMC Vehicle Group, the wholly-owned subsidiary of the Company, handled the buyer credit
and loan business for the buyers that purchase special vehicle from its subordinate companies.
As at 30 Jun. 2010, balance of external guarantee that CIMC Vehicle Group and its
subsidiaries for sales of products by means of the buyer credit and loan was RMB
785,020,000.
By 30 Jun. 2010, the Company provided guarantee amounting to RMB 1,119,000,000 for
subsidiary holding company whose assets-liability ration is over 70%, which was approved
by the Board of Directors. There is no illegal guarantee. For details, please refer to the Public
Notice on Providing Guarantees for Application of Subsidiaries, Their Dealers and Customers
for Bank Credits in 2010 (Public Notice No.: [CIMC] 2010-006).
3. During the report period, there was no case of entrusting the others to manage the cash
assets.
(VIII) Special explanation and independent opinion made by independent directors on
relevant matters
1. Explanation from independent directors on capital occupation by principal shareholders
and other related parties
The Company has no non-operating capital occupied by principal shareholders and other
related parties.
2. Explanation on external guarantee of the Company by independent directors
In the report period, the Company strictly complied with the relevant provisions of the
Circular on Standardizing External Guarantee of Listed Companies (Zheng-Jian-Fa [2005]
No. 120) issued by CSRC, standardized external guarantee behaviors and controlled risk on
external guarantee. The above guarantees have been reviewed by the Board of Directors, and
the Board also performed the relevant information disclosure obligation. In a word, we
believed that the external guarantee of the Company was in compliance with the requirements
of relevant laws, belonging to business development demand and rational utilization of
capital. The decision-making procedure was valid and reasonable without harming benefits of
the Company and shareholders.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
27
(Ⅸ) Progress on the stock option incentive plan
On 28 Dec. 2009, the 16th session of the 5th Board of Directors for year 2009 of CIMC was
held, at which “the Stock Option Incentive Scheme of China International Marine Containers
(Group) Co., Ltd. (Draft)”, “the Appraisal Measures for Implementing Stock Option
Incentive Scheme of China International Marine Containers (Group) Co., Ltd.” and “the
Proposal on Submitting the Shareholders’ General Meeting to Authorize the Board of
Directors to Transact Matters Related with Stock Option Incentive Scheme of CIMC” were
reviewed and approved.
For details, please refer to Announcement on the Resolutions of the 16th Session of the 5th
Board of Directors for Year 2009 of CIMC disclosed in Securities Times, China Securities
Journal, Shanghai Securities News and Ta Kung Pao on 30 Dec 2009. (Announcement No.
[CIMC] 2009-037). Currently, the Stock Option Incentive Scheme (Draft) was submitted to
CSRC and got examination and approval.
(Ⅹ) Commitments made by major shareholder
Naught
(Ⅺ) Visits, surveys and interviews received by the Company
During the report period, the Company the Company received 42 batches of visitors for
visiting, surveying and visiting plants by institutional investors such as funds, investment
companies, securities companies and individual investors etc. The Company did not disclose
or give away unpublicized significant information to the institutional investors and individual
investors.
Time Place Way of
reception Visitor Main discussion and materials provided
by the Company
4 Jan. 2010 The Company Field research UBS Securities
The business structure of the Company,
the recent status in the industry, the
main business status, investment
progress, outlook for the industry in
2010
7 Jan. 2010 The Company By telephone
Orient Securities Co., Ltd.,
Bank of China Investment
Management
Ditto
7 Jan. 2010 The Company Field research Guangzhou Securities, Morgan Stanley
Huaxin Funds Ditto
8 Jan. 2010 The Company Field research Value Partners, customer of Shenyin &
Wanguo Securities Ditto
12 Jan. 2010 The Company Field research Changsheng Fund Management,
China Minzu Securities
Ditto
14 Jan. 2010 The Company Field research
TX Investment Consulting, ICBC
Credit Suisse Asset Management,
Pacific Securities, Lord Abbett
China
Ditto
14 Jan. 2010 The Company By telephone Guosen Securities Ditto
15 Jan. 2010 The Company Field research China Universal Asset Management,
Dacheng Fund Ditto
18 Jan. 2010 The Company Field research Nomura Securities Ditto
20 Jan. 2010 The Company Field research Harvest Fund DittoChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
28
26 Jan. 2010 The Company By telephone First Shanghai Securities Ditto
27 Jan. 2010 The Company By telephone Customer of ABN AMRO Ditto
28 Jan. 2010 The Company Field research E Fund, KGI, China Galaxy Securities,
BNP Paribas Peregrine Ditto
28 Jan. 2010 The Company By telephone Customer of CICC Ditto
29 Jan. 2010 The Company By telephone Capital Securities Ditto
24 Feb. 2010 The Company Field research Manulife Teda Fund Management,
PingAn Securities Ditto
25 Feb. 2010 The Company Field research Standard Chartered Ditto
25 Feb. 2010 The Company Field research GF Securities Ditto
26 Feb. 2010 The Company By telephone Nomura Securities Ditto
26 Feb. 2010 The Company Field research China Post Fund, First-Trust Fund
Management, UBS SDIC Ditto
28 Feb. 2010 The Company Field research CLSA Asia-Pacific Markets Ditto
5 Mar. 2010 The Company Field research Customer of BOC International (China)
Limited Ditto
8 Mar. 2010 The Company By telephone Taikang Asset Management Ditto
11 Mar. 2010 The Company Field research Nikko Asset Management Ditto
23 Mar. 2010 The Company Teleconference
Customer of CICC, customer of Shenyin
& Wanguo
2009 Annual Report and relevant
business progress
24 Mar. 2010 The Company Field research Morgan Stanley and its customer
The business structure of the Company,
the recent status in the industry, the
main business status, investment
progress, outlook for the industry in
2010
25 Mar. 2010 The Company By telephone Dacheng Fund, Harvest Fund Ditto
9 Apr. 2010 The Company Field research Manulife Ditto
17 Apr. 2010 Yantai Field research Customer of Citi Bank Ditto
19 Apr. 2010 The Company Field research China Galaxy Securities Ditto
20 Apr. 2010 The Company Field research Shanghai Jianyong Investment Co., Ltd. Ditto
22 Apr. 2010 The Company Field research Customer of HSBC Bank Ditto
28 Apr. 2010 The Company Field research Shenyin & Wanguo Securities (HK) Ditto
7 May 2010 The Company Field research Donghai Securities, CITIC Securities DittoChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
29
11 May 2010 The Company Field research Martine Currie Investment Management Ditto
28 May 2010 The Company Field research Chang Xin Asset Management Ditto
3 Jun. 2010 Shenzhen Field research Capital Securities Ditto
21 Jun. 2010 The Company Field research Asian Century Quest, Galaxy Asset
Management Ditto
22 Jun. 2010 The Company Field research Customer of BNP Paribas Ditto
23 Jun. 2010 Shenzhen One-to-many
conference
2010 Interim Strategy Conference of
China Merchants Securities Ditto
25 Jun. 2010 The Company Field research Gartmore Ditto
28 Jun. 2010 The Company Field research Morgan Stanley, Fidelity Investments
Management Ditto
(XII) Engagement and dismissal of the accounting firm
On 26 Apr. 2010, the Company held the Annual Shareholders’ General Meeting 2009, at
which Proposal on Engagement of Accounting Firms was reviewed and approved and
engaged KPMG Certified Public Accountants as Auditor for auditing accounting statements
for the year 2010.
(XIII) None of the directors as well as the Board of Directors or the Company were
criticized or condemned by any superior governing bodies in the report period.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
30
China International Marine Containers
(Group) Co., Ltd.
ENGLISH VERSION OF FINANCIAL STATEMENTS
FOR THE YEAR 1 JANURARY 2010 TO 30 JUNE 2010
IF THERE IS ANY CONFLICT OF MEANING BETWEEN THE CHINESE
AND ENGLISH VERSIONS, THE CHINESE VERSION WILL PREVAILChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
31
China International Marine Containers (Group) Co., Ltd.
Consolidated balance sheet as at 30 June 2010
’000
Note USD’000 RMB’000 USD’000 RMB’000
Assets
Current assets
Cash at bank and on hand V.1 696,548 4 ,726,217 7 71,685 5,269,217
Financial assets held for trading V.2 30,585 2 07,525 1 3,440 91,772
Bills receivable V.3 418,689 2 ,840,889 2 47,627 1,690,845
Accounts receivable V.4 1,393,141 9 ,452,740 5 65,684 3,862,604
Prepayments V.6 3 36,825 2 ,285,425 1 57,224 1,073,559
Interest receivable - -
Dividends receivable - -
Other receivables V.5 3 03,056 2 ,056,296 1 64,537 1,123,489
Inventories V.7 1 ,811,702 1 2,292,760 9 89,070 6,753,566
Other current assets V.9 92,227 6 25,779 4 0,456 276,242
Non-current assets due within on V.8 1 31,917 8 95,083 5 7,707 394,036
Total current assets 5,214,690 3 5,382,714 3 ,007,430 2 0,535,330
Non-current assets
Available-for-sale financial assets V.10 1 20,660 8 18,702 1 72,196 1,175,785
Long-term receivables V.11 151,467 1 ,027,734 1 45,271 991,942
Long-term equity investments V.12 233,418 1 ,583,788 2 82,770 1,930,811
Investment property V.13 10,863 7 3,708 1 1,073 75,606
Fixed assets V.14 1 ,447,288 9 ,820,139 1 ,126,949 7,695,033
Construction in progress V.15 151,359 1 ,027,001 8 3,956 573,269
Intangible assets V.16 479,639 3 ,254,447 4 06,788 2,777,626
Goodwill V.17 190,849 1 ,294,949 1 76,697 1,206,522
Long-term deferred expenses V.18 4,011 2 7,215 4 ,469 30,513
Deferred tax assets V.19 39,724 2 69,535 53,593 3 65,946
Total non-current assets 2,829,278 1 9,197,218 2 ,463,762 1 6,823,053
Total assets 8,043,968 5 4,579,932 5 ,471,192 3 7,358,383
30 June 2010 31 December 2009China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
32
China International Marine Containers (Group) Co., Ltd.
Consolidated balance sheet as at 30 June 2010 (continued)
’000
Note USD’000 RMB’000 USD’000 RMB’000
Liabilities and shareholders’equity
Current liabilities
Short-term loans V.22 1,398,237 9 ,487,318 608,869 4,157,477
Financial liabilities held for tradin V.23 2 1,707 1 47,286 22,705 155,036
Bills payable V.24 296,182 2 ,009,654 179,563 1,226,091
Accounts payable V.25 1,621,814 1 1,004,332 653,504 4,462,255
Advances from customers V.26 342,549 2 ,324,263 186,082 1,270,602
Employee benefits payable V.27 123,213 8 36,025 119,127 813,425
Taxes payable V.28 73,505 4 98,746 91,241 623,011
Interest payable V.29 3,928 2 6,652 1 ,295 8,844
Dividends payable V.30 11,433 7 7,575 4 ,604 31,434
Other payables V.31 189,407 1 ,285,164 216,294 1,476,903
Provisions V.32 7 4,815 5 07,635 75,687 516,801
Non-current liabilities due within V.33 4 87,754 3 ,309,508 6 6,705 4 55,472
Total current liabilities 4,644,544 3 1,514,158 2,225,676 1 5,197,351
Non-current liabilities
Long-term loans V.34 718,555 4 ,875,539 821,382 5,608,560
Special payables V.35 2,225 1 5,097 1 ,997 13,639
Provisions V.32 - 6 ,060 41,381
Deferred tax liabilities V.19 58,572 3 97,423 79,190 540,722
Other non-current liabilities V.36 19,106 1 29,638 19,053 1 30,099
Total non-current liabilities 798,458 5 ,417,697 9 27,682 6 ,334,401
Total liabilities 5,443,002 3 6,931,855 3,153,358 2 1,531,752
Shareholders’ equity
Share capital V.37 328,872 2 ,662,396 328,872 2,662,396
Capital reserve V.38 181,267 1 ,318,787 216,389 1,557,703
Surplus reserve V.39 434,170 3 ,577,588 434,170 3,577,588
Retained earnings V.40 1,134,791 8 ,822,600 1 ,047,547 8,229,532
Foreign currency translation differences 38,570 -2,012,573 5 2,371 - 1,829,011
Total equity attributable to
equity holders of the Company 2,117,670 1 4,368,798 2,079,349 1 4,198,208
Minority interests 483,296 3 ,279,279 2 38,485 1 ,628,423
Total equity 2,600,966 1 7,648,077 2,317,834 1 5,826,631
Total liabilities and shareholders’ equity 8,043,968 5 4,579,932 5,471,192 3 7,358,383
30 June 2010 31 December 2009China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
33
China International Marine Containers (Group) Co., Ltd.
Balance sheet as at 30 June 2010
’000
Note
USD’000 RMB’000 USD’000 RMB’000
Assets
Current assets
Cash at bank and on hand Ⅻ.1 69,764 473,363 93,398 637,738
Financial assets held for trading Ⅻ.2 3,450 23,409 - -
Dividends receivable Ⅻ.3 689,583 4,678,959 6 93,576 4,735,874
Other receivables Ⅻ.4 848,144 5,754,827 7 71,156 5,265,606
Other current assets 14 95 - -
Total current assets 1 ,610,955 1 0,930,653 1 ,558,130 10,639,218
Non-current assets
Available-for-sale financial assets Ⅻ.5 119,796 812,840 154,077 1,052,070
Long-term equity investments Ⅻ.6 522,808 3,547,357 4 36,147 2,978,100
Fixed assets 18,760 127,290 19,469 132,936
Construction in progress 3,856 26,164 3,208 21,906
Intangible assets 3,574 24,250 4,576 31,249
Long-term deferred expenses 944 6,405 1,138 7 ,770
Total non-current assets 6 69,738 4 ,544,306 6 18,615 4,224,031
Total assets 2 ,280,693 1 5,474,959 2 ,176,745 1 4,863,249
30 June 2010 31 December 2009China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
34
China International Marine Containers (Group) Co., Ltd.
Balance sheet as at 30 June 2010 (continued)
’000
Note
USD’000 RMB’000 USD’000 RMB’000
Liabilities and shareholders' equity
Current liabilities
Short-term loans Ⅻ.7 201,277 1,365,705 9 4,690 646,564
Financial liabilities held for trading Ⅻ.8 20,168 136,844 2 1,268 145,224
Employee benefits payable Ⅻ.9 32,435 220,078 3 4,019 232,286
Taxes payable Ⅻ.10 10,202 69,223 3 6,439 248,814
Interest payable 1,071 7,267 5 38 3,673
Dividends payable Ⅻ.11 6,879 46,675 - -
Other payables Ⅻ.12 3,383 22,954 3 ,843 26,234
Non-current liabilities due within one year Ⅻ.13 464,045 3,148,638 5 7,678 393,839
Total current liabilities 7 39,460 5,017,384 248,475 1 ,696,634
Non-current liabilities
Long-term loans Ⅻ.14 429,810 2,916,347 7 43,787 5,078,728
Deferred tax liabilities Ⅻ.15 12,943 87,821 1 9,936 136,128
Total non-current liabilities 4 42,753 3,004,168 763,723 5 ,214,856
Total liabilities 1 ,182,213 8,021,552 1 ,012,198 6 ,911,490
Shareholders’ equity
Share capital 328,872 2,662,396 3 28,872 2,662,396
Capital reserve Ⅻ.16 112,137 842,952 1 41,809 1,045,202
Surplus reserve 434,170 3,577,588 4 34,170 3,577,588
Retained earnings 223,301 1,684,315 2 59,696 1,932,874
Translation differences of financial
statements denominated in foreign currency
- (1,313,844) - (1,266,301)
Total equity 1 ,098,480 7,453,407 1 ,164,547 7 ,951,759
Total liabilities and Shareholders’ equity 2 ,280,693 1 5,474,959 2 ,176,745 14,863,249
30 June 2010 31 December 2009China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
35
China International Marine Containers (Group) Co., Ltd.
Consolidated income statement
for the year ended 30 June 2010
’000
Note USD’000 RMB’000 USD’000 RMB’000
Operating income V.41 3,115,796 2 1,237,889 1,381,965 9,442,276
Less: Operating costs V.41 2,676,965 1 8,246,729 1,186,450 8,106,420
Business taxes and surcharges V.42 2,815 1 9,188 1,944 13,282
Selling and distribution expenses 81,915 5 58,349 45,679 312,102
General and administrative expenses 151,432 1 ,032,191 133,492 912,084
Financial expenses V.43 36,984 2 52,090 17,292 118,148
Impairment loss(reversal) V.46 4,305 2 9,344 30,462 208,131
Add: Gain from changes in fair value V.44 12,667 8 6,341 -8,510 -58,145
Investment income V.45 -8,295 - 57,021 209,669 1,432,563
(Including: Income from investment in associates
and jointly controlled enterprises) 3,313 2 2,582 6,847 46,782
Operating profit 165,752 1 ,129,318 167,805 1,146,527
Add: Non-operating income V.47 28,586 1 94,848 5,061 34,579
Less:Non-operating expenses V.48 807 5 ,501 468 3,198
(Including:Loss from non-current assets disposal) 7 4 7 9 63
Profit before income tax 193,531 1 ,318,665 172,398 1,177,908
Less:Income tax expenses V.49 34,259 2 33,516 39,558 270,280
Net profit for the period 159,272 1 ,085,149 132,840 907,628
Attributable to:
Equity shareholders of the Company 133,951 9 12,556 120,871 825,850
Minority shareholders 25,321 1 72,593 11,969 81,778
Earnings per share
Net profit attributable to equity holders of the Company
Basic earnings per share V.50 0.0503 0 .3428 0.05 0.31
Diluted earnings per share V.50 0.0503 0 .3428 0.05 0.31
Net profit attributable to equity holders of the Company
after deducting non-operating items
Basic earnings per share 0.0406 0 .2766 -0.02 -0.14
Diluted earnings per share 0.0406 0 .2766 -0.02 -0.14
Other comprehensive income V.51 -58,680 - 506,809 -108,091 -722,991
Total comprehensive income 100,592 5 78,340 24,749 184,637
Attributable to:
Equity shareholders of the Company 82,299 4 71,475 4,022 41,453
Minority shareholders 18,293 1 06,865 20,727 143,184
from 1 January to 30 June 2010 from 1 January to 30 June 2009China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
36
China International Marine Containers (Group) Co., Ltd.
Income statement for the year ended 30 June 2010
’000
Note USD’000 RMB’000 USD’000 RMB’000
Ⅰ.Operating income 9 61 43 294
Less: Operating costs - - 33 225
General and administrative expenses 7,854 53,534 12,049 82,325
Financial expenses Ⅻ.17 2,484 16,931 1,834 12,531
Add: Gains/(losses) from changes in fair value Ⅻ.18 1,097 7,477 8,333 56,935
Investment income Ⅻ.19 14,422 98,303 202,822 1,385,781
Ⅱ.Operating profit 5,190 35,376 197,282 1,347,929
Add: Non-operating income Ⅻ.20 4,330 29,514 669 4,571
Ⅲ.Profit before income tax 9,520 64,890 197,951 1,352,500
Less:Income tax expenses Ⅻ.21 (792) (6,039) 39,256 268,217
Ⅳ.Net profit for the period 10,312 70,929 158,695 1,084,283
Ⅴ.Other comprehensive income Ⅻ.22 (29,672) (249,793) (95,171) (642,952)
Ⅵ.Total comprehensive income (19,360) (178,864) 63,524 441,331
from 1 January to 30 June 2010 from 1 January to 30 June 2009China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
37
China International Marine Containers (Group) Co., Ltd.
Consolidated cash flow statement
for the year ended 30 June 2010 ’000
Note
USD’000 RMB’000 USD’000 RMB’000
Cash flows from operating activities:
Cash received from sale of goods and rendering of services 2,518,768 1 7,168,426 1,460,017 9,975,566
Refund of taxes 43,487 2 96,416 54,833 3 74,646
Other cash received relating to operating activities V.52(1) 30,693 2 09,210 1 48,099 1,011,886
Sub-total of cash inflows 2 ,592,948 1 7,674,052 1,662,949 11,362,098
Cash paid for goods and services 2,466,188 1 6,810,031 1,155,908 7,897,741
Cash paid to and for employees 154,820 1 ,055,284 116,964 7 99,157
Cash paid for all types of taxes 122,964 8 38,147 99,030 6 76,622
Other cash paid relating to operating activities V.52(2) 256,496 1 ,748,328 75,683 5 17,104
Sub-total of cash outflows 3,000,468 2 0,451,790 1,447,585 9,890,624
Net cash (outflow) / inflow from operating activities V.53(1) -407,520 -2,777,738 2 15,364 1,471,474
Cash flows from investing activities:
Cash received from return on investments 1,777 1 2,112 2 21,801 1,515,455
Cash received from disposal of investments - - 58 3 96
Net cash received from disposal of fixed assets, intangible
assets and other long-term assets 117 7 97 208 1 ,421
Cash received from disposal of subsidiaries - - - -
Other cash received relating to investing activities V.52(3) - - 4 ,695 3 2,079
Sub-total of cash inflows 1 ,894 1 2,909 2 26,762 1,549,351
Cash paid for acquisition of fixed assets, intangible assets
and other long-term assets 75,121 5 12,040 83,635 5 71,436
Cash paid for acquisition of investments 24,978 1 70,255 30,393 2 07,660
Cash paid for acquisition of subsidiaries V.53(2) 61,494 4 19,155 - -
Other cash paid relating to investing activities - - - -
Sub-total of cash outflows 161,593 1,101,450 1 14,028 779,096
Net cash outflow from investing activities -159,699 -1,088,541 1 12,734 770,255
Cash flows from financing activities:
Cash received from investors 14,304 9 7,499 -
Cash received from borrowings 1,276,438 8 ,700,457 532,256 3,636,639
Other cash received relating to financing activities - - - -
Sub-total of cash inflows 1 ,290,742 8,797,956 5 32,256 3,636,639
Cash repayments of borrowings 698,398 4 ,760,420 653,671 4,466,207
Cash paid for dividends, profits distribution or interest 66,034 4 50,101 77,596 5 30,175
Other cash paid relating to financing activities - - - -
Sub-total of cash outflows 764,432 5,210,521 7 31,267 4,996,382
Net cash inflow / (outflow) from financing activities 526,310 3,587,435 - 199,011 -1,359,743
Effect of foreign exchange rate changes on cash and
equivalents -10,069 - 94,736 - 19,852 - 132,758
Net increase / (decrease) in cash and cash equivalents V.53(1) -50,978 - 373,580 109,235 7 49,228
Add:cash and cash equivalents at the beginning of the year 643,878 4 ,396,525 413,542 2,822,175
Cash and cash equivalents at the end of the year 5 92,900 4,022,945 5 22,777 3,571,403
from 1 January to 30 June 2010 from 1 January to 30 June 2009China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
38
China International Marine Containers (Group) Co., Ltd.
Cash flow statement for the year ended 30 June 2010
’000
Note
USD’000 RMB’000 USD’000 RMB’000
Ⅰ.Cash flows from operating activities:
Other cash received relating to operating activities 4 83,253 3,293,949 406,746 2,779,092
Cash paid to and for employees 5,307 3 6,174 3,956 2 7,029
Cash paid for all types of taxes 30,928 2 10,811 20,237 1 38,269
Other cash paid relating to operating activities 4 77,886 3 ,257,367 308,899 2 ,110,552
Sub-total of cash outflows 5 14,121 3,504,352 333,092 2,275,850
Net cash inflow / (outflow) from operating activities Ⅻ.23(1) (30,868) (210,403) 73,654 503,242
Ⅱ.Cash flows from investing activities:
Cash received from disposal of investments 1,777 1 2,112 2 21,801 1 ,515,455
Cash received from return on investments 15,262 1 04,029 6,592 4 5,040
Cash received from disposal of subsidiaries 1,655 1 1,281 - -
Sub-total of cash inflows 1 8,694 127,422 2 28,393 1,560,495
Cash paid for acquisition of fixed assets, intangible assets
and other long-term assets 217 1 ,479 1 ,575 1 0,761
Cash paid for acquisition of investments 89,393 6 09,321 40,004 2 73,327
Sub-total of cash outflows 8 9,610 610,800 41,579 284,088
Net cash inflow /(outflow) from investing activities (70,916) (483,378) 186,814 1,276,407
Ⅲ.Cash flows from financing activities:
Cash received from borrowings and subtotal of cash inflows 5 10,664 3,480,788 20,000 136,650
Cash repayments of borrowings 3 10,548 2 ,116,757 173,753 1 ,187,167
Cash paid for dividends, profits distribution or interest 48,870 3 33,108 59,859 4 08,987
Sub-total of cash outflows 3 59,418 2,449,865 233,612 1,596,154
Net cash inflow / (outflow) from financing activities 151,246 1,030,923 (213,612) (1,459,504)
Ⅳ.Effect of foreign exchange rate changes on cash and
equivalents 138 (1,459) (56) 26
Ⅴ.Net increase / (decrease) in cash and cash equivalents 49,600 3 35,683 46,800 3 20,171
Add:cash and cash equivalents at the beginning of the year 20,164 1 37,680 63,031 4 30,150
Ⅵ.Cash and cash equivalents at 30 June 2010 Ⅻ.23(2) 69,764 4 73,363 1 09,831 750,321
from 1 January to 30 June 2010 from 1 January to 30 June 2009China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
39
China International Marine Containers (Group) Co., Ltd.
Consolidated statement of changes in shareholders’ equity
for the year ended 30 June 2010
USD’000
Share Capital Surplus Retained Foreign currency Share Capital Surplus Retained Foreign currency
capital reserve reserve earnings exc.diff capital reserve reserve earnings exc.diff
Balance at 1 January 2010 328,872 216,389 434,170 1,047,547 52,371 238,485 2,317,834 328,872 186,386 434,170 965,638 52,711 220,612 2,188,389
Changes in equity for the period
(I) Net profit for the period V.51 133,951 25,321 159,272 - - - 140,394 -340 17,824 157,878
(II)Other comprehensive income for the year -37,851 -13,801 -7,028 -58,680 - 358 - - - 14,208 14,566
Sub-total of (I)&(II) - -37,851 - 133,951 -13,801 18,293 100,592 - 358 - 140,394 -340 32,032 172,444
(III) Shareholders’ contributions and
decrease of capital
1.Contributions by minority Shareholders 124,333 124,333 - - - - - 16,009 16,009
2.Acquisition of minority interests of
subsidiary - - 28,862 - - - -27,283 1,579
3. Increase in minority interests resulted from
acquisition of subsidiary 105,540 105,540 - - - 1,034 1,034
4.Increase in minority interests resulted from
the transform of associate to subsidiary - - - - - - - -
5.Increase in shareholders’ equity resulted
from share-based payments 2,729 677 3,406 - 783 - - - 217 1,000
(IV)Appropriation of profits
1.Appropriation for surplus reserve V.39 - - - - - - - -
2.Distributions to shareholders V.40 -46,707 -4,032 -50,739 - - - -58,485 - -4,136 -62,621
III.Balance at 30 June 2010 328,872 181,267 434,170 1,134,791 38,570 483,296 2,600,966 328,872 216,389 434,170 1,047,547 52,371 238,485 2,317,834
Minority
interests
Minority
Item Note interests
from 1 January to 30 June 2010 2009
Attributable to equity shareholders of the Company Attributable to equity shareholders of the Company
Total TotalChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
40
China International Marine Containers (Group) Co., Ltd.
Consolidated statement of changes in shareholders’ equity
for the year ended 30 June 2010 (continued) RMB’000
Share Capital Surplus Retained Foreign currency Share Capital Surplus Retained Foreign currency
capital reserve reserve earnings exc.diff capital reserve reserve earnings exc.diff
Balance at 1 January 2010 2,662,396 1,557,703 3,577,588 8,229,532 -1,829,011 1,628,423 15,826,631 2,662,396 1,352,772 3,577,588 7,669,924 -1,833,779 1,505,547 14,934,448
Changes in equity for the period
(I) Net profit for the period V.51 912,556 172,593 1,085,149 958,967 121,744 1,080,711
(II) Other comprehensive income for the year -257,519 -183,562 -65,728 -506,809 2,436 4,768 97,847 105,051
Sub-total of (I)&(II) - -257,519 - 912,556 -183,562 106,865 578,340 - 2,436 - 958,967 4,768 219,591 1,185,762
(III) Shareholders’ contributions and
decrease of capital
1.Contributions by minority Shareholders 847,479 847,479 109,353 109,353
2.Acquisition of minority interests of
subsidiary - - 197,148 -186,367 10,781
3. Increase in minority interests resulted from
acquisition of subsidiary 719,382 719,382 7,063 7,063
4.Increase in minority interests resulted from
the transform of associate to subsidiary - -
5.Increase in shareholders’ equity resulted
from share-based payments 18,603 - - - 4,613 23,216 5,347 1,485 6,832
(IV)Appropriation of profits
1.Appropriation for surplus reserve V.39 - -
2.Distributions to shareholders V.40 -319,488 -27,483 -346,971 -399,359 -28,249 -427,608
III.Balance at 30 June 2010 2,662,396 1,318,787 3,577,588 8,822,600 -2,012,573 3,279,279 17,648,077 2,662,396 1,557,703 3,577,588 8,229,532 -1,829,011 1,628,423 15,826,631
Item Note Total
from 1 January to 30 June 2010 2009
Attributable to equity shareholders of the Company Attributable to equity shareholders of the Company
Minority
interests Total
Minority
interestsChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
41
China International Marine Containers (Group) Co., Ltd.
Statement of changes in shareholders’ equity
for the year ended 30 June 2010
USD’000
Share Capital Surplus Share Capital Surplus
capital reserve reserve capital reserve reserve
Ⅰ.Balance at 1 January 2010 328,872 141,809 434,170 1,164,547 328,872 152,476 434,170 1,048,117
Ⅱ.Changes in equity for the period - - - - - - - -
(Ⅰ)Net profit for the period - - - 10,312 - - - 185,582
(Ⅱ)Other comprehensive income for the period Ⅻ.22 - (29,672) - (29,672) - (10,667) - (10,667)
Sub-total of (Ⅰ)&(Ⅱ) - (29,672) - (19,360) - (10,667) - 174,915
(Ⅲ)Appropriation of profits - - - - - - - -
- Appropriation for Surplus reserve - - - - - - - -
- Distributions to shareholders Ⅴ.40 - - - (46,707) - - - (58,485)
Ⅲ.Balance at 30 June 2010 328,872 112,137 434,170 1,098,480 328,872 141,809 434,170 1,164,547
Retained earnings
(58,485)
259,696
-
185,582
-
-
Retained earnings
132,599
-
185,582
Item Note
from 1 January to 30 June 2010 2009
Total Total
10,312
223,301
-
-
(46,707)
259,696
-
10,312
-China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
42
China International Marine Containers (Group) Co., Ltd.
Statement of changes in shareholders’ equity
for the year ended 30 June 2010(continued)
RMB’000
Share Capital Surplus Retained Share Capital Surplus Retained
capital reserve reserve earnings capital reserve reserve earnings
Ⅰ.Balance at 1 January 2010 2,662,396 1,045,202 3,577,588 1,932,874 (1,266,301) 7,951,759 2,662,396 1,118,064 3,577,588 1,064,613 (1,269,893) 7,152,768
Ⅱ.Changes in equity for the period - - - - - - - - - - - -
(Ⅰ)Net profit for the period - - - 70,929 - 70,929 - - - 1,267,620 - 1,267,620
(Ⅱ)Other comprehensive income for the period Ⅻ.22 - (202,250) - - (47,543) (249,793) - (72,862) - - 3,592 (69,270)
Sub-total of (Ⅰ)&(Ⅱ) - (202,250) - 70,929 (47,543) (178,864) - (72,862) - 1,267,620 3,592 1,198,350
(Ⅲ)Appropriation of profits - - - - - - - - - - - -
- Appropriation for Surplus reserve - - - - - - - - - - - -
- Distributions to shareholders Ⅴ.40 - - - (319,488) - (319,488) - - - (399,359) - (399,359)
Ⅲ.Balance at 30 June 2010 2,662,396 842,952 3,577,588 1,684,315 (1,313,844) 7,453,407 2,662,396 1,045,202 3,577,588 1,932,874 (1,266,301) 7,951,759
Item Note
from 1 January to 30 June 2010 2009
Total Total
Translation
differences of
financial statements
denominated in
foreign currency
Translation
differences of
financial statements
denominated in
foreign currencyChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
43
China International Marine Containers (Group) Co., Ltd.
Notes to the financial statements
(Expressed in thousands of USD or RMB)
I COMPANY STATUS
China International Marine Containers (Group) Co., Ltd. (the “Company”), formerly
“China International Marine Containers Co., Ltd.”, was a Sino-foreign joint venture
set up by China Merchants Group, the East Asiatic Company (Denmark) and Ocean
Containers Inc.(USA). In December 1992, as approved by “Shen Fu Ban Fu [1992]
1736” issued by the General Office of the People’s Government of Shenzhen and
“Shen Ren Yin Fu Zi (1992) 261” issued by Shenzhen Special Economic Zone
Branch of People’s Bank of China, the Company was restructured as an incorporated
company set up by directional subscription and was renamed as “China International
Marine Containers Co., Ltd.” by the original corporate shareholders of the Company.
On 31 December 1993 and 17 January 1994 respectively, the Company issued
ordinary shares denominated in Renminbi for domestic investors (A Shares) and for
foreign shares issued domestically (B Shares), and commenced trading on Shenzhen
Stock Exchange. Pursuant to “Shen Fu Ban Fu [1993] 925” issued by the General
Office of the People’s Government of Shenzhen and “Shen Zheng Ban Fu [1994] 22”
issued by Shenzhen Securities Administration Office.
On 1 December 1995, as approved by the State Administration of Industry and
Commerce, the Company changed its name to “China International Marine
Containers (Group) Co., Ltd”. Up to 31 December 2009, the share capital of the
Company amounted to 2,662,396,051 shares. Please refer to Note V.37 for details of
the share capital.
The principal activities of the Company and its subsidiaries (together referred to as
the “Group”) are the manufacturing of modern transportation facilities, facilities for
energy, food, chemistry and rendering of relative services. Detailed activities are the
manufacturing and repairing of containers and other relevant business; utilizing the
Group’s equipment to process and manufacture various parts, structure components
and relevant machines; providing cutting, punching, moulding, riveting surface
treatment (including sand/paint spraying, welding and assembly) and other processing
services; developing, manufacturing and selling of various high-tech and high
performance special vehicles and semi-trailers; leasing of containers; developing,
production and sales of high-end fuel gas equipments such as pressure container and
compressor; providing integrated services for natural gas distribution; production of
static container and pot-type wharf equipments and providing EP+CS (engineering
procurement and construction supervision) technical service for the storage and
processing of LNG, LPG and other petrochemical gases. Apart from the above, the
Group is also engaged in manufacturing of logistic equipment and related services,
marine projects, railway trucks production and property development, etc.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
44
II. BASIS OF PREPARATION
1. BASIS OF FINANCIAL REPORTING
The financial statements have been prepared on the basis of going concern.
2. STATEMENT OF COMPLIANCE
The financial statements have been prepared in accordance with the requirements of
“Accounting Standards for Business Enterprises—Basic Standard” and 38 Specific
Standards issued by the Ministry of Finance (MOF) on 15 February 2006, and
application guidance, bulletins and other relevant accounting regulations issued
subsequently (collectively referred to as “Accounting Standards for Business
Enterprises” or “CAS”). These financial statements present truly and completely the
consolidated financial position and financial position, the consolidated results of
operations and results of operations and the consolidated cash flows and cash flows of
the Company.
These financial statements also comply with the disclosure requirements of
“Regulation on the Preparation of Information Disclosures of Companies Issuing
Public Shares, No. 15: General Requirements for Financial Reports” as revised by the
China Securities Regulatory Commission (CSRC) in 2010.
3. ACCOUNTING PERIOD
The accounting year of the Group is from 1 January to 31 December.
4. FUNCTIONAL CURRENCY
The Company’s functional currency is U.S dollars, while certain domestic
subsidiaries use Renminbi (“RMB”) and Hong Kong and certain overseas
subsidiaries use local currencies as their functional currencies. Foreign currencies are
defined as currency other than functional currency. The Group determines its
functional currency based on its major currency in business transactions. The
financial statements are prepared using U.S dollars and presented in both U.S dollars
and RMB. For subsidiaries using currencies other than U.S dollars as their functional
currencies, the Company translates the financial statements of these subsidiaries into
U.S dollars (see Note II.8).China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
45
II. BASIS OF PREPARATION (CONTINUED)
5. ACCOUNTING TREATMENTS FOR A BUSINESS COMBINATION
INVOLVING ENTITIES UNDER AND THOSE NOT UNDER COMMON
CONTROL
(1) Business combination involving entities 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 business combination, and that control
is not transitory. The assets and liabilities obtained are measured at the carrying
amounts as recorded by the enterprise being combined at the combination date. The
difference between the carrying amount of the net assets obtained and the carrying
amount of consideration paid for the combination (or the total face value of shares
issued) is adjusted to share premium in the capital reserve. If the balance of share
premium is insufficient, any excess is adjusted to retained earnings. The combination
date is the date on which one combining enterprise effectively obtains control of the
other combining enterprises.
(2) Business combinations involving entities not under common control
A business combination involving entities not under common control is a business
combination in which all of the combining entities are not ultimately controlled by
the same party or parties both before and after the business combination. The cost of
a business combination paid by the acquirer is the aggregate of the fair value at the
acquisition date of assets given, liabilities incurred or assumed, and equity securities
issued by the acquirer, in exchange for control of the acquiree plus any cost directly
attributable to the business combination. The difference between the fair value and
the carrying amount of the assets given is recognised in profit or loss. The acquisition
date is the date on which the acquirer effectively obtains control of the acquiree.
The acquirer, at the acquisition date, allocates the cost of the business combination by
recognising the acquiree’s identifiable asset, liabilities and contingent liabilities at
their fair value at that date.
Any excess of the cost of a business combination over the acquirer’s interest in the
fair value of the acquiree’s identifiable net assets is recognised as goodwill (see Note
II.18).
Any excess of the acquirer’s interest in the fair value of the acquiree’s identifiable net
assets over the cost of a business combination is recognised in profit or loss.
6. PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS
The consolidated financial statements comprise the Company and its subsidiaries.
Control is the power to govern the financial and operating policies of an entity so as
to obtain benefits from its operating activities. The financial statements of
subsidiaries are included in the consolidated financial statements from the date that
control commences until the date that control ceases.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
46
II. BASIS OF PREPARATION (CONTINUED)
6. PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
Where a subsidiary was acquired during the reporting period, through a business
combination involving entities under common control, the financial statements of the
subsidiary are included in the consolidated financial statements as if the combination
had occurred at the date that common control was established. Therefore the opening
balances and the comparative figures of the consolidated financial statements are
restated. In the preparation of the consolidated financial statements, the subsidiary’s
assets, liabilities and results of operations are included in the consolidated balance
sheet and the consolidated income statement, respectively, based on their carrying
amount from the date that common control was established.
Where a subsidiary was acquired during the reporting period, through a business
combination involving entities not under common control, the identifiable assets,
liabilities and results of operations of the subsidiaries are consolidated into
consolidated financial statements from the date that control commences, base on the
fair value of those identifiable assets and liabilities at the acquisition date.
Where the Company acquires a minority interest from a subsidiary’s minority
shareholders or disposes of a portion of an interest in a subsidiary without a change in
control, the difference between the amount by which the minority interests are
adjusted and the amount of the consideration paid or received is adjusted to the
capital reserve in the consolidated balance sheet. If the credit balance of capital
reserve is insufficient, any excess is adjusted to retained earnings.
Where the Company acquired a minority interest from a subsidiary’s minority
shareholders before 7 August 2008, any excess of the investment cost for acquiring
the minority interest over the Group’s interest in the fair value of the identifiable net
assets of the minority interest acquired is recognised as goodwill. Where the
Company acquired a minority interest from a subsidiary’s minority shareholders, the
difference between the investment cost for acquiring the minority interest and the
corresponding reduction of minority interest in the consolidated financial statements,
is adjusted to the capital reserve in the consolidated balance sheet except for the
portion that has been recognised as goodwill. If the credit balance of capital reserve is
insufficient, any excess is adjusted to retained earnings.
Minority interest is presented separately in the consolidated balance sheet within
shareholders’ equity. Net profit or loss attributable to minority shareholders is
presented separately in the consolidated income statement below the net profit line
item.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
47
II. BASIS OF PREPARATION (CONTINUED)
6. PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
Where losses attributable to the minority shareholders of a subsidiary exceeds the
minority shareholders’ interest in of the equity of the subsidiary, the excess, and any
further losses attributable to the minority shareholders, are allocated against the
equity attributable to the Company except to the extent that the minority shareholders
have a binding obligation under the articles of association or an agreement and are
able to make additional investment to cover the losses. If the subsidiary subsequently
reports profits, such profits are allocated to the equity attributable to the Company
until the minority shareholders’ share of losses previously absorbed by the Company
has been recovered.
When the accounting period or accounting policies of a subsidiary are different from
those of the Company, the Company makes necessary adjustments to the financial
statements of the subsidiary based on the Company’s own accounting period or
accounting policies. Intra-group balances and transactions, and any unrealised profit
or loss arising from intra-group transactions, are eliminated in preparing the
consolidated financial statements. Unrealised losses resulting from intra-group
transactions are eliminated in the same way as unrealised gains but only to the extent
that there is no evidence of impairment.
7. CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise cash on hand, demand deposits, and short-term,
highly liquid investments, which are readily convertible into known amounts of cash
and are subject to an insignificant risk of change in value.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
48
II. BASIS OF PREPARATION (CONTINUED)
8. FOREIGN CURRENCY TRANSACTIONS AND TRANSLATION OF
FINANCIAL STATEMENTS DENOMINATED IN FOREIGN
CURRENCY
When the Group receives capital in foreign currencies from investors, the capital is
translated to functional currency at the spot exchange rate at the date of the receipt.
Other foreign currency transactions are, on initial recognition, translated to functional
currency at the rates that approximate the spot exchange rates at the dates of the
transactions.
A spot exchange rate is an exchange rate quoted by the People’s Bank of China. A
rate that approximates the spot exchange rate is a rate determined under a systematic
and rational method, normally the average exchange rate of the current period or the
weighted average exchange rate.
Monetary items denominated in foreign currencies are translated to functional
currency at the spot exchange rate at the balance sheet date. The resulting exchange
differences are recognised in profit or loss, except those arising from the principals
and interests on foreign currency borrowings specifically for the purpose of
acquisition, construction or production of qualifying assets (see Note II.16). Nonmonetary
items denominated in foreign currencies that are measured at historical cost
are translated to functional currency using the foreign exchange rate at the transaction
date. Non-monetary items denominated in foreign currencies that are measured at fair
value are translated using the foreign exchange rate at the date the fair value is
determined; the exchange differences are recognised in profit or loss, except for the
differences arising from the translation of available-for-sale financial assets, which is
recognised in capital reserve.
The assets and liabilities of foreign operation are translated to functional currency at
the spot exchange rates at the balance sheet date. The equity items, excluding
“Retained earnings”, are translated to functional currency at the spot exchange rates
at the transaction dates. The income and expenses of foreign operation are translated
to functional currency at the rates that approximate the spot exchange rates at the
transaction dates. The resulting exchange differences are recognised in a separate
component of equity. Upon disposal of a foreign operation, the cumulative amount of
the exchange differences recognised in equity which relates to that foreign operation
is transferred to profit or loss in the period in which the disposal occurs.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
49
II. BASIS OF PREPARATION (CONTINUED)
9. FINANCIAL INSTRUMENTS
Financial instruments comprise cash at bank and on hand, derivatives, investments in
debt and equity securities other than long-term equity investments (see Note II.12),
receivables, payables, loans and borrowings and share capital, etc.
(1) Classification, recognition and measurement of financial assets and financial
liabilities
A financial asset or financial liability is recognised in the balance sheet when the
Group becomes a party to the contractual provisions of a financial instrument.
The Group classifies financial assets and liabilities into different categories at initial
recognition based on the purpose of acquiring assets or assuming liabilities: financial
assets and financial liabilities at fair value through profit or loss, loans and
receivables, held-to-maturity investments, available-for-sale financial assets and other
financial liabilities.
Financial assets and financial liabilities are measured initially at fair value. For
financial assets and financial liabilities at fair value through profit or loss, any directly
attributable transaction costs are charged to profit or loss; for other categories of
financial assets and financial liabilities, any attributable transaction costs are included
in their initial costs. Subsequent to initial recognition financial assets and liabilities
are measured as follows:
- Financial assets and financial liabilities at fair value through profit or loss
(including financial assets or financial liabilities held for trading)
A financial asset or financial liability is classified as at fair value through
profit or loss if it is acquired or incurred principally for the purpose of selling
or repurchasing it in the near term or if it is a derivative, unless the derivative
is a designated and effective hedging instrument, or a financial guarantee
contract or a derivative that is linked to and must be settled by delivery of an
unquoted equity instrument (without a quoted price from an active market)
whose fair value cannot be reliably measured.
Subsequent to initial recognition, financial assets and financial liabilities at
fair value through profit or loss are measured at fair value, and changes
therein are recognised in profit or loss.
- Receivables
Receivables are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market.
Subsequent to initial recognition, receivables are subsequently stated at
amortised cost using the effective interest method.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
50
II. BASIS OF PREPARATION (CONTINUED)
9. FINANCIAL INSTRUMENTS
(1) Classification, recognition and measurement of financial assets and financial
liabilities (continued)
- Available-for-sale financial assets
Available-for-sale financial assets include non-derivative financial assets that
are designated upon initial recognition as available for sales and other
financial assets which do not fall into any of the above categories.
- Available-for-sale financial assets (continued)
An investment in equity instrument which does not have a quoted market
price in an active market and whose fair value cannot be reliably measured is
measured at cost subsequent to initial recognition.
Other than investments in equity instruments whose fair value cannot be
measured reliably as described above, subsequent to initial recognition, other
available-for-sale financial assets are measured at fair value and changes
therein, except for impairment losses and foreign exchange gains and losses
from monetary financial assets, which are recognised directly in profit or loss,
are recognised directly in equity. When an investment is derecognised, the
cumulative gain or loss in equity is removed from equity and recognised in
profit or loss. Dividend income from these equity instruments is recognised in
profit or loss when the investee declares the dividends.
- Other financial liabilities
Financial liabilities other than the financial liabilities at fair value through
profit or loss are classified as other financial liabilities.
Other financial liabilities include the liabilities arising from financial
guarantee contracts. Financial guarantees are contracts that require the issuer
(i.e. the guarantor) to make specified payments to reimburse the beneficiary of
the guarantee (the holder) for a loss the holder incurs because a specified
debtor fails to make payment when due in accordance with the terms of a debt
instrument. Where the Group issues a financial guarantee, subsequent to initial
recognition, the guarantee is measured at the higher of the amount initially
recognised less accumulated amortisation and the amount of a provision
determined in accordance with the principles of contingent liabilities (see
Note II.21).
Except for the liabilities arising from financial guarantee contracts described
above, subsequent to initial recognition, other financial liabilities are
measured at amortised cost using the effective interest method.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
51
II. BASIS OF PREPARATION (CONTINUED)
9. FINANCIAL INSTRUMENTS (CONTINUED)
(2) Determination of fair values
If there is an active market for a financial asset or financial liability, the quoted price
in the active market without adjusting for transaction costs that may be incurred upon
future disposal or settlement is used to establish the fair value of the financial asset or
financial liability. For a financial asset held or a financial liability to be assumed, the
quoted price is the current bid price and, for a financial asset to be acquired or a
financial liability assumed, it is the current asking price.
If no active market exists for a financial instrument, a valuation technique is used to
establish the fair value. Valuation techniques include using recent arm’s length
market transactions between knowledgeable, willing parties; reference to the current
fair value of another instrument that is substantially the same. The Group calibrates
the valuation technique and tests it for validity periodically.
(3) Derecognition of financial assets and financial liabilities
A financial asset is derecognised if the Group’s contractual rights to the cash flows
from the financial asset expire or if the Group transfers substantially all the risks and
rewards of ownership of the financial asset to another party.
Where a transfer of a financial asset in its entirety meets the criteria of the
derecognition, the difference between the two amounts below is recognised in profit
or loss:
- Carrying amount of the financial asset transferred.
- The sum of the consideration received from the transfer and any cumulative
gain or loss that has been recognised directly in equity.
The Group derecognises a financial liability (or part of it) only when the underlying
present obligation (or part of it) is discharged.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
52
II. BASIS OF PREPARATION (CONTINUED)
9. FINANCIAL INSTRUMENTS (CONTINUED)
(4) Impairment of financial assets
The carrying amounts of financial assets (other than those at fair value through profit
or loss) are reviewed at each balance sheet date to determine whether there is
objective evidence of impairment. If any such evidence exists, impairment loss is
provided. For the calculation method of impairment of receivables, refer to Note II.10,
The impairment of other financial assets are measured as follows:
- Available-for-sale financial assets
Available-for-sale financial assets are assessed for impairment on an
individual basis.
When an available-for-sale financial asset is impaired, the cumulative loss
arising from decline in fair value that has been recognised directly in equity is
removed from equity and recognised in profit or loss even though the financial
asset has not been derecognised.
If, after an impairment loss has been recognised on an available-for-sale debt
instrument, the fair value of the debt instrument increases in a subsequent
period and the increase can be objectively related to an event occurring after
the impairment loss was recognised, the impairment loss is reversed through
profit or loss. An impairment loss recognised for an investment in an equity
instrument classified as available-for-sale is not reversed through profit or loss.
(5) Equity investments
An equity instrument is a contract that proves the ownership interest of the assets
after deducting all liabilities in the Company.
The consideration received from the issuance of equity instruments net of transaction
costs is recognised in share capital and capital reserve.
Consideration and transaction costs paid by the Company for repurchasing self-issued
equity instruments are deducted from shareholders’ equity.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
53
II. BASIS OF PREPARATION (CONTINUED)
10. IMPAIRMENT OF RECEIVABLES
Receivables are assessed for impairment both on an individual basis and on a
collective group basis.
Where impairment is assessed on an individual basis, an impairment loss in respect of
a receivable is calculated as the excess of its carrying amount over the present value
of the estimated future cash flows (exclusive of future credit losses that have not been
incurred) discounted at the original effective interest rate. All impairment losses are
recognised in profit or loss.
The assessment is made collectively where receivables share similar credit risk
characteristics (including those having not been individually assessed as impaired),
based on their historical loss experiences, and adjusted by the observable figures
reflecting present economic conditions.
If, after an impairment loss has been recognised on receivables, there is objective
evidence of a recovery in value of the financial asset which can be related objectively
to an event occurring after the impairment was recognised, the previously recognised
impairment loss is reversed through profit or loss. A reversal of an impairment loss
will not result in the asset’s carrying amount exceeding that which would have been
determined had no impairment loss been recognised in prior years.
(a) Criteria and method of provision for accounts receivable that are individually
significant:
Criteria of provision for
accounts receivable that
are individually
significant
Future cash flows of accounts receivable are
estimated based on the credit ratings and
repayment history of the major customers from
whom the individually significant receivables are
due. An impairment loss in respect of a receivable
is calculated as the excess of its carrying amount
over the present value of the estimated future cash
flows (exclusive of future credit losses that have
not been incurred) discounted at the original
effective interest rate.
Method of provision for
accounts receivable that
are individually
significant
Impairment is assessed on an individual basis.
The receivables with no provision made on an
individual basis should be included in a group
based on their credit risk characteristics to assess
the impairment (see below note (c)).China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
54
II. BASIS OF PREPARATION (CONTINUED)
10. IMPAIRMENT OF RECEIVABLES (CONTINUED)
(b) Criteria and method of provision for accounts receivable that are individually
insignificant:
Within the receivables whose amounts are individually insignificant,
impairment is assessed on an individual basis for the overdue receivables
unpaid after collection efforts or with unique characteristics. Then the
receivables with no provision made on an individual basis shall be included in
a group with other accounts receivable (including receivables mentioned in
above note (a) which will be brought into a group for assessment) based on
their credit risk characteristics to assess the impairment (see below note (c)).
(c) Method of provision for accounts receivable that are grouped based on their
credit risk characteristics:
Method of provision for accounts receivable that are grouped based on their
credit risk characteristics mentioned in above note (a) and (b) is as follows:
Determination method of
the group based on credit
risk characteristics
Accounts receivable are divided into four groups
of containers, vehicles, energy and chemistry
equipment and others according to the industry
and business nature of customers and the
characteristics of the receivables. As to the
containers group, the relevant receivables within
credit period has lower credit risk after the
grouping based on credit risk characteristics
according to credit risk assessment and historical
data, no provision is provided accordingly. Other
groups are subdivided into several sub-groups with
similar credit risk characteristics based on ageing
analysis.
Method of provision for receivables that are grouped based on credit risk
characteristics
The proportions of provision for the three groups of vehicles, energy and
chemistry equipment and others based on their respective ageing analysis
are as follows:
Percentage of total accounts receivable (%)
Ageing
Vehicles
Energy and
chemistry
equipment
Others
Within 1 year
(inclusive) 1.5-5% 1.5-5% 0%
1 to 2 years
(inclusive) 1.5-10% 1.5-10% 5%
2 to 3 years
(inclusive) 1.5-30% 1.5-30% 30%
Over 3 years 100% 100% 100%China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
55
II. BASIS OF PREPARATION (CONTINUED)
11. INVENTORIES
(1) Classification
Inventories include raw materials, work in progress, semi-finished goods, finished
goods and reusable materials. Reusable materials include low-value consumables,
packaging materials and other materials, which can be used repeatedly but do not
meet the definition of fixed assets.
(2) Cost of inventories
Cost of inventories is calculated using the weighted average method.
(3) The underlying factors in the determination of net realisable value of inventories
and the basis of provision for decline in value of inventories
Inventories are carried at the lower of cost and net realisable value.
Cost of inventories comprises all costs of purchase, costs of conversion and other
costs. Inventories are initially measured at their actual cost. Borrowing costs directly
related to the production of qualifying inventories are also included in the cost of
inventories (see Note II.16). In addition to the purchasing cost of raw materials, work
in progress and finished goods include direct labour costs and an appropriate
allocation of production overheads.
Net realisable value is the estimated selling price in the normal course of business less
the estimated costs to completion and the estimated expenses and related taxes
necessary to make the sale. The net realisable value of materials held for use in the
production of inventories is measured based on the net realisable value of the finished
goods in which they will be incorporated. The net realisable value of the quantity of
inventory held to satisfy sales or service contracts is based on the contract price. If the
quantities of inventories specified in sales contracts are less than the quantities held
by the Group, the net realisable value of the excess portion of inventories shall be
based on general selling prices.
Any excess of the cost over the net realisable value of each class of inventories is
recognised as a provision for diminution in the value of inventories.
(4) Inventory system
The Group maintains a perpetual inventory system.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
56
II. BASIS OF PREPARATION (CONTINUED)
11. INVENTORIES (CONTINUED)
(5) Amortisation of reusable material including low-value consumables and packaging
materials
Reusable materials including low-value consumables and packaging materials are
amortised in full when received for use. The amounts of the amortisation are included
in the cost of the related assets or profit or loss.
12. LONG-TERM EQUITY INVESTMENTS
(1) Initial investment cost
(a) Long-term equity investments acquired through a business combination
- The initial investment cost of a long-term equity investment obtained
through a business combination involving entities under common
control is the Company’s share of the subsidiary’s equity at the
combination date. The difference between the initial investment cost
and the carrying amounts of the consideration given is adjusted to
share premium in capital reserve. If the balance of the share premium
is insufficient, any excess is adjusted to retained earnings.
- The initial investment cost of a long-term equity investment obtained
through a business combination involving entities not under common
control is the cost of acquisition determined at the acquisition date.
(b) Long-term equity investments acquired otherwise than through a business
combination
- An investment in a subsidiary acquired otherwise than through a
business combination is initially recognised at actual payment cost if
the Group acquires the investment by cash, or at the fair value of the
equity securities issued if an investment is acquired by issuing equity
securities, or at the value stipulated in the investment contract or
agreement if an investment is contributed by shareholders.
(2) Subsequent measurement
(a) Investments in subsidiaries
In the Company’s financial statements, investments in subsidiaries are
accounted for using the cost method. Cash dividends or profit distributions
declared by subsidiaries and attributed to the Company shall be recognised as
investment income, except those that have been declared but unpaid at the
time of acquisition and therefore included in the price paid or consideration.
The investments are stated at cost less impairment losses in the balance sheet.
In the Group’s consolidated financial statements, investments in subsidiaries
are accounted for in accordance with the principles described in Note II. 6.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
57
II. BASIS OF PREPARATION (CONTINUED)
12. LONG-TERM EQUITY INVESTMENTS (CONTINUED)
(2) Subsequent measurement (continued)
(b) Investment in jointly controlled enterprises and associates
A jointly controlled enterprise is an enterprise which operates under joint
control in accordance with a contractual agreement between the Group and
other parties (see NoteII.12(3)).
An associate is an enterprise over which the Group has significant influence
(see NoteII.12(3)).
An investment in a jointly controlled enterprise or an associate is accounted
for using the equity method, unless the investment is classified as held for sale
(see Note II.28).
The Group makes the following accounting treatments when using the equity
method:
- Where the initial investment cost of a long-term equity investment
exceeds the Group’s interest in the fair value of the investee’s
identifiable net assets at the date of acquisition, the investment is
initially recognised at the initial investment cost. Where the initial
investment cost is less than the Group’s interest in the fair value of the
investee’s identifiable net assets at the date of acquisition, the
investment is initially recognised at the investor’s share of the fair
value of the investee’s identifiable net assets, and the difference is
charged to profit or loss.
- After the acquisition of the investment, the Group recognises its share
of the investee’s net profits or losses after deducting the amortisation
of the debit balance of equity investment difference, which was
recognised by the Group before the first-time adoption of CAS, as
investment income or losses, and adjusts the carrying amount of the
investment accordingly. The debit balance of the equity investment
difference is amortised using the straight-line method over the period
of 10 years in accordance with previous accounting standards. Once
the investee declares any cash dividends or profits distributions, the
carrying amount of the investment is reduced by that attributable to the
Group.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
58
II. BASIS OF PREPARATION (CONTINUED)
12. LONG-TERM EQUITY INVESTMENTS (CONTINUED)
(2) Subsequent measurement (continued)
(b) Investment in jointly controlled enterprises and associates (continued)
The Group recognises its share of the investee’s net profits or losses
after making appropriate adjustments to align the accounting policies
or accounting periods with those of the Group based on the fair values
of the investee’s identifiable net assets at the date of acquisition.
Unrealised profits and losses resulting from transactions between the
Group and its associates or jointly controlled enterprises are
eliminated to the extent of the Group’s interest in the associates or
jointly controlled enterprises. Unrealised losses resulting from
transactions between the Group and its associates or jointly controlled
enterprises are eliminated in the same way as unrealised gains but only
to the extent that there is no evidence of impairment.
- The Group discontinues recognising its share of net losses of the
investee after the carrying amount of the long-term equity investment
and any long-term interest that in substance forms part of the Group’s
net investment in the associate or the jointly controlled enterprise is
reduced to zero, except to the extent that the Group has an obligation
to assume additional losses. Where net profits are subsequently made
by the associate or jointly controlled enterprise, the Group resumes
recognising its share of those profits only after its share of the profits
equals the share of losses not recognised.
(c) Other long-term equity investments
Other long-term equity investments refer to investments where the Group
does not have control, joint control or significant influence over the investees,
and the investments are not quoted in an active market and their fair value
cannot be reliably measured.
Such investments are initially recognised at the cost determined in accordance
with the same principles as those for jointly controlled enterprises and
associates, and then accounted for using the cost method. Cash dividends or
profit distributions declared by subsidiaries and attributed to the Company
shall be recognised as investment income, except those that have been
declared but unpaid at the time of acquisition and therefore included in the
price paid or the consideration.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
59
II. BASIS OF PREPARATION (CONTINUED)
12. LONG-TERM EQUITY INVESTMENTS (CONTINUED)
(3) Basis for determining the existence of joint control or significant influence over an
investee
Joint control is the contractual agreed sharing of control over an investee’s economic
activity, and exists only when the strategic financial and operating decisions relating
to the activity require the unanimous consent of the parties sharing the control. The
following evidences shall be considered when determining whether the Group can
exercise joint control over an investee:
?no single venturer is in a position to control the operating activities
unilaterally;
?operating decisions relating to the investee’s economic activity require
the unanimous consent of the parties sharing the control;
?if the parties sharing the control appoint one venturer as the operator or
manager of the joint venture through the contractual arrangement, the
operator must act within the financial and operating policies that have
been agreed by the venturers in accordance with the contractual
arrangement.
Significant influence is the power to participate in the financial and operating policy
decisions of an investee but is not control or joint control over those policies. The
following one or more evidences shall be considered when determining whether the
Group can exercise significant influence over an investee:
?representation on the board of directors or equivalent governing body of the
investee;
?participation in policy-making processes;
?material transactions between the investor and the investee;
?interchange of managerial personnel; or
?provision of essential technical information.
(4) Method of impairment testing and measuring
For the method of impairment testing and measuring for subsidiaries, jointly
controlled enterprises and associates, refer to Note II.20.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
60
II. BASIS OF PREPARATION (CONTINUED)
12. LONG-TERM EQUITY INVESTMENTS (CONTINUED)
(4) Method of impairment testing and measuring (continued)
For other long-term equity investments, the carrying amount is required to be tested
for impairment at the balance sheet date. If there is objective evidence that the
investments may be impaired, the impairment shall be assessed on an individual
basis. The impairment loss is measured as the amount by which the carrying amount
of the investment exceeds the present value of estimated future cash flows discounted
at the current market rate of return for a similar financial asset. Such impairment loss
is not reversed. The other long-term equity investments are stated at cost less
impairment losses in the balance sheet.
13. INVESTMENT PROPERTY
Investment property is a property held either to earn rental income or for capital
appreciation or for both. Investment property is accounted for using the cost model
and stated in the balance sheet at cost less accumulated depreciation, amortisation and
impairment. Investment property is depreciated or amortised using the straight line
method over its estimated useful life, unless the investment property is classified as
held for sale (see Note II.28). For the method of impairment testing and measuring,
refer to Note II.20.
The useful lives and estimated residual values of each class of investment property
are as follows:
Depreciation
residual / Amortisation
useful life value rate rate
Land use rights 29 - 50 years - 2% - 3.4%
Plant and buildings 20 - 30 years 10% 3 - 4.5%
14. FIXED ASSETS
(1) Recognition
Fixed assets represent the tangible assets held by the Group for use in the production
of goods or supply of services, for rental to others or for operation and administrative
purposes with useful lives over one year.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
61
II. BASIS OF PREPARATION (CONTINUED)
14. FIXED ASSETS (CONTINUED)
(1) Recognition (continued)
The cost of a purchased fixed asset comprises the purchase price, related taxes, and
any directly attributable expenditure for bringing the asset to working condition for its
intended use. The cost of self-constructed assets is measured in accordance with the
policy set out in Note II.15.
Where parts of an item of fixed asset have different useful lives or provide benefits to
the Group in different patterns thus necessitating use of different depreciation rates or
methods, each part is recognised as a separate fixed asset.
The subsequent costs including the cost of replacing part of an item of fixed assets are
recognised in the carrying amount of the item if the recognition criteria are satisfied,
and the carrying amount of the replaced part is derecognised. The costs of the day-today
servicing of fixed assets are recognised in profit or loss as incurred.
Fixed assets are stated in the balance sheet at cost less accumulated depreciation and
impairment losses.
(2) Depreciation
Fixed assets are depreciated using the straight-line method over their estimated useful
lives, unless the fixed asset is classified as held for sale (see Note II.28). The
depreciation period and estimated residual value of each class of fixed assets are as
follows:
Residual Depreciation
period value Depreciation
Classes (years) rate rate
Plants and buildings 20-30 years 10% 3-4.5%
Machinery and equipment 10-12 years 10% 7.5-9%
Office and other equipment 5 years 10% 18%
Motor vehicles 5 years 10% 18%
Useful lives, residual values and depreciation methods are reviewed at least each
year-end.
(3) For the method of impairment testing and measuring, refer to Note II.20.
(4) Disposal
The carrying amount of a fixed asset shall be derecognised:
?on disposal; or
?when no future economic benefits are expected to be generated from its use or
disposal.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
62
II. BASIS OF PREPARATION (CONTINUED)
14. FIXED ASSETS (CONTINUED)
(4) Disposal (continued)
Gains or losses arising from the retirement or disposal of an item of fixed asset are
determined as the difference between the net disposal proceeds and the carrying
amount of the item and are recognised in profit or loss on the date of retirement or
disposal.
15. CONSTRUCTION IN PROGRESS
The cost of self-constructed assets includes the cost of materials, direct labour,
capitalised borrowing costs (see Note II.16), and any other costs directly attributable
to bringing the asset to working condition for its intended use.
A self-constructed asset is included in construction in progress before it is transferred
to fixed asset when it is ready for its intended use. No depreciation is provided against
construction in progress. Construction in progress is stated in the balance sheet at cost
less impairment losses (see Note II.20).
16. BORROWING COSTS
Borrowing costs incurred directly attributable to the acquisition, construction or
production of a qualifying asset are capitalised as part of the cost of the asset.
Except for the above, other borrowing costs are recognised as financial expenses in
the income statement when incurred.
During the capitalisation period, the amount of interest (including amortisation of any
discount or premium on borrowing) to be capitalised in each accounting period is
determined as follows:
- Where funds are borrowed specifically for the acquisition, construction or
production of a qualifying asset, the amount of interest to be capitalised is the
interest expense calculated using effective interest rates during the period less
any interest income earned from depositing the borrowed funds or any
investment income on the temporary investment of those funds before being
used on the asset.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
63
II. BASIS OF PREPARATION (CONTINUED)
16. BORROWING COSTS (CONTINUED)
- Where funds are borrowed generally and used for the acquisition, construction
or production of a qualifying asset, the amount of interest to be capitalised on
such borrowings is determined by applying a capitalisation rate to the
weighted average of the excess amounts of cumulative expenditures on the
asset over the above amounts of specific borrowings. The capitalisation rate
is the weighted average of the interest rates applicable to the general-purpose
borrowings.
The effective interest rate is determined as the rate that exactly discounts
estimated future cash flow through the expected life of the borrowing or,
when appropriate, a shorter period to the initially recognised amount of the
borrowings.
During the capitalisation period, exchange differences related to the principal
and interest on a specific-purpose borrowing denominated in foreign currency
are capitalised as part of the cost of the qualifying asset. The exchange
differences related to the principal and interest on foreign currency
borrowings other than a specific-purpose borrowing are recognised as a
financial expense in the period in which they are incurred.
The capitalisation period is the period from the date of commencement of
capitalisation of borrowing costs to the date of cessation of capitalisation,
excluding any period over which capitalisation is suspended. Capitalisation of
borrowing costs commences when expenditure for the asset is being incurred,
borrowing costs are being incurred and activities of acquisition, construction
or production that are necessary to prepare the asset for its intended use or sale
are in progress, and ceases when the assets become ready for their intended
use or sale. Capitalisation of borrowing costs is suspended when the
acquisition, construction or production activities are interrupted abnormally
and the interruption lasts over three months.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
64
II. BASIS OF PREPARATION (CONTINUED)
17. INTANGIBLE ASSETS
Intangible assets are stated in the balance sheet at cost less accumulated amortisation
(where the estimated useful life is finite) and impairment losses (see Note II.20). For
an intangible asset with finite useful life, its cost less residual value and impairment
loss is amortised on the straight-line method or other more appropriate methods that
can reflect the pattern in which the asset’s economic benefits are expected to be
realised over its estimated useful life, unless the intangible asset is classified as held
for sale (see Note II.28).
The respective amortisation periods for such intangible assets are as follows:
Amortisation periods (years)
Land use rights 29 - 50
Technological know-how and trademarks 5 - 10
Timber concession rights 20
Customer base 8
Customer contracts 4
An intangible asset is regarded as having an indefinite useful life and is not amortised
when there is no foreseeable limit to the period over which the asset is expected to
generate economic benefits for the Group. At the balance sheet date, the Group does
not have any intangible assets with indefinite useful lives.
Expenditures on an internal research and development project are classified into
expenditures on the research phase and expenditures on the development phase.
Research is original and planned investigation undertaken with the prospect of
gaining new scientific or technical knowledge and understanding. Development is
the application of research findings or other knowledge to a plan or design for the
production of new or substantially improved materials, devices, products or processes
before the start of commercial production or use.
Expenditures on research phase are recognised in profit or loss when incurred.
Expenditures on development phase are capitalised if development costs can be
measured reliably, the product or process is technically and commercially feasible,
and the Group intends to and has sufficient resources to complete development.
Capitalised development costs are stated at cost less impairment losses (see Note
II.20). Other development expenditures are recognised as expenses in the period in
which they are incurred.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
65
II. BASIS OF PREPARATION (CONTINUED)
18. GOODWILL
Goodwill represents the excess of cost of acquisition over the acquirer’s interest in
the fair value of the identifiable net assets of the acquiree under the business
combination involving entities not under common control.
Goodwill is not amortised and is stated at cost less accumulated impairment losses
(see Note II.20). On disposal of an asset group or a set of asset groups, any
attributable amount of purchased goodwill is written off and included in the
calculation of the profit or loss on disposal.
19. LONG-TERM DEFERRED EXPENSE
Long-term deferred expenses are amortised on a straight-line method within the
beneficial period:
Item Amortisation period
Water and electricity
capacity enlargement expenses 5-10 years
Rental 2-10 years
Others 5-10 years
20. IMPAIRMENT OF ASSETS OTHER THAN INVENTORIES,
FINANCIAL ASSETS AND OTHER LONG-TERM INVESTMENTS
The carrying amounts of the following assets are reviewed at each balance sheet date
based on the internal and external sources of information to determine whether there
is any indication of impairment:
- fixed assets
- construction in progress
- intangible assets
- investment property measured using a cost model
- long-term equity investments in subsidiaries, associates and jointly controlled
entities
- goodwill
If any indication exists that an asset may be impaired, the recoverable amount of the
asset is estimated. In addition, the Group estimates the recoverable amounts of
goodwill at no later than each year-end, irrespective of whether there is any indication
of impairment or not. Goodwill is allocated to each asset group or set of asset groups,
which is expected to benefit from the synergies of the combination for the purpose of
impairment testing.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
66
II. BASIS OF PREPARATION (CONTINUED)
20. IMPAIRMENT OF ASSETS OTHER THAN INVENTORIES,
FINANCIAL ASSETS AND OTHER LONG-TERM INVESTMENTS
(CONTINUED)
The recoverable amount of an asset, asset group or set of asset groups is the higher of
its fair value less costs to sell and its present value of expected future cash flows.
An asset group is the smallest identifiable group of assets that generates cash inflows
that are largely independent of the cash inflows from other assets or asset groups. An
asset group is composed of assets directly relating to cash-generation. Identification
of an asset group is based on whether major cash inflows generated by the asset group
are largely independent of the cash inflows from other assets or asset groups. In
identifying an asset group, the Group also considers how management monitors the
Group’s operations and how management makes decisions about continuing or
disposing of the Group’s assets.
An asset’s fair value less costs to sell is the amount determined by the price of a sale
agreement in an arm’s length transaction, less the costs that are directly attributable to
the disposal of the asset. The present value of expected future cash flows of an asset
is determined by discounting the future cash flows, estimated to be derived from
continuing use of the asset and from its ultimate disposal, to their present value using
a pre-tax discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset.
If the result of the recoverable amount calculating indicates the recoverable amount of
an asset is less than its carrying amount, the carrying amount of the asset is reduced to
its recoverable amount. That reduction is recognised as an impairment loss and
charged to profit or loss for the current period. A provision for impairment loss of the
asset is recognised accordingly. For impairment losses related to an asset group or a
set of asset groups first reduce the carrying amount of any goodwill allocated to the
asset group or set of asset groups, and then reduce the carrying amount of the other
assets in the asset group or set of asset groups on a pro rata basis. However, that the
carrying amount of an impaired asset will not be reduced below the highest of its
individual fair value less costs to sell (if determinable), the present value of expected
future cash flows (if determinable) and zero.
Once an impairment loss is recognised, it is not reversed in a subsequent period.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
67
II. BASIS OF PREPARATION (CONTINUED)
21. PROVISIONS
A provision is recognised for an obligation related to a contingency if the Group has a
present obligation that can be estimated reliably, and it is probable that an outflow of
economic benefits will be required to settle the obligation. Where the effect of time
value of money is material, provisions are determined by discounting the expected
future cash flows.
22. SHARE-BASED PAYMENTS
(1) Classification
Share-based payments transactions in the Group are equity-settled share-based
payments.
(2) Method to determine the fair value of equity instruments
Fair value of stock option is estimated based on binomial lattice model. Contract term
of the stock option is used as the input variable of this model. And the binomial lattice
model includes estimation of early execution of the option. The following factors are
taken into account when using the binomial lattice model: (1) exercise price of the
option; (2) vesting period; (3) current price of basic stocks; (4) expected fluctuation
of stocks; (5) expected dividends of stocks; (6) risk-free rate within the option term.
(3) Basis of the best estimate of the number of equity instruments expected to vest
At each balance sheet date during the vesting period, the Group makes the best
estimation according to the latest information of the number of employees who are
granted to vest and revises the number of equity instruments expected to vest. On
vesting date, the estimate shall be equal to the number of equity instruments that
ultimately vested.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
68
II. BASIS OF PREPARATION (CONTINUED)
22. SHARE-BASED PAYMENTS (CONTINUED)
(4) Accounting treatment for share-based payment
- equity-settled share-based payments
Where the Group uses shares or other equity instruments as consideration for
services received from the employees, the payment is measured at the fair
value of the equity instruments granted to the employees at the grant date. If
the equity instruments granted to employees do not vest until the completion
of services for a vesting period, or until the achievement of a specified
performance condition, the Group, at each balance sheet date during the
vesting period, makes the best estimation according to the latest information
of the number of employees who are granted to vest and revises the number of
equity instruments expected to vest. Based on the best estimation, the Group
recognises the services received for the current period as related costs or
expenses, with a corresponding increase in capital reserve, at an amount equal
to the fair value of the equity instruments at the grant date.
23. REVENUE RECOGNITION
Revenue is the gross inflow of economic benefit in the periods arising in the course of
the Group’s ordinary activities when the inflows result in increase in shareholders’
equity, other than increase relating to contributions from shareholders. Revenue is
recognised in profit or loss when it is probable that the economic benefits will flow to
the Group, the revenue and costs can be measured reliably and the following
respective conditions are met:
(1) Sale of goods
Revenue from sale of goods is recognised when all of the general conditions stated
above and following conditions are satisfied:
- The significant risks and rewards of ownership of goods have been transferred
to the buyer
- The Group retains neither continuing managerial involvement to the degree
usually associated with ownership nor effective control over the goods sold.
Revenue from the sale of goods is measured at the fair value of the considerations
received or receivable under the sales contract or agreement.
(2) Rendering of services
Revenue from rendering of services is measured at the fair value of the considerations
received or receivable under the contract or agreement.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
69
II. BASIS OF PREPARATION (CONTINUED)
23. REVENUE RECOGNITION (CONTINUED)
(2) Rendering of services (continued)
At the balance sheet date, where outcome of a transaction involving the rendering of
services can be estimated reliably, revenue from the rendering of services is
recognised in the income statement by reference to the stage of completion of the
transaction based on the progress of work performed
Where outcome of rendering of services cannot be estimated reliably, if the costs
incurred are expected to be recoverable, revenues are recognised to the extent that the
costs incurred that are expected to be recoverable, and an equivalent amount is
charged to profit or loss as service cost; if the costs incurred are not expected to be
recoverable, the costs incurred are recognised in profit or loss and no service revenue
is recognised.
(3) Revenue from construction contracts
Where the outcome of a construction contract can be estimated reliably, contract
revenue and contract expenses associated with the construction contract are
recognised at the balance sheet date using the percentage of completion method.
The stage of completion of a contract is determined based on the proportion of the
physical construction work completed to the total estimated construction work.
When the outcome of a construction contract cannot be estimated reliably:
- If the contract costs can be recovered, revenue is recognised to the extent of
contract costs incurred that can be recovered, and the contract costs are
recognised as contract expenses when incurred;
- If the contract costs can not be recovered, the contract costs are recognised as
contract expenses immediately when incurred, and no contract revenue is
recognised.
(4) Interest income
Interest income is recognised on a time proportion basis with reference to the
principal outstanding and the applicable effective interest rate.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
70
II. BASIS OF PREPARATION (CONTINUED)
24. EMPLOYEE BENEFITS
Employee benefits are all forms of considerations given and other relevant
expenditures incurred in exchange for services rendered by employees. Except for
termination benefits, employee benefits are recognised as a liability in the period in
which the associated services are rendered by employees, with a corresponding
increase in cost of relevant assets or expenses in the current period.
(1) Pension benefits
Pursuant to the relevant laws and regulations of the PRC, the Group has joined a
basic pension insurance for the employees arranged by local Labour and Social
Security Bureaus. The Group makes contributions to the pension insurance at the
applicable rates based on the amounts stipulated by the government organisation. The
contributions are capitalised as part of the cost of assets or charged to profit or loss on
an accrual basis. When employees retire, the local Labour and Social Security
Bureaus are responsible for the payment of the basic pension benefits to the retired
employees. The Group does not have any other obligations in this respect.
(2) Housing fund and other social insurances
Besides the pension benefits, pursuant to the relevant laws and regulations of the PRC,
the Group has joined defined social security contributions for employees, such as a
housing fund, basic medical insurance, unemployment insurance, injury insurance
and maternity insurance. The Group makes contributions to the housing fund and
other social insurances mentioned above at the applicable rate(s) based on the
employees’ salaries. The contributions are recognised as cost of assets or charged to
profit or loss on an accrual basis.
(3) Termination benefits
When the Group terminates the employment relationship with employees before the
employment contracts have expired, or provides compensation as an offer to
encourage employees to accept voluntary redundancy, a provision for the termination
benefits provided, is recognised in profit or loss when both of the following
conditions have been satisfied:
- The Group has a formal plan for the termination of employment or has made
an offer to employees for voluntary redundancy, which will be implemented
shortly
- The Group is not allowed to withdraw from termination plan or redundancy
offer unilaterally.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
71
II. BASIS OF PREPARATION (CONTINUED)
25. GOVERNMENT GRANTS
Government grants are transfers of monetary assets or non-monetary assets from the
government to the Group at no consideration except for the capital contribution from
the government as an investor in the Group. Special funds such as investment grants
allocated by the government, if clearly defined in official documents as part of
“capital reserve” are dealt with as capital contributions, and not regarded as
government grants.
A government grant is recognised when there is reasonable assurance that the grant
will be received and that the Group will comply with the conditions attaching to the
grant.
If a government grant is in the form of a transfer of a monetary asset, it is measured at
the amount that is received or receivable. If a government grant is in the form of a
transfer of a non-monetary asset, it is measured at its fair value.
A government grant related to an asset is recognised initially as deferred income and
amortised to profit or loss on a straight-line basis over the useful life of the asset. A
grant that compensates the Group for expenses to be incurred in the subsequent
periods is recognised initially as deferred income and recognised in profit or loss in
the same periods in which the expenses are recognised. A grant that compensates the
Group for expenses incurred is recognised in profit or loss immediately.
26. DEFERRED TAXED ASSETS AND LIABILITIES
Deferred tax assets and liabilities arise from deductible and taxable temporary
differences respectively, being the differences between the carrying amounts of assets
and liabilities for financial reporting purposes and their tax bases, which include the
deductible losses and tax credits carry forward to subsequent periods. Deferred tax
assets are recognised to the extent that it is probable that future taxable profits will be
available against which deductible temporary differences can be utilised.
Deferred tax is not recognised for the temporary differences arising from the initial
recognition of assets or liabilities in a transaction that is not a business combination
and that affects neither accounting profit nor taxable profit (or tax loss). Deferred tax
is not recognised for taxable temporary differences arising from the initial recognition
of goodwill.
At the balance sheet date, the amount of deferred tax recognised is measured based on
the expected manner of recovery or settlement of the carrying amount of the assets
and liabilities, using tax rates that are expected to be applied in the period when the
asset is recovered or the liability is settled in accordance with tax laws.
The carrying amount of a deferred tax asset is reviewed at each balance sheet date.
The carrying amount of a deferred tax asset is reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow the benefit of the
deferred tax asset to be utilised. Any such reduction is reversed to the extent that it
becomes probable that sufficient taxable profits will be available.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
72
II. BASIS OF PREPARATION (CONTINUED)
26. DEFERRED TAXED ASSETS AND LIABILITIES (CONTINUED)
At the balance sheet date, deferred tax assets and liabilities are offset if all the
following conditions are met:
- the taxable entity has a legally enforceable right to set off current tax assets
against current tax liabilities, and
- they relate to income taxes levied by the same tax authority on either the same
taxable entity; or different taxable entities which either to intend to settle the
current tax liabilities and assets on a net basis, or to realize the assets and
settle the liabilities simultaneously, in each future period in which significant
amounts of deferred tax liabilities or assets are expected to be settled or
recovered.
27. OPERATING AND FINANCE LEASES
A lease is classified as either a finance lease or an operating lease. A finance lease is a
lease that transfers substantially all the risks and rewards incidental to ownership of a
leased asset to the lessee, irrespective of whether the legal title to the asset is
eventually transferred or not. An operating lease is a lease other than a finance lease.
(1) Operating lease charges
Rental payments under operating leases are recognised as costs or expenses on a
straight-line basis over the lease term.
(2) Assets leased out under operating leases
Fixed assets leased out under operating leases, except for investment property (see
Note II.13) are depreciated in accordance with the Group’s depreciation policies
described in Note II.14(2). Impairment losses are provided for in accordance with the
accounting policy described in Note II.20. Other leased out assets under operating
leases are amortised using the straight-line method. Income derived from operating
leases is recognised in the income statement using the straight-line method over the
lease term. If initial direct costs incurred in respect of the assets leased out are
material, the costs are initially capitalised and subsequently amortised in profit or loss
over the lease term on the same basis as the lease income. Otherwise, the costs are
charged to profit or loss immediately.
(3) Assets leased out under finance leases
The Group recognises the aggregate of the minimum lease receipts determined at the
inception of a lease and the initial direct costs as finance lease receivable. The
difference between the aggregate of the minimum lease receipts, the initial direct
costs, and the aggregate of their present values is recognised as unearned finance
income.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
73
II. BASIS OF PREPARATION (CONTINUED)
27. OPERATING AND FINANCE LEASES (CONTINUED)
(3) Assets leased out under finance leases (continued)
Unearned finance income is allocated to each accounting period during the lease term
using the effective interest method. At the balance sheet date, finance lease
receivables, net of unearned finance income, are presented as long-term receivables
or non-current assets due within one year, respectively in the balance sheet.
The Group makes provision for impairment losses of finance lease receivables (see
Note II.10).
The unguaranteed residual values are reviewed at least each year-end. Any excess of
the carrying amount of the unguaranteed residual values over their estimated
recoverable amounts is recognised as impairment loss. If there is an indication that
there has been a change in the factors used to determine the provision for impairment
and as a result the estimated recoverable amount of the unguaranteed residual values
is greater than its carrying amount, the impairment loss recognised in prior years is
reversed. Reversals of impairment losses are recognised in the income statement.
28. ASSETS HELD FOR SALE
A held-for-sale asset is classified as held for sale when the Group has made a decision
and signed a non-cancellable agreement on the transfer of the asset with the transferee,
and the transfer is expected to be completed within one year. Such non-current assets
may be fixed assets, intangible assets, and investment property subsequently
measured using the cost model, long-term equity investment etc. but not include
deferred tax assets. Non-current assets held for sale are stated at the lower of carrying
amount and net realisable value. Any excess of the carrying amount over the net
realisable value is recognised as impairment loss. At balance sheet date, non-current
assets held for sale are still presented under corresponding asset classification as they
were.
29. HEDGE ACCOUNTING
Hedge accounting is a method which recognises the offsetting effects on profit or loss
of changes in the fair values of the hedging instrument and the hedged item in the
same accounting period(s).
Hedged items are the items that expose the Group to risks of changes in fair value or
future cash flows and that are designated as being hedged. The Group’s hedged item
include a forecast transaction that is settled with a fixed amount of foreign currency
and expose the Group to foreign currency risk.
A hedging instrument is a designated derivative whose changes in fair value or cash
flows are expected to offset changes in the fair value or cash flows of the hedged item.
For a hedge of foreign currency risk, a non-derivative financial asset or nonderivative
financial liability may also be used as a hedging instrument.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
74
II. BASIS OF PREPARATION (CONTINUED)
29. HEDGE ACCOUNTING (CONTINUED)
The hedge is assessed by the Group for effectiveness on an ongoing basis and judged
whether it has been highly effective throughout the accounting periods for which the
hedging relationship was designated. A hedge is regarded as highly effective if both
of the following conditions are satisfied:
- Cash flow hedges
A cash flow hedge is a hedge of the exposure to variability in cash flows. The
portion of the gain or loss on the hedging instrument that is determined to be
an effective hedge is recognised directly in shareholders’ equity as a separate
component. That effective portion is adjusted to the lesser of the following in
absolute amounts:
- the cumulative gain or loss on the hedging instrument from inception
of the hedge
- the cumulative change in present value of the expected future cash
flows on the hedged item from inception of the hedge
The portion of the gain or loss on the hedging instrument that is determined to
be an ineffective hedge is recognised in profit or loss.
If a hedge of a forecast transaction subsequently results in the recognition of a
non-financial asset or non-financial liability, the associated gain or loss is
removed from shareholders’ equity and recognised in profit or loss in the same
period during which the financial asset or financial liability affects profit or
loss. However, if the Group expects that all or a portion of a net loss
recognised directly in shareholders’ equity will not be recovered in future
accounting periods, it reclassifies into profit or loss the amount that is not
expected to be recovered.
If a hedge of a forecast transaction subsequently results in the recognition of a
financial asset or a financial liability, the associated gain or loss is removed
from equity and recognised in profit or loss in the same period during which
the financial asset or financial liability affects profit or loss. However, if the
Group expects that all or a portion of a net loss recognised directly in
shareholders’ equity will not be recovered in future accounting periods, it
reclassifies into profit or loss the amount that is not expected to be recovered.
For cash flow hedges, other than those covered by the preceding two policy
statements, the associated gain or loss is removed from shareholders’ equity
and recognised in profit or loss in the same period or periods during which the
hedged forecast transaction affects profit or loss.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
75
3 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES (CONTINUED)
(12) Financial instruments (continued)
(c) Hedge accounting (continued)
- Cash flow hedges (continued)
When a hedging instrument expires or is sold, terminated or exercised,
or the hedge no longer meets the criteria for hedge accounting, the
Group will discontinue the hedge accounting treatments prospectively.
In this case, the gain or loss on the hedging instrument that remains
recognised directly in shareholders’ equity from the period when the
hedge was effective shall not be reclassified into profit or loss and is
recognised in accordance with the above policy when the forecast
transaction occurs. If the forecast transaction is no longer expected to
occur, the gain or loss on the hedging instrument that remains
recognised directly in shareholders’ equity from the period when the
hedge was effective shall be reclassified into profit or loss immediately.
30. DIVIDENDS APPROPRIATED TO INVESTORS
Dividends or distributions of profits proposed in the profit appropriation plan which
will be authorised and declared after the balance sheet date, are not recognised as a
liability at the balance sheet date but disclosed in the notes separately.
31. RELATED PARTIES
If a party has the power to control, jointly control or exercise significant influence
over another party, or vice versa, or where two or more parties are subject to common
control, jointly control, or significant influence from another party, they are
considered to be related parties. Related parties may be individuals or enterprises.
Enterprises with which the Company is under common control only from the State
and that have no other related party relationships are not regarded as related parties of
the Group. Related parties of the Group and the Company include, but are not limited
to:
(a) the Company’s parent;
(b) the Company’s subsidiaries;
(c) enterprises that are controlled by the Company’s parent;
(d) investors that have joint control or exercise significant influence over the
Group;
(e) enterprises or individuals if a party has control, joint control or significant
influence over both the enterprises or individuals and the Group;
(f) joint ventures of the Group;
(g) associates of the Group;China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
76
II. BASIS OF PREPARATION (CONTINUED)
31. RELATED PARTIES (CONTINUED)
(h) principal individual investors and close family members of such individuals;
(i) key management personnel of the Group and close family members of such
individuals;
(j) key management personnel of the Company’s parent;
(k) close family members of key management personnel of the Company’s parent;
and
(l) other enterprises that are controlled, jointly controlled or significantly
influenced by principal individual investors, key management personnel of the
Group, and close family members of such individuals.
Besides the related parties stated above determined in accordance with the
requirements of CAS, the following enterprises and individuals are considered as (but
not restricted to) related parties based on the disclosure requirements of
Administrative Procedures on the Information Disclosures of Listed Companies
issued by the CSRC:
(m) enterprises or persons that act in concert that hold 5% or more of the
Company’s shares;
(n) individuals and close family members of such individuals who directly or
indirectly hold 5% or more of the Company’s shares, supervisors for listed
companies and their close family members;
(o) enterprises that satisfy any of the aforesaid conditions in (a), (c) and (m)
during the past 12 months or will satisfy them within the next 12 months
pursuant to a relevant agreement;
(p) individuals who satisfy any of the aforesaid conditions in (i), (j) and (n) during
the past 12 months or will satisfy them within the next 12 months pursuant to
a relevant agreement; and
(q) enterprises, other than the Company and subsidiaries controlled by the
Company, which are controlled directly or indirectly by an individual defined
in (i), (j), (n) or (p), or in which such an individual assumes the position of a
director or senior executive.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
77
II. BASIS OF PREPARATION (CONTINUED)
32 SEGMENT REPORTING
Reportable segments are identified based on operating segments which are
determined based on the structure of the Group’s internal organisation, management
requirements and internal reporting system. An operating segment is a component of
the Group that meets the following conditions:
- It engages in business activities from which it may earn revenues and incur
expenses
- Its operating results are regularly reviewed by the Group’s management to
make decisions about resource to be allocated to the segment and assess its
performance
- The Group is able to obtain its financial information regarding financial
position, results of operations and cash flows, etc.
Two or more operating segments may be aggregated into a single operating segment
if the segments have similar economic characteristics, and are similar in respect of the
following aspects:
- the nature of products and services;
- the nature of production processes;
- the type or class of customers for the products and services;
- the methods used to distribute the products or provide the services;
- the legal and regulatory impact on manufacturing of products and rendering of
services.
33 SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS
The preparation of financial statements requires management to make estimates and
assumptions that affect the application of accounting policies and the reported
amounts of assets, liabilities, income and expenses. Actual results may differ from
these estimates. Estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognised in the period in which the
estimate is revised and in any future periods affected.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
78
II. BASIS OF PREPARATION (CONTINUED)
33 SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS
CONTINUED)
Notes V.17, VII and X.3 contain information about the assumptions and their risk
factors relating to impairment of goodwill, share-based payments and fair value of
financial instruments. Other key sources of estimation uncertainty are as follows:
(1) Impairment of receivables
As described in Note II.10, receivables that are measured at amortisation cost are
reviewed at each balance sheet date to determine whether there is objective evidence
of impairment. If any such evidence exists, impairment loss is provided. Objective
evidence of impairment includes observable data that comes to the attention of the
Group about loss events such as a significant decline in the estimated future cash flow
of an individual debtor or the portfolio of debtors, and significant changes in the
financial condition that have an adverse effect on the debtor. If there is an indication
that there has been a change in the factors used to determine the provision for
impairment, the impairment loss recognised in prior years is reversed.
(2) Impairment of other assets excluding inventories, financial assets and other longterm
equity investments
As described in Note II.20, other assets excluding inventories, financial assets and
other long-term equity investments are reviewed at each balance sheet date to
determine whether the carrying amount exceeds the recoverable amount of the assets.
If any such indication exists, impairment loss is provided.
The recoverable amount of an asset (asset group) is the greater of its net selling price
and its present value of expected future cash flows. Since a market price of the asset
(the asset group) cannot be obtained reliably, the fair value of the asset cannot be
estimated reliably. In assessing value in use, significant judgements are exercised
over the asset’s production, selling price, related operating expenses and discounting
rate to calculate the present value. All relevant materials which can be obtained are
used for estimation of the recoverable amount, including the estimation of the
production, selling price and related operating expenses based on reasonable and
supportable assumption.
(3) Depreciation and amortisation
As described in Note II.13, 14 and 17, investment property, fixed assets and
intangible assets are depreciated and amortised using the straight-line method over
their useful lives after taking into account residual value. The useful lives are
regularly reviewed to determine the depreciation and amortisation costs charged in
each reporting period. The useful lives are determined based on historical
experiences of similar assets and the estimated technical changes. If there is an
indication that there has been a change in the factors used to determine the
depreciation or amortisation, the amount of depreciation or amortisation is revised.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
79
II. BASIS OF PREPARATION (CONTINUED)
33 SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS
(CONTINUED)
(4) Warranty provisions
As described in V.32, the Group makes provisions under the warranties it gives on
sale of its products taking into account the group’s recent claim experience. Any
increase or decrease in the provision will affect profit or loss in future years.
(5) Impairment of inventories
As described in Note II.11, inventories are carried at the lower of cost and net
realisable value. Any excess of the cost over the net realisable value of each class of
inventories is recognised as a provision for diminution in the value of inventories.
Net realisable value is the estimated selling price in the normal course of business less
the estimated costs to completion and the estimated expenses and related taxes
necessary to make the sale. For inventories with committed sales orders or active
market, the Group estimates the new realisable value with reference to the selling
prices set out in the committed sales orders or in the active market. For inventories
without committed sales orders or active market, the Group carefully estimates the
new realisable value based on available information and reasonable and supportive
assumptions on expected selling prices, manufacturing costs, selling expenses, sales
tax and etc.
(6) Functional currency
As described in the Note II.4, the Group determines its functional currencies based on
the major currencies in business transactions. Since most revenue of the Group’s
subsidiaries within the container segment is denominated in US dollars, these
subsidiaries choose US dollars as their functional currencies. The subsidiaries in the
road transportation segment choose RMB as their functional currencies. If there is an
indication that there has been a change in the factors used to determine the functional
currency, the functional currency will be changed accordingly.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
80
II. BASIS OF PREPARATION (CONTINUED)
33 SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS
(CONTINUED)
(7) Construction contract
As described in Note II.23, contract revenue and contract profit are recognised based
on the stage of completion of a contract which is determined with reference to the
proportion of the physical construction work completed to the total estimated
construction work. Where a contract is completed substantially and its contract
revenue and contract expenses to completion can be reliably measured, the Group
estimates contract revenue and contract expenses with reference to its recent
construction experience and the nature of the construction contracts. For a contract
that is not completed substantially, contract revenue that should be recognised based
on its stage of completion, is not recognised and disclosed in the financial statements.
Therefore, at the balance sheet date, actual total contract revenue and total contract
cost may be higher or lower than the estimated total contract revenue and total
contract cost and any change of estimated total contract revenue and total contract
cost may have financial impact on future profit or loss.
(8) Income taxes
Determining income tax provisions involves judgement on the future tax treatment of
certain transactions. The Group carefully evaluates tax implications of transactions
and tax provisions are set up accordingly. The tax treatment of such transactions is
reconsidered periodically to take into account all changes in tax legislations. Deferred
tax assets are recognised for tax losses not yet used and temporary deductible
differences. As those deferred tax assets can only be recognised to the extent that it is
probable that future taxable profit will be available against which the unused tax
credits can be utilised, management’s judgement is required to assess the probability
of future taxable profits. Management’s assessment is constantly reviewed and
additional deferred tax assets are recognised if it becomes probable that future taxable
profits will allow the deferred tax asset to be recovered.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
81
II. BASIS OF PREPARATION (CONTINUED)
34 CHANGES IN ACCOUNTING POLICIES AND THEIR EFFECTS
(a) Changes in accounting policies
In accordance with CAS Bulletin No.4, which was newly issued by the Ministry of
Finance in 2010 and the Interpretion Guidance of China Accounting Standards
published in 2008, the Group changed the following significant accounting policies in
the current reporting period:
Description of and reasons for
changes in accounting policies Note
Affected items in the
financial statements Amounts of adjustments
In a business combination
achieved in stages (a Step
Acquisition) and involving
entities not under common
control, the change of
accounting treatment for
equity interest in the
acquiree held before
acquisition-date
(a) investment income
USD -19,255,000
（RMB：-131,246,000）China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
82
II. BASIS OF PREPARATION (CONTINUED)
34 CHANGES IN ACCOUNTING POLICIES AND THEIR EFFECTS
(CONTINUED)
(a) Description of and reasons for changes in accounting policies (continued)
Note:
(a) In a business combination achieved in stages (a Step Acquisition) and
involving entities not under common control, the change of accounting
treatment for equity interest in the acquiree held before acquisitiondate:
In accordance with CAS Bulletin No.4, from 1 January 2010, in a
business combination achieved in stages and involving entities not
under common control, accounting treatment for the separate financial
statement and consolidated financial statement respectively as follows:
Ⅰ.In the separate financial statement, the initial investment cost is
stated as the book value of the equity interest in the acquiree held
before acquisition-date plus the newly-added investment cost at the
acquisition date; if there is any other comprehensive income related
with the equity interest in the acquiree held before acquisition-date
（for example, changes in fair value of available-for-sale financial
asset accounted into Capital Reserve ） , the other comprehensive
income is reclassified into investment income for the current period.
Ⅱ.In the consolidated financial statement, the acquirer remeasures its
previously held equity interest at its acquisition-date fair value and the
difference between its fair value and book value is recognized as
investment income for the current period; if there is any other
comprehensive income related with the equity interest in the acquiree
held before acquisition-date, the other comprehensive income is
reclassified into investment income for the current period; The
acquirer discloses the fair value of its previously held equity interest
at acquisition-date and related gain or loss in profit or loss recognized.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
83
II. BASIS OF PREPARATION (CONTINUED)
34 CHANGES IN ACCOUNTING POLICIES AND THEIR EFFECTS
(CONTINUED)
(a) Description of and reasons for changes in accounting policies (continued)
Note (continued):
In 2008, the Group acquired 17.86% equity interests in Raffles with
a cash consideration of USD 93,288,000. In 2009, the Group acquired
additional 0.41% equity interests in Raffles with a cash consideration
of USD 788,000.
On 21 January 2010, the Group’s subsidiary, Bright Day Limited
completed its tender acquisition of Raffles shares and the Group holds
50.01% of issued ordinary shares of Raffles and becomes the
controlling shareholders of Raffles.
In accordance with CAS Bulletin No.4, the group remeasured its
previously held equity interest at its acquisition-date (on 1 January
2010) fair value and the difference between its fair value and book
value USD -19,255,000（RMB：-131,246,000）was recognized as
investment income for the current periodChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
84
III. TAXATION
1. MAIN TAXES AND TAXES RATES
Types of tax Taxable base Tax rate
Value added tax
(VAT)
The output VAT calculated based on taxable income from
sales of goods and rendering of service, after subtracting
the deductable input VAT of the period, is VAT payable
17%
Business tax Taxable operating income 3%-5%
Urban maintenance
and construction tax Business tax payable and VAT payable 5%-7%
Income tax Taxable income Note1
The Netherlands /
Australia service tax
rate
Calculated based on revenue arising from sales of goods
and rendering of service, less deductible or refundable
taxes for purchase of goods 10-19%China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
85
III. TAXATION (CONTINUED)
1. MAIN TAXES AND TAXES RATE(S) (CONTINUED)
Note1: The income tax rates applicable to the Group for the year are as follows:
2010 2009
The Company 22% 20%
Domestic subsidiaries 0 - 25% 0 - 25%
Subsidiaries registered in Hong Kong 16.5% 16.5%
Subsidiaries registered in British Virgin Islands - -
Subsidiary registered in Suriname 36% 36%
Subsidiary registered in Cambodia 20% 20%
Subsidiary registered in US 15 - 35% 15 - 35%
Subsidiary registered in Germany 31.6% 31.6%
Subsidiary registered in Britain 28% 28%
Subsidiary registered in Australia 30% 30%
Subsidiary registered in the Netherlands 25.5% 25.5%
Subsidiary registered in Belgium 34% 34%
Subsidiary registered in Denmark 28% 28%
Subsidiary registered in Finland 26% 26%
Subsidiary registered in Poland 19% 19%
Subsidiary registered in Thailand 30% 30%
Subsidiary registered in Singapore 17% 18%
2. TAX PREFERENCE
The Group’s subsidiaries that are entitled to preferential tax treatments are as follows:
Local
Statutory Preferential
Name of enterprises tax rate rate Reasons
1 Shenzhen CIMC - Tianda 22% 15% Recognised as high-tech
Airport Support Co., Ltd enterprises, entitled to
15% preferential rate
2 Shanghai CIMC Yangshan 25% 12.5% Entitled to tax holiday of
Logistics Equipment Co., Ltd “two-year exemption and
three-year reduction”, and 2010
is the third profit making year
3 Tianjin CIMC Special Vehicle Co., Ltd 22% 11% Entitled to tax holiday of
“two-year exemption and
three-year reduction”, and 2010
is the third profit making year
4 CIMC SHAC (Xi’An) Special Vehicle 25% 12.5% Entitled to tax holiday of
Co., Ltd “two-year exemption and
three-year reduction”, and 2010
is the third profit making yearChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
86
III. TAXATION (CONTINUED)
2. TAX PREFERENCE (CONTINUED)
Local
Statutory Preferential
Name of enterprises tax rate rate Reasons
5 Gansu CIMC Huajun Vehicle Co., Ltd. 25% 12.5% Entitled to tax holiday of
“two-year exemption and
three-year reduction”, and 2010
is the fourth profit making year
6 Jiaxing CIMC Wood Co., Ltd. 25% 12.5% Entitled to tax holiday of
“two-year exemption and
three-year reduction”, and 2010
is the fifrth profit making year
7 Ianermongolia Holonbuir CIMC Wood 25% 12.5% Entitled to tax holiday of
Co., Ltd “two-year exemption and
three-year reduction”, and 2010
is the third profit making year
8 Tianjin CIMC Logistics Equipments 22% 11% Entitled to tax holiday of
Co., Ltd. “two-year exemption and
three-year reduction”, and 2010
is the fifth profit making year
9 Tianjin CIMC Containers Co., Ltd 22% 11% Entitled to tax holiday of
“two-year exemption and
three-year reduction”, and 2010
is the third profit making year
10 Taicang CIMC Containers Co., Ltd 25% 12.5% Entitled to tax holiday of
“two-year exemption and
three-year reduction”, and 2010
is the fifth profit making year
11 Shanghai CIMC Yangshan Container 25% 12.5% Entitled to tax holiday of
Service Co.,Ltd “two-year exemption and
three-year reduction”, and 2010
is the third profit making year
12 Zhangjiagang CIMC Sanctum 25% 12.5% Entitled to tax holiday of
Cryogenic Equipment Co., Ltd “two-year exemption and
three-year reduction”, and 2010
is the fifth profit making year
13 Zhumadian CIMC Huajun Vehicle 25% 15% Recognised as high-tech
Co., Ltd. enterprises entitled to
15% preferential rate
14 Yangzhou Tonglee Reefer Equipment 25% 12.5% Entitled to tax holidays of
Co., Ltd “two-year exemption and
three-year reduction”, and 2010
is the fourth profit making year
15 Yangzhou Tonglee Reefer Container 25% 12.5% Entitled to tax holidays of
Co., Ltd “two-year exemption and
three-year reduction”, and 2010
is the third tax exemption year
16 Yangzhou CIMC Tonghua 25% 12.5% Entitled to tax holidays of
Tank Equipment Co., Ltd “two-year exemption and
three-year reduction”, and 2010
is the third tax exemption yearChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
87
III. TAXATION (CONTINUED)
2. TAX PREFERENCE (CONTINUED)
Local
Statutory Preferential
Name of enterprises tax rate rate Reasons
17 Enric (Bengbu) Compressor Co., Ltd 25% 15% Recognised as high-tech enterprises
entitled to 15% preferential rate
18 Shanghai CIMC Reefer 25% 15% Recognised as high-tech enterprises
Containers Co., Ltd. entitled to 15% preferential rate
19 Nantong CIMC Special Transportation 25% 15% Recognised as high-tech enterprises
Equipment Manufacture Co., Ltd. entitled to 15% preferential rate
20 Wuhu CIMC RuiJiang Automobile 25% 15% Recognised as high-tech enterprises
Co., Ltd entitled to 15% preferential rate
21 CIMC Vehicle (Liaoning) Co., Ltd. 22% 11% Entitled to tax holiday of
“two-year exemption and
three-year reduction”, and 2010
is the third tax exemption year
22 Chongqing CIMC Logistics Equipments 25% 12.5% Entitled to tax holiday of
Co., Ltd. “two-year exemption and
three-year reduction”, and 2010
is the third tax exemption year
23 Yangzhou CIMC Tong Hua Special 22% 15% Recognised as high-tech enterprises
Vehicles Co., Ltd entitled to 15% preferential rate
24 Shijiazhuang Enric Gas Equipment 25% 15% Recognised as high-tech enterprises
Co., Ltd. entitled to 15% preferential rate
25 Qingdao CIMC Special Vehicles 25% 12.5% Entitled to tax holiday of
Co., Ltd. “two-year exemption and
three-year reduction”, and 2010
is the third tax exemption year
26 Jingmen Hongtu Special Aircraft 25% 15% Recognised as high-tech enterprises
Manufacturing Co., Ltd entitled to 15% preferential rate
Corporate income tax law of the PRC (“New Tax Law”) became effective on 1
January 2008. The statutory income tax rate for the Company and its domestic
subsidiaries will be 25%. According to the Notice for Transitional Preferential Tax
Policies of Enterprise, Income Tax Law(Guo Fa [2007] No. 39) issued by the State
Council, the tax rate for the companies which were previously entitled to preferential
tax rates will gradually transition to the statutory tax rate of 25% within 5 years. The
tax rate for the enterprises which are entitled to preferential tax rate of 15% will be
18% in 2008, 20% in 2009, 22% in 2010, 24% in 2011 and 25% in 2012; the tax rate
for the enterprises whose applicable tax rates were 24% and above or equal to 25%
will be 25% starting from 2008.
Effective from 1 January 2008, the companies which are previously entitled to tax
holidays of “two-year exemption and three-year reduction” and “one-year exemption
and two-year reduction” will continue to enjoy the tax holidays until their expirations.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
88
The reduced tax rates will be based on the applicable tax rate in the transitional period.
The applicable tax rate will be the statutory tax rate after the expirations of tax
holidays.
On 6 December 2007, State Council of People’s Republic of China promulgated
detailed implementation rules of the New Tax Law. According to the implementation
rules started from 1 January 2008, a withholding tax is applied on dividends
distributed by foreign-invested enterprises to Hong Kong or other overseas investors
with a tax rate of 5% or 10%, respectively. Therefore, at 30 June 2010, temporary
difference caused by the Group’s subsidiaries’ undistributed profits amounted to USD
177,442,000 (RMB 1,203,979,000). Accordingly, deferred tax liabilities amounting to
USD 10,722,000 (RMB 72,751,000) were recognised by the Group at year end.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
89
IV. BUSINESS COMBINATIONS AND THE CONSOLIDATED
FINANCIAL STATEMENTS
1. COMPANY STATUS OF INVESTMENT IN SUBSIDIARIES
All subsidiaries of the Group were established or acquired through combination not
under common control. There is no acquisition of subsidiaries through combination
under common control.
In the reporting period, the number of companies included in the scope of
consolidation added up to 212. Except for the subsidiaries listed as below, the number
of other subsidiaries held by the Group was 89, with paid-in capital amounting to
USD 123,051,000. Other subsidiaries mainly included those engaged in
manufacturing or service provision, which have relatively small scale of operation
and the paid-in capital was below RMB 20 million or USD 3 million. Other
subsidiaries also included those investment holding companies with no operating
activities registered in Hong Kong, British Virgin Islands or other overseas countries.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
90
IV. BUSINESS COMBINATIONS AND THE CONSOLIDATED FINANCIAL STATEMENTS
1. COMPANY STATUS OF INVESTMENT IN SUBSIDIARIES
(1) Subsidiaries obtained through establishment or business combination
(i) Domestic subsidiaries:
Amount in current Balance in shareholders
year’s minority of the company reduces
Amount interests used loss attributable to
Actual investment and of to reduce minority shareholders of
actual net amount of Shareholding Voting minority the profit/(loss) the subsidiary which is
Investment of the percentage rights Within interest at attributable more than the opening
company at the end consolidation the end of to minority shareholders’ equity of
Registered capital of the year scope the year shareholders the subsidiary possessed
Currency Amount of Currency Amount of by the minority shareholders
Entity Registration original original USD’000 USD’000 USD’000
Name type place currency Business scope currency
1 Shenzhen Southern Corporation Guangdong, USD 16,600,000.00 Manufacture, repaire and sale of USD 16,600,000.00 100.00% 100.00% Yes - - -
CIMC Containers China container, container stockpiling
Manufacture business
Co., Ltd. (SCIMC)
2 Shenzhen Southern Corporation Guangdong, USD 16,600,000.00 Manufacture and repair of container USD 16,600,000.00 100.00% 100.00% Yes - - -
CIMC Eastern China design and manufacture of new-style
Logistics Equipment special road and port mechanical
Manufacturing equipment;
Co., Ltd. (SCIMCEL)
3 Xinhui CIMC Corporation Guangdong, USD 24,000,000.00 Manufacture, repair and sale of USD 16,800,000.00 70.00% 70.00% Yes 7,045 - -
Container China containers
Co., Ltd.(XHCIMC)
4 Nantong CIMC Corporation Jiangsu, USD 7,700,000.00 Manufacture, repair and sale of USD 5,467,000.00 71.00% 71.00% Yes - - 2,052
Shunda Containers China containers
Co., Ltd. (NTCIMC)
5 Tianjin CIMC Corporation Tianjin, USD 23,000,000.00 Manufacture and sale of container USD 23,000,000.00 100.00% 100.00% Yes - - -
Containers China as well as relevant technical advisory;
Co., Ltd.(TJCIMCn) container stockpiling business
6 Dalian CIMC Corporation Dalian, USD 17,400,000.00 Manufacture and sale of container USD 17,400,000.00 100.00% 100.00% Yes - - -
Containers China as well as relevant technical advisory;
Co., Ltd. (DLCIMC) container stockpiling business
7 Ningbo CIMC Corporation Ningbo, USD 15,000,000.00 Manufacture and sale of container USD 15,000,000.00 100.00% 100.00% Yes - - -
Logistics Equipment China as well as relevant technical advisory;
Co., Ltd.(NBCIMC) container stockpiling businessChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
91
IV. BUSINESS COMBINATIONS AND THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
1. COMPANY STATUS OF INVESTMENT IN SUBSIDIARIES (CONTINUED)
(1) Subsidiaries obtained through establishment or business combination (continued)
(i) Domestic subsidiaries (continued):
Amount in current Balance in shareholders
year’s minority of the company reduces
Amount interests used loss attributable to
Actual investment and of to reduce minority shareholders of
actual net amount of Shareholding Voting minority the profit/(loss) the subsidiary which is
Investment of the percentage rights Within interest at attributable more than the opening
company at the end consolidation the end of to minority shareholders’ equity of
Registered capital of the year scope the year shareholders the subsidiary possessed
Currency Amount of Currency Amount of by the minority shareholders
Entity Registration original original USD’000 USD’000 USD’000
Name type place currency Business scope currency
8 Taicang CIMC Corporation Jiangsu, USD 40,000,000.00 Manufacture and repair of container USD 40,000,000.00 100.00% 100.00% Yes - - -
Containers China
Co., Ltd.(TCCIMC)
9 Yangzhou Runyang Corporation Jiangsu, USD 5,000,000.00 Manufacture, repair and sale of container USD 5,000,000.00 100.00% 100.00% Yes - - -
Logistics Equipments China
Co., Ltd.(YZRYL)
10 Shanghai CIMC Yangshan Corporation Shanghai, USD 20,000,000.00 Manufacture and sale of container USD 20,000,000.00 100.00% 100.00% Yes - - -
Logistics Equipments China as well as relevant technical advisory
Co., Ltd.(SHYSLE)
11 Shanghai CIMC Reefer Corporation Shanghai, USD 31,000,000.00 Manufacture and sale of refrigeration USD 28,520,000.00 92.00% 92.00% Yes 6,486 - -
Containers Co., Ltd. China and heat preservation device of reefer
( SCRC ) container, refrigerator car and heat
Preservation car
12 Nantong CIMC Special Corporation Jiangsu, USD 10,000,000.00 Manufacture, sale and repair of various USD 7,100,000.00 71.00% 71.00% Yes 1,463 - -
Transportation China trough, tank as well as various
Equipment Manufacture special storing and transporting
Co., Ltd. (NTCIMCS) equipments and parts
13 Xinhui CIMC Special Corporation Guangdong, USD 9,000,000.00 Manufacture and sale of various USD 9,000,000.00 100.00% 100.00% Yes - - -
Transportation China container, semi-finished container
Equipment product and relevant components
Co., Ltd. (XHCIMCS) and parts; providing leasing
and maintenance service
14 Nantong CIMC Tank Corporation Jiangsu, USD 25,000,000.00 Manufacture and sale of various USD 19,555,000.00 78.22% 100.00% Yes Note 1 - -
Equipment Co., Ltd China container, semi-finished container
(NTCIMCT) relevant components and parts
Note IV. 1(4)China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
92
IV. BUSINESS COMBINATIONS AND THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
1. COMPANY STATUS OF INVESTMENT IN SUBSIDIARIES (CONTINUED)
(1) Subsidiaries obtained through establishment or business combination (continued)
(i) Domestic subsidiaries (continued):
Amount in current Balance in shareholders
year’s minority of the company reduces
Amount interests used loss attributable to
Actual investment and of to reduce minority shareholders of
actual net amount of Shareholding Voting minority the profit/(loss) the subsidiary which is
Investment of the percentage rights Within interest at attributable more than the opening
company at the end consolidation the end of to minority shareholders’ equity of
Registered capital of the year scope the year shareholders the subsidiary possessed
Currency Amount of Currency Amount of by the minority shareholders
Entity Registration original original USD’000 USD’000 USD’000
Name type place currency Business scope currency
15 Dalian CIMC Railway Corporation Liaoning, USD 20,000,000.00 Design, manufacture and sale of various USD 20,000,000.00 100.00% 100.00% Yes - - -
Equipment China railway freight equipment products such
Co., Ltd (DLCIMCS) as railway container flat car, open
wagon and hopper wagon
16 Nantong CIMC Large-sized Corporation Jiangsu, USD 33,000,000.00 Design, production and sale of tank USD 29,370,000.00 100.00% 100.00% Yes - - -
Tank Co., Ltd. China relevant parts; undertaking tank-related
general contracting projects
17 Shenzhen CIMC Special Corporation Guangdong, RMB 200,000,000.00 Development, production and sales of RMB 160,000,000.00 80.00% 100.00% Yes 8,922 - -
Vehicle Co., China various special-use vehicles, as well
Ltd.(CIMCSV) as relevant components and parts
18 Qingdao CIMC Special Corporation Shandong, RMB 35,000,000.00 Development, production and sales of RMB 28,000,000.00 80.00% 100.00% Yes 530 - -
Vehicle Co., China various special-use vehicles, refitting
Ltd.(QDSV) vehicles, special vehicles, trailer series
as well as relevant components and
parts
19 Yangzhou CIMC Tonghua Corporation Jiangsu, USD 17,500,000.00 Development and production of various USD 14,000,000.00 80.00% 100.00% Yes 4,226 - -
Tank Equipment Co., China trailer, special-use vehicles and tank
Ltd. (YZTHT) equipment as well as components and
parts
20 Shanghai CIMC Vehicle Corporation Shanghai, RMB 90,204,082.00 Development, construction, operation RMB 72,163,265.60 80.00% 100.00% Yes 2,646 - -
Logistics Equipments China leasing, sales of warehousing and
Co., Ltd. (SHL) auxiliary facilities; property
21 Beijing CIMC Vehicle Corporation Beijing, RMB 20,000,000.00 Construction and operation of RMB 16,000,000.00 80.00% 100.00% Yes 582 - -
Logistics Equipments China auxiliary warehousing equipments
Co., Ltd. (BJVL) management and relevant service
22 CIMC Vehicle (Liaoning) Corporation Liaoning, RMB 40,000,000.00 Development and production of various RMB 32,000,000.00 80.00% 100.00% Yes 1,342 - -
Co., Ltd. (LNVS) China trailer, special-use vehicles as well
as components and partsChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
93
IV. BUSINESS COMBINATIONS AND THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
1. COMPANY STATUS OF INVESTMENT IN SUBSIDIARIES (CONTINUED)
(1) Subsidiaries obtained through establishment or business combination (continued)
(i) Domestic subsidiaries (continued):
Amount in current Balance in shareholders
year’s minority of the company reduces
Amount interests used loss attributable to
Actual investment and of to reduce minority shareholders of
actual net amount of Shareholding Voting minority the profit/(loss) the subsidiary which is
Investment of the percentage rights Within interest at attributable more than the opening
company at the end consolidation the end of to minority shareholders’ equity of
Registered capital of the year scope the year shareholders the subsidiary possessed
Currency Amount of Currency Amount of by the minority shareholders
Entity Registration original original USD’000 USD’000 USD’000
Name type place currency Business scope currency
23 Tianjin CIMC Special Corporation Tianjin, RMB 30,000,000.00 Production and sales of box car, RMB 24,000,000.00 80.00% 100.00% Yes 556 - -
Vehicles Co., China mechanical products, metal
Ltd.(TJXV) structure member; relevant advisory
service
24 CIMC -SHAC (Xi’An) Corporation Xi’An, RMB 50,000,000.00 Development and production of various RMB 30,000,000.00 60.00% 75.00% Yes 2,151 - -
Special Vehicle Co., Ltd. China trailer, special vehicle and the
(XASV) components and parts; providing
relevant technical service
25 Gansu CIMC Huajun Corporation Gansu, RMB 25,000,000.00 Refitting of special vehicles, manufacture RMB 15,000,000.00 80.00% 100.00% Yes 879 - -
Vehicle Co., Ltd. China of trailer and fittings as well automobile
(GSHJ) fittings; sales of relevant materials
26 Xinhui CIMC Composite Corporation Guangdong, USD 16,000,000.00 Production, development, processing USD 12,800,000.00 80.00% 100.00% Yes 2,439 - -
Material Manufacture China and sales of various composite plate
CO., LTD (XHCM) products such as plastics, plastic alloy
27 Qingdao CIMC Eco- Corporation Shandong, RMB 137,930,000.00 Development, manufacture, sales and RMB 56,275,440.00 40.80% 51.00% Yes 7,701 - -
Equipment Co., Ltd. China service for garbage treatment truck
(QDHB) and the components and parts
28 Shanghai CIMC Special Corporation Shanghai, RMB 30,000,000.00 Development and production of box RMB 24,663,000.00 82.21% 100.00% Yes 674 - -
Vehicle Co., Ltd. China trailer, box car as well as relevant
(SHCIMCV) mechanical products
29 CIMC Financing and Corporation Guangdong, USD 10,000,000.00 Finance lease business; disposal and RMB 48,957,800.00 80.00% 100.00% Yes 3,512 - -
Leasing Co., Ltd. China maintenance for residual value of
(CIMCVL) leased property; advisory and
warranty for leasing transaction
30 Qingdao Refrigeration Corporation Shandong, USD 25,000,000.00 Manufacture and sales of various USD 20,000,000.00 80.00% 100.00% Yes 4,816 - -
Transport Equipment China refrigeration, heat preservation and
Co., Ltd. (QDRV) other transport equipments and spare partsChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
94
IV. BUSINESS COMBINATIONS AND THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
1. COMPANY STATUS OF INVESTMENT IN SUBSIDIARIES (CONTINUED)
(1) Subsidiaries obtained through establishment or business combination (continued)
(i) Domestic subsidiaries (continued):
Amount in current Balance in shareholders
year’s minority of the company reduces
Amount interests used loss attributable to
Actual investment and of to reduce minority shareholders of
actual net amount of Shareholding Voting minority the profit/(loss) the subsidiary which is
Investment of the percentage rights Within interest at attributable more than the opening
company at the end consolidation the end of to minority shareholders’ equity of
Registered capital of the year scope the year shareholders the subsidiary possessed
Currency Amount of Currency Amount of by the minority shareholders
Entity Registration original original USD’000 USD’000 USD’000
Name type place currency Business scope currency
31 Nantong CIMC Tank Corporation Jiangsu, USD 10,000,000.00 Manufacture and repair of large-sized USD 8,000,000.00 85.00% 100.00% Yes 948 - -
Equipment Co., China tank, production of various
Ltd. (NTCY) pressurization tank car, special
pressurization trough, tank and parts
32 Shenzhen CIMC – Tianda Corporation Guangdong, USD 13,500,000.00 Production and operation of various USD 9,450,000.00 70.00% 70.00% Yes 11,243 - -
Airport Support Ltd. China airport-purpose electromechanical
(TAS) equipment products
33 Xinhui CIMC Container Corporation Guangdong, USD 15,500,000.00 Production of container-purpose wood USD 15,500,000.00 100.00% 100.00% Yes - - -
Flooring Co., Ltd. China floor and relevant products of various
(XHCIMCF) specifications; providing relevant
technical advisory service
34 Inner Mongolia Holonbuir Corporation Inner USD 12,000,000.00 Production and sales of various USD 12,000,000.00 100.00% 100.00% Yes - - -
CIMC Wood Co., Ltd. Mongolia, container wood floors and wood
(NMGW) China products for transport equipments
35 Jiaxing CIMC Wood Corporation Zhejiang, USD 5,000,000.00 Production and sales of container USD 5,000,000.00 100.00% 100.00% Yes - - -
Co., Ltd. (JXW) China wood floors, wood products for
transport equipments and other
wood products
36 Xuzhou CIMC Wood Corporation Jiangsu, RMB 50,000,000.00 Production and sales of container RMB 50,000,000.00 100.00% 100.00% Yes - - -
Co., Ltd (XZW) China wood floor; purchasing and
sales of timber
37 Shenzhen Southern CIMC Corporation Guangdong, USD 5,000,000.00 Engaged in container transshipment, USD 5,000,000.00 100.00% 100.00% Yes - - -
Containers Service China stockpiling, devanning, vanning,
Co., Ltd. (SCIMCL) maintenanceChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
95
IV. BUSINESS COMBINATIONS AND THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
1. COMPANY STATUS OF INVESTMENT IN SUBSIDIARIES (CONTINUED)
(1) Subsidiaries obtained through establishment or business combination (continued)
(i) Domestic subsidiaries (continued):
Amount in current Balance in shareholders
year’s minority of the company reduces
Amount interests used loss attributable to
Actual investment and of to reduce minority shareholders of
actual net amount of Shareholding Voting minority the profit/(loss) the subsidiary which is
Investment of the percentage rights Within interest at attributable more than the opening
company at the end consolidation the end of to minority shareholders’ equity of
Registered capital of the year scope the year shareholders the subsidiary possessed
Currency Amount of Currency Amount of by the minority shareholders
Entity Registration original original USD’000 USD’000 USD’000
Name type place currency Business scope currency
38 Ningbo CIMC Container Corporation Ningbo, RMB 30,000,000.00 Goods traffic; goods package, sorting, RMB 30,000,000.00 100.00% 100.00% Yes - - -
Service Co., Ltd. China examination and logistics advisory
(NBCIMCL) service; container stockpiling, customs
declaration, repair, storing
39 Shanghai CIMC Yangshan Corporation Shanghai, USD 7,000,000.00 Container transshipment, stockpiling, USD 5,600,000.00 80.00% 80.00% Yes 1,177 - -
Container Service Co., China devanning, vanning, and warehousing;
Ltd. (SHYLE) container maintenance, try-off
and technical service
40 CIMC Shenfa Corporation Shanghai, RMB 204,122,966.00 Investment, construction and operation RMB 204,122,966.00 100.00% 100.00% Yes - - -
Development Co., China for infrastructure; real estate
Ltd.(CIMCSD) development and operation
41 CIMC Vehicle (Xinjiang) Corporation Xinjiang, RMB 80,000,000.00 Production and sales of mechanical RMB 64,000,000.00 80.00% 80.00% Yes 77 - -
Co., Ltd. (SJ4S) China equipments as well as
relevant technical development
42 CIMC Vehicle (Group) Corporation Guangdong, USD 75,000,000.00 Development, production and USD 60,000,000.00 80.00% 80.00% Yes 31,371 - -
Co., Ltd. (HI) China sales of various high-tech and
high-performance special
vehicle and trailer series
43 Qingdao CIMC Special Corporation Shandong, USD 11,500,000.00 Manufacture and sale of various USD 11,500,000.00 100.00% 100.00% Yes - - -
Reefer Co., China container, semi-finished container
Ltd.(QDCSR) product and relevant components
and partsChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
96
IV. BUSINESS COMBINATIONS AND THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
1. COMPANY STATUS OF INVESTMENT IN SUBSIDIARIES (CONTINUED)
(1) Subsidiaries obtained through establishment or business combination (continued)
(i) Domestic subsidiaries (continued):
Amount in current Balance in shareholders
year’s minority of the company reduces
Amount interests used loss attributable to
Actual investment and of to reduce minority shareholders of
actual net amount of Shareholding Voting minority the profit/(loss) the subsidiary which is
Investment of the percentage rights Within interest at attributable more than the opening
company at the end consolidation the end of to minority shareholders’ equity of
Registered capital of the year scope the year shareholders the subsidiary possessed
Currency Amount of Currency Amount of by the minority shareholders
Entity Registration original original USD’000 USD’000 USD’000
Name type place currency Business scope currency
44 Tianjin CIMC Logistics Corporation Tianjin, USD 5,000,000.00 Design, manufacture, sale, maintenance USD 5,000,000.00 100.00% 100.00% Yes - - -
Equipments Co., Ltd. China and relevant technical advisory
(TJCIMCLE) for logistics equipments and
relevant components and parts
45 Dalian CIMC Logistics Corporation Dalian, USD 17,700,000.00 Design, manufacture, sale, maintenance USD 17,700,000.00 100.00% 100.00% Yes - - -
Equipment Co., Ltd. China and relevant technical advisory
(DLL) for international trade, entrepot
trade, logistics equipment
and pressure vessel
46 Chongqing CIMC Corporation Chongqing, USD 8,000,000.00 Design, manufacture, lease, maintenance USD 8,000,000.00 100.00% 100.00% Yes - - -
Logistics Equipments China of container, special container, other
Co., Ltd. (CQLE) logistic equipment and relevant
components and parts
47 Dalian CIMC Heavy Corporation Liaoning, USD 3,700,000.00 International trade, entrepot trade, USD 3,700,000.00 100.00% 100.00% Yes - - -
Logistics Equipments China design, manufacture, sale, and relevant
Co., Ltd.(DLZH) technical advisory of pressure vessel;
manufacture and installation, other
service of relevant components
and parts of pressure vessel
48 Shenzhen CIMC Corporation Guangdong, RMB 20,000,000.00 Design, development, sale, surrogate RMB 20,000,000.00 100.00% 100.00% Yes - - -
Intelligent Technology China of electron production, software
Co., Ltd.(CIMC Tech) and system
49 CIMC Taicang Corporation Jiangsu, RMB 450,000,000.00 Research and development, RMB 450,000,000.00 100.00% 100.00% Yes - - -
refrigeration equipment China production and sale of reefer
logistics Co., Ltd.(TCCRC) container and special containerChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
97
IV. BUSINESS COMBINATIONS AND THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
1. COMPANY STATUS OF INVESTMENT IN SUBSIDIARIES (CONTINUED)
(1) Subsidiaries obtained through establishment or business combination (continued)
(i) Domestic subsidiaries (continued):
Amount in current Balance in shareholders
year’s minority of the company reduces
Amount interests used loss attributable to
Actual investment and of to reduce minority shareholders of
actual net amount of Shareholding Voting minority the profit/(loss) the subsidiary which is
Investment of the percentage rights Within interest at attributable more than the opening
company at the end consolidation the end of to minority shareholders’ equity of
Registered capital of the year scope the year shareholders the subsidiary possessed
Currency Amount of Currency Amount of by the minority shareholders
Entity Registration original original USD’000 USD’000 USD’000
Name type place currency Business scope currency
50 Hunan CIMC Bamboo Corporation Hunan, RMB 50,000,000.00 Manufacturing and sale of bamboo RMB 50,000,000.00 100.00% 100.00% Yes - - -
Industry Development China and wood product
Co., Ltd.(HNW)
51 CIMC Jidong Corporation Hebei, RMB 70,000,000.00 Sale of car and car components RMB 52,500,000.00 75.00% 75.00% Yes 2,420 - -
(Qinhuangdao) Vehicles China and parts
Manufacture Co.,
Ltd(QHDV)
52 CIMC Energy Chemical Corporation Guangdong, RMB 5,000,000.00 Design and development projects RMB 5,000,000.00 100.00% 100.00% Yes - - -
Engineering technology China for energy, chemical food related
Co., Ltd. equipment; contractor techniques
transfer
53 CIMC Management and Corporation Guangdong, RMB 5,000,000.00 design of marketing activities scheme RMB 5,000,000.00 100.00% 100.00% Yes - - -
Training(Shenzhen) China organization of academic and
Co., Ltd. commercial conference and
exhibition
54 Yangzhou Lijun Industry Corporation Jiangsu, RMB 10,000,000.00 Production and sales of mechanical RMB 10,000,000.00 100.00% 100.00% Yes - - -
and Trade Co., Ltd. China equipments and relevant components
( “Yangzhou Lijun” ) and parts; technical advisory and other
service
55 Yangzhou Taili Special Corporation Jiangsu, RMB 10,000,000.00 Design, manufacturing and maintenance RMB 10,000,000.00 100.00% 100.00% Yes - - -
Equipment Co., Ltd. China of containers, board square cabin
( “Yangzhou Taili” ) and relevant components and parts;
relevant advisory and serviceChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
98
IV. BUSINESS COMBINATIONS AND THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
1. COMPANY STATUS OF INVESTMENT IN SUBSIDIARIES (CONTINUED)
(1) Subsidiaries obtained through establishment or business combination (continued)
(i) Domestic subsidiaries (continued):
Amount in current Balance in shareholders
year’s minority of the company reduces
Amount interests used loss attributable to
Actual investment and of to reduce minority shareholders of
actual net amount of Shareholding Voting minority the profit/(loss) the subsidiary which is
Investment of the percentage rights Within interest at attributable more than the opening
company at the end consolidation the end of to minority shareholders’ equity of
Registered capital of the year scope the year shareholders the subsidiary possessed
Currency Amount of Currency Amount of by the minority shareholders
Entity Registration original original USD’000 USD’000 USD’000
Name type place currency Business scope currency
56 Yantai CIMC Marine Corporation Shandong, RMB 150,000,000.00 Research and development of RMB 30,000,000.00 100.00% 100.00% Yes - - -
Engineering Academe China marine operation platform and
Co., Ltd. other marine engineering service
(“MEA”)
57 Shanghai Lifan Container Corporation Shanghai, RMB 1,000,000.00 Refitting and maintenance of RMB 600,000.00 60.00% 60.00% Yes - - -
Service Co., Ltd. China containers; providing containers
( “Shanghai Lifan” ) information system management and
advisory service
58 CIMC Wood Development Corporation Guangdong, RMB 150,000,000.00 Development, production and sales RMB 150,000,000.00 100.00% 100.00% Yes - - -
Co., Ltd. China of wood products for various modern
( “CIMCWD” ) transportation equipment
59 Shenzhen CIMC Skyspace Corporation Shenzhen, RMB 154,634,066.00 Real estate development RMB 77,317,033.00 50% 60.00% Yes Note 2 - -
Real Estate Development China
Co., Ltd (CIMC Tianyu)
Note IV. 1(4)
60 Yangzhou CIMC grand space Corporation Jiangsu, RMB 25,000,000.00 Real Estate Development, RMB 12,500,000.00 50% 100.00% Yes Note 2 - -
Real Estate Development China sales and leasing
Co., Ltd (CIMC Haoyu)
Note IV. 1(4)
61 Jiangmen CIMC skyspace Corporation Guangdong, RMB 30,000,000.00 Real estate development, projects RMB 15,000,000.00 50% 100.00% Yes Note 2 - -
Real Estate China sale of decoration
Co.,Ltd. (“Jiangmen Dichan”) and building materials
Note IV. 1(4)
62 CIMC Fiinance Company Guangdong RMB 500,000,000.00 Providing financial service RMB 500,000,000.00 100% 100% Yes
China
63 Shenzhen CIMC Investment Guangdong RMB 75,000,000.00 Container service RMB 75,000,000.00 100% 100% Yes
Holding Company ChinaChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
99
IV.BUSINESS COMBINATIONS AND THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
1. COMPANY STATUS OF INVESTMENT IN SUBSIDIARIES (CONTINUED)
(1) Subsidiaries obtained through establishment or business combination (continued)
(ii) Overseas Subsidiaries
Amount in current Balance in shareholders
year’s minority of the company reduces
Amount interests used loss attributable to
Actual investment and of to reduce minority shareholders of
actual net amount of Shareholding Voting minority the profit/(loss) the subsidiary which is
Investment of the percentage rights Within interest at attributable more than the opening
company at the end consolidation the end of to minority shareholders’ equity of
Registered capital of the year scope the year shareholders the subsidiary possessed
Currency Amount of Currency Amount of by the minority shareholders
Entity Registration original original USD’000 USD’000 USD’000
Name type place currency Business scope currency
64 CIMC Holdings
(B.V.I.) Limited British Virgin USD 34,001.00 Investment USD 34,001.00 100.00% 100.00% Yes - - -
(CIMC BVI) Islands
65 CIMC Tank Equipment Hong Kong HKD 4,680,000.00 Investment HKD 4,680,000.00 100.00% 100.00% Yes - - -
Investment Holdings Co., Ltd.
66 CIMC-SMM Vehicle (Thailand) Thailand Baht 260,000,000.00 Production and operation of Baht 213,200,000.00 82.00% 82.00% Yes 1,344 - -
CO., LTD. (Thailand V) various special vehicles
67 CIMC Vehicle Investment Hong Kong USD 50,000.00 Investment USD 40,000.00 80.00% 100.00% Yes 4,079 - -
Holding Co., Ltd.
(CIMC Vehicle)
68 CIMC Europe BVBA Belgium EUR 18,550.00 Investment EUR 18,550.00 100.00% 100.00% Yes - - -
( “BVBA” )
69 China International Hong Kong HKD 2,000,000.00 Investment HKD 2,000,000.00 100.00% 100.00% Yes - - -
Marine Containers
(Hong Kong) Limited
( “CIMC Hong Kong” )
70 CIMC Burg B.V. Holland EUR 60,000,000.00 Investment EUR 48,000,000.00 80.00% 80.00% Yes Note 3 - -
(Burg)
71 Tacoba Consultant N.V Suriname SF 3,000,000.00 Sale of wood SF 3,000,000.00 100.00% 100.00% Yes - - -
( “Tacoba” )
72 Charm Wise Limited Hong Kong USD 1.00 Investment USD 1.00 100.00% 100.00% Yes - - -
( “Charm Wise” )
73 Gold Terrain Assets Limited Brithish Virgin USD 1.00 Investment USD 1.00 100.00% 100.00% Yes - - -
( “GTA” ) IslandsChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
100
IV. BUSINESS COMBINATIONS AND THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
1. COMPANY STATUS OF INVESTMENT IN SUBSIDIARIES (CONTINUED)
(1) Subsidiaries obtained through establishment or business combination (continued)
(ii) Overseas Subsidiaries
Amount in current Balance in shareholders
year’s minority of the company reduces
Amount interests used loss attributable to
Actual investment and of to reduce minority shareholders of
actual net amount of Shareholding Voting minority the profit/(loss) the subsidiary which is
Investment of the percentage rights Within interest at attributable more than the opening
company at the end consolidation the end of to minority shareholders’ equity of
Registered capital of the year scope the year shareholders the subsidiary possessed
Currency Amount of Currency Amount of by the minority shareholders
Entity Registration original original USD’000 USD’000 USD’000
Name type place currency Business scope currency
74 Full Medal British Virgin USD 50,000.00 Investment USD 78.22 78.22% 100.00% Yes Note 1 - -
Holdings Ltd. Islands
(“Full Medal”)
Note IV. 1(4)
75 Charm Ray Holdings Limited Hong Kong HKD 1.00 Investment HKD 0.78 78.22% 100.00% Yes Note 1 - -
( “Charm Ray” )
NoteIV.1(4)
76 Charm Beat British Virgin USD 1.00 Investment USD 1.00 100.00% 100.00% Yes - - -
Enterprises Limited Islands
( “Charm Beat” )
77 Sharp Vision Hong Kong HKD 1.00 Investment HKD 1.00 100.00% 100.00% Yes - - -
Holdings Limited
( “Sharp Vision” )
78 Sound Winner British Virgin USD 10,000.00 Investment USD 7,822.00 78.22% 100.00% Yes - - -
Holdings Limited Islands
( “Sound Winner” )
79 Grow Rapid Limited Hong Kong USD 1.00 Investment HKD 1.00 100.00% 100.00% Yes - - -
( “Grow Rapid” )
80 Powerlead Holding Ltd. British Virgin USD 10.00 Finance Lease USD 10.00 100.00% 100.00% Yes - - -
( “Powerlead” ) Islands
81 Cooperatie Vela U.A. Holland EUR 18,000 Investment EUR 14,080.00 78.22% 100.00% Yes Note 1 - -
82 Vela Holding B.V. Holland EUR 18,000 Investment EUR 14,080.00 78.22% 100.00% Yes Note 1 - -China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
101
IV.BUSINESS COMBINATIONS AND THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
1. COMPANY STATUS OF INVESTMENT IN SUBSIDIARIES (CONTINUED)
(2) The Group does not have subsidiaries obtained through combination under common control.
(3) Subsidiaries acquired through combinations under non-common control:
(i) Domestics Subsidiaries
Amount in current Balance in shareholders
year’s minority of the company reduces
Amount interests used loss attributable to
Actual investment and of to reduce minority shareholders of
actual net amount of Shareholding Voting minority the profit/(loss) the subsidiary which is
Investment of the percentage rights Within interest at attributable more than the opening
company at the end consolidation the end of to minority shareholders’ equity of
Registered capital of the year scope the year shareholders the subsidiary possessed
Currency Amount of Currency Amount of by the minority shareholders
Entity Registration original original USD’000 USD’000 USD’000
Name type place currency Business scope currency
1 Luoyang CIMC Lingyu Corporation Henan, RMB 60,000,000.00 Production and sales of passenger RMB 36,000,000.00 60.00% 75.00% Yes 3,240 - -
Automobile CO., LTD. China car, tank car; machining; operation
(LYV) of import and export business
2 Wuhu CIMC RuiJiang Corporation Anhui, RMB 100,000,000.00 Development, production and sales RMB 60,000,000.00 60.00% 75.00% Yes 6,485 - -
Automobile CO LTD China of various special vehicles, ordinary
(WHVS) mechanical products and metal
structure parts
3 Liangshan Dongyue CIMC Corporation Shandong, RMB 90,000,000.00 Production and sales of mixing RMB 54,000,000.00 60.00% 75.00% Yes 6,593 - -
Vehicle Co., Ltd. China truck, special vehicle and
(LSDYV) components and parts
4 Qingdao CIMC Container Corporation Shandong, USD 27,840,000.00 Manufacture and repair of container, USD 27,840,000.00 100.00% 100.00% Yes - - -
Manufacture Co., Ltd China processing and manufacture of various
(QDCC) mechanical parts, structures and
equipment
5 Qingdao CIMC Reefer Corporation Shandong, USD 39,060,000.00 Manufacture and sale of refrigeration USD 34,880,580.00 89.30% 89.30% Yes 4,480 - -
Container Manufacture China and heat preservation device of reefer
Co., Ltd.(QDCRC) container, refrigerator car and heat
preservation car; providing relevant technical
advisory and maintenance serviceChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
102
IV. BUSINESS COMBINATIONS AND THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
1. COMPANY STATUS OF INVESTMENT IN SUBSIDIARIES (CONTINUED)
(3) Subsidiaries acquired through combinations under non-common control (continued):
(i) Domestics Subsidiaries (continued)
Amount in current Balance in shareholders
year’s minority of the company reduces
Amount interests used loss attributable to
Actual investment and of to reduce minority shareholders of
actual net amount of Shareholding Voting minority the profit/(loss) the subsidiary which is
Investment of the percentage rights Within interest at attributable more than the opening
company at the end consolidation the end of to minority shareholders’ equity of
Registered capital of the year scope the year shareholders the subsidiary possessed
Currency Amount of Currency Amount of by the minority shareholders
Entity Registration original original USD’000 USD’000 USD’000
Name type place currency Business scope currency
6 Tianjin CIMC North Corporation Tianjin, USD 16,682,000.00 Manufacture and sale of container USD 16,682,000.00 100.00% 100.00% Yes - - -
Ocean Container China as well as vehicle, ship, equipment
Co., Ltd.(TJCIMC) and steel structure specially used
for container; warehousing and after
sales service for container
7 Shanghai CIMC Baowell Corporation Shanghai, USD 28,500,000.00 Manufacture and sale of container USD 27,000,900.00 94.74% 100.00% Yes 596 - -
Industries Co. Ltd China as well as relevant technical advisory
(SBWI)
8 CIMC Vehicle (Shandong) Corporation Shandong, USD 18,930,100.00 Development and manufacture of RMB 15,144,080.00 69.61% 87.01% Yes 4,590 - -
Co. Ltd.(KGR) China refrigerator car, tank car, trailer, box car,
special vehicles and various series
products
9 Zhangzhou CIMC Corporation Fujian, USD 23,000,000.00 Manufacture and sale of container USD 23,000,000.00 100.00% 100.00% Yes - - -
Container Co., Ltd. China as well as relevant technical advisory
(ZZCIMC)
10 Yangzhou CIMC Corporation Jiangsu, RMB 815,704,000.00 Development, production and sales of RMB 723,121,596.00 80.00% 100.00% Yes 10,727 - -
Tong Hua Special Vehicles China various special-use vehicles, refitting
Co., Ltd. (YZTH) vehicles, special vehicles, trailer
series as well as relevant components
and parts
11 Zhumadian CIMC Corporation Henan, RMB 105,340,000.00 Refitting of special vehicles, RMB 84,272,000.00 80.00% 100.00% Yes 10,001 - -
Huajun Vehicle Co. Ltd. China sales of trailer and fittings;
(HJCIMC) sales of vehicle-related materialsChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
103
IV. BUSINESS COMBINATIONS AND THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
1. COMPANY STATUS OF INVESTMENT IN SUBSIDIARIES (CONTINUED)
(3) Subsidiaries acquired through combinations under non-common control (continued):
(i) Domestics Subsidiaries (continued)
Amount in current Balance in shareholders
year’s minority of the company reduces
Amount interests used loss attributable to
Actual investment and of to reduce minority shareholders of
actual net amount of Shareholding Voting minority the profit/(loss) the subsidiary which is
Investment of the percentage rights Within interest at attributable more than the opening
company at the end consolidation the end of to minority shareholders’ equity of
Registered capital of the year scope the year shareholders the subsidiary possessed
Currency Amount of Currency Amount of by the minority shareholders
Entity Registration original original USD’000 USD’000 USD’000
Name type place currency Business scope currency
12 Zhangjiagang CIMC Corporation Jiangsu, RMB 144,862,042.01 Development, manufacture and RMB 115,889,633.61 78.22% 100.00% Yes Note 1 - -
Sanctum Cryogenic China installation of deep freezing unit,
Equipment Machinery petrochemical mechanical equipment,
Co., Ltd. (SDY) tank container, pressure vessel
Note IV.1(4)
13 Donghwa Container Corporation Shanghai, USD 4,500,000.00 Container cargo devanning, vanning; USD 3,150,000.00 70.00% 70.00% Yes 3,700 - -
Transportation China canvass for cargo; allotment and
service Co., Ltd. (DHCTS) customs declaration; container
maintenance and stockpiling; supply
of components and parts
14 Yangzhou Tonglee Corporation Jiangsu, USD 8,000,000.00 Manufacture and sale of reefer USD 8,000,000.00 100.00% 100.00% Yes - - -
Reefer Container China container and special container;
Co., Ltd. (TLC) providing relevant technical advisory
and maintenance service
15 Qingdao Kooll Corporation Shandong, RMB 20,000,000.00 Container warehousing, stockpiling, RMB 16,000,000.00 80.00% 80.00% Yes 168 - -
Logistics Co., Ltd China devanning, vanning, load and unload,
(QDHFL) cleaning, maintenance; goods processing
16 Enric (Bengbu) Compressor Corporation Anhui, HKD 21,320,000.00 Manufacturing base of NG compressor HKD 16,676,504.00 78.22% 100.00% Yes Note 1 - -
Co.,Ltd. China and related products
(Enric Bengbu)
Note IV.1(4)
17 Shijiazhuang Enric Corporation Hebei, USD 7,000,000.00 Manufacturing pressure vessel USD 5,475,400.00 78.22% 100.00% Yes Note 1 - -
Gas Equipment China
Co., Ltd.
(“Shijiazhuang Enric”)
Note IV.1(4)China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
104
IV. BUSINESS COMBINATIONS AND THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
1. COMPANY STATUS OF INVESTMENT IN SUBSIDIARIES (CONTINUED)
(3) Subsidiaries acquired through combinations under non-common control (continued):
(i) Domestics Subsidiaries (continued)
Amount in current Balance in shareholders
year’s minority of the company reduces
Amount interests used loss attributable to
Actual investment and of to reduce minority shareholders of
actual net amount of Shareholding Voting minority the profit/(loss) the subsidiary which is
Investment of the percentage rights Within interest at attributable more than the opening
company at the end consolidation the end of to minority shareholders’ equity of
Registered capital of the year scope the year shareholders the subsidiary possessed
Currency Amount of Currency Amount of by the minority shareholders
Entity Registration original original USD’000 USD’000 USD’000
Name type place currency Business scope currency
18 Enric (Lang fang ) Corporation Hebei, HKD 50,000,000.00 Manufacturing and exploiting HKD 39,110,000.00 78.22% 100.00% Yes Note 1 - -
Energy Equipment China Energy Equipment integration
integration Co.,Ltd.
(Langfang Enric)
Note IV.1(4)
19 Enric ( Beijing )Energy Corporation Beijing, HKD 40,000,000.00 Manufacturing and exploiting HKD 31,288,000.00 78.22% 100.00% Yes Note 1 - -
TechnologyCo.,Ltd China Energy Equipment integration
(Beijing Enric)
Note IV.1(4)
20 CIMC Enric (Jingmen) Corporation Hubei, HKD 50,000,000.00 Sales of chemical and gas machineries HKD 39,110,000.00 78.22% 100.00% Yes Note 1 - -
Energy Equipment China and equipments as well as after sales
Co., Ltd. services; research and development
Note IV.1(4) of energy conservation techniques
21 Jingmen Hongtu Special Corporation Hubei, RMB 20,000,000.00 Development and sales of flight RMB 12,516,000.00 62.58% 80.00% Yes Note 1 - -
Aircraft manufacturing China vehicle manufacturing techniques,
Co., Ltd design, production and sales of
Note IV.1(4) specialized motor vehicles, tanks
and pressure vesselChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
105
IV. BUSINESS COMBINATIONS AND THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
1. COMPANY STATUS OF INVESTMENT IN SUBSIDIARIES (CONTINUED)
(3) Subsidiaries acquired through combinations under non-common control (continued):
(ii) Overseas Subsidiaries
Amount in current Balance in shareholders
year’s minority of the company reduces
Amount interests used loss attributable to
Actual investment and of to reduce minority shareholders of
actual net amount of Shareholding Voting minority the profit/(loss) the subsidiary which is
Investment of the percentage rights Within interest at attributable more than the opening
company at the end consolidation the end of to minority shareholders’ equity of
Registered capital of the year scope the year shareholders the subsidiary possessed
Currency Amount of Currency Amount of by the minorityshareholders
Business Registration original original USD’000 USD’000 USD’000
Name nature place currency Business scope currency
22 CIMC Rolling Stock Australia AUD 50,000.00 Sales of vehiches AUD 50,000.00 100.00% 100.00% - - - -
Australia Pty Ltd.
(CIMC Aus)
23 Enric Energy Equipment Cayman Islands HKD 120,000,000.00 Investment holding HKD 14,651,337.53 78.22% 55.65% Yes Note 1 - -`
Holdings Limited
(Enric)
Note IV.1(4) (ii)
24 Burg Industries B.V. Holland EUR 3,403,351.62 Investment EUR 2,722,681.30 80.00% 100.00% Yes Note 3 - -
25 Holvrieka Holding B.V. Holland EUR 12,000,000.00 Investment EUR 9,386,400.00 78.22% 100.00% Yes Note 1 - -
Note IV.1(4)
26 Holvrieka Ido B.V. Holland EUR 136,200.00 Sales of tank equipment EUR 106,535.64 78.22% 100.00% Yes Note 1 - -
Note IV.1(4)
27 Holvrieka Nirota B.V. Holland EUR 680,670.32 Production, assembly and EUR 532,420.32 78.22% 100.00% Yes Note 1 - -
Note IV.1(4) sale of tank equipment
28 Noordkoel B.V. Holland EUR 500,000.00 Sales of tank equipment EUR 391,100.00 78.22% 100.00% Yes Note 1 - -
Note IV.1(4)
29 Beheermaatschappij Holland EUR 453,780.22 Investment EUR 453,780.22 80.00% 100.00% Yes Note 3 - -
Burg B.V.
30 Burg Carrosserie B.V. Holland EUR 90,756.04 Production of road transport vehicle EUR 72,604.83 66.70% 100.00% Yes Note 3 - -
31 Exploitatiemaatschappij Holland EUR 79,411.54 Trade, financing and leasing EUR 63,529.63 80.00% 100.00% Yes Note 3 - -
Intraprogres B.V of road transport vehicle
32 Burgers Carosserie Holland EUR 90,756.04 Production and repair of vehicle EUR 181,512.09 80.00% 100.00% Yes Note 3 - -
B.V. and components and partsChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
106
IV. BUSINESS COMBINATIONS AND THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
1. COMPANY STATUS OF INVESTMENT IN SUBSIDIARIES (CONTINUED)
(3) Subsidiaries acquired through combinations under non-common control (continued):
(ii) Overseas Subsidiaries (continued)
Amount in current Balance in shareholders
year’s minority of the company reduces
Amount interests used loss attributable to
Actual investment and of to reduce minority shareholders of
actual net amount of Shareholding Voting minority the profit/(loss) the subsidiary which is
Investment of the percentage rights Within interest at attributable more than the opening
company at the end consolidation the end of to minority shareholders’ equity of
Registered capital of the year scope the year shareholders the subsidiary possessed
Currency Amount of Currency Amount of by the minorityshareholders
Business Registration original original USD’000 USD’000 USD’000
Name nature place currency Business scope currency
33 Burg Service Holland EUR 250,000.00 Assembly and repair of road EUR 200,000.00 80.00% 100.00% Yes Note 3 - -
B.V. transport vehicle and tank
equipment
34 LAG Trailers N.V. Belgium BEF 30,000,000.00 Manufacturing trailer BEF 24,000,000.00 80.00% 100.00% Yes Note 3 - -
35 Holvrieka N.V. Belgium BEF 40,000,000.00 Manufacturing tank equipment BEF 31,288,000.00 78.22% 100.00% Yes Note 1 - -
36 Immoburg N.V. Belgium BEF 10,000,000.00 Manufacturing road transport vehicle BEF 8,000,000.00 80.00% 100.00% Yes Note 3 - -
37 Holvrieka Danmark A/S Denmark DKr 1,000,000.00 Manufacturing tank equipment DKr 782,200.00 78.22% 100.00% Yes Note 1 - -
38 Direct Chassis LLC USA USD 10,000,000.00 Manufacturing and sales of USD 6,000,000.00 60.00% 100.00% Yes 835 - -
( “DCEC” ) special vehicles
39 TGE GASINVESTMENTS Luxemburg EUR 50,000.00 Investment holding EUR 30,000.00 60.00% 60.00% Yes Note 4 - -
S.A. ( “TGE SA” )
40 TGE Gas Engineering GmbH Germany EUR 1,000,000.00 Provide EP+CS(Design, Purchase and EUR 600,000.00 60.00% 100.00% Yes Note 4 - -
Construction Supervision) or other
technical project services in LNG,LPG
and storage and disposal of other
41 CIMC RAFFLES OFFSHORE
(SINGAPORE) LIMITED Singapore SGD 591,482,000.00 construction of various USD 216,512,918.00 51.01% 51.01% Yes
marine and offshore projects that include
jack-up drilling rigs, semi-submersible
drilling rigs, FPSOs, pipe lay vessels,
platform supply vessels, other prototype
vessels and luxury yachtsChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
107
IV. BUSINESS COMBINATIONS AND THE CONSOLIDATED
FINANCIAL STATEMENTS (CONTINUED)
1. COMPANY STATUS OF INVESTMENT IN SUBSIDIARIES
(CONTINUED)
(4) Subsidiaries whose shareholding held by the Company differs from their voting
rights
(i) Shenzhen CIMC Skyspace Real Estate Development Co., Ltd. (CIMC Tianyu)
The Company’s wholly owned subsidiary- CIMCSD, holds 50% of shareholding in
CIMC Tianyu and its subsidiaries. According to CIMC Tianyu’s Articles of
Association revised on 25 August 2008, CIMCSD is authorised to appoint and
dismiss more than half of board of directors of CIMC Tianyu and therefore has more
than 50% of voting rights of CIMC Tianyu and the rights to determine the strategy on
the finance and operation of CIMC Tianyu. Since 25 August 2008, CIMC Tianyu is
considered as a subsidiary of the Company and is included in the Company’s
consolidated financial statement.
(ii) Enric Energy Equipment Holdings Limited (Enric)
As stated in Note I, after Enric newly issued its ordinary shares and convertible
preferential shares, the Company’s shareholding in Enric changed to 78.22%. Enric’s
newly issued convertible preferential shares enjoy the same rights for dividend
distribution as ordinary shares while have no voting rights. Therefore the Company’s
shareholding percentage in Enric is 78.22% while the voting right is 56.59%.
(iii) Except for the subsidiary mentioned above in (i) and (ii), the Company’s voting rights
in its indirect-owned subsidiaries which are held by the Company’s non-wholly
owned subsidiaries were presented according to the voting rights of its subsidiaries.
2. There are no entities set up for special purpose or operating entities
controlled through entrusted operation and lease.
3. There is no significant change in the scope of consolidation for the
consolidation financial statements.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
108
IV. BUSINESS COMBINATIONS AND THE CONSOLIDATED
FINANCIAL STATEMENTS (CONTINUED)
4. Subsidiaries newly included in the scope of consolidation and excluded
from the scope of consolidation for the current year
(1) Subsidiaries newly included in the scope of consolidation mainly included CIMC
RAFFLES OFFSHORE (SINGAPORE) LIMITED , which was acquired through
combination not under common control, and the other 3 newly established
subsidiaries during the period.
(2) Subsidiary excluded from the scope of consolidation for the current period mainly
included Qingdao IMC-DragonContainer Container Services Co., Ltd.and
Yangzhou Actari Refrigeration Equipment Co., Ltd
5. There is no acquisition through combination under common control for
the current year (2009: Nil).
6. The Group’s acquisition through combination not under common control
for the current year
On 16 November 2009, the Group’s subsidiary, Bright Day Limited (“offeror”) issued
offers to offeror and all shareholders of Raffles other than related parties with
voluntary unconditional acquisition offer at cash. The offer price was USD1.41 per
share in cash. As at 18 January 2010, there were totally 78,400,575 shares were
accepted effectively, which accounted for 28.66% of total issued ordinary shares of
Raffles. According to the shareholder agreement, Leung Kee Holdings Limited and
Bright Touch Investment should sell 8,434,000 shares (3.08% of total issued ordinary
shares of Raffles) of Raffles at USD 1.41 per share to CIMC after completion of the
offer. Aforesaid acquisition amounted to USD 122,436,751 (RMB 836,022,622), and
has been completed on 21 January 2010. After the acquisition, the Group holds
50.01% of issued ordinary shares of Raffles and becomes the controlling shareholders
of Raffles.
At the acquisition date of 1 January 2010, USD 16,184,000（RMB 110,313,000）in
the excess of the fair value of 31.74% Raffles’s identifiable assets and liabilities
acquired by CIMC over acquisition cost is recognized as non-operating income.
For the 18.27% equity interest in Raffles previously held by the Group, in accordance
with CAS Bulletin No.4, the group remeasured its previously held equity interest at
its acquisition-date (on 1 January 2010) fair value and the difference between its fair
value and book value USD -19,255,000（RMB：-131,246,000）was recognized as
investment income for the current period.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
109
IV. BUSINESS COMBINATIONS AND THE CONSOLIDATED
FINANCIAL STATEMENTS (CONTINUED)
6. The Group’s acquisition through combination not under common control
for the current year (Continued)
Raffles is incorporated in Singapore with its headquarter and manufacturing plants
located in Singapore and Yantai, Shandong Province, China. Raffles had its shares
listed in the Over-The-Counter Market (NOTC) in Norwegian Oslo Stock Exchange
since May 2006. The issued ordinary shares of Raffles amounted to 273,500,000.
Raffles is a leading offshore and marine fabrication specialist and is the biggest and
the third manufacturer in China and in the World respectively in terms of semisubmersible
oceanographic engineering equipment construction business. Raffles
mainly engages in the construction of various marine and offshore projects that
include jack-up drilling rigs, semi-submersible drilling rigs, FPSOs, pipe lay vessels,
platform supply vessels, other prototype vessels and luxury yachts.
7. There is no loss of control of subsidiaries through sales of interests of the
Group for the current year.
8. There is no reverse acquisition of the Group for the current year.
9. There is no consolidation by merger of the Group for the current year.
10. Exchange rate for foreign operating entities’ major financial statement
items
2010 2009 2010 2009
USD 6.8162 6.8305 6.7852 6.8282
EUR 8.7472 9.6055 8.3203 9.8388
HKD 0.8767 0.8813 0.8717 0.8805
JPY 13.4727 7.5400 13.0608 7.5634
Average exchange rate Benchmark exchange rateChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
110
V. NOTES OF THE CONSOLIDATED FINANCIAL STATEMENTS
1. CASH AT BANK AND ON HAND
Original
currency
Exchange
rate
USD'000 RMB'000 Original
currency
Exchange
rate
USD'000 RMB'000
Cash on hand RMB 2,063 6.7852 304 2,063 RMB 3,698 6.8282 542 3,698
USD 53 1.0000 53 360 USD 37 1.0000 37 249
HKD 70 7.7839 9 61 HKD 91 7.7546 12 80
JPY 975 88.6200 11 75 JPY 1,027 90.28 11 78
AUD - - - AUD - - - -
EUR 28 0.8155 34 231 EUR 1 8 0.6940 2 5 1 76
Others - - 8 54 Others - - 1 6
419 2,844 628 4,287
Deposits with banks
RMB 1,686,733 6.7852 248,590 1,686,733 RMB 1,568,993 6.8282 229,781 1,568,993
USD 228,232 1.0000 228,232 1,548,600 USD 310,089 1.0000 310,089 2,117,348
HKD 259,539 7.7839 33,343 226,239 HKD 36,887 7.7546 4,757 32,480
JPY 694,958 88.6200 7,842 53,210 JPY 328,749 90.28 3,641 24,864
AUD 6,297 1.1705 5,380 36,504 AUD 6,486 1.1116 5,835 39,840
EUR 45,029 0.8155 55,217 374,658 EUR 57,990 0.6940 83,558 570,550
Others 4,397 29,833 Others - - 4,269 29,148
583,001 3,955,777 641,930 4,383,223
Other monetary funds
RMB 426,816 6.7852 62,904 426,816 RMB 376,591 6.8282 55,152 376,591
USD 50,029 1.0000 50,029 339,457 USD 73,427 1.0000 73,427 501,376
HKD 31 7.7839 4 27 HKD - - - -
EUR 156 0.8155 191 1,296 EUR - - - -
AUD - - - AUD 609 1.1116 548 3,740
Others - - - - Others - - - -
113,128 767,596 129,127 881,707
696,548 4,726,217 771,685 5,269,217
2010.06.30 2009.12.31China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
111
V. NOTES OF THE CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
1. CASH AT BANK AND ON HAND (CONTINUED)
As at 30 June 2010, restricted cash at bank and on hand of the Group amounted to
USD103,648,000 (RMB 703,272,000), refer to Note V.21 for details.
2. FINANCIAL ASSETS HELD FOR TRADING
(1) Classification
USD'000 RMB'000 USD'000 RMB'000
1.Equity securities investments
held for trading 21,272 144,335 1 2,701 86,722
2.Derivative financial assets
- forward contract 9 ,313 6 3,190 7 39 5,050
Total 30,585 207,525 1 3,440 91,772
2010.06.30 2009.12.31
(2) There is no material restriction of the investment in financial assets held for
trading.
(3) Details of financial assets held for trading
As at 30 June 2010, the Group had certain open forward contracts (mainly unsettled
forward contracts) denominated in U.S. dollars. The nominal value of these contracts
amounted to USD801,074,000. Pursuant to these forward contracts, the Group and
the Company are required to buy U.S. dollar/sell RMB of contracted nominal value at
agreed rates at the contract settlement dates. These forwards contracts will be settled
on a net basis by comparing the market rates at the settlement dates and the agreed
rates. The settlement dates of the aforesaid forwards contracts range from 14 July
2010 to 19 April 2011.
As at 30 June 2010, the Group recognised the aforesaid forwards contracts in their
fair values of USD9,313,000 (RMB63,190,000) as held-for-trading financial assets
and USD222,000 (RMB1,506,000) as held-for-trading financial liabilities.
Transaction costs on realisation have not been considered when calculating the fair
values.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
112
V. NOTES OF THE CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED))
3. BILLS RECEIVABLE
(1) Classification of bills receivable
USD'000 RMB'000 USD'000 RMB'000
Bank acceptance bills 397,637 2 ,698,047 244,667 1 ,670,635
Commercial acceptance
bills 21,052 142,842 2,960 2 0,210
Total 418,689 2 ,840,889 2 47,627 1 ,690,845
2010.06.30 2009.12.31
All of the above bills receivable are due within one year.
No amount due from shareholders who hold 5% or more of the voting rights of the
Company is included in the above balance of bills receivable.
(2) As at the period end, the Group had no pledged bills receivable.
As at 30 June 2010, the Group’s outstanding endorsed or discounted bills (with
recourse) amounted to USD 340,243,000 equivalent to RMB 2,308,617,000 (2009:
USD204,120,000，equivalent to RMB1,393,770,000). Please refer to NoteV.21 for
details.
3. BILLS RECEIVABLE (CONTINUED)
(3) As at period end, the Group did not have bills receivable that had been transferred
to accounts receivables due to default of the issuers. As at period end, the Group
had endorsed bills receivable which are not yet mature. Top 5 in amount are as
follows:
Amount Amount
USD’000 RMB’000
1.Ningbo Xinxing Commercial Concrete Co,Ltd 27-Apr-10 27-Oct-10 1,194 8 ,100 Bank acceptance bill
2.Neimenggu Yiyang Mengxi Logistics Co,Ltd 9-Feb-10 9-Aug-10 1,179 8 ,000 Bank acceptance bill
3.Benxi Safe Vehicel Co,LTD 18-Mar-10 17-Sep-10 1,032 7 ,000 Bank acceptance bill
4.Henan Hongji Automobile Sale Co,Ltd 25-Mar-10 25-Sep-10 884 6 ,000 Bank acceptance bill
5.Henan Hongji Automobile Sale Co,Ltd 25-May-10 25-Nov-10 884 6 ,000 Bank acceptance bill
Total - - 5,173 35,100 ─
Remark
Bills that the company has endorsed to others but not yet matured.
Issuer Issue date Due dateChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
113
V. NOTES OF THE CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
4. ACCOUNTS RECEIVABLE
(1) Accounts receivable disclosed by categories:
category
Gross Provision Percentage Gross Provision Percentage
carrying Percentage for bad of bad carrying Percentage for bad of bad
amount debts debt amount debts debt
USD’000 USD’000 provision USD’000 USD’000 provision
- Individually significant 960,274 66.95% 2 3,623 2.46% 398,475 66.00% 22,327 5.60%
- Individually insignificant but with
a material portfolio credit risk 3 10,121 21.62% 15,591 5.64% 163,253 27.00% 15,093 9.25%
- Other immaterial items 163,925 11.43% 1,965 1.20% 44,089 7.00% 2,713 6.15%
Including:
1.Individually insignificant but
tested for impairment individually 2,719 0.19% 1,260 46.34% 4,172 1.00% 2,380 57.05%
2.Individually insignificant with an
immaterial portfolio credit risk 161,206 11.24% 705 0.44% 3 9,917 6.00% 3 33 0.83%
Total 1,434,320 100.00% 4 1,179 2.87% 6 05,817 100.00% 4 0,133 6.62%
2010.06.30 2009.12.31
category
Gross Provision Percentage Gross Provision Percentage
carrying Percentage for bad of bad carrying Percentage for bad of bad
amount debts debt amount debts debt
RMB’000 RMB’000 provision RMB’000 RMB’000 provision
- Individually significant 6,515,651 66.95% 1 60,287 2.46% 2,720,866 66.00% 152,450 5.60%
- Individually insignificant but with a
material
portfolio credit risk 2,104,233 21.62% 105,788 5.64% 1,114,722 27.00% 103,057 9.25%
- Other immaterial items 1,112,264 11.43% 1 3,333 1.20% 301,050 7.00% 18,527 6.15%
Including:
1.Individually insignificant but
tested for
impairment individually 18,449 0.19% 8,549 46.34% 28,488 1.00% 16,253 57.05%
2.Individually insignificant with an
immaterial portfolio credit risk 1,093,815 11.24% 4,784 0.44% 2 72,562 6.00% 2 ,274 0.83%
Total 9,732,148 100.00% 2 79,408 2.87% 4 ,136,638 100.00% 2 74,034 6.62%
2010.06.30 2009.12.31
Individually significant items represent accounts receivable with individual amount
over RMB 10,000,000 (inclusive) or the book value of which account for 5%
(inclusive) of the total accounts receivable in individual financial statements grouped
in the consolidated financial statement.
Individually insignificant items but with a material portfolio credit risk represent
accounts receivable with individual amount less than RMB 10,000,000, but the credit
risk of which (arising from operating activities other than containers business) is
comparatively higher.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
114
V. NOTES OF THE CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
4. ACCOUNTS RECEIVABLE (CONTINUED)
The analysis of the Group’s accounts receivable by original currency is as follows:
Currency Original Exchange Currency Original Exchange
currency rate USD'000 currency rate USD'000
RMB 3,863,547 6.7852 569,408 RMB 1,934,401 6.8282 283,296
USD 802,807 1.0000 802,807 USD 263,074 1.0000 263,074
HKD 51,802 7.7839 6,655 HKD 7,917 7.7546 1,021
EUR 31,304 0.8155 38,386 EUR 32,897 0.6940 47,401
JPY 541,291 88.62 6,108 JPY 926 90.28 10
AUD 6,275 1.1705 5,361 AUD 7,101 1.1116 6,388
Others - - 5,595 Others - - 4,627
1,434,320 605,817
2010.06.30 2009.12.31
(2) An analysis of provision for individually significant item or individually insignificant
item but tested for impairment individually is as follows:
USD'000
1. Individually significant 960,274 2 3,623 2.46%
Including: Containers group 2 93,345 3 ,051 1.04%
Road transportation vehicles group 165,631 1 5,982 9.65%
Energy chemical facilities group 91,396 3 ,877 4.24%
Oceanic engineering group 375,725 - 0.00%
Airport and seaport facilities group 29,778 6 98 2.34%
Others 4 ,399 1 5 0.34%
2. Individually insignificant but tested for
impairment individually 2,719 1 ,260 46.34%
Including: Containers group 8 29 2 87 34.62%
Road transportation vehicles group 1,421 5 43 38.21%
Energy chemical facilities group 469 4 30 91.68%
Category
Gross carrying
amount
Provision for bad
and doubtful debts Provision rateChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
115
V. NOTES OF THE CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
4. ACCOUNTS RECEIVABLE (CONTINUED)
(2) An analysis of provision for individually significant item or individually
insignificant item but tested for impairment individually is as follows (continued):
RMB'000
1. Individually significant 6,515,651 160,287 2.46%
Including: Containers group 1,990,405 20,702 1.04%
Road transportation vehicles group 1,123,839 108,441 9.65%
Energy chemical facilities group 620,140 26,306 4.24%
Oceanic engineering group 2,549,369 - 0.00%
Airport and seaport facilities group 202,050 4,736 2.34%
Others 29,848 102 0.34%
2. Individually insignificant but tested for
impairment individually 18,449 8,549 46.34%
Including: Containers group 5,625 1,947 34.62%
Road transportation vehicles group 9,642 3,684 38.21%
Energy chemical facilities group 3,182 2,918 91.68%
Category
Provision for bad
and doubtful debts Provision rate
Gross carrying
amount
(3) An analysis of individually insignificant accounts receivable but with a material
portfolio credit risk
USD'000
Provision for bad Provision for bad
Amount Percentage
(%)
and doubtful debts Amount Percentage
(%)
and doubtful debts
Within 1 year 292,413 20.39% 11,218 138,485 23.00% 4,467
1 to 2 years 15,612 1.09% 2,873 13,235 2.00% 1,705
2 to 3 years 1,188 0.08% 592 4,018 1.00% 1,406
More than 3 years 908 0.06% 908 7,515 1.00% 7,515
Total 310,121 21.62% 1 5,591 163,253 27.00% 1 5,093
Ageing
2010.06.30 2009.12.31
Gross carrying amount Gross carrying amountChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
116
V. NOTES OF THE CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
4. ACCOUNTS RECEIVABLE (CONTINUED)
(3) An analysis of individually insignificant accounts receivable but with a material
portfolio credit risk (continued)
RMB'000
Provision for bad Provision for bad
Amount Percentage
(%)
and doubtful debts Amount Percentage
(%)
and doubtful debts
Within 1 year 1,984,081 20.39% 76,116 945,600 23.00% 30,500
1 to 2 years 105,931 1.09% 19,494 90,374 2.00% 11,640
2 to 3 years 8,060 0.08% 4,017 27,437 1.00% 9,606
More than 3 years 6,161 0.06% 6,161 51,311 1.00% 51,311
Total 2,104,233 21.62% 1 05,788 1 ,114,722 27.00% 1 03,057
2010.06.30 2009.12.31
Ageing Gross carrying amount Gross carrying amount
The ageing is counted starting from the date the account receivable is recognised.
(4) Significant changes of provision for bad and doubtful debts during the year:
There were no accounts receivable which full amounts have been made provision or a
full provision or a significant provision was made before the reporting period while
was recovered in full during the year (2009: Nil).
(5) The recovery of accounts receivable by means of restructuring or others
There were no accounts receivable recovered by means of restructuring or others
during the period. (2009: Nil).
(6) Actual written-off of accounts receivable within this year
There were no material actual written-off of accounts receivable during the report
period(2009: Nil).China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
117
V. NOTES OF THE CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
4. ACCOUNTS RECEIVABLE (CONTINUED)
(7) Accounts receivable due from the five biggest debtors of the Group are as follows:
Amount Amount
USD’000 RMB’000
1.TAL International
Container Corporation None 114,547 777,224 Within 1 year 7.99%
2.China Oilfield Services
Limited None 112,669 764,482 Within 1 year 7.86%
3.Schahin None 86,218 585,006 Within 1 year 6.01%
4.TRITON Container
International Ltd None 82,833 562,038 Within 1 year 5.78%
5.Goodpack Limited
Investee of the
Group but not a
related party 69,998 474,950 Within 1 year 4.88%
Total ─ 466,265 3,163,700 ─ 32.51%
Relationship with
the company
Ageing
Percentage in
total accounts
receivables (%)
Company Name
The total amount of the Group’s top 5 accounts receivable at 31 December 2009 was
USD106,861,000 (RMB 729,664,000), 17.64% of the total accounts receivable.
(8) Accounts receivable due from shareholders who hold 5% or more of the voting
rights of the Company
No amount due from shareholders who hold 5% or more of the voting rights of the
Company is included in the above balance of accounts receivable (2009:Nil).
(9) Accounts receivable due from related parties
The Group’s accounts receivable due from related parties amount to USD36,306,000,
equivalent to RMB246,343,000 (2009: USD1,007,00, equivalent to RMB6,878,000),
accounting for 2.53% of the total accounts receivable (2009: 0.17%).
(10) Derecognition of accounts receivable due to transferring of financial assets
There were no derecognition of accounts receivable due to transferring of financial
assets in the group during the year (2009: Nil).
(11) Amount of assets and liabilities recognised due to the continuing involvement of
securitised accounts receivable
There were no securitised accounts receivables during the year (2009: Nil).
As at 30 June 2010, restricted accounts receivable amounted to USD16,382,000
(equivalent to RMB111,155,000), refer to Note V.21.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
118
V. NOTES OF THE CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
5. OTHER RECEIVABLES
(1) Other receivables by categories:
Gross Provision Percentage Gross Provision Percentage
Category carrying Percentage for bad of bad debt carrying Percentage for bad of bad debt
amount debts provision amount debts provision
USD’000 USD’000 USD’000 USD’000
- Individually significant 59,974 19.42% 0.00% 9 8,524 58.72% - -
- Other immaterial items 248,798 80.58% 5 ,716 2.30% 69,274 41.28% 3 ,261 4.71%
Including:
1.Individually insignificant but
tested for impairment individually 724 0.23% 7 24 100.00% 8 5 0.05% 8 5 100.00%
2.Individually insignificant with
an immaterial portfolio credit risk 248,074 80.34% 4 ,992 2.01% 6 9,189 41.23% 3 ,176 4.59%
Total 308,772 100.00% 5 ,716 1.85% 1 67,798 100.00% 3 ,261 1.94%
2010.06.30 2009.12.31
Gross Provision Percentage Gross Provision Percentage
Category carrying Percentage for bad of bad debt carrying Percentage for bad of bad debt
amount debts provision amount debts provision
RMB’000 RMB’000 RMB’000 RMB’000
- Individually significant 406,936 19.42% 0.00% 672,739 58.72% - -
- Other immaterial items 1,688,144 80.58% 38,784 2.30% 473,018 41.28% 22,268 4.71%
Including: -
1.Individually insignificant but
tested for impairment individually 4,912 0.23% 4,912 100.00% 579 0.05% 579 100.00%
2.Individually insignificant with
an immaterial portfolio credit risk 1,683,233 80.34% 33,872 2.01% 472,439 41.23% 21,689 4.59%
Total 2,095,080 100.00% 3 8,784 1.85% 1 ,145,757 100.00% 2 2,268 1.94%
2010.06.30 2009.12.31
Individually significant items represent other receivables which individual amount
over RMB 10,000,000 (inclusive) or the book value of which account for 5%
(inclusive) of the total other receivables in individual financial statements grouped in
the consolidated financial statement.
There is no individually insignificant item but with a material portfolio credit (2009:
Nil).China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
119
V. NOTES OF THE CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
5. OTHER RECEIVABLES (CONTINUED)
(2) An analysis of provision for individually significant item or individually
insignificant item but tested for impairment individually is as follows:
USD'000
Category
Gross carrying
amount
Provision for
bad and
doubtful debts
Provision
rate Reasons
1.Individually significant 59,974 - 0.00%
Capital increment amount due from subsidiaries 18,395 -
Amount due from associates 22,846 -
Receivables arising from transfer of equity investment 10,412 -
Others 8,321 -
2、Individually insignificant but tested for impairment
individually 724 724 100.00%
Expected non-recoverable amount 724 724 100.00%
Total 60,698 724 1.19%
Provision is
made based on
individual
recoverability
risk is
expected to be
low.
Full provision
is made due to
long aging and
low
recoverability.
RMB'000
Category
Gross carrying
amount
Provision for
bad and
doubtful debts
Provision
rate Reasons
1.Individually significant 406,936 - 0.00%
Capital increment amount due from subsidiaries 124,814 -
Amount due from associates 155,015 -
Receivables arising from transfer of equity investment 70,648 -
Others 56,459 -
2、Individually insignificant but tested for impairment
individually 4,912 4,912 100.00%
Expected non-recoverable amount 4,912 4,912 100.00%
Total 411,848 4,912 1.19%
Provision is
made based on
individual
recoverability
risk is
expected to be
low.
Full provision
is made due to
long aging and
low
recoverability.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
120
V. NOTES OF THE CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
5. OTHER RECEIVABLES (CONTINUED)
(3) Significant changes of provision for bad and doubtful debts during the year:
There were no other receivables which full amounts have been made provision or
which a full provision or a significant provision was made before the reporting period
while was recovered in full during the year (2009: Nil).
(4) The recovery of other receivables by means of restructuring or others
There were no other receivables recovered by means of restructuring or others during
the year (2009: Nil)..
(5) Actual written-off of other receivables within this year
There were no material actual written-off of other receivables during the report period
(2009: Nil).
(6) Other receivables due from the five biggest debtors of the Group are as follows:
Amount Amount
USD’000 RMB’000
1.P.G.M Holding B.V
Minority
shareholder of
subsidiary 18,395 124,814 Within 1 year 5.96%
2.Shanghai Fengyang Real Estate Development Co,Ltd Associate 22,846 155,015 1 to 2 years 7.40%
3.Shenzhen Merchant Property Development Co,Ltd
Controlling
shareholder of
the Group’s
associate 10,412 70,648 2 to 3 years 3.37%
4.Jiaozhou City SAT(State Administration of Taxation) None 2,365 16,047 Within 1 year 0.77%
5.Shenzhen City Longgang District SAT Pingshan Branch None 1,642 11,141 Within 1 year 0.53%
Total ─ 55,660 377,665 ─ 18.03%
Company Name
Relationship
with the Ageing
Percentage
in total
The Group’s top 5 other receivables as at 31 December 2009 amounted to
USD94,885,000 (RMB647,893,000), accounting for 56.55% of the total other
receivables.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
121
V. NOTES OF THE CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
5. OTHER RECEIVABLES (CONTINUED)
(7) Other receivables due from shareholders who hold 5% or more of the voting rights
of the Company
No amount due from shareholders who hold 5% or more of the voting rights of the
Company is included in the above balance of other receivables (2009: Nil).
(8) Other receivables due from related parties
Amount Amount
Percentage in
total other
receivables
USD’000 RMB’000 (%)
1. PGM
Minority
shareholder of
the Group’s
subsidiary 18,395 124,814 5.96%
2. Shanghai Fengyang Real Estate Development Co.,
Ltd Associate 22,846 155,015 7.40%
3. Shenzhen Merchant Property Development Co., Ltd
Controlling
shareholder of
the Group’s
associate 10,412 70,648 3.37%
4. Others ─ 749 5,081 0.24%
Total ─ 52,402 355,558 16.97%
Company Name
Relationship
with the
company
The Group’s other receivables due from related parties amounted to USD54,838,000
(RMB 374,442,000), accounting for 32.68 % of total other receivables.
(9) Derecognition of other receivables due to transferring of financial assets
There are no derecognition of accounts receivable due to transferring of financial
assets during the period (2009: Nil).
(10) Amount of assets and liabilities recognised due to the continuing involvement of
securitised other receivables
There were no securitised other receivables during the period (2009: Nil).China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
122
V. NOTES OF THE CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
6. PREPAYMENTS
(1) Prepayments by category are as follows:
USD’000 RMB’000 USD’000 RMB’000
Raw materials 235,827 1,600,133 1 22,328 8 35,278
Work in progress 1 07,828 731,635 28,798 1 96,642
Others 551 3,739 13,479 92,037
Subtotal 344,206 2,335,507 164,605 1 ,123,957
Less:Provision for bad
and doubtful debts 7 ,381 5 0,082 7 ,381 5 0,398
Total 3 36,825 2,285,425 157,224 1 ,073,559
2010.06.30 2009.12.31
(2) The ageing analysis of prepayments is as follows:
Amount Amount Percentage Amount Amount Percentage
USD’000 RMB’000 % USD’000 RMB’000 %
Within 1 year 324,629 2,202,674 94.32% 147,603 1,007,859 89.67%
1 to 2 years 8,058 54,675 2.34% 16,161 1 10,354 9.82%
2 to 3 years 11,158 75,709 3.24% 5 13 3 ,504 0.31%
More than 3 years 3 61 2 ,449 0.10% 3 28 2 ,240 0.20%
Total 344,206 2,335,507 100.00% 164,605 1,123,957 100.00%
Less:Provision for bad
and doubtful debts 7 ,381 5 0,082 2.14% 7 ,381 5 0,398 4.48%
Total 3 36,825 2,285,425 97.86% 1 57,224 1,073,559 95.52%
2010.06.30 2009.12.31
The ageing is counted starting from the date of recognition of prepayments.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
123
V. NOTES OF THE CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
6. PREPAYMENTS (CONTINUED)
(3) the Group’s top 5 prepayments are as follows:
Amount Amount
USD’000 RMB’000
1.Guangzhou Guanggang
International Trading Co,Ltd.
None 16,176 1 09,757
4.80% 2010
materials not yet
received
2.Shougang Jingtang Steel
United Co,Ltd.
None 16,040 1 08,835
4.76% 2010
materials not yet
received
3.TERL STMASTER OF
TEXAS.INC
None 13,850 9 3,975
4.11% 2010
engineering not
yet completed
4.Tianjin Yinze Sheet Co, Ltd.
None 13,494 9 1,559
4.01% 2008
materials not yet
received within
due date
5.Dalian Heavy Industry Lift
Group Co,Ltd
None 12,081 8 1,972
3.59% 2010
engineering not
yet completed
Total - 71,641 4 86,098 21.27% - -
Time of
recognition
Reason for
Company Name unsettlement
Relationship
with the
company
Percentage in
total
prepayments
(4) Prepayments due from shareholders who hold 5% or more of the voting rights of
the Company
No amount due from shareholders who hold 5% or more of the voting rights of the
Company is included in the above balance of prepayments (2009: Nil).China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
124
V. NOTES OF THE CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
7. INVENTORIES
(1) Inventories by categories
USD'000
Gross Gross
carrying amount carrying amount
Raw materials 819,305 -8,265 811,040 588,439 -76,988 5 11,451
Work in progress 379,258 - 391 378,867 148,645 -3,193 1 45,452
Finished goods 17,188 - 230 16,958 80,229 -12,530 67,699
Consignment stocks 51,389 - 231 51,158 43,760 -1,208 4 2,552
Spare parts 13,225 - 13,225 14,208 - 14,208
Low-valued consumables 4,684 - 4,684 3,611 - 3 ,611
Materials in transit 1,442 - 1,442 1,443 - 1 ,443
Stocks 462,782 -7,909 454,873 166,667 -9,312 1 57,355
Completed property held for sale 35,067 - 35,067 4,307 - 4 ,307
Property under development 44,388 - 44,388 40,992 - 40,992
Total 1,828,728 -17,026 1,811,702 1,092,301 -103,231 989,070
Category
2010.06.30 2009.12.31
Provision for
diminution in
value
Carrying amount
Provision for
diminution in
value
Carrying amount
RMB'000
Gross Gross
carrying amount carrying amount
Raw materials 5,559,150 -56,080 5,503,070 4,017,980 -525,688 3 ,492,292
Work in progress 2,573,341 -2,653 2,570,688 1,014,980 -21,799 9 93,181
Finished goods 116,624 -1,561 115,063 547,820 -85,559 4 62,261
Consignment stocks 348,684 -1,567 347,117 298,804 -8,250 2 90,554
Spare parts 89,734 - 89,734 97,016 - 97,016
Low-valued consumables 31,782 - 31,782 24,649 - 24,649
Materials in transit 9,784 - 9,784 9,849 - 9 ,849
Stocks 3,140,068 -53,664 3,086,404 1,138,036 -63,584 1 ,074,452
Completed property held for sale 237,937 - 237,937 29,409 - 29,409
Property under development 301,181 - 301,181 279,903 2 79,903
Total 12,408,285 -115,525 12,292,760 7,458,446 -704,880 6 ,753,566
Category
2010.06.30 2009.12.31
Provision for
diminution in
value
Carrying amount
Provision for
diminution in
value
Carrying amount
As at 30 June 2010, the Group had no inventories with restricted ownership
(2009:Nil).China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
125
V. NOTES OF THE CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
7. INVENTORIES (CONTINUED)
(2) Provision for diminution in value of inventories
USD’000
Opening Effect of Closing
balance at the Provision foreign balance
Category beginning made for exchange at the end
of the period the period Reversal Write-off rate changes of the period
USD’000 USD’000 USD’000 USD’000 USD’000 USD’000
Raw materials 76,988 - 228 -68,964 469 8,265
Work in progress 3,193 -2,784 -18 391
Finished goods 12,530 116 -11,962 -454 230
Consignment stocks 1,208 -980 3 231
Stocks 9,312 400 -1,814 11 7,909
Total 103,231 516 -228 -86,504 11 17,026
Written back
during the period
RMB’000
Opening Effect of Closing
balance at the Provision foreign balance
Category beginning made for exchange at the end
of the period the period Reversal Write-off rate changes of the period
RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
Raw materials 525,688 - - 1,554 -470,072 2,018 56,080
Work in progress 21,799 - - -18,976 -170 2,653
Finished goods 85,559 791 - -81,535 -3,254 1,561
Consignment stocks 8,250 - - -6,680 -3 1,567
Stocks 63,584 2,726 - -12,365 -281 53,664
Total 704,880 3,517 -1,554 -589,628 -1,690 115,525
Written back
during the period
Written back of provision for diminution in value of the Group’s inventories during the
period is as follows:
Item
Basis of provision for diminution in
value of inventories
Reasons for written back of
provision
Percentage of provision written back
over total inventories balance at
period end
Raw
materials
Net realisable value was lower than
book value
Inventories were used or
sold and the net realisable
value ascended 0.03%China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
126
V. NOTES OF THE CONSOLIDATED FINANCIAL STATEMENTS
( CONTINUED)
8. NON-CURRENT ASSETS DUE WITHIN ONE YEAR
(1) Non-current assets due within one year by categories:
USD'000 RMB'000 USD'000 RMB'000
Finance leases 100,903 684,647 5 7,226 3 90,751
Sale of goods by installments 31,700 215,091 1 ,979 1 3,513
Designated loans - - -
Others 2,070 14,045 1 06 724
Subtotal 134,673 913,783 5 9,311 4 04,988
Less:Provision for impairment 2,756 18,700 1 ,604 1 0,952
Total 131,917 8 95,083 57,707 394,036
2010.06.30 2009.12.31
(2) Significant changes of provision for bad and doubtful debts during the year:
There were no non-current assets due within one year which full amounts have been
made provision or which a full provision or a significant provision was made before
the reporting period while was recovered in full during the period (2009: Nil).
(3) Non-current assets due within one year due from shareholders who hold 5% or
more of the voting rights of the Company
No amount due from shareholders who hold 5% or more of the voting rights of the
Company is included in the above balance of non-current assets due within one year
(2009: Nil).
9. OTHER CURRENT ASSETS
USD'000 RMB'000 USD'000 RMB'000
Cash flow hedges 374 2 ,538 3,164 21,565
Tax deductible/withheld 90,321 612,846 37,095 253,293
Others 1 ,532 10,395 1 97 1,384
Total 92,227 625,779 40,456 276,242
2010.06.30 2009.12.31China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
127
V. NOTES OF THE CONSOLIDATED FINANCIAL STATEMENTS
( CONTINUED)
10. AVAILABLE-FOR-SALE FINANCIAL ASSETS
USD'000 RMB'000 USD'000 RMB'000
Available-for-sale
equity instruments 120,660 818,702 172,196 1,175,785
2010.06.30 2009.12.31
During the period, the company sold 786,231 shares held in the China Merchant
Bank, recognising investment gain amounting to USD1,649,000 (RMB11,240,000).
On 30 June 2010, the company held 11,526,000.00 shares in China Merchant Bank,
with a carrying value of USD22,045,000, equivalent to RMB149,580,000. (2009:
USD28,988,000, equivalent to RMB197,937,000).
On 30 June 2010, available-for-sale financial assets with restricted sales term held by
the company referred to restricted shares of China Merchants Securities Co., Ltd
(“Merchants Securities”). The carrying value of the assets was USD97,751,000
(RMB 663,260,000). (2009: USD125,089,000, equivalent to RMB 854,133,000).The
above-mentioned restricted shares could not be sold until 17 November 2010.
Apartfrom the above, the Group had available-for-sale financial assets of equity
investment inOtto Energy Limited amounting to USD 864,000 (RMB 5,862,000).
As the Group included Raffles in its consolidated financial statements of the Group in
the reporting period, the equity interest in TSC Offshore Limited held y the Group
increased and the Group reclassified its investment in TSC Offshore Limited from
available-for-sale financial asset to investment in asscociates.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
128
V. NOTES OF THE CONSOLIDATED FINANCIAL STATEMENTS
( CONTINUED)
11. LONG-TERM RECEIVABLES
(1) The long-term receivables by categories are as follows:
USD'000 RMB'000 USD'000 RMB'000
Finance Leases 86,507 5 86,967 98,167 6 70,304
including: Unrealise finance income 7,874 5 3,427 4,248 2 9,006
Sale of goods by installments 65,204 4 42,422 45,895 3 13,380
Car/housing loans to staff 955 6 ,480 2,736 1 8,685
Trusted loans - -
Subtotal 152,666 1,035,869 146,798 1,002,369
Less:Provision for impairment 1,199 8,135 1,527 10,427
Total 151,467 1,027,734 145,271 991,942
2010.06.30 2009.12.31
(2) Significant changes of provision for bad and doubtful debts during the period:
There were no long-term receivables due within one year which full amounts have
been made provision or which a full provision or a significant provision was made
before the reporting period while was recovered in full during the period (2009: Nil).
(3) Long-term receivables due from shareholders who hold 5% or more of the voting
rights of the Company
No amount due from shareholders who hold 5% or more of the voting rights of the
Company is included in the above balance of long-term receivables (2009: Nil).China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
129
5. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
12. LONG-TERM EQUITY INVESTMENTS
(1) As at 30 June 2010, the Group’s long-term equity investments by categories are as
follows:
USD'000 RMB'000 USD'000 RMB'000
Investments in joint ventures 2,170 1 4,724 2 ,002 13,670
Investments in associates 172,180 1 ,168,276 2 21,702 1 ,513,827
Other long-term equity investment 5 9,533 403,943 5 9,531 406,489
Subtotal 233,883 1 ,586,943 2 83,235 1 ,933,986
Less: Provision for impairment 4 65 3,155 4 65 3,175
Total 2 33,418 1,583,788 282,770 1,930,811
2010.06.30 2009.12.31
(2) As at 30 June 2010, the Group’s investments in major joint ventures and associates
are as follows:
(a) The joint ventures of the Group
Details of the joint ventures of the Group are as follows:
USD’000
Effect of
Initial Balance at Additions Adjustments Dividends foreign Balance at
investment the beginning during under receivable/ exchange the end
Investee cost of the year the period equity method received rate changes of the period
USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000
Yangzhou Maxi-CUBE Tong
Composite Co., Ltd (MST) 1 ,151 2,002 168 2,170
RMB’000
Effect of
Initial Balance at Additions Adjustments Dividends foreign Balance at
investment the beginning during under receivable/ exchange the end
Investee cost of the year the period equity method received rate changes of the period
RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
Yangzhou Maxi-CUBE Tong
Composite Co., Ltd (MST) 9 ,530 1 3,670 1,145 -91.0000 1 4,724
The voting rights held by the Group are the same as its shareholding percentage in the joint
ventures.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
130
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
12. LONG-TERM EQUITY INVESTMENTS (CONTINUED)
(2) As at 30 June 2010, the Group’s investments in major joint ventures and associates are as follows (continued):
(b) The associates of the Group:
Addition Additions/ Transfer to Decrease as Effect of
Initial Balance at through (Deduction) associates due to Adjustment transferred to Dividends foreign Balance at
investment the beginning acquisitions during investments addition under equity subsidiaries receivable/ exchange the end
Investee cost of the year of subsidiaries the period during the period method during the period received rate changes of the period
USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000
KYH Steel Holding Ltd. (“KYH”) 3,336 17,261 1,674 -296 18,639
Tianjin Port CIMC Zhenhua
Logistic Co, Ltd (TJCIMCZL) 2,660 5,913 76 -101 5,888
Dalian Jinong Logistic
Co., Ltd (DLJLL) 3,015 5,256 62 -90 5,228
Xiamen CIMC Haitou Container
Service Co,Ltd (Xiamen Haitou) 1,494 1,982 26 -34 1,974
Tianjin Zhenhua Logistic
Group Co,Ltd (TJZL) 47,453 59,008 2,147 - 1,855 -1,013 58,287
Ningbo Beilun Donghua
Container
Service Co,Ltd (NBBL) 432 512 - -9 503
New Atlantic Timber (HK)
Limited (XYW) 396 433 - -7 426
Shanghai Fengyang 1,643 9,417 449 -162 9,704
TRS Transportkoeling 1,647 2,081 - -36 2,045
EURO TANK 9 51 1,224 81 -21 1,284
Xiamen Haitou Logistics Co,Ltd
(XMHLC) 888 733 -153 -13 567
Yantai Raffles Shipyard Limited
(Raffles) - 99,033 - -99,033 - -
C&C TRUCKS Co,LTD (C&C
TRUCKS) 3 9,578 18,849 19,806 -1,217 -323 37,115
Xinhui Senju
Science&Technology Material
Co,Ltd 900 - 9 00 - 900
Consafe MSV AB 5 36 - 5 36 - 536
Haiyang Blue Island Offshore Ltd 2,493 - 2,493 - 2,493
TSC OFFSHORE 2 6,591 - 8,541 - 18,050 - - - - 26,591
Total 134,013 221,702 11,570 20,706 18,050 3,145 -99,033 -1,855 -2,105 172,180China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
131
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
12. LONG-TERM EQUITY INVESTMENTS (CONTINUED)
(2) As at 30 June 2010, the Group’s investments in major joint ventures and associates are as follows (continued):
(b) The associates of the Group(continued):
Addition Additions/ Transfer to Decrease as Effect of
Initial Balance at through (Deduction) associates due to Adjustment transferred to Dividends foreign Balance at
investment the beginning acquisitions during investments addition under equity subsidiaries receivable/ exchange the end
Investee cost of the year of subsidiaries the period during the period method during the period received rate changes of the period
RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
KYH Steel Holding Ltd. (“KYH”) 2 7,625 117,856 - - 11,410 - - -2,797 126,469
Tianjin Port CIMC Zhenhua 21,403 40,375 - - - 518 - - -942 39,951
Logistic Co., Ltd (TJCIMCZL)
Dalian Jinong Logistic 16,844 35,889 - - - 423 - - -839 35,473
Co., Ltd (DLJLL)
Xiamen CIMC Haitou Container 11,479 13,533 - - - 177 - - -316 13,394
Service Co., Ltd (Xiamen
Haitou)
Tianjin Zhenhua Logistic 302,144 402,918 - - - 14,635 - -12,644 -9,420 395,489
Group Co., Ltd (TJZL)
Ningbo Beilun Donghua
Container 3,579 3,496 - - - - - - -83 3,413
Service Co., Ltd (NBBL)
New Atlantic Timber (HK) 2,916 2,957 - - - - - - -67 2,890
Limited (XYW)
Shanghai Fengyang 12,000 64,301 - - - 3,060 - - -1,517 65,844
TRS Transportkoeling 12,030 14,209 - - - - - - -333 13,876
EURO TANK 6 ,946 8,358 - - - 552 - - -198 8,712
Xiamen Haitou Logistics Co., Ltd
(XMHLC) 6 ,153 5,005 - - - -1,043 - - -115 3,847
Yantai Raffles Shipyard Limited
(Raffles) - 676,225 - - - - -676,225 - - -
C&C TRUCKS Co.,LTD (C&C
TRUCKS) 2 70,000 128,705 - 135,000 - -8,295 - - -3,577 251,833
Xinhui Senju
Science&Technology Material
Co,Ltd 6,135 - - 6,135 - - - - -28 6,107
Consafe MSV AB 3 ,653 - 3,653 - - - - - -16 3,637
Haiyang Blue Island Offshore Ltd 16,993 - 16,993 - - - - - -77 16,916
TSC OFFSHORE 1 81,249 - 58,217 - 123,032 - - - -824 180,425
Total 901,149 1,513,827 7 8,863 1 41,135 123,032 21,437 -676,225 - 12,644 -21,149 1,168,276China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
132
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS (CONTINUED)
12. LONG-TERM EQUITY INVESTMENTS (CONTINUED)
(2) As at 30 June 2010, the Group’s investments in major joint ventures and associates are as follows (continued):
(b) The associates of the Group(continued):
As at 30 June 2010, based on the result of the impairment tests comparing the recoverable amount and carrying amount of long
term equity investment in jointly ventures and associates, no provision for impairment was considered necessary by the Group.
In 2008, the Group acquired 17.86% equity interests in Raffles with a cash consideration of USD 93,288,000. In 2009, the Group
acquired additional 0.41% equity interests in Raffles with a cash consideration of USD 788,000. As at 30 June 2010, the Group
had 18.27% equity interests in Raffles.
Although the Group only has 18.27% equity interest in Raffles, the Group has significant influences over Raffles in making
financial and operational decisions as the Group's President, Mr. Mai Boliang has been appointed as Chairmen and Non-
Executive Director of Raffles on 3 November 2008. Raffles became an associate of the Group since 3 November 2008.
On 16 November 2009, the Group’s subsidiary, Bright Day Limited (“offeror”) issued offers to offeror and all shareholders of
Raffles other than related parties with voluntary unconditional acquisition offer at cash. After the acquisition, the Group holds
50.01% of issued ordinary shares of Raffles and becomes the controlling shareholders of Raffles. Raffles is considered as
subsidiaries and included in the consolidated financial statements of the Group in the reporting period.
As the Group included Raffles in its consolidated financial statements of the Group in the reporting period, the equity interest in
TSC Offshore Limited held y the Group increased and the Group reclassified its investment in TSC Offshore Limited from
available-for-sale financial asset to investment in asscociates.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
133
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
12. LONG-TERM EQUITY INVESTMENTS (CONTINUED)
(3) The Group’s other equity investments:
USD'000
Investee
Accounting
method
Initial
investment
cost
Balance at
the
beginning
of the year
Additions/d
eduction
during the
period
Effect of
foreign
exchange
rate
changes
Balance at
the end of
the period
Shareholding
percentage
(%)
The voting
rights in
investees(%)
Notes to
difference
between
shareholdings
and voting
rights
BOCM Schroder Stolt Fund
Management
Cost
method 1,233 1,233 - 1,233 5% 5% -
Donghua Container
Cost
method 42 40 2 42 5%
China Railway United Logistics
Cost
method 57,784 57,784 - 57,784 10% 10% -
Guangdong Samsung
Cost
method 207 207 - 207 0.09% 0.09% -
Beihai Yinjian
Cost
method 258 258 - 258 1.01% 1.01% -
Jinmen General Aviation Company
Limited
Cost
method 9 9 9 39.00% 39.00%
Total 59,533 59,531 - 2 59,533 - - -China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
134
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
12. LONG-TERM EQUITY INVESTMENTS (CONTINUED)
(3) The Group’s other equity investments (continued):
RMB'000
Investee
Accounting
method
Initial
investment
cost
Balance at
the
beginning
of the year
Additions/d
eduction
during the
period
Effect of
foreign
exchange
rate
changes
Balance at
the end of
the period
Shareholding
percentage
(%)
The voting
rights in
investees(%)
Notes to
difference
between
shareholdings
and voting
rights
BOCM Schroder Stolt Fund
Management
Cost
method 8,366 8,419 - - 53 8,366 5% 5% -
Donghua Container
Cost
method 285 273 12 285 5%
China Railway United Logistics
Cost
method 392,075 394,561 - - 2,486 392,075 10% 10% -
Guangdong Samsung
Cost
method 1,405 1,413 - - 8 1,405 0.09% 0.09% -
Beihai Yinjian
Cost
method 1,751 1,762 - - 11 1,751 1.01% 1.01% -
Jinmen General Aviation Company
Limited
Cost
method 61 61 61 39.00% 39.00%
Total 403,943 406,489 - -2,546 403,943 - - -China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
135
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
13. INVESTMENT PROPERTY
USD'000
Item
Balance at the
beginning of the
year Additions Disposals
Effect of the foreign
exchange rate changes
Balance at the end of
the period
Cost 14,301 - - 55 1 4,356
1.Buildings 4,920 - 4 ,920
2.Land use rights 9,381 55 9 ,436
Accumulated depreciation or
amortisation 3,228 259 - 6 3 ,493
1.Buildings 2,287 159 - 2 ,446
2.Land use rights 941 100 6 1 ,047
Carrying amounts 11,073 (259) - 49 1 0,863
1.Buildings 2,633 (159) - - 2 ,474
2.Land use rights 8,440 (100) - 49 8 ,389
Provision of impairment - - - - -
1.Buildings
2.Land use rights
Carrying amounts 11,073 (259) - 49 1 0,863
1.Buildings 2,633 (159) - - 2 ,474
2.land use rights 8,440 (100) - 49 8 ,389
RMB'000
Item
Balance at the
beginning of the
year Additions Disposals
Effect of the foreign
exchange rate changes
Balance at the end of
the period
Cost 97,646 - - (238) 9 7,408
1.Buildings 33,595 - - (212) 3 3,383
2.Land use rights 64,051 - - (26) 64,025
Accumulated depreciation or
amortisation 22,040 1,766 - (106) 2 3,700
1.Buildings 15,615 1,084 - (103) 1 6,596
2.Land use rights 6,425 682 - (3) 7 ,104
Carrying amounts 75,606 (1,766) - (132) 7 3,708
1.Buildings 17,980 (1,084) - (109) 1 6,787
2.Land use rights 57,626 (682) - (23) 56,921
Provision of impairment - - - - -
1.Buildings - - - - -
2.Land use rights - - - - -
Carrying amounts 75,606 (1,766) - (132) 7 3,708
1.Buildings 17,980 (1,084) - (109) 1 6,787
2.land use rights 57,626 (682) - (23) 56,921
The depreciation and amortisation charged for investment property from 1 January to
30 June 2010 was USD259,000 (RMB: 1,766,000).There was no provision for
impairment for investment property during the period.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
136
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
14. FIXED ASSETS
(1) Fixed assets by categories
USD'000
Item
Balance at the
beginning of the year Additions Disposals
Effect of the foreign
exchange rate changes
Balance at the end
of the period
Cost: 1,650,270 431,553 (25,546) (741) 2,055,536
Including: Plant & buildings 761,615 130,788 (5,010) 1,213 888,606
Machinery & equipment 722,652 286,024 (15,645) (2,295) 990,736
Office equipment & other
equipment 99,835 9,443 (3,510) 458 106,226
Motor vehicles 66,168 5,298 (1,381) (117) 69,968
Accumulated depreciation: 486,841 93,789 (10,303) 3,356 573,683
Including: Plant & buildings 139,844 32,577 (2,079) 1,032 171,374
Machinery & equipment 260,964 52,752 (5,572) 2,274 310,418
Office equipment & other
equipment 49,300 4,077 (1,614) 124 51,887
Motor vehicles 36,733 4,383 (1,038) (74) 40,004
Carrying amount 1,163,429 337,764 (15,243) (4,097) 1,481,853
Including: Plant & buildings 621,771 98,211 (2,931) 181 717,232
Machinery & equipment 461,688 233,272 (10,073) (4,569) 680,318
Office equipment & other
equipment 50,535 5,366 (1,896) 334 54,339
Motor vehicles 29,435 915 (343) (43) 29,964
Provision for impairment 36,480 - - (1,915) 34,565
Including: Plant & buildings 23,852 (1,915) 21,937
Machinery & equipment 12,439 12,439
Office equipment & other
equipment 165 - - - 165
Motor vehicles 24 - - 24
Carrying amount 1,126,949 337,764 (15,243) (2,182) 1,447,288
Including: Plant & buildings 597,919 98,211 (2,931) 2,096 695,295
Machinery & equipment 449,249 233,272 (10,073) (4,569) 667,879
Office equipment & other
equipment 50,370 5,366 (1,896) 334 54,174
Motor vehicles 29,411 915 (343) (43) 29,940China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
137
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
14. FIXED ASSETS (CONTINUED)
(1) Fixed assets by categories (continued)
RMB'000
Item
Balance at the
beginning of the year Additions Disposals
Effect of the foreign
exchange rate changes
Balance at the end
of the period
Cost: 11,268,374 2,941,551 (174,126) (88,575) 13,947,224
Including: Plant & buildings 5,200,460 891,477 (34,149) (28,418) 6,029,370
Machinery & equipment 4,934,410 1,949,597 (106,639) (55,026) 6,722,342
Office equipment & other
equipment 681,692 64,365 (23,925) (1,367) 720,765
Motor vehicles 451,812 36,112 (9,413) (3,764) 474,747
- - -
Accumulated depreciation: 3,324,249 639,285 (70,227) (754) 3,892,553
Including: Plant & buildings 954,885 222,051 (14,171) 42 1,162,807
Machinery & equipment 1,781,913 359,569 (37,980) 2,745 2,106,247
Office equipment & other
equipment 336,629 27,790 (11,001) (1,354) 352,064
Motor vehicles 250,822 29,875 (7,075) (2,187) 271,435
Carrying amount 7,944,125 2,302,266 (103,899) (87,821) 10,054,671
Including: Plant & buildings 4,245,575 669,426 (19,978) (28,460) 4,866,563
Machinery & equipment 3,152,497 1,590,028 (68,659) (57,771) 4,616,095
Office equipment & other
equipment 345,063 36,575 (12,924) (13) 368,701
Motor vehicles 200,990 6,237 (2,338) (1,577) 203,312
Provision for impairment 249,092 - - (14,560) 234,532
Including: Plant & buildings 162,867 - - (14,019) 148,848
Machinery & equipment 84,934 - - (533) 84,401
Office equipment & other
equipment 1130 - - (10) 1,120
Motor vehicles 161 - - 2 163
Carrying amount 7,695,033 2,302,266 (103,899) (73,261) 9,820,139
Including: Plant & buildings 4,082,708 669,426 (19,978) (14,441) 4,717,715
Machinery & equipment 3,067,563 1,590,028 (68,659) (57,238) 4,531,694
Office equipment & other
equipment 343,933 36,575 (12,924) (3) 367,581
Motor vehicles 200,829 6,237 (2,338) (1,579) 203,149China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
138
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
14. FIXED ASSETS (CONTINUED)
(1) Fixed assets by categories (continued)
The depreciation charged for the year of the Group was USD 55,980,000 (RMB:
381,571,000).
As at 30 June 2010, the fixed assets of the Group restricted in ownership amounted to
USD6,798,000 (RMB46,126,000). Refer to Note V.21 for details.
In 2009, as a result of change of governmental land use plan and management
operation strategy, part of buildings and machineries of the containers segment would
be dismantled or disposed. Also, as a result of decrease in demand in the European
and American market and the corresponding poor performance in operation and
continuing downturn in property market, indication existed that some of machineries
and buildings in the Netherland belonging to the trailers segment might be impaired.
Therefore, the Group performed impairment test for these fixed assets. Based on the
result of the test, the Group made USD 27,013,000 (RMB 184,518,000) of provision
for impairment for the aforesaid fixed assets. The recoverable amount is determined
as either its fair value less costs to sell or its present value of expected future cash
flows.
If there is an active market for aforesaid fixed assets, net realisable value is the quoted
price in the active market less the estimated selling expenses according to the
management’s disposal plan. The realisable value of fixed assets, which have no
value in use and are pending for dismantling, is their fair value less the estimated
disposal expenses.
For fixed assets still in use and without an active market, the realisable value is the
present value of expected future cash flows, which is calculated based on the
discounting rate. The benchmark rate of bank loans will be adopted as the
discounting rate.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
139
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
14. FIXED ASSETS (CONTINUED)
(2) Temporarily idle fixed assets
The carrying amount of temporarily idle fixed assets in 2009 was USD 40,259,000
(RMB 273,898,000) and the whole idle fixed assets have resumed to be used during
the period in 2010.
(3) Fixed assets held under finance leases
There was no fixed assets held under finance leases in 2010 (2009: Nil).
(4) Fixed assets leased out under operating leases
Item
USD’000 RMB’000
Plant & buildings 30 204
Machinery & equipment 5,238 35,541
Motor vehicles 46 312
Office equipment & other equipment
Total 5,314 36,057
Net book value
(5) Fixed assets held for sale at the year end
As at 30 June 2010, there was no fixed assets held for sale (2009:Nil).
(6) Fixed assets with pending certificates for ownership
USD’000 RMB’000
Factory 56,388 382,604 Certificate being in the process End of 2010
Workshop 25,912 175,818
Incomplete procedure，certificate
being in the process End of 2010
Office building 9,219 62,553 Put to use in 2008，certificate
being in the process End of 2010
Warehouse 6,371 43,229 Lack of reporting materials, under
preparation End of 2010
Dormitory and Canteen 4,210 28,566
Put to use in 2009，certificate
being in the process End of 2010
Exhibition Hall 594 4,030
Put to use in 2010，certificate
being in the process End of 2010
Others 6,820 46,275 Certificate being in the process End of 2010
Total 109,514 743,075 ─ ─
Carrying amount
Item Reasons for pending Expected time of getting
certificate of ownershipChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
140
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
15. CONSTRUCTION IN PROGRESS
(1) Construction in progress
USD'000
Cost Impairment
Carrying
amount Cost Impairment
Carrying
amount
DLZH Plant Project 794 794 20,496 20,496
Nantong CIMC Special Transportation
Equipment Third Workshop Project 4,686 4,686 4,197 4,197
TCCIMC 2nd Project 952 952 1,606 1,606
Enric Four-column Hydraulic Press 1,612 1,612 1,601 1,601
Enric Roller-type Rotary Machine and
Top-and-bottom Machine 1,241 1,241 1,233 1,233
SMIMCL Jincheng Information System 778 778 773 773
Nantong Sunda Container Completeline
and Coating-line project 455 455 455 455
Enric First Stage Project 6,882 6,882 6,569 6,569
Dalian Heavy Logistics Production 4,979 4,979 4,979 4,979
Group headquarters MTS Vehicle 3,325 3,325 3,253 3,253
CIMC Grand Sky Light Hotel Project 3,231 3,231 2,279 2,279
XHCIMCS Production Line and Power
Facilities Reconstruction Project 2,100 2,100 2,217 2,217
Enric Heavy Pressure Vessel 1,883 1,883 1,123 1,123
Chengdu Vehicle Industrial Zone 3,113 3,113 - -
Enric New Plant Project 2,056 2,056 886 886
YZTH P03 3rd Investment of
Technology Improvement 694 694 - -
LYV CIMC Painting Decoration and
Expansion Engineering 710 710 - -
Raffles offshore drilling platform
outfitting quay Project 22,203 22,203 - -
Raffles NO1 Slideway Project 5,627 5,627 - -
Raffles NO2 Slideway Project 8,715 8,715 - -
Raffles Wharf under Construction 5,627 5,627 - -
Raffles Dredging Offshore Project 5,061 5,061 - -
Raffles Harbor basin Project 3,529 3,529 - -
Raffles Longmen Crane Project 3,509 3,509 - -
Raffles Sea-route Project 1,717 1,717 - -
Raffles Plant Road Project 1,456 1,456 - -
Raflles Sewer Project 1,059 1,059 - -
KGR Vehicle Installation Project - - 464 464
Dalian Heavy Logistics Equipments
Pressure Vessels Project - 59 59
TCCIMC Inside-container Automatic
Spray Project - - 1,106 1,106
Enric Staff Apartment project 1,005 1,005 1,005 1,005
Others 5 2,360 52,360 29,655 29,655
Total 151,359 - 151,359 83,956 83,956
Item
2010.6.30 2009.12.31China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
141
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
15. CONSTRUCTION IN PROGRESS (CONTINUED)
(1) Construction in progress (continued)
RMB'000
Cost Impairment
Carrying
amount Cost Impairment
Carrying
amount
DLZH Plant Project 5,387 - 5,387 139,952 - 139,952
Nantong CIMC Special Transportation
Equipment Third Workshop Project 31,795 - 31,795 28,657 - 28,657
TCCIMC 2nd Project 6,460 - 6,460 10,963 - 10,963
Enric Four-column Hydraulic Press
Project 10,938 - 10,938 10,935 - 10,935
Enric Roller-type Rotary Machine and
Top-and-bottom Machine 8,420 - 8,420 8,423 - 8,423
SMIMCL Jincheng Information System 5,279 - 5,279 5,278 - 5,278
Nantong Sunda Container Completeline
and Coating-line project 3,087 - 3,087 3,103 - 3,103
Enric First Stage Project 46,696 - 46,696 44,853 - 44,853
Dalian Heavy Logistics Production 33,784 - 33,784 33,996 - 33,996
Group headquarters MTS Vehicle
Systems 22,561 - 22,561 22,210 - 22,210
CIMC Grand Sky Light Hotel Project 21,923 - 21,923 15,559 - 15,559
XHCIMCS Production Line and Power
Facilities Reconstruction Project 14,249 - 14,249 15,141 - 15,141
Enric Heavy Pressure Vessel
Workshop 12,777 - 12,777 7,667 - 7,667
Chengdu Vehicle Industrial Zone
Project 21,122 - 21,122 - - -
Enric New Plant Project 13,950 - 13,950 6,050 - 6,050
YZTH P03 3rd Investment of
Technology Improvement 4,709 - 4,709 - - -
LYV CIMC Painting Decoration and
Expansion Engineering 4,817 - 4,817 - - -
Raffles offshore drilling platform
outfitting quay Project 150,652 - 150,652 - - -
Raffles NO1 Slideway Project 38,180 - 38,180 - - -
Raffles NO2 Slideway Project 59,133 - 59,133 - - -
Raffles Wharf under Construction
Project 38,180 - 38,180 - - -
Raffles Dredging Offshore Project 34,340 - 34,340 - - -
Raffles Harbor basin Project 23,945 - 23,945 - - -
Raffles Longmen Crane Project 23,809 - 23,809 - - -
Raffles Sea-route Project 11,650 - 11,650 - - -
Raffles Plant Road Project 9,879 - 9,879 - - -
Raflles Sewer Project 7,186 - 7,186 - - -
KGR Vehicle Installation Project - - - 3,169 - 3,169
Dalian Heavy Logistics Equipments
Pressure Vessels Project - - - 406 - 406
TCCIMC Inside-container Automatic
Spray Project - - - 7,550 - 7,550
Enric Staff Apartment project 6,819 6,819 6,864 - 6,864
Others 355,274 - 355,274 202,493 - 202,493
Total 1,027,001 - 1,027,001 573,269 573,269
Item
2010.6.30 2009.12.31China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
142
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
15. CONSTRUCTION IN PROGRESS (CONTINUED)
(1) Construction in progress (continued)
The carrying amounts of construction in progress at the end of the period included
capitalised borrowing cost of USD 2,028,000, equivalent to RMB 13,837,000 (2009:
USD 1,381,000, equivalent to RMB 9,427,000). The interest rate adopted for
determining capitalised at borrowing cost for the current year was 5.47% (2009:
4.72%).
As at 30 June 2010, the Group has no construction in progress with restrictions in
ownership.
(2) Provision for impairment
There was no provision for impairment for work in progress in 2010 (2009: Nil).China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
143
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
15. CONSTRUCTION IN PROGRESS (CONTINUED)
(3) The Group’s major construction projects in progress were set out as follows:China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
144
USD'000
DLZH Plant Project 25,000 20,496 368 -17,878 -2,192 83.46% 83.46% 770
Loans from
banks - 794
Nantong CIMC Special
Transportation Equipment
Third Workshop Project 5,202 4,197 460 89.52% 89.52% Self-financing 29 4,686
TCCIMC 2nd Project 17,565 1,606 1,458 -1,903 -209 17.44% 17.44% Self-financing 952
Enric Four-column Hydraulic
Press Project 2,136 1,601 74.95% 74.95% Self-financing 11 1,612
Enric Roller-type Rotary
Machine and Top-and-bottom 1,514 1,233 81.44% 81.44% Self-financing 8 1,241
Enric First Stage Project 7,608 6,569 1,819 -1,554 110.25% 95.42% Self-financing 48 6,882
Dalian Heavy Logistics
Production Line equipment 21,000 4,979 - - - 23.71% 23.71% Self-financing - 4,979
Group headquarters MTS
Vehicle Systems 3,647 3,253 72 91.17% 91.17% Self-financing - 3,325
CIMC Grand Sky Light Hotel
Project 12,595 2,279 927 25.45% 25.45% Self-financing 25 3,231
XHCIMCS Production Line and
Power Facilities Reconstruction
Project 2,900 2,217 14 -131 76.93% 76.93% Self-financing 2,100
Enric Heavy Pressure Vessel
Workshop 3,745 1,123 753 50.09% 50.09% Self-financing 7 1,883
TCCIMC Inside-container
Automatic Spray Project 1,391 1,106 286 -1,191 -203 100.07% 100.00% Self-financing 2 -
Enric Staff Apartment project 1,005 1,005 -1,005 100.00% 100.00% Self-financing -
Chengdu Vehicle Industrial
Zone Project 10,078 - 3,099 30.75% 30.75% equity capital 14 3,113
Enric New Plant Project 2,406 886 1,159 85.00% 85.00% Self-financing 11 2,056
Raffles offshore drilling
platform outfitting quay Project 28,002 18,354 3,740 78.90% 44.00% 843 567 5.47%
Loans from
banks 109 22,203
Raffles NO1 Slideway Project 6,927 - 5,627 81.23% 70.00% own fund 5,627
Raffles NO2 Slideway Project 10,317 - 8,715 84.48% 55.00% own fund 8,715
Raffles Wharf under
Construction Project 17,686 - 5,061 28.62% 25.00% own fund 5,061
Raffles Dredging Offshore
Project 9,203 4,816 88 53.29% own fund 4,904
Raffles Harbor basin Project 5,895 - 3,529 59.86% 62.00% own fund 3,529
Raffles Longmen Crane Project 4,716 - 3,509 74.40% 90.00% own fund 3,509
Raffles Sea-route Project 10,611 - 1,717 16.18% 25.00% own fund 1,717
Raffles Plant Road Project 1,621 - 1,456 89.81% 90.00% own fund 1,456
Raflles Sewer Project 413 850 203 255.17% 56.00% own fund 6 1,059
Total 213,183 76,570 44,060 -21,103 -5,163 1,613 567 - 270 94,634
Project
Transfer
to fixed
assets
Other
deduction
Percentage
of current
input over
Budget budget(%) Progress
Balance at
the
beginning
of the
year Additions
Accumulated
capitalised
borrowing
cost
Including:
current year
capitalised
borrowing
cost
Capitalised
rate(%)
Sources of
funds
Effect of the
foreign
exchange rate
changes
Balance at
the end of
the periodChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
145
RMB'000
DLZH Plant Project 25,000 139,951 2,508 -121,860 -14,941 83.46% 83.46% 5,225
Loans from
banks -271 5,387
Nantong CIMC Special
Transportation Equipment
Third Workshop Project 5,202 28,658 3,135 - - 89.52% 89.52% - Self-financing 2 31,795
TCCIMC 2nd Project 17,565 10,966 9,938 -12,971 -1,425 17.44% 17.44% - Self-financing -48 6,460
Enric Four-column Hydraulic
Press Project 2,136 10,932 - - - 74.95% 74.95% - Self-financing yp y 6 10,938
Machine and Top-and-bottom
Machine 1,514 8,419 - - - 81.44% 81.44% - Self-financing 1 8,420
Enric First Stage Project 7,608 44,854 12,399 - -10,592 110.25% 95.42% - Self-financing 35 46,696
Dalian Heavy Logistics
Production Line equipment 21,000 33,998 - - - 23.71% 23.71% - Self-financing -214 33,784
Group headquarters MTS
Vehicle Systems 3,647 22,212 491 - - 91.17% 91.17% - Self-financing -142 22,561
CIMC Grand Sky Light Hotel
Project 12,595 15,561 6,319 - - 25.45% 25.45% - Self-financing 43 21,923
Power Facilities Reconstruction
Project 2,900 15,138 95 -893 - 76.93% 76.93% - Self-financing -91 14,249
Enric Heavy Pressure Vessel
Workshop 3,745 7,668 5,133 - - 50.09% 50.09% - Self-financing -24 12,777
TCCIMC Inside-container
Automatic Spray Project 1,391 7,552 1,949 -8,118 -1,384 100.07% 100.00% - Self-financing 1 -
Enric Staff Apartment project 1,005 6,862 - - -6,850 100.00% 100.00% - Self-financing -12 -
Chengdu Vehicle Industrial
Zone Project 10,078 - 21,123 - - 30.75% 30.75% - equity capital -1 21,122
Enric New Plant Project 2,406 6,050 7,900 - - 85.00% 85.00% - Self-financing - 13,950
Raffles offshore drilling
platform outfitting quay Project 28,002 125,325 25,493 - - 78.90% 44.00% 5,720 3,865 5.47%
Loans from
banks -166 150,652
Raffles NO1 Slideway Project 6,927 - 38,355 - - 81.23% 70.00% - own fund -175 38,180
Raffles NO2 Slideway Project 10,317 - 59,404 - - 84.48% 55.00% - own fund -271 59,133
Raffles Wharf under
Construction Project 17,686 - 34,497 - - 28.62% 25.00% - own fund -157 34,340
Raffles Dredging Offshore
Project 9,203 32,885 600 - - 53.29% 0.00% - own fund -210 33,275
Raffles Harbor basin Project 5,895 - 24,054 - - 59.86% 62.00% - own fund -109 23,945
Raffles Longmen Crane Project 4,716 - 23,918 - - 74.40% 90.00% - own fund -109 23,809
Raffles Sea-route Project 10,611 - 11,703 - - 16.18% 25.00% - own fund -53 11,650
Raffles Plant Road Project 1,621 - 9,924 - - 89.81% 90.00% - own fund -45 9,879
Raflles Sewer Project 413 5,804 1,384 - - 255.17% 56.00% - own fund -2 7,186
Total 213,183 522,835 300,322 -143,842 -35,192 10,945 3,865 - -2,012 642,111
Project Budget
Balance at
the
beginning
of the
year Additions
Transfer
to fixed
assets
Other
deduction
Percentage
of current
input over
budget(%) Progress
Effect of the
foreign
exchange rate
changes
Balance at
the end of
the period
Accumulated
capitalised
borrowing
cost
Including:
current year
capitalised
borrowing
cost
Capitalised
rate(%)
Sources of
fundsChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
146
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
16. INTANGIBLE ASSETS
(1) Intangible assets by categories
USD'000
Item
Balance at the
beginning of the
year Additions Disposals
Effect of the foreign
exchange rate changes
Balance at the end
of the period
Cost 514,115 91,632 - 811 606,558
Land use rights 351,448 62,907 785 415,140
Technical know-how and trademarks 98,844 19,184 2,577 120,605
Timber concession rights 36,052 - (136) 35,916
Customer relationships 16,794 - (1,444) 15,350
Customer contracts 10,977 9,541 (971) 19,547
Accumulated amortisation 91,428 19,590 - 62 111,080
Land use rights 32,623 5,780 (293) 38,110
Technical know-how and trademarks 30,610 8,608 412 39,630
Timber concession rights 13,841 355 (57) 14,139
Customer relationships 6,177 1,490 7,667
Customer contracts 8,177 3,357 11,534
Carrying amount 422,687 72,042 - 749 495,478
Land use rights 318,825 57,127 - 1,078 377,030
Technical know-how and trademarks 68,234 10,576 - 2,165 80,975
Timber concession rights 22,211 (355) - (79) 21,777
Customer relationships 10,617 (1,490) - (1,444) 7,683
Customer contracts 2,800 6,184 - (971) 8,013
Provision for impairment 15,899 - - (60) 15,839
Land use rights - - - - -
Technical know-how and trademarks - - - - -
Timber concession rights 15,899 - - (60) 15,839
Customer relationships - - -
Customer contracts - - -
Carrying amount 406,788 72,042 - 809 479,639
Land use rights 318,825 57,127 - 1,078 377,030
Technical know-how and trademarks 68,234 10,576 - 2,165 80,975
Timber concession rights 6,312 (355) - (19) 5,938
Customer relationships 10,617 (1,490) - (1,444) 7,683
Customer contracts 2,800 6,184 - (971) 8,013China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
147
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
16. INTANGIBLE ASSETS (CONTINUED)
(1) Intangible assets by categories (continued)
RMB'000
Item
Balance at the
beginning of the
year Additions Disposals
Effect of the foreign
exchange rate changes
Balance at the end
of the period
Cost 3,510,468 624,582 - (19,433) 4,115,617
Land use rights 2,399,754 428,787 - (11,733) 2,816,808
Technical know-how and trademarks 674,926 130,762 - 12,641 818,329
Timber concession rights 246,167 - - (2,470) 243,697
Customer relationships 114,676 - - (10,523) 104,153
Customer contracts 74,945 65,033 - (7,348) 132,630
Accumulated amortisation 624,283 133,530 - (4,114) 753,699
Land use rights 222,751 39,398 - (3,565) 258,584
Technical know-how and trademarks 209,015 58,674 - 1,208 268,897
Timber concession rights 94,509 2,420 - (993) 95,936
Customer relationships 42,176 10,156 - (310) 52,022
Customer contracts 55,832 22,882 - (454) 78,260
Carrying amount 2,886,185 491,052 - (15,319) 3,361,918
Land use rights 2,177,003 389,389 - (8,168) 2,558,224
Technical know-how and trademarks 465,911 72,088 - 11,433 549,432
Timber concession rights 151,658 (2,420) - (1,477) 147,761
Customer relationships 72,500 (10,156) - (10,213) 52,131
Customer contracts 19,113 42,151 - (6,894) 54,370
Provision for impairment 108,559 - - (1,088) 107,471
Land use rights - - - -
Technical know-how and trademarks - - - -
Timber concession rights 108,559 - - (1,088) 107,471
Customer relationships - - - -
Customer contracts - - - -
Carrying amount 2,777,626 491,052 - (14,231) 3,254,447
Land use rights 2,177,003 389,389 - (8,168) 2,558,224
Technical know-how and trademarks 465,911 72,088 - 11,433 549,432
Timber concession rights 43,099 (2,420) - (389) 40,290
Customer relationships 72,500 (10,156) - (10,213) 52,131
Customer contracts 19,113 42,151 - (6,894) 54,370China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
148
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
16. INTANGIBLE ASSETS (CONTINUED)
(1) Intangible assets by categories (continued)
The amortisation charged for the period of the Group was USD 12,296,000 (RMB:
83,812,000).
As at 30 June 2010, the intangible assets of the Group with restriction in ownership
amounted to USD 2,929,000 (RMB19,874,000). Refer to Note V.21 for details.
The timber concession right amounted to USD18,574,000, in respect of the 450,000
acres in Suriname was acquired by Topco Forestry N.V, a wholly owned subsidiary
of Gold Terrain Assets Limited, a subsidiary of the Company.
Since around 75,000 acres of the forest in the above timber concession right were
located in a nature reservation zone, the government of Suriname took back the
timber concession right in 2003. The Company had negotiated with the Suriname
government for a plan to substitute the original 75,000 acres with other forest
locations. Since there were no clear results of the negotiation, a full provision for
impairment of USD2,116,000 was made to this part of timber concession right.
In 1998, Silveroad Wood Products Limited, a wholly owned subsidiary of Gold
Terrain Assets Limited purchased 315,460 acres of timber concession rights in
Cambodia amounting to USD17,501,000. The government of Cambodia has
suspended all timber concession rights in its region, including those of the Group
since 2001. In view of this, full provision for impairment amounting to
USD13,783,000 was made on the carrying value of the above timber concession
rights.
As at 30 June 2010, there were no intangible assets with indefinite useful lives.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
149
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
17. GOODWILL
USD'000
Name of investee or
goodwill items Note
Balance at the
beginning of the
year Additions Deduction
Effect of the
foreign exchange
rate changes
Balance at the
end of the
period
Provision for
impairment
Enric （1） 92,114 - - 53 92,167 -
TGE SA （2） 28,557 - - - 28,557 -
Jinmen Hongtu Special
Aircraft Manufacturing
Co., Ltd. （3） 3,986 - - - 3,986 -
Raffles （4） - 14,099 - - 14,099 -
Others 52,040 - - 52,040 1,757
Total 176,697 1 4,099 - 53 190,849 1,757
RMB'000
Name of investee or
goodwill items Note
Balance at the
beginning of the
year Additions Deduction
Effect of the
foreign exchange
rate changes
Balance at the
end of the
period
Provision for
impairment
Enric （1） 628,973 - - -3,602 625,371 -
TGE SA （2） 194,993 - - -1,228 193,765 -
Jinmen Hongtu Special
Aircraft Manufacturing
Co., Ltd. （3） 27,217 - - -171 27,046 -
Raffles （4） - 96,102 - -437 95,665 -
Others 355,339 - -2,237 353,102 11,922
Total 1,206,522 96,102 - -7,675 1,294,949 11,922
(1) Goodwill attributable to Enric
The Group paid USD144,291,628 (RMB1,094,076,842) as acquisition cost for
acquiring 41.55% equity interest in Enric in 2007. The excess of acquisition cost over
the Group’s interest in the fair value of Enric’s identifiable assets and liabilities,
amounted to USD92,113,833 (RMB701,034,168), was recognised as goodwill
attributable to Enric.
The recoverable amount of Enric is determined based on the present value of
expected future cash flows. The present value of expected future cash flows was
calculated based on the most recent ten-year financial budgets approved by
management of the Group and a discounting rate of 5.94%. The cash flows beyond
the ten-year budget period was assumed to keep stable. There was no impairment
considered necessary for the goodwill based on the calculations. As key assumptions
on which management has made the future cash projections are subject to change,
management believes that any adverse change in the key assumptions would cause
the carrying amount exceeding its recoverable amount.
The calculation of present value of expected future cash flows of Enric was based on
key assumptions of 18% of gross profit ratio and 10% of operating sales growth,
which was determined by management on the basis of past performance before the
budget period.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
150
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
17. GOODWILL (CONTINUED)
(2) Goodwill attributable to TGE SA
The Group paid USD35,605,021 (RMB243,096,841) as acquisition cost for the 60%
equity interests in TGE SA in 2008. The excess of acquisition cost over the Group’s
interest in the fair value of TGE SA’s identifiable assets and liabilities, amounting to
USD13,188,894 (RMB90,048,493), was recognised as good will attributable to TGE
SA. The goodwill together with which arose from TGE SA restructuring, amounting
to USD15,197,477 (RMB103,759,294), are USD28,386,371 (RMB193,807,787).
The recoverable amount of TGE SA is determined based on the present value of
expected future cash flows. The present value of expected future cash flows was
calculated based on the most recent ten-year financial budgets approved by
management of the Group and a discounting rate of 5.94%. The cash flows beyond
the ten-year budget period was assumed to keep stable. There was no impairment
considered necessary for the goodwill based on the calculations. As key assumptions
on which management has made the future cash projections are subject to change,
management believes that any adverse change in the key assumptions would cause
the carrying amount exceeding its recoverable amount.
The calculation of present value of expected future cash flows of TGE SA was based
on key assumptions of 15% of gross profit ratio and 5% of operating sales growth,
which was determined by management on the basis of past performance before the
budget period.
(3) Goodwill attributable to Jinmen Hongtu Special Aircraft Manufacturing Co., Ltd.
The Group paid RMB 55,472,000 (USD 8,121,000) as acquisition cost for the 80%
equity interests in Jinmen Hongtu Special Aircraft Manufacturing Co., Ltd. (“Jinmen
Hongtu”) on 25 July 2009. The excess of acquisition cost over the Group’s interest in
the fair value of Jinmen Hongtu’s identifiable assets and liabilities, amounting to
RMB 27,221,000 (USD3,985,000), was recognised as goodwill attributable to Jinmen
Hongtu. Since the Group only purchased Jinmen Hongtu’s interests in late 2009 and
there has been no adverse trend in Jinmen Hongtu’s business, no provision for
impairment was considered necessary for the goodwill attributable to Jinmen Hongtu.
(4) Goodwill attributable to CIMC RAFFLES OFFSHORE (SINGAPORE) LIMITED
In 2008, the Group acquired 17.86% equity interests in Raffles with a cash
consideration of USD 93,288,000. In 2009, the Group acquired additional 0.41%
equity interests in Raffles with a cash consideration of USD 788,000. As at 30 June
2010, the Group had 18.27% equity interests in Raffles.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
151
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
17. GOODWILL (CONTINUED)
(4) Goodwill attributable to CIMC RAFFLES OFFSHORE (SINGAPORE) LIMITED
On 16 November 2009, the Group’s subsidiary, Bright Day Limited (“offeror”)
issued offers to offeror and all shareholders of Raffles other than related parties with
voluntary unconditional acquisition offer at cash. Aforesaid acquisition amounted to
USD 122,436,751 (RMB 836,022,622), and has been completed on 21 January 2010.
After the acquisition, the Group holds 50.01% of issued ordinary shares of Raffles
and becomes the controlling shareholders of Raffles.
At the acquisition date of 1 January 2010, USD 16,184,000（RMB 110,313,000）in
the excess of the fair value of 31.74% Raffles’s identifiable assets and liabilities
acquired by CIMC over acquisition cost is recognized as non-operating income.
The goodwill attributable to CIMC RAFFLES OFFSHORE (SINGAPORE)
LIMITED is the goodwill which has already been recorded in Raffles’s separate
financial statement before the acquisition amounting to USD 14,099,000
(RMB995,665,000),China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
152
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
18. LONG-TERM DEFERRED EXPENSES
USD'000
Item
Balance at the
beginning of the
year Additions Amortisation
Other
deduction
Effect of the
foreign exchange
rate changes
Balance at
the end of
the period
Reasons for
other
deduction
Water and electricity
capacity enlargement
expenses 4 74 - -52 - - 422 None
Rental 1,167 43 -509 - -3 698 None
Others 2 ,828 1,021 -952 - -6 2,891 None
Total 4,469 1,064 -1,513 - -9 4,011 None
RMB'000
Item
Balance at the
beginning of the
year Additions Amortisation
Other
deduction
Effect of the
foreign exchange
rate changes
Balance at
the end of
the period
Reasons for
other
deduction
Water and electricity
capacity enlargement
expenses 3,234 - -354 - -17 2,863 None
Rental 7,965 293 -3,469 - -53 4,736 None
Others 19,314 6,959 -6,489 - -168 19,616 None
Total 30,513 7,252 -10,312 - -238 27,215 NoneChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
153
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
19. DEFERRED TAX ASSETS AND LIABILITIES
(1) Deferred tax assets and liabilities after offsetting
Item
Deductible/(taxa
ble) temporary
difference
2010.6.30
Deferred tax
assets/(liabilities
) 2010.6.30
Deductible/(taxable
) temporary
difference
2009.12.31
Deferred tax
assets/(liabilities)
2009.12.31
Deferred tax assets:
Provisions for impairment 87,919 20,685 92,808 20,430
Provisions 55,149 12,443 55,913 12,626
Employee benefits payable 78,066 16,793 70,927 15,080
Tax losses carry-forward 44,755 10,077 39,059 9 ,164
Movement for fair value of financial assets held for trading/hedge instruments 1,116 245 21,171 4 ,667
Others 25,322 6,287 19,587 4 ,856
Subtotal 292,327 66,530 299,465 66,823
Offsetting amount of deferred tax liabilities -121,845 - 26,806 -59,954 -13,230
Net deferred tax assets after offsetting 170,482 39,724 239,511 53,593
39,724
Deferred tax liabilities:
Movement for fair value of financial assets held for trading/hedge instruments -20,168 - 4,840 -323 -64
Available-for-sale financial assets -110,033 - 25,898 -145,906 -32,099
Movement for fair value of hedging financial instrument -374 - 84 -3,164 -693
Revaluation gain through combination -174,380 - 43,595 -163,713 -45,401
Estimated dividend income earned for non-resident foreign enterprises -177,442 - 10,722 -206,080 -12,966
Others -958 - 239 -4,753 -1,197
Subtotal -483,355 - 85,378 -523,939 -92,420
Offsetting amount of deferred tax assets 121,845 26,806 59,954 13,230
Net deferred tax liabilities after offsetting -361,510 - 58,572 -463,985 -79,190
USD'000
Item
Deductible/(taxa
ble) temporary
difference
2010.6.30
Deferred tax
assets/(liabilities
) 2010.6.30
Deductible/(taxable
) temporary
difference
2009.12.31
Deferred tax
assets/(liabilities)
2009.12.31
Deferred tax assets:
Provisions for impairment 596,548 140,352 633,710 1 39,500
Provisions 374,197 84,428 381,782 8 6,214
Employee benefits payable 529,693 113,944 484,302 1 02,969
Tax losses carry-forward 303,672 68,374 266,702 6 2,575
Movement for fair value of financial assets held for trading/hedge instruments 7,572 1,662 144,561 3 1,865
Others 171,815 42,659 134,109 3 3,157
Subtotal 1,983,497 451,419 2,045,166 456,280
Offsetting amount of deferred tax liabilities -826,746 -181,884 - 409,734 -90,334
Net deferred tax assets after offsetting 1,156,751 269,535 1,635,432 365,946
269,535
Deferred tax liabilities:
Movement for fair value of financial assets held for trading/hedge instruments -136,844 -32,840 - 2,207 -435
Available-for-sale financial assets -751,760 -177,412 -996,275 -219,680
Movement for fair value of hedging financial instrument -2,548 43 - 21,565 -4,108
Revaluation gain through combination -1,183,203 -295,801 -1,117,866 -309,938
Estimated dividend income earned for non-resident foreign enterprises -1,203,979 -72,751 -1,407,153 -88,534
Others -6,500 - 546 - 32,849 -8,361
Subtotal -3,284,834 -579,307 -3,577,915 -631,056
Offsetting amount of deferred tax assets 826,746 181,884 409,734 9 0,334
Net deferred tax liabilities after offsetting -2,458,088 -397,423 -3,168,181 -540,722
RMB'000China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
154
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
20. PROVISIONS FOR IMPAIRMENT
Balance at foreign Balance at
at the beginning Charge for exchange the end
Item Note of the year the period Reversal Write off rate changes of the period
USD’000 USD’000 USD’000 USD’000 USD’000 USD’000
Receivables V.4-6,8,11 53,906 5,285 -1,268 -134 442 58,231
Inventories V.7 103,231 516 -228 - 86,504 11 17,026
Long-term equity
investment V.12 465 465
Fixed assets V.14 36,480 -1,915 34,565
Intangible asset V.16 15,899 -60 15,839
Goodwill V.17 1,757 1,757
Total 211,738 5,801 -1,496 -86,638 -1,522 127,883
during the period
Decrease
Balance at foreign Balance at
at the beginning Charge for exchange the end
Item Note of the year the period Reversal Write off rate changes of the period
RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
Receivables V.4-6,8,11 368,079 36,024 -8,643 - 913 562 395,109
Inventories V.7 704,880 3,517 -1,554 -589,629 -1,689 115,525
Long-term equity
investment V.12 3,175 - - - -20 3,155
Fixed assets V.14 249,092 - - - -14,560 234,532
Intangible asset V.16 108,559 - - - -1,088 107,471
Goodwill V.17 11,997 - - - -75 11,922
Total 1,445,782 39,541 -10,197 - 590,542 -16,870 867,714
Decrease
during the period
Please refer to the respective notes of the assets for reasons of the provisions.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
155
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
21. RESTRICTED ASSETS
As at 30 June 2010, the Group’s assets with restrictions in their ownership are as
follows:
Balance at Decrease Effect of Balance at
the beginning Additions during foreign the end
Item Note of the year for the period the period exchange of the period
USD’000 USD’000 USD’000 USD’000 USD’000
- Cash at bank
and on hand V.1 127,807 7 7,347 - 100,883 - 623 103,648
- Bills receivable V.3 204,120 1 36,333 -298 88 3 40,243
- Accounts
receivable V.4 3,221 1 6,382 - 3,221 1 6,382
- Inventories V.7 - - -
- Fixed assets V.14 6,798 - - 6 ,798
- Intangible assets V.16 2,929 - - 2,929
Total 344,875 230,062 -104,402 - 535 470,000
Balance at Decrease Effect of Balance at
the beginning Additions during foreign the end
Item Note of the year for the period the period exchange of the period
RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
- Cash at bank
and on hand V.1 872,692 5 27,213 -687,639 - 8,994 7 03,272
- Bills receivable V.3 1,393,770 9 29,273 -2,031 - 12,395 2 ,308,617
- Accounts
receivable V.4 21,990 1 11,663 -21,955 - 543 111,155
- Inventories V.7 - - - -
- Fixed assets V.14 46,415 - - - 289 4 6,126
- Intangible assets V.16 20,000 - - - 126 19,874
Total 2,354,867 1 ,568,149 -711,625 - 22,347 3,189,044
The above fixed assets and intangible assets were secured for bank loans. Accounts
receivable was pledged for borrowings. Refer to Note V.22 and Note V.34 for shortterm
and long-term secured loans analysis.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
156
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
22. SHORT-TERM LOANS
(1) Short-term loans by categories:
Item Note
USD’000 RMB’000 USD’000 RMB’000
Guarantee loans (a)
- RMB 1 54,085 1,045,498 78,893 538,700
- USD 1 4,980 101,642 5,500 37,555
- HKD 2 ,592 17,587
- EUR - -
Secured loans (b) - -
- RMB - - 1,977 13,500
- USD 1 4,900 101,099 14,900 101,740
- EUR - -
Pledge loans (c) - -
- RMB - -
- USD 1 6,382 111,155 3,221 21,990
Loans on credit - -
- RMB 8 59,341 5,830,801 185,158 1,264,301
- USD 1 77,238 1,202,595 203,822 1,391,735
- HKD 1 51,478 1,027,809
- EUR 6 ,430 43,629 88,930 607,232
- GBP - -
- AUD - - 148 1,007
- JPY - -
Other loans - -
- RMB 811 5,503 26,320 179,717
Total 1,398,237 9,487,318 608,869 4 ,157,477
2010.6.30 2009.12.31
(a) As at 30 June 2010, guarantee loans of the Group included bank loans
amounting to USD 26,429,000 guaranteed by the Company for its subsidiary,
USD 135,663,000 guaranteed by HI for its subsidiary, USD 4,065,000
guaranteed by Enric for its subsidiary and USD 5,500,000 guaranteed by
CIMC (HK) for CIMC USA.INC, a subsidiary of the Group.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
157
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
22. SHORT-TERM LOANS (CONTINUED)
(1) Short-term loans by categories (continued):
(b) As at 30 June 2010, secured loans of the Group were bank loans amounting to
USD 14,900,000 secured by Vanguard’s property and guaranteed by CIMC
(HK).
(c) As at 30 June 2010, the Group’s pledge loans amounting to USD1,142,000
was pledged by the accounts receivable of its subsidiary, SCRC and pledge
loans amounting to USD15,240,000 was pledged by the accounts receivable
of its subsidiary, DLJLL.
(d) As at 30 June 2010, no amount due to shareholders who hold 5% or more of
the voting rights of the Company was included in the above balance of shortterm
loans.
(2) As at 30 June 2010, the Group had no past due and un-repaid short-term loans.
23. FINANCIAL LIABILITIES HELD FOR TRADING
USD'000 RMB'000 USD'000 RMB'000
Derivative financial liabilities
-foreign future contracts 2 22 1 ,506 5 8 395
-swap contract for interest r 1 0,271 6 9,691 1 2,161 8 3,040
-foregin exchange option 11,214 76,089 10,486 71,601
Total 2 1,707 147,286 2 2,705 155,036
2010.06.30 2009.12.31
(1) As at 30 June 2010, the Company had 8 unsettled interest rate swap contracts
denominated in U.S. dollars. The nominal value of these contracts amounted
to USD 340,000,000. The maturity dates of these interest rate swap contracts
range from 23 May 2012 to 28 April 2017. As at 30 June 2010, the Group
recognised losses on the foresaid contracts in their fair values of
USD10,271,000 (including USD8,934,000 of losses recognised by the
Company) as expenses and financial liabilities held for trading. Transaction
costs on realisation have not been considered when calculating the fair values.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
158
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
23. FINANCIAL LIABILITIES HELD FOR TRADING (CONTINUED)
(2) As at 30 June 2010, the Company had 2 unsettled forward contracts denominated in
Japanese Yen. The nominal value of these contracts amounted to Japanese Yen
4,090,000,000. Pursuant to these forward contracts, the Company is entitled to buy
U.S. dollar at an amount equivalent to contracted nominal value at agreed rates where
the market spot rates at the settlement dates are higher than the agreed rates. These
forwards contracts are not executed where the market spot rates at the settlement
dates are equal to or lower than the agreed rates. The settlement dates of the
aforesaid forwards contracts range from 30 August 2010 to 29 June 2012.
As at 30 June 2010, the Group recognised the aforesaid 2 forwards contracts in their
fair values of USD11,214,000 as expenses and financial liabilities held for trading.
Transaction costs on realisation haven not been considered when calculating the fair
values.
24. BILLS PAYABLE
USD'000 RMB'000 USD'000 RMB'000
Bank acceptance bills 286,077 1 ,941,090 1 75,760 1 ,200,122
Commercial acceptance bills 10,105 6 8,564 3 ,803 25,969
2 96,182 2 ,009,654 179,563 1,226,091
2010.06.30 2009.12.31
The above bills are due within one year.
No amount due to the shareholders who hold 5% or more of the voting rights of the
Company is included in the above balance of bills payable.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
159
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
25. ACCOUNTS PAYABLE
(1) The Group’s accounts payable is as follows:
Item
USD’000 RMB’000 USD’000 RMB’000
Raw materials suppliers 1,621,814 11,004,332 653,504 4 ,462,255
2010.06.30 2009.12.31
As at 30 June 2010, there was no individual major accounts payable aged over one
year.
Group’s accounts payable is analysed by currencies as follows:
Original Exchange USD RMB Original Exchange USD RMB
currency rate ’000 ’000 currency rate ’000 ’000
Currency Currency
RMB 8 ,600,974 6 .7852 1,267,608 8,600,974 RMB 2,855,123 6 .8282 418,137 2,855,123
USD 3 34,150 1 .0000 334,150 2,267,275 USD 2 13,025 1 .0000 213,025 1,454,578
HKD 1 4,696 7.7839 1,888 12,810 HKD 1 03,964 7 .7546 13,407 91,544
JPY 1 8,699 8 8.62 2 11 1 ,432 JPY 4 ,569 90.28 5 1 346
EUR 1 1,623 0.8155 14,253 96,709 EUR 6 ,110 0.6940 8 ,804 60,113
AUD 3 ,741 1.1705 3,196 21,685 AUD 5 9 1.1116 5 3 361
Others - - 508 3 ,447 Others - - 2 7 190
1 ,621,814 1 1,004,332 653,504 4,462,255
2010.06.30 2009.12.31
(2) No amount due to shareholders who hold 5% or more of the voting rights of the
Company is included in the balance of accounts payable.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
160
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
26. ADVANCES FROM CUSTOMERS
(1) The Group’s advances from customers is as follows:
Item
USD'000 RMB'000 USD'000 RMB'000
Advances for goods 161,709 1,097,227 7 4,255 5 07,028
Advances for construction 100,038 678,778 76,044 5 19,243
Advances for property 78,482 532,516 34,454 2 35,261
Others 2,320 1 5,742 1,329 9 ,070
Total 342,549 2 ,324,263 1 86,082 1 ,270,602
2010.06.30 2009.12.31
No amount due to shareholders who hold 5% or more of the voting rights of the
Company is included in the balance of advances from customers.
As at 30 June 2010, there was no significant advances aged over one year.
27. EMPLOYEE BENEFITS PAYABLE
Effect of
Balance at Accrued Paid foreign Balance at
the beginning during during exchange the end
Item of the year the period the period rate changes of the period
USD’000 USD’000 USD’000 USD’000 USD’000
Salaries, bonuses, and allowances 68,696 133,190 - 130,512 -494 70,880
Senior management bonus 24,152 - - 1,563 - 22,589
Severance payment 18 - 18
Social insurances
and others 26,261 39,800 -36,378 43 29,726
Total 119,127 172,990 -168,453 -451 123,213
Effect of
Balance at Accrued Paid foreign Balance at
the beginning during during exchange the end
Item of the year the period the period rate changes of the period
RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
Salaries, bonuses, and allowances 481,838 907,850 - 889,596 -19,157 480,935
Senior management bonus 164,914 - - 10,654 -989 1 53,271
Severance payment 123 - - -1 1 22
Social insurances
and others 166,550 271,285 - 247,960 11,822 2 01,697
Total 813,425 1,179,135 -1,148,210 -8,325 836,025China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
161
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
27. EMPLOYEE BENEFITS PAYABLE (CONTINUED)
As at 30 June 2010, there was no delayed payment of employee benefits.
Salaries, bonus and allowances payables represent salaries accrued for current month
and bonus accrued for subsidiaries in accordance with the result of annual
performance and the performance assessment plan of the Group. According to the
requirement of the performance assessment plan, annual accrued bonus would be paid
over three years based on the percentage determined by the management, therefore,
there was a balance of such accrued bonus at the end of the period.
Senior management bonus is determined on the assessment of certain key
performance index. The above bonus is proposed by Chief Executive Officer of the
Group and the payment is subject to review and approval by board chairman and vice
board chairman of the Group. The balance of senior management bonus payable was
unpaid balance accrued in prior years.
28. Taxes payable
USD'000 RMB'000 USD'000 RMB'000
VAT payable 7,510 50,957 21,162 144,500
Business tax payable 569 3,861 787 5,374
Income tax payable 21,646 146,872 53,244 363,562
Withholding tax 28,103 190,684 11,643 79,503
Other 15,677 106,372 4,405 30,072
Total 73,505 498,746 91,241 623,011
2010.06.30 2009.12.31
29. INTEREST PAYABLE
30. DIVIDENDS PAYABLE
USD'000 RMB'000 USD'000 RMB'000
Public shareholders 6,879 46,675
Minority shareholders
of subsidiaries 4,554 30,900 4,604 31,434
Total 11,433 77,575 4,604 31,434
2010.06.30 2009.12.31China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
162
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
31. OTHER PAYABLES
(1) The analysis of the Group’s other payables is as follows:
USD'000 RMB'000 USD'000 RMB'000
Quality guarantees 17,571 119,223 17,599 120,171
Deposits and mortgage 37,370 253,566 32,428 221,424
Advance received 6,360 43,154 7,560 51,617
Transportation expenses 8,671 58,835 23,808 162,566
Equipment and land use rights 11,552 78,384 33,218 226,817
Accruals 60,105 407,822 33,586 229,330
Housing maintenance fees 925 6,276 1,302 8,887
Current account with subsidiaries'
shareholder and consideration for
transferring equity investment 8,843 60,002 10,975 74,937
Professional and training fees 3,184 21,604 4,084 49,414
Insurances 685 4,648 1,490 10,174
Royalties 2,854 19,365 3,844 26,247
Others 31,287 212,285 46,400 295,319
Total 1 89,407 1 ,285,164 216,294 1,476,903
2010.06.30 2009.12.31
(2) The analysis of the Group’s other payables by currencies is as follows:
Currency Original Exchange Original Exchange
currency rate USD RMB currency rate USD RMB
’000 ’000 ’000 ’000 ’000 ’000
RMB 736,988 6.7852 108,617 736,988 905,639 6.8282 132,634 905,639
USD 46,780 1.0000 46,780 317,412 62,458 1.0000 62,458 426,476
HKD 2,573 7.7839 331 2,246 8,357 7.7546 1,078 7,359
JPY 1,629 88.6200 18 122 460 90.2800 5 35
EUR 26,967 0.8155 33,068 224,373 12,031 0.6940 17,336 118,375
AUD 445 1.1705 380 2,578 2,940 1.1116 2,645 18,062
Others - - 213 1,445 - - 138 957
Total 189,407 1,285,164 216,294 1,476,903
2010.6.30 2009.12.31
(3) Significant other payables aged over one year:
As at 30 June 2010, significant other payables aged over one year represented quality
guarantee, vehicle mortgage guarantee and various deposits.
(4) As at 30 June 2010, there was no significant other payables.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
163
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
32. PROVISIONS
Effect of
Balance at Charges Payments Reversal foreign Balance
the beginning for during during exchange at the end
of the year the period the period the period rate changes of the period
Notes USD’000 USD’000 USD’000 USD’000 USD’000 USD’000
Warranties for product quality (1) 71,945 13,339 (7,030) (12,450) (810) 64,994
Guarantees for third parties (2) 1,484 - - - - 1,484
Others (3) 8,318 - - (97) 116 8,337
Total 81,747 13,339 (7,030) (12,547) (694) 74,815
Effect of
Balance at Charges Payments Reversal foreign Balance
the beginning for during during exchange at the end
of the year the period the period the period rate changes of the period
Notes USD’000 USD’000 USD’000 USD’000 USD’000 USD’000
Warranties for product quality (1) 491,246 90,921 (47,918) (84,862) (8,389) 440,998
Guarantees for third parties (2) 10,133 - - - (64) 10,069
Others (3) 56,803 - - (661) 426 56,568
Total 558,182 90,921 (47,918) (85,523) (8,027) 507,635
(1) The Group provides after-sales repair warranty to the customers, ranging from
two to seven years for containers, one year for trailers, one to seven years for
tank equipments and one to two years for airport ground facilities. The Group
will provide repair and maintenance services in accordance with sales
contracts during the warranty period in the event of any non-accidental
breakdown or quality problems. The balance of “Provisions - Warranties for
product quality” represents the Group’s estimated obligation for such
warranties.
(2) The amount represents the possible loss for a bank guarantee letter issued by
the Company’s subsidiary - Shenzhen CIMC Tianda Airport Equipment.
(3) Grow Rapid, the wholly owned subsidiary of the Company, makes a provision
for contingent consideration in respect of its acquisition of TGE SA.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
164
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
33. NON-CURRENT LIABILITIES DUE WITHIN ONE YEAR
(1) The analysis of the Group’s non-current liabilities due within one year by
categories is as follows:
USD'000 RMB'000 USD'000 RMB'000
Long-term loans Due within one year
-Credit loans 487,754 3,309,508 64,130 437,888
-Guarantee loans - - 2,575 17,584
Total 487,754 3,309,508 66,705 455,472
2010.06.30 2009.12.31
The analysis of the Group’s non-current liabilities by currencies due within one year
is as follows:
Annual Original Exchange Original Exchange
interest rate currency rate USD currency rate USD
Bank loans ’000 ’000 ’000 ’000
-RMB 3.51%~4.23% 2,200,000 6 .7852 3 24,235 42,022 6.8282 6,154
-USD LIBOR+30~185BP 147,285 1.0000 1 47,285 40,000 1.0000 40,000
-HKD HIBOR+33BP 50,000 7.7839 6 ,424 70,000 7.7546 9,024
-EUR EURIBOR+65BP 8,000 0.8155 9 ,810 8,000 0.6940 11,527
4 87,754 66,705
2010.06.30 2009.12.31
As at 30 June 2010, there was no renewal of past due long-term included in the
balance of long-term loans due within one year.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
165
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
33. NON-CURRENT LIABILITIES DUE WITHIN ONE YEAR (CONTINUED)
(1) The analysis of the Group’s non-current liabilities due within one year by categories is as follows: (continued)
(a) As at 30 June 2010, the top five long-term loans due within one year are as follows:
Original Original
currency USD currency USD
’000 ’000 ’000 ’000
1.The Export-Import Bank
of China 30 November 2009 23 May 2011 RMB 3.51% 450,000 66,321 450,000 6 5,903
2.The Export-Import Bank
of China 2 April 2010 23 June 2011 RMB 4.23% 430,000 63,373 430,000 6 2,974
3.China Development
Bank 12 December 2007 21 June 2011 USD Six-month Libor+90bp 50,000 50,000 50,000 5 0,000
4The Export-Import Bank
of China 26 April 2010 23 June 2011 RMB 4.23% 310,000 45,688 310,000 4 5,400
5.The Export-Import Bank
of China 15 September 2009 23 May 2011 RMB 3.51%
300,000 44,214 3 00,000 4 3,935
Total 269,596 2 68,212
2009.12.31
Interest rate（%）
2010.06.30
lender Initial date Maturity date CurrencyChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
166
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
34. LONG-TERM LOANS
(1) The analysis of the Group’s long-term loans is as follows:
USD'000 RMB'000 USD'000 RMB'000
Bank loans
-Credit loans 715,316 4,853,562 815,588 5,568,996
-Guarantee loans 3,239 21,977 5,794 39,564
Total 718,555 4,875,539 821,382 5,608,560
2010.06.30 2009.12.31
Annual
interest rate Original Exchange Original Exchange
currency rate USD currency rate USD
Bank loans ’000 ’000 ’000 ’000
RMB 3.51%~5.4% 972,207 6.7852 143,283 1,460,000 6.8282 213,819
USD BOR+30~185BP 500,000 1.0000 500,000 520,000 1.0000 520,000
HKD HIBOR+33BP 500,000 7.7839 64,235 545,000 7.7546 70,272
EUR EURIBOR+65BP 9,000 0.8155 11,037 12,000 0.6940 17,291
718,555 821,382
2010.06.30 2009.12.31
No amount due to the shareholders who hold 5% or more of the voting rights of the
Company is included in the above balance of long-term loans.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
167
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
35. SPECIAL PAYABLES
Effect of
Balance at Additions Settlements foreign Balance at
the beginning during during exchange the end
of the year the period the period rate changes of the period
USD’000 USD’000 USD’000 USD’000 USD’000
Project funds 1 ,997 220 (5) 13 2 ,225
Effect of
Balance at Additions Settlements foreign Balance at
the beginning during during exchange the end
of the year the period the period rate changes of the period
RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
Project funds 1 3,639 1 ,500 (34) (8) 1 5,097
36. OTHER NON-CURRENT LIABILITIES
USD'000 RMB'000 USD'000 RMB'000
Deferred income 1 9,106 129,638 1 9,053 130,099
2010.6.30 2009.12.31China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
168
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
37. SHARE CAPITAL
The Company’s share capital status at 30 June 2010 is as follows:
Original Original Original Original
currency USD currency USD currency USD currency USD
RMB’000 ’000 RMB’000 ’000 RMB’000 ’000 RMB’000 ’000
Shares subject to selling
restrictions
-Shares held by
overseas legal persons - - - - - - - -
-Shares held by domestic
natural persons 620 77 - - - - 6 20 77
Shares not subject to selling
restrictions
-RMB-denominated
ordinary shares 1,231,297 152,095 - - - - 1 ,231,297 152,095
-Domestically listed
foreign shares 1,430,479 176,700 - - - - 1 ,430,479 1 76,700
2 ,662,396 3 28,872 - - - - 2,662,396 328,872
Balance at the
Changes of
Balance at the Additions shares subject to
beginning of the year during the period selling restrictions end of the period
The face value of the aforesaid shares was RMB 1.00 per share.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
169
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
38. CAPITAL RESERVE
Balance at Additions Settlements Balance at
the beginning during during the end of
of the year the period the period the period
USD’000 USD’000 USD’000 USD’000
Share premiums 21,245 - - 21,245
Other capital reserves
-Property revaluation reserve 6,640 - - 6,640
-Exchange reserve on foreign currency capital 105 - - 105
-Donated non-cash assets reserve 39 - - 39
- Net changes in fair value of available-for-sale
financial assets 151,904 - (41,871) 110,033
-Effective portion of changes in fair value of
cash flow hedges 3,164 - (2,790) 374
-Deferred tax effect (32,792) 6,810 - (25,982)
-capital reserves due to minority shareholders’
contribution 3,182 2,729 - 5,911
-capital reserves due to minority shareholders’
equity 11,992 - - 11,992
-capital reserves due to acquiring minority
shareholders' equity 37,311 - - 37,311
Others 13,599 - - 13,599
216,389 9,539 (44,661) 181,267China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
170
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
38. CAPITAL RESERVE (CONTINUED)
Balance at Additions Settlements Balance at
the beginning during during the end of
of the year the period the period the period
RMB’000 RMB’000 RMB’000 RMB’000
Share premiums 201,222 - - 201,222
Other capital reserves 0
-Property revaluation reserve 54,979 - - 54,979
-Exchange reserve on foreign currency capital 866 - - 866
-Donated non-cash assets reserve 324 - - 324
- Net changes in fair value of available-for-sale
financial assets 1,036,681 - (284,921) 751,760
-Effective portion of changes in fair value of
cash flow hedges 21,565 - (19,017) 2,548
-Deferred tax effect (223,788) 46,419 - (177,369)
-capital reserves due to minority shareholders’
contribution 22,867 18,603 - 41,470
-capital reserves due to minority shareholders’
equity 88,251 - - 88,251
-capital reserves due to acquiring minority
shareholders' equity 254,804 - - 254,804
Others 99,932 - - 99,932
1,557,703 65,022 (303,938) 1,318,787China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
171
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
39. Surplus reserve
USD'000
Balance at the beginning Additions Settlements Balance at the end
Item of the period during the period during the period of the period
Statutory surplus reserve 162,520 - - 162,520
Discretionary surplus reserve 271,650 - - 271,650
Total 4 34,170 - - 434,170
RMB'000
Balance at the beginning Additions Settlements Balance at the end
Item of the period during the period during the period of the period
Statutory surplus reserve 1,331,198 - - 1,331,198
Discretionary surplus reserve 2,246,390 - - 2,246,390
Total 3,577,588 - - 3,577,588
40. RETAINED EARNINGS
Item Note USD'000 RMB'000 Appropriation proportion
Retained earnings brought forward 1,047,547 8,229,532 -
Add:profit attributable to shareholders of the Company 133,951 912,556 -
Less:Dividends of ordinary shares (1) 4 6,707 319,488 -
Retained earnings carry forward 1,134,791 8,822,600 -
(1) Dividends of ordinary shares
(a) Dividends of ordinary shares declared during the period
Pursuant to the shareholders’ approval at the shareholders’ Meeting on 26
April 2010, a cash dividend of RMB 0.12 per share (2009: RMB 0.15 per
share) totalling RMB 319,487,526.12, equal to USD 46,707,392.20 (2009:
RMB 399,359,407.65, equal to USD 58,485,063.51).China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
172
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
41 OPERATING INCOME AND OPERATING COST
(1)
Item
USD'000 RMB'000 USD'000 RMB'000
Operating income 3,018,547 20,575,020 1,294,823 8,846,875
Other operating income 97,249 662,869 87,142 5 95,401
Operating cost 2,676,965 18,246,729 1,186,450 8 ,106,420
from 1 January to 30 June 2010 from 1 January to 30 June 2009
There was no individual construction contract whose revenue amounted for 10% of
the total operating income during the period.
(2) Operating income and operating cost (by industries and by products)
USD'000
Industry Operating income Operating cost Operating income Operating cost
Containers 1,118,912 960,045 289,696 2 37,345
Trailers 1,303,350 1,158,375 701,627 6 27,225
Tank equipments 263,951 213,199 258,578 2 20,343
Marine engineering 258,821 222,533 - -
Air ground facilities 2,865 2,057 30,490 2 2,640
Others 70,648 53,058 14,432 8,043
Total 3,018,547 2,609,267 1,294,823 1 ,115,596
from 1 January to 30 June 2010 from 1 January to 30 June 2009
RMB'000
Industry Operating income Operating cost Operating income Operating cost
Containers 7,626,728 6,543,859 1,979,346 1 ,621,659
Trailers 8,883,894 7,895,716 4,793,865 4 ,285,515
Tank equipments 1,799,143 1 ,453,207 1,766,734 1 ,505,494
Marine engineering 1,764,176 1 ,516,829 - -
Air ground facilities 19,528 1 4,021 208,323 1 54,688
Others 481,551 3 61,654 98,607 54,954
Total 20,575,020 1 7,785,286 8,846,875 7 ,622,310
from 1 January to 30 June 2010 from 1 January to 30 June 2009China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
173
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
41. OPERATING INCOME AND OPERATING COST (CONTINUED)
(3) Operating income and operating cost (by regions)
USD'000
Regions Operating income Operating cost Operating income Operating cost
P.R China 2,839,307 2,455,229 1,081,621 933,315
America 53,602 4 9,087 35,872 31,048
Europe 58,876 5 9,838 141,791 126,535
Asia 11,846 2 ,000 12,900 6,510
Others 54,916 43,113 22,639 18,188
Total 3,018,547 2 ,609,267 1,294,823 1 ,115,596
from 1 January to 30 June 2010 from 1 January to 30 June 2009
RMB'000
Regions Operating income Operating cost Operating income Operating cost
P.R China 19,353,284 16,735,332 7,390,174 6,376,875
America 365,362 3 34,587 245,094 212,135
Europe 401,311 4 07,868 968,787 864,550
Asia 80,745 1 3,632 88,139 44,480
Others 374,318 293,867 154,681 124,270
Total 20,575,020 1 7,785,286 8,846,875 7 ,622,310
from 1 January to 30 June 2010 from 1 January to 30 June 2009
The regional operating income and operating cost is determined on the location at
which the services were provided or the goods were delivered.
(4) Operating income of top five customers from 1 January to 30 June in 2010 is as
follows:
Customer
USD'000 RMB'000
1.Triton Container International Ltd. 243,744 1,661,408 7.82%
2.TAL International Container Corporation 221,152 1,507,416 7.10%
3.Hamburg-Sub 90,536 6 17,111 2.91%
4.COSL 84,158 5 73,638 2.70%
5.Florens Container Corp. S.A 63,220 430,920 2.03%
Total 702,810 4,790,493 22.56%
Operating income Percentage of
total operating
income(%)China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
174
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
42. BUSINESS TAXES AND SURCHARGES
Taxation basis and rates
USD'000 RMB'000 USD'000 RMB'000
Business tax
3%~5% of operating
income 1 ,258 8,575 1,234 8,431
Urban maintenance and
construction tax
7% of VAT and business
tax paid
4 46 3,040 481 3,286
Education fee and
surcharges
3% of VAT and business
tax paid
2 71 1,847 155 1,059
Land appreciation tax
Appreciation amount in
transferring property and
applicable tax rate
1 5 102 - -
Others 8 25 5,624 74 506
Total 2,815 1 9,188 1,944 13,282
from 1 January to 30 June 2010 from 1 January to 30 June 2009
43. FINANCIAL EXPENSES
USD'000 RMB'000 USD'000 RMB'000
Interest expenses from loans and payables 33,697 2 29,684 2 1,555 1 47,275
Less:Borrowing costs capitalised 647 4 ,410 1 ,070 7 ,311
Interest income from deposits and receivables (6,162) (42,001) (3,563) (24,344)
Net exchange (gains)/ losses 8,283 5 6,459 338 2 ,309
Other financial expenses 1 ,813 1 2,358 32 2 19
Total 36,984 2 52,090 1 7,292 1 18,148
from 1 January to 30 June 2010 from 1 January to 30 June 2009
44. GAINS / LOSSES FROM CHANGES IN FAIR VALUE
USD'000 RMB'000 USD'000 RMB'000
Financial assets and liabilities held for trading:
Changes in fair value during the period
-Equity securities investments
held for trading investment 5,152 35,117 1,212 8,281
-Derivative financial instrument 7,515 51,224 (9,722) (66,426)
Total 12,667 86,341 (8,510) (58,145)
from 1 January to 30 June 2010 from 1 January to 30 June 2009China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
175
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
45. INVESTMENT INCOME
(1) The analysis of the Group’s investment income is as follows:
USD'000 RMB'000 USD'000 RMB'000
Long-term equity investments in equity method 3,313 22,582 6 ,847 4 6,782
Investment gains on available-for-sale financial assets - 3 2 2 19
Gains on sale of available-for-sale financial assets 1,649 11,240 2 02,790 1 ,385,562
- 19,255 - 131,246 - -
Investment Income recognized when reclassifying
available-for-sale financial asset to investment in
associates
5,998 40,403 - -
Total -8,295 - 57,021 2 09,669 1 ,432,563
Investment Income recognized when remeasuring held
equity interest held before acquisition-date for
business combination achieved in stages
from 1 January to 30 June 2010 from 1 January to 30 June 2009
(2) Long-term investments in equity method with individual investment income over
5% of total investment income or less than 5% but the top five investment income
for the year are as follows:
Investee
USD'000 RMB'000 USD'000 RMB'000
TJZH 2,147 14,635 2,434 16,630 Changes in profit and loss of the investee
KYH 1,674 11,410 293 2,003 Changes in profit and loss of the investee
Shanghai Fengyang 449 3,060 780 5,329 Changes in profit and loss of the investee
MST 168 1,145 96 656 Changes in profit and loss of the investee
TJCIMCZL 76 518 121 827 Changes in profit and loss of the investee
Total 4,514 30,768 3,724 25,445
Reasons for variances between two
from 1 January to 30 June 2010 from 1 January to 30 June 2009 periods
Note1: Only top five investees with largest profits before income tax are listed
above.
Note2: There was no significant restriction on the remittance of investment income
to the investor.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
176
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
46. IMPAIRMENT LOSSES
Item USD'000 RMB'000 USD'000 RMB'000
Receivables 4,017 27,381 53 362
Inventories 288 1,963 30,409 207,769
Total 4,305 29,344 30,462 208,131
from 1 January to 30 June 2010 from 1 January to 30 June 2009
47. NON-OPERATING INCOME
(1) The analysis of the Group’s non-operating income is as follows:
Note
USD'000 RMB'000 USD'000 RMB'000
Gains on disposal of fixed assets 62 423 41 280
Compensation income 3,074 20,953 20 137
Penalty income 538 3,667 112 764
Gains on fixed assets surplus 7 48 2 14
Government grants (2) 5,207 35,492 3,176 21,700
Amounts no longer payable 37 252 379 2,590
Gains on recognition of negative goodw 16,184 110,313 - -
Other 3,477 23,700 1,331 9,094
Total 28,586 194,848 5,061 34,579
from 1 January to 30 June 2010 from 1 January to 30 June 2009
(2) Government grants
USD'000 RMB'000 USD'000 RMB'000
Financial grants 4,066 27,715 2,115 14,451
Tax refund 1,141 7,777 1,061 7,249
Total 5,207 35,492 3,176 21,700
from 1 January to 30 June 2010 from 1 January to 30 June 2009China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
177
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
48. NON-OPERATING EXPENSES
USD'000 RMB'000 USD'000 RMB'000
Losses on disposal of fixed assets 69 470 50 343
Donation expenses 53 361 30 205
Penalty expenses 70 477 241 1,646
Compensation expenses 199 1,356 9 61
Others 416 2,837 138 943
Total 807 5,501 468 3,198
from 1 January to 30 June 2010 from 1 January to 30 June 2009
49. INCOME TAX
USD'000 RMB'000 USD'000 RMB'000
Current tax expenses for the period 23,258 1 58,531 4 6,633 3 18,620
Deferred taxation 1 1,001 74,985 (7,075) (48,340)
Total 3 4,259 2 33,516 3 9,558 2 70,280
from 1 January to 30 June 2010 from 1 January to 30 June 2009
(2) Reconciliation between income tax expenses and accounting profits is as follows:
USD'000 RMB'000 USD'000 RMB'000
Profits before taxation 193,531 1 ,318,665 1 72,398 1 ,177,908
Expected income tax expenses at
applicable tax rates 42,170 2 87,439 3 1,480 2 15,084
Effect of tax incentive -6,793 - 46,302 - 8,620 - 58,895
Tax effect of non-deductible expenses 2,162 1 4,737 3 ,388 2 3,149
Tax effect of non-taxable income -5,725 - 39,023 - 2,011 - 13,740
Tax effect of utilisation of tax losses not
recognised in prior years -1,501 - 10,231 - 1,333 - 9,108
Tax effect of unrecognised tax losses 6,035 4 1,136 1 6,751 1 14,451
Deductible temporary differences of
unrecognised deferred tax assets 741 5 ,050 8 39 5 ,735
Effect of tax rate change on deferred tax -1,752 - 11,942 2 ,648 1 8,092
Tax refund for income tax annual filing -1,078 -7,348 -1,014 - 6,928
Domestic purchased equipment tax refund - - - 2,570 - 17,560
Income tax expenses 34,259 2 33,516 3 9,558 2 70,280
from 1 January to 30 June 2010 from 1 January to 30 June 2009China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
178
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
50. CALCULATION OF EARNINGS PER SHARE AND DILUTED
EARNINGS PER SHARE
(1) Basic earnings per share
The calculation of basic earnings per share is based on the consolidated profit
attributable to ordinary equity shareholders of the Company during the period and the
weighted average ordinary shares in issue:
USD'000 RMB'000 USD'000 RMB'000
Consolidated profit attributable to ordinary equity
shareholders of the Company
1 33,951 9 12,556 1 20,871 8 25,850
Weighted average of ordinary shares in issue('000) 2,662,396 2 ,662,396 2 ,662,396 2 ,662,396
Basic earnings per share 0.0503 0.3428 0.05 0.31
2010.06.30 2009.06.30
(2) Diluted earnings per share
The calculation of diluted earnings per share is based on the consolidated profit
attributable to ordinary equity shareholders of the Company during the period and the
adjusted weighted average of ordinary shares in issue:
USD'000 RMB'000 USD'000 RMB'000
Consolidated profit attributable to ordinary equity
shareholders of the Company(diluted)
1 33,951 9 12,556 1 20,871 8 25,850
Weighted average of ordinary shares in issue(diluted)('000) 2,662,396 2 ,662,396 2 ,662,396 2 ,662,396
Diluted earnings per share 0.0503 0.3428 0.05 0.31
2010.06.30 2009.06.30
Calculation of weighted average number of ordinary shares
Issued ordinary shares at 1 January('000)
Weighted average number of ordinary shares at 30 June('000)
from 1 January to 30 June 2010 from 1 January to 30 June 2009
2,662,396 2,662,396
2,662,396 2 ,662,396
Calculation of weighted average number of ordinary shares(diluted)
Issued ordinary shares at 1 January('000)
Weighted average number of ordinary shares at 30 June('000)
from 1 January to 30 June 2010 from 1 January to 30 June 2009
2,662,396 2,662,396
2,662,396 2,662,396China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
179
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
51. OTHER COMPREHENSIVE INCOME / (LOSSES)
Item USD'000 RMB'000 USD'000 RMB'000
1.Gains/(losses) on available-for -sale financial assets (34,224) (233,278) 89,296 603,868
Less: Effect of income tax arising from available-for-sale financial
assets (6,201) (42,268) (24,066) (164,184)
Amount recognised in other comprehensive income in prior period
transferred to profit and loss in current period 7,647 51,643 202,790 1,385,562
Subtotal (35,670) (242,653) (89,428) (617,510)
2.Gains/(losses) on cash flow hedges financial instrument (2,790) (19,017) (2,729) (18,587)
Less:Effect of income tax arising from cash flow hedges financial
instrument (609) (4,151) 368 2,516
Subtotal (2,181) (14,866) (3,097) (21,103)
3.Effect of foreign exchange rate changes (20,829) (249,290) (15,566) (84,378)
Total (58,680) (506,809) (108,091) (722,991)
from 1 January to 30 June 2010 from 1 January to 30 June 2009
52. NOTES TO CASH FLOW STATEMENT
(1) Other cash received from operating activities
Item
USD'000 RMB'000
Waste materials revenue 10,366 70,657
Deposits 6,719 45,798
Financial subsidies 3,788 25,820
labor union membership dues and prepaid meal card 2,249 15,330
Claims compensation,penalty 804 5,480
Others 6,767 46,125
Total 30,693 209,210
AmountChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
180
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
52. NOTES TO CASH FLOW STATEMENT (CONTINUED)
(2) Other cash paid for operating activities
Item
USD'000 RMB'000
Cash paid for guarantee deposits 103,648 7 06,485
Cash paid for travelling,office expenses,rental and other expenses in ordinary operation 35,835 2 44,259
Cash paid for transportation expenses and container inspection 24,672 1 68,169
Cash paid for insurance,after sales,commission and other selling expenses 25,496 1 73,786
Cash paid for water ,electricity and other maintenances 30,778 2 09,789
Cash paid for consultation fee,audit fee,agency fee 10,030 6 8,366
Cash paid for deposits 6,640 4 5,260
Cash paid for entertainments 4,826 3 2,895
Cash paid for bank charges 4,112 2 8,028
Others 1 0,459 7 1,291
Total 2 56,496 1,748,328
Amount
53. INFORMATION TO CASH FLOW STATEMENT
(1) Supplement to cash flow statement:
1 Reconciliation of net profit to cash flow from operating activities:
USD'000 RMB'000 USD'000 RMB'000
Net profit 159,272 1,085,149 132,840 907,627
Add:Impairment for assets 4,305 29,344 30,462 208,132
Depreciation of fixed assets 55,980 381,571 42,871 292,917
Amortisation of intangible assets 12,296 83,812 12,346 84,354
Amortisation of long-term deferred expenses 1,064 7,252 160 41
Losses / (gains) on disposal of fixed assets, intangible
assets and other long-term assets 7 47 9 63
Losses/(Gains) on changes in fair value (12,667) (86,341) 8,510 58,145
Financial expense 26,888 183,273 17,992 122,931
Losses/(Gains) arising from investments 8,295 57,021 (209,669) (1,432,563)
Change in deferred tax assets and liabilities 11,001 74,985 (7,075) (48,340)
Decrease/(increase) in gross inventories 539,698 3,678,690 (30,533) (199,574)
Decrease /(increase)in operating receivables (1,448,816) (9,875,209) 344,396 2,353,086
Increase/(decrease) in operating payables 235,157 1,602,877 (126,945) (867,352)
Effect of foreign exchange rate changes - (209) - (7,993)
Net cash inflow / (outflow) from operating activities (407,520) (2,777,738) 215,364 1,471,474
from 1 January to 30 June 2010 from 1 January to 30 June 2009China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
181
V. NOTES TO CONSILIDATED FINANCIAL STATEMENTS
53. INMORMATION TO CASH FLOW STATEMENT (CONTINUED)
(1) Supplement to cash flow statement (continued)
2 Cash and cash equivalents held by the Group is as follows:
USD'000 RMB'000 USD'000 RMB'000
Closing balance of cash and cash equivalents 592,900 4,022,945 522,777 3,571,403
Less:Opening balance of cash and cash equivalents 643,878 4,396,525 413,542 2,822,175
Net increase/(decrease) of cash and cash equivalents (50,978) (373,580) 109,235 749,228
from 1 January to 30 June 2010 from 1 January to 30 June 2009
(2) Cash and cash equivalents held by the Group is as follows
USD'000 RMB'000 USD'000 RMB'000
1.Cash at bank and on hand
Including: Cash 419 2,844 628 4,287
Bank deposits available on demand 583,001 3,955,777 641,930 4,383,223
Other monetary fund available on demand 9,480 64,324 1,320 9,015
2. Closing balance of cash and cash equivalents 592,900 4,022,945 643,878 4,396,525
from 1 January to 30 June 2010 from 1 January to 30 June 2009
Note: Aforesaid “Cash at bank and on hand” excluded restricted cash and short-term
investment.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
182
VI. RELATED PARTY RELATIONSHIPS AND TRANSACTIONS
1. The company does not have immediate holding company.
2. For the information on the subsidiaries of the company, refer to Note IV.1.
3. For the information about the associates and joint ventures of the group,
refer to Note V.12(2).
4. OTHER RELATED PARTIES RELATIONSHIPS
Organisation name Relationship with the Group Organisation code
MST Joint venture 60872487-5
Dalian Jilong Associate 2102716968340
XYW Associate 871052
Shanghai Fengyang Associate 74269573-7
Xiamen Haitou Logistics Co., Ltd Associate 776024499
Florens Container Services Ltd. Subsidiary of significant shareholder N/A
Florens Container Corporation S.A. Subsidiary of significant shareholder N/A
Shenzhen China Merchants Real
Estated Co., Ltd Subsidiary of significant shareholder 61884513-6
CIMC Tianyu Minority shareholder of subsidiary 71526714-7
Gasfin Investment S.A ( “Gasfin” ) Minority shareholder of subsidiary N/A
Wuhu Ruijiang Automobile Co., Ltd Minority shareholder of subsidiary 78858986-8
PGM Minority shareholder of subsidiary N/A
Note ： Significant shareholders represent shareholders holding more than 5%
(inclusive) of the Company’s shares.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
183
VI. RELATED PARTY RELATIONSHIPS AND TRANSACTIONS
(CONTINUED)
5. TRANSACTIONS WITH RELATED PARTIES
The follow transactions with related parties were conducted under normal commercial
terms or relevant agreements.
(1) Sales / purchase of goods and provision/receiving of services
The Group
USD’000
Amount
Percentage on
similar deals(%) Amount
Percentage on
similar deals(%)
Other related party Sales
Sales of
containers
conducted
under normal 3 6,051 1.19% 20,377 1.47%
Other related party Purchase
Purchase of raw
material 8 78 0.03% 2,026 0.17%
Key management personnel Remuneration 2 ,678 - 212 -
Related party
Nature of
Transaction
Transaction
details
Pricing
Mechanism
from 1 January to 30 June 2010 from 1 January to 30 June 2009
RMB’000
Amount
PercentAge on
similar deals(%) Amount
PercentAge on
similar deals(%)
Other related party Sales Sales of containe 2 45,730,410 1.19% 139,226 1.47%
Other related party Purchase Purchase of raw 5,983,090 0.03% 13,843 0.17%
Key management perRemuneration 1 8,253 - 1,449 -
Related party
Nature of
Transaction
Transaction
details
Pricing
Mechanism
from 1 January to 30 June 2010 from 1 January to 30 June 2009
conducted
under normal
non-related
party
transaction
The Company
USD'000
Amount
g
similar deals(%) Amount
g
similar deals(%)
Key management
personnel Remuneration 2,678 - 212 -
from 1 January to 30 June 2010 from 1 January to 30 June 2009
Related party
Nature of
Transaction
Transaction
details
Pricing
Mechanism
RMB'000
Amount
g
similar deals(%) Amount
g
similar deals(%)
Key management
personnel Remuneration 18,253 - 1,449 -
Related party
Nature of
Transaction
Transaction
details
Pricing
Mechanism
from 1 January to 30 June 2010 from 1 January to 30 June 2009China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
184
VI. RELATED PARTY RELATIONSHIPS AND TRANSACTIONS
(CONTINUED)
5. TRANSACTIONS WITH RELATED PARTIES (CONTINUED)
(2) Funding
The Group
USD’000
Related party Funding amount Initial date Maturity date Note
Dongfang Tianyu 4,863 31 December 2006 Not yet agreed Shareholder loans
Gasfin 2,801 19 September 2008 18 September 2010 Shareholder loans
Shanghai Fengyang 22,846 25 December 2007 Not yet agreed Shareholder loans
XYW 626 20 June 2006 Not yet agreed Shareholder loans
PGM 18,395 14 August 2009 13 August 2010
Advance payment for
capital injection to
subsidiary
Borrowings
Lending
RMB’000
Related party Funding amount Initial date Maturity date Note
Dongfang Tianyu 32,996 31 December 2006 Not yet agreed Shareholder loans
Gasfin 19,005 19 September 2008 18 September 2010 Shareholder loans
Shanghai Fengyang 155,015 25 December 2007 Not yet agreed Shareholder loans
XYW 4,248 20 June 2006 Not yet agreed Shareholder loans
PGM 124,814 14 August 2009 13 August 2010
Advance payment for
capital injection to
subsidiary
Borrowings
LendingChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
185
VI. RELATED PARTY RELATIONSHIPS AND TRANSACTIONS
(CONTINUED)
5. TRANSACTIONS WITH RELATED PARTIES (CONTINUED)
(2) Funding (continued)
The Company
USD'000
Related party Funding Initial date Maturity date Note
Lending
Shanghai Fengyang 22,846 25 December 2007
y
agreed Shareholder loans
RMB'000
Related party Funding Initial date Maturity date Note
Lending
Shanghai Fengyang 155,015 25 December 2007
y
agreed Shareholder loansChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
186
VI. RELATED PARTY RELATIONSHIPS AND TRANSACTIONS
(CONTINUED)
5. TRANSACTIONS WITH RELATED PARTIES (CONTINUED)
(3) Other related party transactions
(i) Sale of a subsidiary
In 2007, CIMC Shenfa Development Co., Ltd. (“CIMCSD”), a subsidiary of
the Group and Shenzhen China Merchants Real Estate Co., Ltd. and, entered
into a share transfer agreement, in which CIMCSD will transfer 60% of the
equity of Shanghai Fengyang to Shenzhen China Merchants Real Estate Co.,
Ltd for a price of USD48,363,000 (RMB353,250,000) in total. As at 30 June
2010, USD 10,347,000 (RMB 70,650,000) of the total price had not been paid.
6. THE BALANCES WITH RELATED PARTIES AS AT 30 JUNE ARE SET
OUT AS FOLLOWS:
USD'000 RMB'000 USD'000 RMB'000
Accounts rece Ⅴ.4 36,306 2 46,343 1,007 6,878
Other receivab Ⅴ.5 52,402 3 55,558 54,838 374,442
Long-term receivables - - 5,310 36,254
Accounts payable 2,155 1 4,622 23 160
Other payables 10,010 67,921 13,379 91,354
Item Note
2010.6.30 2009.12.31China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
187
VII. SHARE-BASED PAYMENTS
1. INFORMTION ABOUT SHARE-BASED PAYMENTS
Expenses recognised for the year arising from share-based payments are as follows:
USD'000 RMB'000 USD'000 RMB'000
Equity-settled share-based payment 3,406 2 3,216 - -
from 1 January to 30 June 2010 from 1 January to 30 June 2009
2. INFORMATION ON EQUITY-SETTLED SHARE-BASED PAYMENT
Enric, a subsidiary of the Company, carried out a share options plan (the “Plan”),
which was approved by the shareholders’ meeting on 12 July 2006. According to the
Plan, the key management personnel and other employees the company were granted
share options of the company at nil consideration to subscribe for shares of the
company. The options are 50% exercisable after one year from the date of grant and
are then 100% exercisable after two years from the date of grant. Each option gives
the holder the right to subscribe for one ordinary share in the company.
The measurement method of fair
value of the share options granted
The estimated fair value of the share options
granted is measured based on a binomial lattice
model. The contractual life of the share option is
used as an input into this model. Expectation of
early exercise are also incorporated into the
binomial lattice model.
The determination method of best
estimates of exercisable to number
of equity instruments
At each balance sheet date during the vesting
period, the estimate of the number of exercisable
equity instruments should be revised according
to the best estimate based on the latest available
subsequent information such as change in the
number of vesting employees and etc. On
vesting date, the final estimate of number of
exercisable equity instruments should be equal
to the actual exercisable number of equity
instruments
Reasons for material variance from
last year’s estimation
NilChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
188
VI. SHARE-BASED PAYMENTS
2. INFORMATION ON EQUITY-SETTLED SHARE-BASED PAYMENT
(CONTINUED)
USD'000 RMB'000
Accumulated equity-settled sharebased
payments in capital reserve 3,512 23,950
Expenses recognised for the period
arising from equity-settled sharebased
payments 4,406 3 0,048
There was no exercised shares options during the period.
As at 30 June 2010, the price range of issued shares options was HKD4 per share and
the weighted average residual life of the shares options was 9.33 year.
3. SHARE OPTION INCENTIVE YET TO TAKE EFFECT
On 28 December 2009, the board of directors of the Company passed resolutions of
“China International Marine Containers (Group) CO., Ltd. Stock Option Incentive
plan (draft)” and “China International Marine Containers (Group) CO., Ltd.
Implementation Assessment Methods of Stock Option Incentive plan” and “Motion
Shareholders Meeting Regarding Authorisation of Board of Directors for Conducting
Stock Option Incentive Plan”. Based on the above resolutions, the Company will
implement an stock option incentive plan, according to which the Company will grant
a total of 60,000,000 shares (accounted for 2.25% of total shares of the Company at
year end) to employees including executive directors (excluding external directors
and independent directors), senior management and other key technical (marketing)
staff. The valid period of current stock incentive plan is ten years from the first
authorisation date of the stock option. The exercise price of the stock option first
granted was RMB 12.51. The above resolutions have been permitted by the China
Securities Supervision and Administration Commission, and will subject to the
approval of Shareholders Meeting..China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
189
VIII. CONTINGENCIES
1. GUARANTEES PROVIDED FOR OTHER ENTITIES
During the period, CIMC Vehicle signed contracts with China Construction Bank,
Bank of Communications, China Merchants Bank and China Everbright Bank, to
provide guarantees in respect of banking facilities granted to customers who drew
down loans under banking facilities to settle outstanding payables arising from
purchase of trailers from the Group. As at 30 June 2010, the Group has the above
outstanding guarantees totalling RMB 785,020,000, equivalent to USD 115,696,000
(2009: RMB627,162,000, equivalent to USD 91,849,000).
2. BILLS ISSUED BUT NOT RECORDED ON BOOKS AND
OUTSTANDING LETTER OF CREDIT
The Group does not recognise bills payable or letter of credit issued as deposits.
Corresponding inventories, prepayment and bills receivable are recognised at the
earlier of delivery of the goods by the suppliers and the maturity of the bill issued.
As at 30 June 2010, the Group had bills issued to suppliers but not recorded on books
and outstanding letter of credit totalling USD 107,956,000 (RMB 732,503,000). As at
31 December 2009, the balance was USD USD20,357,000 (RMB139,005,000).China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
190
IX. COMMITMENTS
1. SIGNIFICANT COMMITMENTS
(1) Capital commitments
USD'000 RMB'000 USD'000 RMB'000
Construction contracts entered into but not
exercised or not fully exercised 39,889 270,652 63,359 432,631
Investment contracts entered into but not
exercised or not fully exercised 39,792 270,000 59,313 405,000
Total 79,681 540,652 122,672 837,631
2010.6.30 2009.12.31
Other than the aforesaid capital commitment, on 16 November 2009, the Group’s
wholly-owned subsidiary, Brught Day Limited (“offeror”) issued offers to offeror and
all shareholders of Raffles other than related parties with voluntary unconditional
acquisition offer at cash. The acquisition had been completed before approval of
these financial statements. For details, refer to Note X.1.
(2) Operating lease commitments
As at 30 June, the total future minimum lease payments under non-cancellable
operating leases of properties, fixed assets and so on were payable as follows:
USD'000 RMB'000 USD'000 RMB'000
Within 1 year (inclusive) 12,868 87,310 14,183 96,847
After 1 year but within 2 years (inclusive) 8,373 56,814 7,639 51,152
After 2 years but within 3 years (inclusive) 7,892 53,551 6,522 44,536
After 3 years 14,764 100,180 19,399 132,460
Total 43,898 297,855 47,743 324,995
2010.6.30 2009.12.31China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
191
X. OTHER SIGNIFICANT MATTERS
1. SEGMENT REPORTING
In accordance with the Group’s internal organisation structure, management
requirement and internal reporting process, eight reportable segments are identified
by the Group including containers, trailers, energy chemistry and food equipment,
marine projects, airport facilities, logistic equipments and services, railway trucks
manufactory and property development. Each reportable segment is an independent
business segment providing different products and services. Independent management
is applied to individual business segment as different technical and market strategy
are adopted. The Group reviews the financial information of individual segment
regularly to determine resources allocation and performance assessment.
(1) Segment revenue, expenses, assets and liabilities
In order to assess the segment performance and resources allocation, the Group’s
management review segment revenue, expenses, assets and liabilities of each segment
regularly. The preparations basis of such information are detailed as follows:
Segment assets include tangible assets, intangible assets, other long-term assets and
accounts receivable, etc, but exclude deferred tax assets and other un-allocated
headquarter assets. Segment liabilites include payables, bank loans, provision, special
payables and other liabilities.
Segment profit represents revenue (including external operating income and intersegment
operating income), offsetting segment expenses, depreciation and
amortisation, impairment losses, interest expenses and income attributable to
individual segment. Transactions conducted among segments are under normal nonrelated
party transaction commercial terms. The Group dose not allocate nonoperating
income/expenses and income tax expenses to individual segment.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
192
X. OTHER SIGNIFICANT MATTERS (CONTINUED)
1. SEGMENT REPORT (CONTINUED)
(1) Segment revenue, expenses, assets and liabilities (continued)
Information to be disclosed on each of the Group’s reportable segment (including management’s periodically reviewed information
(marked as “*”) and disclosure required by accounting standard) for the first half year of 2010 is set out as follows:
USD’000
Item Containers Trailers
Energy
chemistry
and food
equipment
Marine
engineerin
g
Airport
facilities Others Elimination
Unallocate
d items Total
External transaction* 1,164,809 1,340,054 275,688 258,821 3,656 72,768 - - 3,115,796
Inter segment transaction* 747 - 8,674 - - 14,300 -23,721 - -
Segment income subtotal 1,165,556 1,340,054 284,362 258,821 3,656 87,068 -23,721 - 3,115,796
Segment operating expenses(income)* 1,079,081 1,270,474 281,636 246,489 8,523 70,850 -18,058 11,049 2,950,044
Segment operating(losses)/profit* 86,475 69,580 2,726 12,332 -4,867 16,218 -5,663 - 11,049 165,752
Supplementary information
- Interest income* 13,077 5,812 345 273 19 584 -31,046 17,098 6,162
- Interest expenses* 19,595 15,212 1,695 14,125 7 2,252 -31,046 11,210 33,050
- Depreciationa and amortisation expenses* 35,974 12,879 7,701 9,100 320 1,739 - 821 68,534
- Impairment loss for the period* -651 4,140 311 - -44 549 - - 4,305
- Segment total assets* 1,771,491 1,754,931 712,847 1,512,567 69,999 1,827,492 -46,350 440,991 8,043,968
- Segment expenditures raising from
additions of non-current assets* 8,363 54,469 13,585 42,604 9,665 4,791 - 672 134,149
-Segment total liabilities 553,434 1,056,132 56,641 1,014,853 34,407 1,305,993 -46,350 1,467,892 5,443,002China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
193
X. OTHER SIGNIFICANT MATTERS (CONTINUED)
1. SEGMENT REPORT (CONTINUED)
(1) Segment revenue, expenses, assets and liabilities (continued)
Reportable information on each of the Group’s business segment and geographical segment in the first half year of 2009 is set out as follows:
Item
USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000
Operating income
External transaction 3 35,602 2 ,604,181 643,999 1,108,168 2 41,228 5 63,924 4 4,540 27,613 116,596 3 ,649 - - - - 1,381,965 4 ,307,535.00
Inter-segment transaction 2 94 13,188 8,255 5,022 1 15 406 - - 5 ,606 29,094 -14,270 -47,710 - - - -
Total Operating income 3 35,896 2 ,617,369 652,254 1,113,190 2 41,343 5 64,330 4 4,540 27,613 122,202 32,743 -14,270 -47,710 - - 1,381,965 4 ,307,535
Operating expenses / (gains) 3 87,447 2 ,531,546 627,892 1,100,828 2 33,588 5 16,279 3 8,674 24,482 133,194 40,199 -13,780 -47,710 - 192,855 - 28,625 1,214,160 4 ,136,999
Operating profit - 51,551 85,823 2 4,362 12,362 7 ,755 48,051 5 ,866 3 ,131 -10,992 -7,456 - 490 - 192,855 28,625 167,805 1 70,536
Total assets 1 ,748,308 3 ,214,486 1 ,662,473 1 ,633,798 9 27,185 9 16,090 50,434 56,418 1,664,498 1 ,149,665 - 1,737,623 - 1,366,531 3 68,669 753,511 4,683,944 6 ,357,437
Total liabilities 6 38,588 1 ,316,160 734,625 816,899 252,968 2 10,008 2 3,084 39,637 1,300,451 9 19,732 -1,737,623 - 1,366,531 1 ,317,496 2,071,924 2,529,589 4 ,007,829
From 1 Jan
to 30
Jun,2009
From 1 Jan
to 30
Jun,2008
From 1 Jan
to 30
Jun,2009
From 1 Jan to
30 Jun,2008
From 1 Jan
to 30
Jun,2009
From 1 Jan
to 30
Jun,2008
From 1 Jan
to 30
Jun,2009
From 1 Jan
to 30
Jun,2008
From 1 Jan
to 30
Jun,2009
From 1 Jan
to 30
Jun,2008
From 1 Jan
to 30
Jun,2009
From 1 Jan
to 30
Jun,2008
From 1 Jan
to 30
Jun,2009
From 1 Jan
to 30
Jun,2008
From 1 Jan
to 30
Jun,2009
From 1 Jan
to 30
Jun,2008
Containers Trailers Tank equipments ground facilities Others Elimination Unallocated items TotalChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
194
X. OTHER SIGNIFICANT MATTERS (CONTINUED)
1. SEGMENT REPORT (CONTINUED)
(1) Segment revenue, expenses, assets and liabilities (continued)
Item
USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000
Revenue from
external customers 134,019 697,635 350,685 1,175,632 881,963 2,400,719 15,298 3 3,549 1,381,965 4,307,535
Total assets 94,510 90,700 746,627 400,697 3,833,357 5,861,002 9,451 5 ,038 4,683,944 6,357,437
From 1 Jan
to 30
Jun,2009
From 1 Jan
to 30
Jun,2008
From 1 Jan
to 30
Jun,2009
From 1 Jan
to 30
Jun,2008
From 1 Jan
to 30
Jun,2009
From 1 Jan
to 30
Jun,2008
From 1 Jan
to 30
Jun,2009
From 1 Jan
to 30
Jun,2008
From 1 Jan
to 30
Jun,2009
From 1 Jan
to 30
Jun,2008
Secondary segment reporting (geographical segments)
America Europe Asia Other TotalChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
195
X. OTHER SIGNIFICANT MATTERS (CONTINUED)
1. SEGMENT REPORT (CONTINUED)
(2) Geographic information
The following table sets out information about the geographical information of the
Group’s revenue from external customers and the Group’s non-current assets
(excluding financial assets and deferred tax assets, same for the below). The
geographical locations of customers are based on the location at which the services
were provided or the goods were delivered. The geographical locations of the
specified non-current assets are based on the physical location of the assets (for fixed
assets), or the location of the business to which they are allocated (for intangible
assets and goodwill), or the location of operations of the associates and joint ventures.
Geographic information
USD’000
USD'000
Item
Revenue
from external
customers
Noncurrent
assets
P.R.China 1,358,799 1,985,157
America 768,504 1 8,086
Europe 595,631 7 6,176
Asia 225,855 193,605
Others 167,007 5 3,554
Total 3,115,796 2,326,578China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
196
X. OTHER SIGNIFICANT MATTERS (CONTINUED)
2. RISK ANALYSIS, SENSITIVITY ANALYSIS, AND DETERMINATION
OF FAIR VALUES FOR FINANCIAL INSTRUMENTS
The Group has exposure to the following risks from its use of financial instruments:
?Credit risk
?Liquidity risk
?Interest rate risk
?Foreign currency risk
This note presents information about the Group’s exposure to each of the above risks
and their sources, the Group’s objectives, policies and processes for measuring and
managing risks, etc.
The Group’s risk management policies are established to identify and analyse the
risks faced by the Group, to set appropriate risk limits and controls, and to monitor
risks and adherence to limits. Risk management policies and systems are reviewed
regularly to reflect changes in market conditions and the Group’s activities. The
internal audit department of the Group undertakes both regular and ad-hoc reviews of
risk management controls and procedures.
(1) Credit risk
The Group’s credit risk is primarily attributable to receivables, debt investments and
derivative financial instruments entered into for hedging purposes. Exposure to these
credit risks are monitored by management on an ongoing basis.
In respect of receivables, the risk management committee of the Group has
established a credit policy under which individual credit evaluations are performed on
all customers requiring credit over a certain amount. These evaluations focus on the
external ratings of the customers and their bank credit records where available and
previous payment records (if available). Receivables are due within from 30 to 90
days from the date of billing. Normally, the Group does not obtain collateral from
customers, but earnest or prepayment money is requested sometimes due to the
customer’s situation.
Most of the Group’s and the Company’s customers have been transacting with the
Group or the Company for a long time, and losses have occurred infrequently. In
monitoring customer credit risk, customers are grouped according to some factors,
such as ageing and maturity date. This group has made the provision for the
significant overdue receivables at 30 June 2010.
Guideline from the Group basis to the assets of associates and jointly controlled,
profit forecast of development project provide fund to associates and jointly
controlled entity and continue to monitor the project progress and its operating to
ensure the recoverability of the fund.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
197
X. OTHER SIGNIFICANT MATTERS (CONTINUED)
2. RISK ANALYSIS, SENSITIVITY ANALYSIS, AND DETERMINATION
OF FAIR VALUES FOR FINANCIAL INSTRUMENTS (CONTINUED)
(1) Credit risk (continued)
The Group’s exposure to credit risk is influenced mainly by the individual
characteristics and industries of each customer rather than country or area in which
the customers operate and therefore significant concentrations of credit risk arise
primarily when the Group has significant exposure to individual customers. At the
balance sheet date, the Group and the Company had a certain concentration of credit
risk, as 32.51% (2009: 17.64%) of the total accounts receivable were due from the
five largest customers of the Group.
Investments are normally made only in liquid securities quoted on a recognised stock
exchange, except where entered into for long-term strategic purposes. Transactions
involving derivative financial instruments are made with counterparties of sound
credit standing and with whom the Group has a signed netting ISDA agreement
(International Swap Derivative Association). Given their high credit standing,
management does not expect any investment counterparty to fail to meet its
obligations.
The maximum exposure to credit risk is represented by the carrying amount of each
financial asset, including derivative financial instruments, in the balance sheet.
Except for the financial guarantees given by the Group as set out in Note VIII, the
Group and the Company do not provide any other guarantees which would expose the
Group or the Company to credit risk. The maximum exposure to credit risk in respect
of these financial guarantees at the balance sheet date is disclosed in Note VIII.
(2) Liquidity risk
The Company is responsible for the cash management, including short term
investment of cash surpluses and the raising of loans to cover expected cash demands,
for individual subsidiaries subject to approval by the Company’s board when the
borrowings exceed certain predetermined levels of authority. The Group’s policy is to
regularly monitor its liquidity requirements and its compliance with lending
covenants, to ensure that it maintains sufficient reserves of cash, readily realisable
marketable securities and adequate committed lines of funding from major financial
institutions to meet its liquidity requirements in the short and longer term.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
198
X. OTHER SIGNIFICANT MATTERS (CONTINUED)
2. RISK ANALYSIS, SENSITIVITY ANALYSIS, AND DETERMINATION
OF FAIR VALUES FOR FINANCIAL INSTRUMENTS (CONTINUED)
(2) Liquidity risk (continued)
The following tables show the remaining contractual maturities at the balance sheet
date of the Group’s financial assets and financial liabilities, which are based on
contractual undiscounted cash flows (including interest payments computed using
contractual rates or if floating, based on rates current at 30 June 2010) and the earliest
date the Group can be required to pay:
USD’000
Financial assets
Cash at bank and on hand 696,548 - - - 696,548 696,548
Accounts receivable and other
receivables 1,796,951 1,796,951 1,696,197
Long-term receivables 141,995 114,420 47,404 1,215 305,034 283,384
Subtotal 2,635,494 114,420 47,404 1,215 2,798,533 2,676,129
Financial liabilities
Short-term loans (1,398,237) (1,398,237) (1,398,237)
Accounts payable and other
payables (1,811,221) (1,811,221) (1,811,221)
Long-term loans (495,656) (272,655) (457,541) (1,225,852) (1,206,309)
Subtotal (3,705,114) (272,655) (457,541) - (4,435,310) (4,415,767)
Net total (1,069,620) (158,235) (410,137) 1,215 (1,636,777) (1,739,638)
More than 1
year but less
than 2 years
More than 2 years but
less than 5 years
Total
Item
2010年
Balance
sheet
carrying
amount
Contractual undiscounted cash flow
Within 1 year or
on demand
More than 5
yearsChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
199
X. OTHER SIGNIFICANT MATTERS (CONTINUED)
2. RISK ANALYSIS, SENSITIVITY ANALYSIS, AND DETERMINATION
OF FAIR VALUES FOR FINANCIAL INSTRUMENTS (CONTINUED)
(2) Liquidity risk (continued)
RMB’000
Financial assets
Cash at bank and on hand 4,726,217 4,726,217 4,726,217
Accounts receivable and other
receivables 12,192,672 12,192,672 11,509,036
Long-term receivables 963,464 776,363 321,646 8,244 2,069,717 1,922,817
Subtotal 17,882,353 776,363 321,646 8,244 18,988,606 18,158,070
Financial liabilities
Short-term loans (9,487,318) (9,487,318) (9,487,318)
Accounts payable and other
payables (12,289,496) (12,289,496) (12,289,496)
Long-term loans (3,363,125) (1,850,019) (3,104,507) - (8,317,651) (8,185,047)
Subtotal (25,139,939) (1,850,019) (3,104,507) - (30,094,465) (29,961,861)
Net total (7,257,586) (1,073,656) (2,782,861) 8,244 (11,105,859) (11,803,791)
More than 1
year but less
than 2 years
More than 2 years but
less than 5 years
Total
More than 5
years
Item
2010年
Balance
sheet
carrying
amount
Contractual undiscounted cash flow
Within 1 year or
on demandChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
200
X. OTHER SIGNIFICANT MATTERS (CONTINUED)
2. RISK ANALYSIS, SENSITIVITY ANALYSIS, AND DETERMINATION
OF FAIR VALUES FOR FINANCIAL INSTRUMENTS (CONTINUED)
(2) Liquidity risk (continued)
USD’000
2009
Contractual undiscounted cash flow
Item Within 1
year or on
demand
More than 1
year but less
than 2 years
More than 2
years but
less than 5
years
More than 5
years Total
Balance sheet
carrying
amount
Financial assets
Cash at bank and on hand 771,685 - - - 771,685 771,685
Accounts receivable and
other receivables 773,615 - - - 773,615 730,221
Long-term receivables 69,563 90,020 57,545 1,362 218,490 202,978
Subtotal 1,614,863 90,020 57,545 1,362 1,763,790 1,704,884
Financial liabilities
Short-term loans (608,869) - - - (608,869) (608,869)
Accounts payable and
other payables (869,798) - - - (869,798) (869,798)
Long-term loans (76,405) (382,411) (443,639) - (902,455) (888,087)
Subtotal (1,555,072) (382,411) (443,639) - (2,381,122) (2,366,754)
Net total 59,791 (292,391) (386,094) 1,362 (617,332) (661,870)China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
201
X. OTHER SIGNIFICANT MATTERS (CONTINUED)
2. RISK ANALYSIS, SENSITIVITY ANALYSIS, AND DETERMINATION
OF FAIR VALUES FOR FINANCIAL INSTRUMENTS (CONTINUED)
(2) Liquidity risk (continued)
RMB’000
2009
Contractual undiscounted cash flow
Item Within 1 year
or on demand
More than 1
year but less
than 2 years
More than 2
years but
less than 5
years
More than 5
years Total
Balance sheet
carrying
amount
Financial assets
Cash at bank and on hand 5,269,217 - - - 5,269,217 5,269,217
Accounts receivable and
other receivables 5,282,395 - - - 5,282,395 4,986,093
Long-term receivables 474,990 614,675 392,929 9,300 1,491,894 1,385,978
Subtotal 11,026,602 614,675 392,929 9,300 12,043,506 11,641,288
Financial liabilities
Short-term loans (4,157,477) - - - (4,157,477) (4,157,477)
Accounts payable and
other payables (5,939,158) - - - (5,939,158) (5,939,158)
Long-term loans (521,711) (2,611,182) (3,029,254) - (6,162,147) (6,064,032)
Subtotal (10,618,346) (2,611,182) (3,029,254) - (16,258,782) (16,160,667)
Net total 408,256 (1,996,507) (2,636,325) 9,300 (4,215,276) (4,519,379)
(3) Interest rate risk
Interest-bearing financial instruments at variable rates and at fixed rates expose the
Group to cash flow interest rate risk and fair value interest risk, respectively. The
Group adopts an interest rate policy of ensuring that interest rate risk is reasonable.
The Group has entered into interest rate swaps denominated in the currency of the
loan, to achieve an appropriate mix of fixed and floating rate exposure consistent with
the Group’s policy.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
202
X. OTHER SIGNIFICANT MATTERS (CONTINUED)
2. RISK ANALYSIS, SENSITIVITY ANALYSIS, AND DETERMINATION
OF FAIR VALUES FOR FINANCIAL INSTRUMENTS (CONTINUED)
(3) Interest rate risk (continued)
(a) As at 30 June, the Group held the following interest-bearing financial
instruments:
USD’000
Annual interest
rate
Amount Annual interest rate Amount
Fixed rates interest-bearing
financial instruments
Financial assets
-Long-term receivables 5.5% -6.5% 151,467 5.5% -6.5% 145,271
-Long-term receivables due
with one year
5.5% -6.5%
131,917
5.5% -6.5%
57,707
Financial liabilities
-Short-term loans 1.53% -5.35% (1,398,237) 1.53% -5.35% (608,869)
Total (1,114,853) (405,891)
2010 2009
Item
USD’000
Annual interest
rate
Amount Annual interest rate Amount
Variable rates interest-bearing
financial instruments
Financial assets
-Cash and cash equivalents 0.36% -3.87% 696,548 0.36% -3.87% 771,685
Financial liabilities
-Short-term loans - - - -
-Long-term loans due within
one year
Refer to
NoteV.33 (487,754)
Refer to NoteV.33
(66,705)
-Long-term loans Refer to
NoteV.34 (718,555)
Refer to NoteV.34
(821,382)
Total (509,761) (116,402)
2010 2009
ItemChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
203
X. OTHER SIGNIFICANT MATTERS (CONTINUED)
2. RISK ANALYSIS, SENSITIVITY ANALYSIS, AND DETERMINATION
OF FAIR VALUES FOR FINANCIAL INSTRUMENTS (CONTINUED)
(3) Interest rate risk (continued)
(b) Sensitivity analysis
As at 30 June 2010, it is estimated that a general increase / decrease of 50
basis points in interest rates, with all other variables held constant, would
increase/decrease the Group’s net profit by USD1,912,000 (2009:
USD437,000), and equity by USD1,912,000 (2009: USD437,000).
The sensitivity analysis above indicates the instantaneous change in the net
profit and equity that would arise assuming that the change in interest rate had
occurred at the balance sheet date and had been applied to re-measure those
financial instruments held by the Group which expose the Group to fair value
interest rate risk at the balance sheet date. In respect of the exposure to cash
flow interest rate risk arising from floating rate non-derivative instruments
held by the Group at the balance sheet date, the impact on the net profit and
equity is estimated as an annualised impact on interest expense or income of
such a change in interest rates. The analysis was performed on the same basis
for 2009.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
204
X. OTHER SIGNIFICANT MATTERS (CONTINUED)
2. RISK ANALYSIS, SENSITIVITY ANALYSIS, AND DETERMINATION
OF FAIR VALUES FOR FINANCIAL INSTRUMENTS (CONTINUED)
(4) Foreign currency risk
The major currency received by the Group is USD and the major currency paid out is
RMB. In order to avoid the risks resulting from the fluctuation of the exchange rate
of RMB, in respect of accounts receivables and payables denominated in foreign
currencies, the Group ensures that its net exposure is kept to an acceptable level by
buying or selling foreign currencies at spot rates when necessary to address shortterm
imbalances.
(a) Besides the exposure to currency risk arising from financial assets and
financial liabilities disclosed in Note V.2 and V.23, the Group’s exposure As at
30 June 2010 to currency risk arising from recognised assets or liabilities
denominated in foreign currencies is follows. For presentation purposes, the
amounts of the exposure are shown in RMB, translated using the spot rate at
the balance sheet date. Differences resulting from the translation of the
financial statements denominated in foreign currency are excluded.
RMB’000
U SD E U R H K D JPY U SD E U R H K D JPY
Cash at bank and on hand
1,888,417 3 76,185 226,327 53,285 2 ,618,973 570,726 32,560 24,942
Accounts receivable 5,447,206 2 60,457 45,156 41,444 1 ,796,322 323,664 6,971 70
Short-term loans (1,516,491) (43,629) ( 1,045,396) - (1,553,020) (607,232)- -
Long-term loans ( 3,392,600) (74,888) ( 435,847) - (3,550,664) (118,064) (479,832) -
Accounts payable (2,267,275) (96,709) ( 12,810) (1,432) (1,454,578) (60,113) (91,544) ( 346)
Provisions ( 347,520) (22,433) ( 40,966) - (478,391) (38,410) (41,381) -
Non-current liabilities due within
one year (999,358) (66,563) ( 43,588) - (273,128) (78,708) (61,618) -
Gross balance sheet exposure
( 1,187,621) 3 32,420 ( 1,307,124) 93,297 (2,894,486) (8,137) (634,844) 24,666
2010 2009
Item
(b) Significant exchange rates applied by the Group are as follows at reporting
date:
2010 2009 2010 2009
USD 6.8162 6.8305 6.7852 6.8282
EUR 8.7472 9.6055 8.3203 9.8388
HKD 0.8767 0.8813 0.8717 0.8805
JPY 13.4727 7.5400 13.0608 7.5634
Average exchange rate Benchmark exchange rateChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
205
X. OTHER SIGNIFICANT MATTERS (CONTINUED)
2. RISK ANALYSIS, SENSITIVITY ANALYSIS, AND DETERMINATION
OF FAIR VALUES FOR FINANCIAL INSTRUMENTS (CONTINUED)
(4) Foreign currency risk (continued)
(c) Sensitivity analysis
Assuming all other risk variables remained constant, 1%, 3%, 1% and 1%
strengthening of the RMB against the USD, EUR, HK dollar and Japanese
Yen respectively at 30 June 2010 (1%, 12%, 2% and 5% strengthening of the
RMB against the USD, EUR, HK dollar, and Japanese Yen respectively at 31
December 2009) would have increased (decreased) equity and net profit by
the amount shown below; whose effect is in RMB and translated using the
spot rate at the balance sheet date:
RMB’000
RMB’000
Item Equity Net profit
30 June 2010
U SD 8,907 8,907
E U R (7,479) ( 7,479)
H K D 9,803 9,803
JPY (700) (700)
T otal 1 0,531 10,531
RMB’000
Item Equity Net profit
31 December 2009
U SD 21,709 21,709
E U R 183 183
H K D 4,761 4,761
JPY (185) (185)
T otal 2 6,468 26,468
1%, 3%, 1% and 1% weakening of the RMB against USD, EUR, HK dollar
and Japanese Yen respectively at 30 June 2010 (1%, 3%, 1% and 1%
weakening of the RMB against the USD, EUR, HK dollar, and Japanese Yen
respectively at 31 December 2009) would have had the equal but opposite
effect on the amounts shown above, on the basis that all other variables
remain constant.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
206
X. OTHER SIGNIFICANT MATTERS (CONTINUED)
2. RISK ANALYSIS, SENSITIVITY ANALYSIS, AND DETERMINATION
OF FAIR VALUES FOR FINANCIAL INSTRUMENTS (CONTINUED)
(4) Foreign currency risk (continued)
(c) Sensitivity analysis (continued)
The sensitivity analysis above assumes that the change in foreign exchange
rates had been applied to re-measure those financial instruments held by the
Group which expose the Group to foreign currency risk at the balance sheet
date, the analysis excludes differences that would result from the translation of
the financial statements denominated in foreign currency. The analysis is
performed on the same basis for 2009.
The above sensitive analysis does not include exposure to currency risk
arising from foreign future contracts, Japanese Yen exchange option, swap
contact for interest rate and metal-nickel exchange option disclosed in Note
V.2 and 23 about financial assets and financial liabilities, but the change in
exchange rate may have effect on shareholders’ equity and net profit.
(5) Fair values
All financial instruments are carried at amounts not materially different from their fair
values As at 30 June 2010.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
207
X. OTHER SIGNIFICANT MATTERS (CONTINUED)
2. RISK ANALYSIS, SENSITIVITY ANALYSIS, AND DETERMINATION
OF FAIR VALUES FOR FINANCIAL INSTRUMENTS (CONTINUED)
(7) Estimation of fair values
The following summarises the major methods and assumptions used in estimating the
fair values of financial assets and liabilities held for trading, available-for-sale
financial assets, and items set out in Note XI.3.5 that measured at fair value on the
balance sheet date.
(a) Equity investments
Fair value is based on quoted market prices at the balance sheet date for
financial assets and liabilities held for trading (excluding derivatives), and
available-for-sale financial assets if there is an active market, if an active
market does not exist for the financial asset, the fair value is determined using
valuation techniques. Fair value of restricted shares of China Merchants
Securities is based on the quoted market prices of non-restricted shares of
China Merchants Securities at the balance sheet date, and is determined using
Black Scholes Option Pricing Model.
(b) Receivables
The fair value is estimated as the present value of the future cash flows,
discounted at the market interest rates at the balance sheet date.
(c) Loans and long-term payables
The fair value is estimated as the present value of future cash flows,
discounted at the market rate of interest at the balance sheet date.
(d) Derivatives
The fair value of forward exchange contracts is either based on their listed
market prices or by discounting the contractual forward price and deducting
the current spot rate. The fair value of interest rate swaps is based on broker
quotes. The quotes are tested for reasonableness by discounting estimated
future cash flows based on the terms and maturity of each contract and using
market interest rates for a similar interest rate instrument at the measurement
date.
(e) Financial guarantees
The fair value of financial guarantees issued is determined by reference to fees
charged in an arm’s length transaction for similar services, when such
information is obtainable, or is otherwise estimated by reference to interest
rate differentials, by comparing the actual rates charged by lenders when the
guarantee is made available with the estimated rates that the lenders would
have charged, had the guarantees not been available, where reliable estimates
of such information can be made.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
208
X. OTHER SIGNIFICANT MATTERS (CONTINUED)
2. RISK ANALYSIS, SENSITIVITY ANALYSIS, AND DETERMINATION
OF FAIR VALUES FOR FINANCIAL INSTRUMENTS (CONTINUED)
(7) Estimation of fair values (continued)
(f) Interest rates used for determining fair value
The interest rates used to discount estimated cash flows are based on same
term loans’ rates announced by People Bank of China at the balance sheet date
plus an adequate credit spread and are as follows:
2010 2009
Long-term loans 0.56% - 56% - 5.94%
Receivables 4.86% - 5 6% - 5.94%China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
209
X. OTHER SIGNIFICANT MATTERS (CONTINUED)
4. ASSETS AND LIABILITIES MEASURED AT FAIR VALUE
USD’000
Item
Balance at the
beginning of
the year
Change in fair
value of the
period
Accumulated
change in fair
value in equity
Provision of
impairment for
the period
Balance at the end of
the period
Financial assets
1.Financial assets
at fair value
through profit or
loss (excluding
derivative financial
assets)
12,701 5,152 21,272
2. Derivative
financial
instrument
739 6,517 9,313
3. Available-forsale
financial
assets
172,196 110,033 120,660
Subtotal 185,636 11,669 110,033 - 151,245
Financial liabilities -22,705 998 -21,707
RMB’000
Item
Balance at the
beginning of
the year
Change in fair
value of the
period
Accumulated
change in fair
value in equity
Provision of
impairment for
the period
Balance at the end of
the period
Financial assets
1.Financial assets
at fair value
through profit or
loss (excluding
derivative financial
assets) 86,722 35,117 144,335
2. Derivative
financial
instrument 5,050 43,474 63,190
3. Available-forsale
financial
assets 1,175,785 751,760 818,702
Subtotal 1,267,557 78,591 751,760 - 1,026,227
Financial liabilities (155,036) 7,750 (147,286)China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
210
X. OTHER SIGNIFICANT MATTERS (CONTINUED)
5. FINANCIAL ASSETS AND LIABILITIES IN FOREGIN
CURRENCIES
USD’000
Financial assets
1. Financial assets
at fair value
through profit or
12,286 5,119 - - 17,405
2. Derivative （1） 739 6,517 - - 9,313
3. Loans and （2） 322,606 - - (836) 1,142,846
4. Available-forsale
financial
18,118 - - 864
Subtotal 353,749 11,636 0 (836) 1,170,428
Financial liabilities （3） (1,363,890) 1,162 - - (1,679,310)
Item Note
Balance at the
beginning of
the year
Accumulated
change in fair
value in equity
Provision of
impairment for the
period
Balance at the
end of the
period
Change in fair
value of the
period
RMB’000
Financial assets
1. Financial assets
at fair value
through profit or 83,888 34,208 - - 118,096
2. Derivative （1） 5,050 43,474 - - 63,190
3. Loans and （2） 2,202,816 - - (5,698) 7,754,439
4. Available-forsale
financial 123,715 - - 5,862
Subtotal 2,415,469 77,682 - (5,698) 7,941,587
Financial liabilities （3） (9,312,911) 8,861 - - (11,394,454)
Accumulated
change in fair
value in equity
Provision of
impairment for the
period
Balance at the
end of the
period
Item Note
Balance at the
beginning of
the year
Change in fair
value of the
period
Note: (1) Derivative financial instrument in foreign currency includes foreign
currency future contract.
(2) Loans and receivables in foreign currency includes accounts receivable,
other receivables, prepayments and long-term receivable denominated in
foreign currencies.
(3) Financial liabilities includes foreign currency loans, accounts payable,
other payables, advances from customers, interest rate swap contracts
and stock option contracts.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
211
Ⅺ. SUPPLEMENTARY INFORMATION TO THE HOLDING COMPANY
1. CASH AT BANK AND ON HAND
Original
currency '000
Exchange
rate
USD'000 RMB'000 Original
currency
Exchange
rate
USD'000 RMB'000
Cash at bank
RMB 156,034 6.7852 22,996 1 56,034 80,767 6.8282 1 1,829 8 0,767
USD 35,837 1.0000 35,837 2 43,161 4,540 1.0000 4 ,540 3 1,002
HKD 16,291 7.7839 2,093 1 4,201 64 7 .7546 8 5 6
JPY 377,933 88.62 4,265 2 8,939 311,795 90.28 3 ,454 2 3,583
EUR 2 0.8155 2 1 4 65 0 .6940 93 6 37
65,193 442,349 1 9,924 136,045
Other momentary funds
RMB 28,456 6.7852 4,194 2 8,456 1,635 6.8282 2 40 1 ,635
USD 377 1.0000 377 2 ,558 73,234 1.0000 7 3,234 5 00,058
4,571 31,014 73,474 501,693
69,764 473,363 9 3,398 637,738
2010.06.30 2009.12.31
2. FINANCIAL ASSETS HELD FOR TRADING
USD'000 RMB'000 USD'000 RMB'000
Equity securities investments
held for trading 3 ,450 23,409 - -
Total 3 ,450 23,409 - -
2010.06.30 2009.12.31China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
212
Ⅺ. SUPPLEMENTARY INFORMATION TO THE HOLDING COMPANY
(CONTINUED)
3. DIVIDENDS RECEIVABLE
USD'000 RMB'000 USD'000 RMB'000
SCIMC 85,038 5 77,000 85,039 580,659
SCIMCEL 47,835 3 24,571 55,157 376,621
XHCIMC 262 1 ,778 262 1,789
QDCC 5,213 3 5,371 5,213 35,599
DLCIMC 8,401 5 7,002 8,401 57,364
NBCIMC 11,733 7 9,611 11,733 80,115
SCRC 20,701 1 40,460 15,877 108,414
XHCIMCS 23,549 1 59,785 23,549 160,795
QDCSR 1,241 8 ,420 1,241 8,471
DLL 7,018 4 7,619 7,018 47,922
CIMC(HK) 461,281 3,129,884 462,834 3,160,330
TCCIMC 3,616 2 4,535 3,616 24,693
ZZCIMC 3,541 2 4,026 3,541 24,177
SBWI 615 4 ,173 615 4,198
CIMCSD 9,539 64,724 9,480 64,727
Total 689,583 4,678,959 693,576 4,735,874
2010.06.30 2009.12.31
No amount due from shareholders who hold 5% or more of the voting rights of the
Company is included in the above balance of dividends receivable.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
213
Ⅺ. SUPPLEMENTARY INFORMATION TO THE HOLDING COMPANY
(CONTINUED)
4. OTHER RECEIVABLES
(1) The analysis of the Group’s other receivables is as follows:
Item Gross carrying Provision Percentage Gross carrying Provision Percentage
amount Percentage for bad debts of bad debts amount Percentage for bad debts of bad debts
USD'000 USD'000 provision USD'000 USD'000 provision
Individually significant(Note 2) 822,562 96.90% - - 744,953 96.52% - -
Other immaterial items
Including:
1.Individually insignificant but
tested for impairment - - - - - - - -
2.Individually insignificant with
immaterial portfolio credit risk 26,273 3.10% 691 2.63% 26,894 3.48% 691 2.57%
Total 848,835 100.00% 691 0.08% 771,847 100.00% 691 0.09%
2010.06.30 2009.12.31
Item Gross carrying Provision Percentage Gross carrying Provision Percentage
amount Percentage for bad debts of bad debts amount Percentage for bad debts of bad debts
RMB'000 RMB'000 provision RMB'000 RMB'000 provision
Individually significant(Note 2) 5,581,248 96.90% - - 5,086,688 96.52% - -
Other immaterial items
Including:
1.Individually insignificant but
tested for impairment - - - - - - - -
2.Individually insignificant with
immaterial portfolio credit risk 178,267 3.10% 4,688 2.63% 183,637 3.48% 4719 2.57%
Total 5,759,515 100.00% 4,688 0.08% 5,270,325 100.00% 4,719 0.09%
2010.06.30 2009.12.31
Individually significant items represent other receivables which individual amount
over RMB 10,000,000 (inclusive) or the book value of which account for 5%
(inclusive) of the total other receivables in individual financial statements grouped in
the consolidated financial statement.
There is no individually insignificant item but with material portfolio credit risk in the
Group (2009:Nil).China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
214
Ⅺ. SUPPLEMENTARY INFORMATION TO THE HOLDING COMPANY
(CONTINUED)
4. OTHER RECEIVABLES (CONTINUED)
(2) An analysis of provision for individually significant item or individually insignificant item but
tested for impairment individually is as follows:
USD'000
Other receivables Book value Provision of bad and
doubtable debts
Percentage Reasons
1.Individually significant 822,562 - -
Including:receivables due from
subsidiaries
799,716 - -
The receivables were
current account with
subsidiaries and paid on
behalf of
subsidiaries,the risk is
considered low.
Shanghai Fengyang 22,846 - -
It is receivable due
from associate for
operation funding,the
financial performance of
the associate is
satisfactory,the risk is
considered low.
Total 822,562 - -
RMB'000
Other receivables Book value Provision of bad and
doubtable debts
Percentage Reasons
1.Individually significant 5,581,248 - -
Including:receivables
due from subsidiaries
5,426,233 - -
The receivables were
current account with
subsidiaries and paid on
behalf of
subsidiaries,the risk is
considered low.
Shanghai Fengyang 155,015 - -
It is receivable due
from associate for
operation funding,the
financial performance of
the associate is
satisfactory,the risk is
considered low.
Total 5,581,248 - -China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
215
Ⅺ. SUPPLEMENTARY INFORMATION TO THE HOLDING COMPANY
(CONTINUED)
4. OTHER RECEIVABLES (CONTINUED)
(3) Significant changes of provision for bad and doubtful debts during the period:
There are no other receivables whose provision was fully made or whose provision
proportion was comparatively high before the reporting period, but had been collected
or reversed in 2010 (2009:Nil).
(4) Recovery of accounts receivable due to restructuring, etc within the year
There was no recovery of other receivables due to restructuring or in other ways, etc
in 2010 (2009: Nil).
(5) Write-off of other receivables during the period
There was no material write-off of other receivables during the period (2009:Nil).
(6) Other receivables due from the five largest debtors of the Group are as follows:
Debtor
Relationship
with the
company USD'000 RMB'000 Aging
Proportion in
total other
receivables(%)
HI Subsidiary 266,835 1,810,529 Within one year 31.44%
DLCIMC Subsidiary 74,981 508,761 Within one year 8.83%
CIMCVL Subsidiary 49,814 337,998 Within one year 5.87%
DLL Subsidiary 44,775 303,807 Within one year 5.27%
XHCIMCF Subsidiary 38,805 263,300 Within one year 4.57%
Total 475,210 3,224,395 55.98%
(7) Status of share holders holding to 5% or above voting rights, in the Company’s
other receivables
No amount due from shareholders who hold 5% or more of the voting rights of the Group is
included in the above balance of other receivables (2009: Nil).
(8) Other receivables due from related parties
Related party
Relationship with the
company USD'000 RMB'000
Percentage in total
other receivables(%)
Others Subsidiaries and associates 824,552 5,594,750 97.14%
Total 824,552 5,594,750 97.14%China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
216
Ⅺ. SUPPLEMENTARY INFORMATION TO THE HOLDING COMPANY
(CONTINUED)
4. OTHER RECEIVABLES (CONTINUED)
(9) Derecognition of other receivables due to transferring of financial assets
There was no derecognition of other receivables due to transferring of financial assets
of the Company in 2010 (2009:Nil).
(10) Amount of assets and liabilities recognised due to the continuing involvement of
securitised other receivables
There were no securitised other receivables during the period (2009: Nil).
4. AVAILABLE-FOR-SALE FINANCIAL ASSETS
USD'000 RMB'000 USD'000 RMB'000
Available-for-sale equity instruments 1 19,796 812,840 154,077 1,052,070
2010.06.30 2009.12.31
Detailed analysis for the Group’s available-for-sale financial assets, refer to Note V.10.
6. LONG-TERM EQUITY INVESTMENTS
(1) As at 30 June 2010, the Company’s long-term equity investments are as
follows:
USD'000 RMB'000 USD'000 RMB'000
Investments in subsidiaries 463,791 3,146,915 3 77,130 2,575,120
Other long-term equity investments 59,482 403,597 5 9,482 4 06,155
Subtotal 523,273 3,550,512 4 36,612 2,981,275
Less: Provision for impairment 465 3,155 4 65 3,175
Total 522,808 3,547,357 4 36,147 2 ,978,100
2010.06.30 2009.12.31China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
217
Ⅺ. SUPPLEMENTARY INFORMATION TO THE HOLDING COMPANY (CONTINUED)
6. LONG-TERM EQUITY INVESTMENTS (CONTINUED)
(2) As at 30 June 2010, the Company’s investments on subsidiaries are as follows:
USD’000
Balance Balance The
Initial at the Addition/ at the Company Notes to Dividend
investment beginning (disposal) end Shareholding subsidiaries difference between Provision Impairment receivable/
Investee Costing method cost of the year during the period of the period Percentage voting shareholdings and for loss of received
USD’000 USD’000 USD’000 USD’000 （%） right(%) voting rights impairment the periodof the period
SCIMC Cost method 12,450 12,450 - 1 2,450 100% 100% - - - -
SCIMCEL Cost method 12,450 12,450 - 1 2,450 100% 100% - - - -
XHCIMC Cost method 5,539 5,539 - 5 ,539 100% 100% - - - -
CIMC Yuandong Cost method 17,338 17,338 - 17,338 100% 100% - - - -
TJCIMC Cost method 12,342 12,342 - 1 2,342 100% 100% - - - -
TJCIMCn Cost method 11,500 11,500 - 11,500 100% 100% - - - -
QDCC Cost method 9,139 9,139 - 9 ,139 100% 100% - - - -
DLCIMC Cost method 7,400 7,400 - 7 ,400 100% 100% - - - -
NBCIMC Cost method 3,750 3,750 - 3 ,750 100% 100% - - - -
SBWI Cost method 10,100 10,100 - 1 0,100 94.74% 100% - - - -
TCCIMC Cost method 19,979 19,979 - 1 9,979 100% 100% - - - -
ZZCIMC Cost method 15,266 15,266 - 1 5,266 100% 100% - - - -
SHYSLE Cost method 11,982 11,982 - 1 1,982 100% 100% - - - -
CQCIMC Cost method 5,994 5,994 - 5,994 100% 100% - - - -
SCRC Cost method 30,486 30,486 - 3 0,486 92% 92% - - - 12,762
QDCRC Cost method 8,229 8,229 - 8,229 89.30% 89.30% - - - -
XHCIMCS Cost method 6,748 6,748 - 6 ,748 100% 100% - - - -
QDCSR Cost method 1,931 1,931 - 1 ,931 100% 100% - - - -
TJCIMCL Cost method 2,498 2,498 - 2 ,498 100% 100% - - - -
DLL Cost method 7,024 7,024 - 7 ,024 100% 100% - - - -
CIMC(HK) Cost method 256 256 - 2 56 100% 100% - - - -
CIMC(USA) Cost method 26,009 26,009 - 2 6,009 100% 100% - - - -
CIMCSD Cost method 24,688 24,688 - 2 4,688 100% 100% - - - -
HI Cost method 41,906 41,906 - 41,906 80% 80% - - - -
SZVL Cost method 4 4 - 4 80.20% 80.20% - - - -China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
218
Ⅺ. SUPPLEMENTARY INFORMATION TO THE HOLDING COMPANY (CONTINUED)
6. LONG-TERM EQUITY INVESTMENTS (CONTINUED)
(2) As at 30 June 2010, the Company’s investments on subsidiaries are as follows (continued):
USD’000
Balance Balance The
Initial at the Addition/ at the Company Notes to Dividend
investment beginning (disposal) end Shareholding subsidiaries difference between Provision Impairment receivable/
Investee Costing method cost of the year during the period of the period Percentage voting shareholdings and for loss of received
USD’000 USD’000 USD’000 USD’000 （%） right(%) voting rights impairment the period of the period
CIMC TEI Cost method 900 900 - 9 00 100% 100% - - - -
CIMC Tech Cost method 384 384 - 384 100% 100% - - - -
TCCIMC Cost method 9,073 9,073 - 9,073 100% 100% - - - -
CIMCWD Cost method 16,473 16,473 - 16,473 100% 100% - - - -
CIMC MT Cost method 7,300 7,300 - 7,300 100% 100% - - - -
DLZH Cost method 16,857 16,857 - 16,857 100% 100% - - - -
YTLRC Cost method - 1,645 (1,645) - - - - - - -
MEA Cost method 3,293 3,293 - 3,293 100% 100% - - - -
SZW Cost method 527 527 - 527 100% 100% - - - -
TLC Cost method 12,375 12,375 - 12,375 100% 100% - - - -
SCIMCL Cost method 3,295 3,295 - 3,295 100% 100% - - - -
CIMCF Cost method 73,234 - 73,234 73,234 100% 100% - - - -
CIMCIH Cost method 10,987 - 10,987 10,987 100% 100% - - - -
QDSV Cost method 4,085 - 4,085 4 ,085 44.30% 44.30% - - - -
Total 463,791 377,130 86,661 463,791 - - - - - 12,762China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
219
Ⅺ. SUPPLEMENTARY INFORMATION TO THE HOLDING COMPANY (CONTINUED)
6. LONG-TERM EQUITY INVESTMENTS (CONTINUED)
(2) As at 30 June 2010, the Company’s investments on subsidiaries are as follows (continued):
RMB’000
Balance Balance The
Initial at the Addition/ Effect of at the Company Notes to Dividend
investment beginning (disposal) foreign end Shareholding subsidiaries difference between Provision Impairment receivable/
Investee Costing method cost of the year during period exchange of the period Percentage voting shareholdings and for loss of received
RMB’000 RMB’000 RMB’000 rate changes RMB’000 （%） right(%) voting rights impairment the period of the period
SCIMC Cost method 84,476 85,011 - (535) 84,476 100% 100% - - - -
SCIMCEL Cost method 84,476 85,011 - (535) 84,476 100% 100% - - - -
XHCIMC Cost method 37,581 37,821 - (240) 37,581 100% 100% - - - -
CIMC Yuandong Cost method 117,642 118,384 - (742) 117,642 100% 100% - - - -
TJCIMC Cost method 83,743 84,276 - (533) 83,743 100% 100% - - - -
TJCIMCn Cost method 78,030 78,523 - (493) 78,030 100% 100% - - - -
QDCC Cost method 62,010 62,405 - (395) 62,010 100% 100% - - - -
DLCIMC Cost method 50,210 50,529 - (319) 50,210 100% 100% - - - -
NBCIMC Cost method 25,445 25,606 - (161) 25,445 100% 100% - - - -
SBWI Cost method 68,531 68,967 - (436) 68,531 94.74% 100% - - - -
TCCIMC Cost method 135,562 136,419 - (857) 135,562 100% 100% - - - -
ZZCIMC Cost method 103,583 104,238 - (655) 103,583 100% 100% - - - -
SHYSLE Cost method 81,300 81,812 - (512) 81,300 100% 100% - - - -
CQCIMC Cost method 40,670 40,928 - (258) 40,670 100% 100% - - - -
SCRC Cost method 206,854 208,163 - (1,309) 206,854 92% 92% - - - 86,988
QDCRC Cost method 55,835 56,188 - (353) 55,835 89.30% 89.30% - - - -
XHCIMCS Cost method 45,787 46,074 - (287) 45,787 100% 100% - - - -
QDCSR Cost method 13,102 13,204 - (102) 13,102 100% 100% - - - -
TJCIMCL Cost method 16,949 17,054 - (105) 16,949 100% 100% - - - -
DLL Cost method 47,659 47,959 - (300) 47,659 100% 100% - - - -
CIMC(HK) Cost method 1,737 1,751 - (14) 1,737 100% 100% - - - -
CIMC(USA) Cost method 176,476 177,600 - (1,124) 176,476 100% 100% - - - -
CIMCSD Cost method 167,513 168,574 - (1,061) 167,513 100% 100% - - - -
HI Cost method 284,341 286,143 - (1,802) 284,341 80% 80% - - - -
SZVL Cost method 27 25 - 2 27 80.20% 80.20% - - - -China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
220
Ⅺ. SUPPLEMENTARY INFORMATION TO THE HOLDING COMPANY (CONTINUED)
6. LONG-TERM EQUITY INVESTMENTS (CONTINUED)
(2) As at 30 June 2010, the Company’s investments on subsidiaries are as follows (continued):
RMB’000
Balance Balance The
Initial at the Addition/ Effect of at the Company Notes to Dividend
investment beginning (disposal) foreign end Shareholding subsidiaries difference between Provision Impairment receivable/
Investee Costing method cost of the year during period exchange of the period Percentage voting shareholdings and for loss of received
RMB’000 RMB’000 RMB’000 rate changes RMB’000 （%） right(%) voting rights impairment the period of the period
CIMC TEI Cost method 6,107 6,145 - (38) 6,107 100% 100% - - - -
CIMC Tech Cost method 2,606 2,618 - (12) 2,606 100% 100% - - - -
TCCIMC Cost method 61,562 61,956 - (394) 61,562 100% 100% - - - -
CIMCWD Cost method 111,773 112,472 - (699) 111,773 100% 100% - - - -
CIMC MT Cost method 49,532 49,843 - (311) 49,532 100% 100% - - - -
DLZH Cost method 114,378 115,103 - (725) 114,378 100% 100% - - - -
YTLRC Cost method - 11,230 (11,230) - - - - - - - -
MEA Cost method 22,344 22,488 - (144) 22,344 100% 100% - - - -
SZW Cost method 3,576 3,598 - (22) 3,576 100% 100% - - - -
TLC Cost method 83,967 84,499 - (532) 83,967 100% 100% - - - -
SCIMCL Cost method 22,357 22,503 - (146) 22,357 100% 100% - - - -
CIMCF Cost method 496,907 - 496,907 - 496,907 100% 100% - - - -
CIMCIH Cost method 74,549 - 74,549 - 74,549 100% 100% - - - -
QDSV Cost method 27,718 - 27,718 - 2 7,718 44.30% 44.30% - - - -
Total 3,146,915 2,575,120 587,944 (16,149) 3,146,915 - - - - - 86,988China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
221
Ⅺ. SUPPLEMENTARY INFORMATION TO THE HOLDING COMPANY (CONTINUED)
6. LONG-TERM EQUITY INVESTMENTS (CONTINUED)
（3）As at 30 June 2010, the Company’s other significant long-term equity investments are as follows:
Balance Balance The
Initial at the Addition/ at the Company Notes to Dividend
investment beginning (disposal) end Shareholding subsidiaries difference between Provision Impairment receivable/
Investee Costing method cost of the year during period of the period Percentage voting shareholdings and for loss of received
USD’000 USD’000 USD’000 USD’000 （%） right(%) voting rights impairment the periodof the period
China Railway United Logistics Cost method 57,784 57,784 - 57,784 10% 10% - -
- -
Beihai Yingjian Guangdong Cost method 258 258 - 258 1.01% 1.01% - (258) - -
Samsung Cost method 207 207 - 207 0.09% 0.09% - (207) - -
BOCM Schroder Stolt Fund Cost method 1 ,233 1 ,233 - 1,233 5% 5% - - - -
Total 59,482 59,482 - 59,482 - - - (465) - -China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
222
Ⅺ. SUPPLEMENTARY INFORMATION TO THE HOLDING COMPANY (CONTINUED)
6. LONG-TERM EQUITY INVESTMENTS (CONTINUED)
(3) As at 30 June 2010, the Company’s other significant long-term equity investments are as follows:
Balance Balance The
Initial at the Addition/ Effect of at the Company Notes to Dividend
investment beginning (disposal) foreign end Shareholding subsidiaries difference between Provision Impairment receivable/
Investee Costing method cost of the year during period exchange of the period Percentage voting shareholdings and for loss of received
RMB’000 RMB’000 RMB’000 rate changes RMB’000 （%） right(%) voting rights impairment the period of the period
China Railway United Logistics Cost method 392,076 3 94,561 - (2,485) 392,076 10% 10% - - - -
Beihai Yingjian Guangdong Cost method 1,750 1 ,762 - (12) 1,750 1.01% 1.01% - (1,750) - -
Samsung Cost method 1,405 1 ,413 - (8) 1,405 0.09% 0.09% - (1,405) - -
BOCM Schroder Stolt Fund Cost method 8 ,366 8,419 - (53) 8,366 5% 5% - - - -
Total 403,597 406,155 - (2,558) 403,597 - - - (3,155) - -China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
223
Ⅺ. SUPPLEMENTARY INFORMATION TO THE HOLDING COMPANY
(CONTINUED)
7. SHORT-TERM LOANS
USD'000 RMB'000 USD'000 RMB'000
Credit loans
RMB 181,277 1,230,000 94,690 646,564
USD 20,000 135,705 - -
Total 2 01,277 1,365,705 94,690 646,564
2010.06.30 2009.12.31
8. FINANCIAL LIABILITIES HELD FOR TRADING
USD'000 RMB'000 USD'000 RMB'000
Derivative financial liabilities
-Swap contract for interest rate V.23.1 8,954 60,755 1 0,782 73,622
-Foreign exchange option contracts V.23.2 1 1,214 7 6,089 1 0,486 7 1,602
Total 20,168 136,844 2 1,268 1 45,224
2010.06.30 2009.12.31
9. EMPLOYEE BENEFITS PAYABLE
Balance at Additions Settlements Balance
the beginning during during at the end
of the year the period the period of the period
USD'000 USD'000 USD'000 USD'000
Salaries, bonuses, and allowances 9,866 3,188 3,199 9,855
Senior management bonus 24,152 - 1,563 22,589
Social insurances and others 1 615 625 (9)
Total 34,019 3,803 5,387 32,435
Effect of
Balance at Additions Settlements foreign Balance
the beginning during during exchange at the end
of the year the period the period rate changes of the period
RMB'000 RMB'000 RMB'000 RMB'000 RMB'000
Salaries, bonuses, and allowances 67,368 21,730 21,805 (425) 66,868
Senior management bonus 164,914 - 10,654 (989) 153,271
Social insurances and others 4 4,192 4,260 3 (61)
Total 232,286 25,922 36,719 (1,411) 220,078China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
224
Ⅺ. SUPPLEMENTARY INFORMATION TO THE HOLDING COMPANY
(CONTINUED)
10. TAXES PAYABLE
USD'000 RMB'000 USD'000 RMB'000
Income tax payable - - 27,923 190,663
Withholding individual tax 10,202 6 9,223 8,480 57,900
Others - - 36 251
10,202 6 9,223 36,439 248,814
2010.06.30 2009.12.31
11. DIVIDENDS PAYABLE
USD'000 RMB'000 USD'000 RMB'000
Public shareholders 6,879 46,675 - -
2010.06.30 2009.12.31
12. OTHER PAYABLES
(1) The analysis of the Company’s other payables is as follows:
USD'000 RMB'000 USD'000 RMB'000
Others 3,383 22,954 3,843 26,234
Total 3,383 22,954 3,843 26,234
2010.06.30 2009.12.31
No amount due to the shareholders who hold 5% or more of the voting rights of the
Company is included in the above balance of other payables.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
225
Ⅺ. SUPPLEMENTARY INFORMATION TO THE HOLDING COMPANY
(CONTINUED)
12. OTHER PAYABLES (CONTINUED)
(2) The analysis of the Company’s other payables by currencies is as follows:
Original Exchange Original Exchange
currency rate USD RMB currency rate USD RMB
’000 ’000 ’000 ’000 ’000 ’000
Currency
RMB 1 7,474 6.7852 2,575 1 7,474 2 0,715 6.8282 3,034 20,715
USD 7 90 1.0000 790 5 ,360 7 90 1.0000 790 5,392
HKD 1 44 7.7839 18 1 20 144 7.7546 19 127
3,383 2 2,954 3,843 26,234
2010.06.30 2009.12.31
As at 30 June 2010, there was no significant other payables aged over one year.
13. NON-CURRENT LIABILITIES DUE WITHIN ONE YEAR
(1) The analysis of the Company’s non-current liabilities due within one year by
categories is as follows:
USD'000 RMB'000 USD'000 RMB'000
Long-term loans due within one year
-Credit loans 4 64,045 3 ,148,638 5 7,678 393,839
2010.06.30 2009.12.31
(2) The analysis of the Company’s non-current liabilities by currencies due within one year is as
follows:
Annual Original Exchange Original Exchange
interest rate currency rate USD currency rate USD
’000 ’000 ’000 ’000
Bank loans
RMB 3.51%-4.23% 2,200,000 6.7852 324,235 42,000 6 .8282 6,151
USD Six-month LIBOR+90BP 130,000 1.0000 130,000 40,000 1 .0000 40,000
EUR EURIBOR+65BP 8,000 0.8155 9,810 8,000 0.6940 11,527
464,045 57,678
2010.06.30 2009.12.31
As at 30 June 2010, there was no renewal of past due long-term bank loans which
was included in the above non-current liabilities due within one year.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
226
Ⅺ. SUPPLEMENTARY INFORMATION TO THE HOLDING COMPANY (CONTINUED)
13. NON-CURRENT LIABILITIES DUE WITHIN ONE YEAR (CONTINUED)
(3) As at 30 June 2010, the top three long-term loans (including all long-term loans) due within one year is as follows:
Original
currency
'000 USD'000
Original
currency
'000 USD'000
1.The Export-Import Bank of China 30 November 2009 23 May 2011 RMB 3.51% 450,000 66,321 - -
2.The Export-Import Bank of China 2 April 2010 23 June 2011 RMB 4.23% 430,000 63,373 - -
3.China Development Bank 12 December 2007 21 June 2011 USD Six-month LIBOR+90BP 50,000 50,000 - -
Total 179,694 -
2010.6.30 2009.12.31
Lender Initial date Maturity date Currency Interest rate(%)China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
227
Ⅺ. SUPPLEMENTARY INFORMATION TO THE HOLDING COMPANY
(CONTINUED)
14. LONG-TERM LOANS
(1) The analysis of the Company’s long-term loans is as follows:
USD'000 RMB'000 USD'000 RMB'000
Bank loans
-Credit loans 4 29,810 2 ,916,347 743,787 5 ,078,728
2010.06.30 2009.12.31
(2) The analysis of the Company’s long-term loans by currencies as follows:
Annual Original Exchange Original Exchange
interest rate currency rate USD currency rate USD
’000 ’000 ’000 ’000
Bank loans
RMB - - - 1,410,000 6.8282 2 06,497
USD LIBOR+30~185BP 420,000 1.0000 420,000 520,000 1.0000 5 20,000
EUR EURIBOR+65BP 8,000 0.8155 9,810 12,000 0.6940 17,290
Total 429,810 743,787
2010.06.30 2009.12.31
No amount due to the shareholders who hold 5% or more of the voting rights of the
Company is included in the above balance of long-term loans.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
228
Ⅺ. SUPPLEMENTARY INFORMATION TO THE HOLDING COMPANY (CONTINUED)
14. LONG-TERM LOANS (CONTINUED)
(3) As at 30 June 2010, the top five long-term loans is as follows:
Original
Currency'
000 USD'000
Original
currency'
000 USD'000
1.China Development Bank 12 December 2007 21 June 2013 USD Six-month LIBOR+90BP 110,000 110,000 110,000 110,000
2.China Development Bank 12 December 2007 21 June 2012 USD Six-month LIBOR+90BP 60,000 60,000 60,000 60,000
3.China Development Bank 12 December 2007 21 December 2012 USD Six-month LIBOR+90BP 60,000 60,000 60,000 60,000
4.China Development Bank 12 December 2007 21 December 2011 USD Six-month LIBOR+90BP 50,000 50,000 5 0,000 5 0,000
5.Bank of China 19 October 2009 19 October 2012 USD Three-month LIBOR+55BP 50,000 50,000 50,000 50,000
Total 330,000 330,000
Interest rate(%)
2010.6.30 2009.12.31
Leader Initial date Maturity date Currency
As at 30 June 2010, there was no renewal of past due long-term bank loans which was include in the above long-term loans.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
229
Ⅺ. SUPPLEMENTARY INFORMATION TO THE HOLDING COMPANY
(CONTINUED)
15. DEFERRED TAX ASSETS AND LIABILITIES
(1) Deferred tax assets and liabilities after offsetting
USD'000
Item
Deductible/(Taxable)temporary
difference2010.6.30
Deferred tax
assets/(liabilities)
2010.6.30
Deductible/(taxable)
temporary difference
2009.12.31
Deferred tax
assets/(liabilities)
2009.12.31
Deferred tax assets
Employee benefits payable 32,435 8,109 34,019 7,484
Movement for fair value of financial assets held for
trading/derivative financial instruments
20,168 4,846 21,268 4,679
Subtotal 52,603 12,955 55,287 12,163
Deffered tax liabilities:
Movement for fair value of available-for-sale
financial assets charged to equity (110,033) (25,898) (145,906) (32,099)
Deferred tax liabilities after offsetting (57,430) (12,943) (90,619) (19,936)
RMB'000
Item
Deductible/(Taxable)temporary
difference2010.6.30
Deferred tax
assets/(liabilities)
2010.6.30
Deductible/(taxable)
temporary difference
2009.12.31
Deferred tax
assets/(liabilities)
2009.12.31
Deferred tax assets
Employee benefits payable 220,078 56,021 232,286 51,352
Movement for fair value of financial assets held for
trading/derivative financial instruments
136,844 33,570 145,224 32,200
Subtotal 356,922 89,591 377,510 83,552
Deffered tax liabilities:
Movement for fair value of available-for-sale
financial assets charged to equity
(751,760) (177,412) (996,278) (219,680)
Deferred tax liabilities after offsetting (394,838) (87,821) (618,768) (136,128)
As at 30 June 2010, there was no un-recognised deferred tax liabilities for the
Company.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
230
Ⅺ. SUPPLEMENTARY INFORMATION TO THE HOLDING COMPANY
(CONTINUED)
16. CAPITAL RESERVE
Balance at Additions Settlements Balance at
the beginningduring during the end of
of the year the period the period the period
USD’000 USD’000 USD’000 USD’000
Share premiums 2 1,245 - - 21,245
Other capital reserves
-Property revaluation reserve 6 ,640 - - 6,640
-Exchange reserve on foreign currency capital 1 04 - - 104
-Donated non-cash assets reserve 1 3 - - 1 3
-Net changes in fair value of
available-for-sale financial assets 145,906 - (35,873) 110,033
-Deferred tax effect (32,099) 6,201 - (25,898)
141,809 6,201 (35,873) 112,137
Balance at Additions Settlements Balance at
the beginning during during the end of
of the year the period the period the period
RMB’000 RMB’000 RMB’000 RMB’000
Share premiums 2 12,656 - - 212,656
Other capital reserves
-Property revaluation reserve 5 4,979 - - 54,979
-Exchange reserve on foreign currency capital 8 61 - - 8 61
-Donated non-cash assets reserve 1 08 - - 1 08
-Net changes in fair value of
available-for-sale financial assets 996,278 - (244,518) 751,760
-Deferred tax effect (219,680) 42,268 - (177,412)
1,045,202 42,268 (244,518) 842,952China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
231
Ⅺ. SUPPLEMENTARY INFORMATION TO THE HOLDING COMPANY
(CONTINUED)
17. FINANCIAL EXPENSES / (NET FINANCIAL INCOME)
USD'000 RMB'000 USD'000 RMB'000
Interest expenses from loans and payables 10,297 70,186 11,959 81,710
Interest income from deposits and receivables (15,562) (106,074) (17,437) (119,138)
Net exchange (gains)/ losses 7,282 49,636 7,104 48,538
Other financial expenses 467 3,183 208 1,421
Total 2,484 16,931 1,834 12,531
from 1 January to 30 June 2010 from 1 January to 30 June 2009
18. GAINS / (LOSSES) FROM CHANGES IN FAIR VALUE
USD'000 RMB'000 USD'000 RMB'000
Financial assets held for trading:
-Changes in fair value during the period (3) (20) - -
Financial liabilities held for trading:
-Changes in fair value during the period
derivative financial instrument
1,100 7,497 8,333 56,935
Total 1,097 7,477 8,333 56,935
from 1 January to 30 June 2010 from 1 January to 30 June 2009China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
232
Ⅺ. SUPPLEMENTARY INFORMATION TO THE HOLDING COMPANY
(CONTINUED)
19. INVESTMENT INCOME
(1) The analysis of the Company’s investment income is as follows:
USD'000 RMB'000 USD'000 RMB'000
Long-term equity investments in cost method 12,762 86,988 - -
Gain on disposal of subsidiaries 11 75 - -
Investment gains on available-for-sale financial assets - - 3 2 219
Gains on sale of available-for-sale financial assets 1,649 11,240 2 02,790 1,385,562
Total 14,422 98,303 2 02,822 1,385,781
The Company
from 1 January to 30 June 2010 from 1 January to 30 June 2009
(2) Long-term investments in cost method with individual investment income over 5% of
total investment income or less than 5% but the top five investment income for the year
are as follows:
Investee Reasons for variances between two years
USD'000 RMB'000 USD'000 RMB'000
SCRC 12,762 86,988 - -No dividend distributed from 1 January to 30 June 2009.
Total 12,762 86,988 - -
from 1 January to 30 June 2010 from 1 January to 30 June 2009
Note 1: Only top five investees with largest profits before income tax are listed
above.
Note 2: There was no significant restriction on the remittance of investment income
to the investorChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
233
Ⅺ . SUPPLEMENTARY INFORMATION TO THE HOLDING COMPANY
(CONTINUED)
20. NON-OPERATING INCOME
（1）The analysis of the Company’s non-operating income is as follows:
Note
USD'000 RMB'000 USD'000 RMB'000
Gains on disposal of
intangible assets 3,162 21,553 - -
Government grants (2) 1,131 7,709 6 65 4,544
Others 37 252 4 27
4,330 29,514 669 4,571
from 1 January to 30 June 2010 from 1 January to 30 June 2009
(2)Government grants
USD'000 RMB'000 USD'000 RMB'000
Financial grants 1,131 7,709 665 4,544
from 1 January to 30 June 2010 from 1 January to 30 June 2009
21. INCOME TAX
USD'000 RMB'000 USD'000 RMB'000
Current tax expenses for the period - - 38,575 263,564
Deferred taxation (792) (6,039) 681 4,653
Total (792) (6,039) 39,256 268,217
from 1 January to 30 June 2010 from 1 January to 30 June 2009
Reconciliation between income tax expenses and accounting profits is as follows:
Item
USD'000 RMB'000 USD'000 RMB'000
Profits before taxation 9,520 64,890 197,951 1,352,500
Expected income tax expenses at
applicable tax rates
2,094 14,276 39,590 270,500
Effect of tax change on deferred tax (1,325) (9,031) (1,155) (7,889)
Tax effect of non-taxable income (1,561) (11,284) 821 5,606
Income tax expenses (792) (6,039) 39,256 268,217
from 1 January to 30 June 2010 from 1 January to 30 June 2009China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
234
Ⅺ. SUPPLEMENTARY INFORMATION TO THE HOLDING COMPANY
(CONTINUED)
22. Other comprehensive income / (losses)
Item
USD'000 RMB'000 USD'000 RMB'000
1.Gain/(losses) on available-for-sale financial assets (34,224) (233,278) 83,553 5 64,641
Less:Effect of income tax arising from available-for-sale
financial assets (6,201) (42,268) (24,066) (164,184)
Amount recognised in other comprehensive income in prior
period transferred to profit and loss in current period
1,649 11,240 202,790 1,385,562
2.Effect of foreign exchange rate changes - (47,543) - 13,785
Total (29,672) (249,793) (95,171) (642,952)
from 1 January to 30 June 2010 from 1 January to 30 June 2009China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
235
Ⅺ. SUPPLEMENTARY INFORMATION TO THE HOLDING COMPANY
(CONTINUED)
23. INFORMATION TO CASH FLOW STATEMENT
(1) Supplement to cash flow statement:
USD'000 RMB'000 USD'000 RMB'000
1.Reconciliation of net profit to cash flow from
operatiing activities
Net profit 10,312 70,929 158,695 1,084,283
Depreciation of fixed assets 828 5,600 764 5,220
Amortisation of intangible assets 80 545 2 17 1,482
Amortisation of long-term deferred expenses 195 1,330 247 1,688
(Gains)/losses on disposal of fixed assets, intangible
assets and other long-term assets (3,162) (21,553) - -
(Gains)/losses on changes in fair value (1,097) (7,477) (8,333) (56,935)
Financial expense (1,857) (12,658) (5,478) (37,428)
(Gains)/losses arising from investments (14,422) (98,303) (202,822) (1,385,781)
Change in deferred tax assets and liabilities (792) (6,039) 681 (4,653)
(Increase)/Decrease in operating receivables (3,754) (25,588) 106,807 729,759
Increase/(decrease) in operating payables (17,199) (117,232) 22,876 156,300
Effect of foreign exchange rate changes - 43 - 9,307
Net cash inflow / (outflow) from operating activities (30,868) (210,403) 73,654 503,242
2.Net movement in cash and cash equivalents:
Closing balance of cash and cash equivalents 6 9,764 473,363 1 09,831 750,321
Less:Opening balance of cash and cash equivalents 2 0,164 137,680 6 3,031 430,150
Net increase of cash and cash equivalents 4 9,600 335,683 4 6,800 320,171
from 1 January to 30 June 2010 from 1 January to 30 June 2009
Ⅺ. SUPPLEMENTARY INFORMATION TO THE HOLDING COMPANY
(CONTINUED)
23. NOTES TO CASH FLOW STATEMENT (CONTINUED)
(2) Cash and cash equivalents held by the Group is as follows:
USD'000 RMB'000 USD'000 RMB'000
1.Cash at bank and on hand
-Bank deposits available on demand 6 5,193 442,348 19,924 1 36,045
-Other monetary fund available on demand 4 ,571 31,015 2 40 1,635
2.Closing balance of cash and cash equivalents
available on demand 6 9,764 473,363 2 0,164 1 37,680
from 1 January to 30 June 2010 from 1 January to 31 December 2009
Note: Aforesaid “Cash at bank and on hand” excluded restricted cash and short-term
investment.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
236
SUPPLEMENTARY INFORMATION
1. EXTRAORDINARY GAIN AND LOSS FROM 1 JANUARY TO 30 JUNE
2010
Item USD'000 RMB'000
Disposal of non-current assets (7) (47)
Government grants charge to profit and loss(excluded
government grants closely related to business and applied
to all similar businesses according to national unity or
quantitative standards)
5,207 35,492
Gains on movement of fair value of financial assets held
for trading and financial liabilities;gains on disposal of
financial assets held for trading,financial liabilities and
available-for-sale financial asstes(excluding hedge
financial instruments related to ordinary business of the
Group) 14,316 97,581
Investment Income recognized when remeasuring held
equity interest held before acquisition-date for business
combination achieved in stages (19,255) (131,246)
Investment Income recognized when reclassifying
available-for-sale financial asset to investment in
associates 5,998 40,403
Gains on entrusted loans 46 314
Other non-operating income/expenses 22,579 153,902
Effect of income tax (1,858) (12,664)
Effect of minority shareholder equity(after tax) (1,098) (7,484)
Total 25,928 176,251
Note: Aforesaid extraordinary gain and loss were presented at amount before
taxation.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
237
SUPPLEMENTARY INFORMATION
2. Reconciliation statements of differences in financial statements prepared
under different GAAPs
(1) The effect of the difference between PRC GAAP and IFRS on consolidated net
profit and equity attributable to shareholders of the Group is analysed as follows:
USD’000
2010.6.30 2009.6.30 2010.6.30 2009.12.31
Amounts under PRC GAAP 133,951 120,871 2,117,670 2,079,349
Adjustments under IFRS GAAP 50 50 (684) (734)
Amounts under IFRS GAAP 134,001 120,921 2,116,986 2,078,615
Profit Equity
RMB’000
2010.6.30 2009.6.30 2010.6.30 2009.12.31
Amounts under PRC GAAP 912,556 825,850 1 4,368,798 14,198,208
Adjustments under IFRS GAAP 341 342 (4,669) (5,010)
Amounts under IFRS GAAP 912,897 826,192 1 4,364,129 14,193,198
Profit Equity
Adjustments include current year depreciation and amortisation of fixed assets and
intangible assets revaluated in previous years.China International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
238
SUPPLEMENTARY INFORMATION (CONTINUED)
3. EARNINGS PER SHARE AND RETURN ON NET ASSETS
In accordance with Interpretive Pronouncement on the Preparation of Information
Disclosures of Companies Issuing Public Shares No. 9 – Earnings per share and
return on net assets (2010 revised), the calculation of earnings per share and return on
net assets of the Group is listed as follows:
’000
Weighted average
Profit return on net
assets（%） USD'000 RMB'000 USD'000 RMB'000
Profit attributable to ordinary equity shareholders 6.37% 0.0503 0.3428 0.0503 0.3428
Profit attributable to ordinary equity shareholders net of
extrordinary gains and losses 5.14% 0.0406 0.2766 0.0406 0.2766
Earnings per share
Basic earnings per share Diluted earnings per shareChina International Marine Containers (Group) Co., Ltd. Semi-annual Report 2010
239
Ⅶ. CONTENTS OF DOCUMENTS FOR REFERENCE
1. Semi-annual report with signature of chairman of shareholders.
2. Finanial report with the signature and seal of the legal representative、responsible person
in charge of accounting and accounting officer.
3. All the original document and the manuscript of the announcement disclosured in the
newspapers specified by the China Securities Regulatory Commission during the reporting
period.
4. Text of .
