Report for the First Quarter of 2011 of China International Marine Containers (Group) Co., Ltd.
China International Marine Containers (Group) Co., Ltd.
Report for the First Quarter of 2011
§1. Important Notes
1.1 The Board of Directors, the Supervisory Committee, as well as directors, supervisors
and senior executives of China International Marine Containers (Group) Co., Ltd.
(hereinafter referred to as ―the Company‖) hereby guarantee that this report carries no false
information, misleading statements or major omissions, and will accept, individually and
collectively, the responsibility for factuality, accuracy and completeness of the information
set forth herein.
1.2 Financial statements for the first quarter of 2011 have not been audited by an
accounting firm.
1.3 Li Jianhong (Principal of the Company), Jin Jianlong (the person in charge of the
accounting project) and Jin Jianlong (the person-in-charge of the accounting organ/the
principal of accounting) hereby confirm that the financial statements enclosed in the
quarterly report are factual and complete.
[English Translation for Reference Only. Should there be any discrepancy between the two
versions, the Chinese version shall prevail.]
§2. Company Profile
2.1 Main accounting data and financial indicators
31 Mar. 2011 31 Dec. 2010 Increase/decrease (%)
Total assets (RMB’000) 63,881,370 54,130,649 18.01%
Owners’ equity attributable to shareholders of the
17,669,214 16,223,057 8.91%
Company (RMB’000)
Share capital (share) 2,662,396,051 2,662,396,051 0.00%
Net assets per share attributable to shareholders
6.6366 6.0934 8.91%
of the Company (RMB/share)
Jan.-Mar. 2011 Jan.-Mar. 2010 Increase/decrease (%)
Gross revenue (RMB’000) 17,056,642 7,774,491 119.39%
Net profit attributable to shareholders of the
1,358,250 354,372 283.28%
Company (RMB’000)
Net cash flows from operating activities
-5,998,953 -1,527,619 -292.70%
(RMB’000)
Net cash flows per share from operating
-2.2532 -0.5738 -292.70%
activities (RMB/share)
Basic EPS (RMB/share) 0.5102 0.1331 283.28%
Diluted EPS (RMB/share) 0.5102 0.1331 283.28%
Weighted average ROE (%) 8.02% 2.46% 5.56%
Weighted average ROE after deducting 7.80% 1.51% 6.29%
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Report for the First Quarter of 2011 of China International Marine Containers (Group) Co., Ltd.
non-recurring gains and losses (%)
Items of non-recurring gains and losses
√Applicable □Inapplicable
Unit: RMB’000
Items of non-recurring gains and losses Amount
Profit and loss from disposal of non-current assets -1,726
Government subsidies recorded into current gains and losses, excluding those related closely to the
routine business of the Company and continuously enjoyed by the Company at fixed amounts or ratios 72,672
according to state policies and regulations
Gains/losses from fair value changes of transactional financial assets and liabilities held by the
Company, and investment gains from disposal of transactional financial assets and liabilities and
-60,929
financial assets available for sale, excluding effective hedging business related to the Company’s
common operations
Other non-operating incomes and expenses 11,287
Income tax effects -8,124
Minority interests effects 21,556
Capital occupation fees collected from non-financial enterprises which are recorded in the gains and
2,184
losses for the current period
Total 36,920
2.2 Total number of shareholders and shares held by the top ten shareholders n
ot subject to trading moratorium at the end of the reporting period
Unit: Share
Total number of shareholders at the end of the
164,161
reporting period
Shares held by the top ten shareholders not subject to trading moratorium
Shares not subject to trading moratorium
Full name of shareholder Type of share
held at the period-end
China Merchants (CIMC) Investment Limited 665,599,037 Domestically listed foreign shares
COSCO CONTAINER INDUSTRIES LIMITED 432,171,843 RMB ordinary shares
COSCO Container Industries Limited 148,320,037 Domestically listed foreign shares
CMBLSA RE FTIF TEMPLETON ASIAN GRW
85,998,058 Domestically listed foreign shares
FD GTI 5496
LONG HONOUR INVESTMENTS LIMITED 25,322,106 Domestically listed foreign shares
New China Life Insurance Co., Ltd–Dividend
Distribution–Individual Dividend-018L-FH002 21,119,657 RMB ordinary shares
Shen
GUOTAI JUNAN SECURITIES(HONGKONG)
17,913,427 Domestically listed foreign shares
LIMITED
INDUSTRIAL & COMMERCIAL BANK OF
CHINA—E FUND VALUE GROWTH MIXED 16,200,000 RMB ordinary shares
SECURITIES INVESTMENT FUND
SPD Bank－GF Small-Cap Growth Stock Fund 13,209,857 RMB ordinary shares
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Report for the First Quarter of 2011 of China International Marine Containers (Group) Co., Ltd.
TEMPLETON EMERGING MARKETS
12,801,432 Domestically listed foreign shares
INVESTMENT TRUST
China Construction Bank－ICBC Credit Suisse
11,100,686 RMB ordinary shares
Selected Balanced Fund
§3. Significant Events
3.1 Significant changes in main accounting statement items and financial indicators as well
as reasons for such changes
√Applicable □Inapplicable
A strong container market continued as the global economy continued to recover since the
second half of 2010 and customers needed to prepare containers for the coming busy season
for shipping. In the first quarter of 2011, CIMC received adequate orders for dry cargo
containers, with container prices being on the rise. For the first three months of 2010, the
Company accumulatively sold 498,000 TEU of dry cargo containers, a sharp increase of
310.02% from a year earlier; 43,800 TEU of reefer containers, also a consideration rise of
166.33% on a year-on-year basis; and 17,100 TEU of special containers, up 110.20% as
compared to the same period of last year. Due to the fact that some orders advanced and
other reasons, the output of dry cargo containers for the second quarter was expected to
decrease from the first quarter. The overall container demand in 2011 was expected to grow
by around 30%. In the first quarter, thanks to more infrastructure investments and the
continuous recovery of the overseas renewal demand, the production and sales volume as
well as the sales income of road transportation vehicles of CIMC still maintained a strong
growth. From Jan. to Mar. in the year, CIMC accumulatively sold 39,100 units of vehicles,
up 30% from a year earlier, generating a total sales income of RMB 4.106 billion, up 26%
as compared to the same period of last year. But costs were under some pressure to rise due
to price increases of raw materials. In Mar. 2011, in order to expand markets in the Middle
East, CIMC signed a cooperation agreement with the Zahid Group in Saudi Arabia to
jointly set up local plants.
In terms of the energy, chemical and liquefied food business, the income generated in the
first quarter doubled. This was mainly attributed to the strong growth of the demand for
tank containers boosted by recovery of the international chemical market.
Offshore engineering projects in progress of CIMC proceeded smoothly. In Apr. 2011, a
second deep-water semi-submerged drilling platform—“SS Amazonia”—built by Yantai
CIMC Raffles Offshore Ltd. (―CIMC Raffles‖ for short) for the Schahin Group, a Brazilian
oil and gas company, was successfully delivered in Yantai, which the Schahin Group leased
to Petrobras, the national oil company of Brazil. In order to further promote development of
CIMC’s offshore engineering business and enhance management over CIMC Raffles, the
Board of Directors of CIMC Raffles decided to adjust its management team. The
Company’s President Mr. Mai Boliang continued to be the chairman of CIMC Raffles’
Board of Directors and succeeded Mr. Zhang Liren as CEO for CIMC Raffles. Mr. Zhang
Liren continued to be a vice chairman of CIMC Raffles’ Board of Directors. Meanwhile,
the Board of Directors of CIMC Raffles appointed Mr. Yu Ya, a vice president of CIMC, to
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Report for the First Quarter of 2011 of China International Marine Containers (Group) Co., Ltd.
be its president and assist the CEO in routine operations of CIMC Raffles. The management
of CIMC believed that offshore engineering was an emerging industry with national
strategic importance and thus was a business that CIMC would attach great importance to
in the future. And CIMC Raffles had a great production base and an innovative building
pattern, as well as a professional management and technical team. After mass delivery of
projects in progress, particularly projects undertaken for the first time, CIMC Raffles and
its team were both improved and upgraded with more experience and greater competitive
edges. It was thus believed that CIMC Raffles was to grow rapidly through mechanism and
management improvement.
Significant movement and
Unit: RMB’000
reasons thereof
Jan.-Mar. 2011 Jan.-Mar. 2010 Movement Reasons
Sales growth of main products in all business
Accounts receivable 10,795,299 8,129,836 32.79%
lines
Corresponding growth resulted from increase of
Other receivables 3,360,688 2,236,272 50.28% the production and sales volume, as well as
deposits paid by subsidiaries for land purchases
Non-current assets due Some long-term receivables due within one year
765,948 1,185,502 -35.39%
within one year were collected.
Long-term receivables 2,107,072 1,336,257 57.68% Growth of the financing lease business
Increase of capital needs due to expansion of the
Short-term borrowings 14,512,707 8,309,309 74.66%
production scale
Transactional financial
1,613 3,810 -57.66% Great change in fair value
liabilities
Long-term and short-term borrowings increased
Interest payable 33,322 13,168 153.05%
and borrowing interest rose.
Increase of capital needs due to expansion of the
Long-term borrowings 5,582,580 3,912,148 42.70%
production scale
The Company and some of its subsidiaries
Capital reserve 776,637 1,349,420 -42.45% changed their recording currencies for the
reporting period.
The Company and some of its subsidiaries
Foreign exchange
-262,255 -2,055,682 -87.24% changed their recording currencies for the
difference
reporting period.
Significant growth of container sales as
Operating revenue 17,056,642 7,774,491 119.39%
compared to the same period of last year
Sales growth of main products in all business
Selling expense 532,147 178,374 198.33%
lines
Administrative expense 796,056 487,098 63.43% Expansion of the production and sales volume
Financial expense 188,867 113,113 66.97% Interest of borrowings increased.
Most inventory falling price reserves made in
previous years were written off in the same
Asset impairment loss -7,546 -371,158 -97.97%
period of last year while the written-off amount
was small in the reporting period.
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Report for the First Quarter of 2011 of China International Marine Containers (Group) Co., Ltd.
3.2 Progress of significant events as well as their influence and solutions
3.2.1 Non-standard audit opinion
□Applicable √Inapplicable
3.2.2 The Company provides funds for the controlling shareholder or its related parties or
provides external guarantees in violation of the prescribed procedure
□Applicable √Inapplicable
3.2.3 Significant contracts signed and executed concerning routine operation
□Applicable √Inapplicable
3.2.4 Other
√Applicable □Inapplicable
Internal control progress:
Part A: Work done for internal control improvement
I. Planning and organization
1. In this January, in accordance with the Internal Control Regulations and Guidelines
promulgated by five government departments and ministries, CIMC took the initiative to
set up a task group for upgrading, according to the 18 implementation guidelines, the
Company’s internal control rules established based on the Guidelines of the Shenzhen
Stock Exchange for Internal Control of Listed Companies. It was a move to make
preparations for implementing the Internal Control Regulations and Guidelines in the
Company.
2. Internal control improvement was made a key task for the Company in 2011.
3. In accordance with the spirits of the CSRC’s trial implementation of internal control
regulations on listed companies, the Company adjusted and improved the Internal Control
Establishment and Development Committee. The Committee comprised chiefs from
relevant functional departments and business lines, which was responsible for leading in the
internal control system establishment and improvement of the Company. Meanwhile,
responsibilities were specified for every member of the Internal Control Establishment and
Improvement Committee.
The Internal Control Establishment and Improvement Committee authorized the
Company’s Audit and Supervision Department to carry out evaluations, checks and audits
on the Company’s internal control.
4. The Internal Control Establishment and Improvement Committee produced the following
documents, which were submitted to the Audit Committee under the Board for review at the
session held by it on 20 Mar. 2011.
(1) Report on Work Done for Internal Control in 2010;
(2) Proposal on the Work Plan of CIMC for Implementing Internal Control Regulations;
and
(3) Proposal on the Self-evaluation Report of CIMC on Internal Control for 2010.
The Audit Committee gave a positive reply concerning the work done for internal control in
2010. It also gave its consent to the Work Plan of CIMC for Implementing Internal Control
Regulations and the Self-evaluation Report of CIMC on Internal Control for 2010.
On 23 Mar. 2011, the Work Plan of CIMC for Implementing Internal Control Regulations
and the Self-evaluation Report of CIMC on Internal Control for 2010 were disclosed, upon
approval of the Board of Directors, simultaneously with the 2010 Annual Report.
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Report for the First Quarter of 2011 of China International Marine Containers (Group) Co., Ltd.
5. On 24 Mar. 2011, the Company convened the ―Mobilization Meeting of CIMC for Pilot
Implementation of Internal Control Regulations‖. Over 100 chiefs from the CIMC
Headquarters, segment headquarters and subsidiaries in Shenzhen attended the meeting on
the site of the CIMC Headquarters. And over 1,000 chiefs of subsidiaries outside Shenzhen
and relevant parties also attended the meeting by way of video. At the meeting, Mr. Mai
Boliang, chairman of the Internal Control Establishment and Improvement Committee,
gave a mobilization speech on behalf of the Board of Directors and the management team
of CIMC. It was underlined at the meeting that management teams were the first
responsible personnel for internal control and that an accountability mechanism would be
established for CIMC.
In the week after the meeting, Mr. Mai Boliang, president, signed responsibility letters
respectively with chiefs of major business segments for the pilot implementation of internal
control regulations. And these chiefs were also required to sign such responsibility letters
with persons-in-charge of their subordinate enterprises as soon as possible.
II. Resource guarantee
1. According to the Work Plan of CIMC for Implementing Internal Control Regulations, the
work plan for internal control in 2011 and the relevant financial budget were further
specified.
2. Supervision over internal control was enhanced. Periodical report arrangements were
adjusted to make sure that the Company reported internal control progress to the Shenzhen
CSRC Bureau on the fixed day in every week, month and quarter. Meanwhile, the work
plan for internal control was revised weekly (monthly in the past). And the first set of audit
software was put into use on the IT platform for audit so as to meet new requirements.
3. The Company would include internal control performance in the appraisal system and
carry out evaluations on internal control of every unit. And the internal control appraisal
plan for 2011 was being discussed.
4. BearingPoint, the consulting firm of KPMG, was selected as the consulting agency for
the Company’s internal control upgrade. According to the work plan for internal control,
BearingPoint, together with the Company’s relevant personnel, would provide trainings and
consulting services in pilot subsidiaries for the said internal control regulations.
III. Specific projects for internal control
1. According to the revised work plan for internal control in 2011, the supervision team for
pilot implementation of the internal control regulations went to Yantai CIMC Raffles
Offshore Ltd., Zhumadian CIMC Huajun Vehicle Co., Ltd. and the South China Center
Store of the Vehicle Marketing Division to build internal control upgrade models for
offshore engineering subsidiaries, vehicle manufacturing plants and 4S stores.
2. The internal control upgrade model for vehicle marketing subsidiaries was accomplished
with its application starting from the North China Center Store of the Vehicle Marketing
Division. Meanwhile, the model for vehicle manufacturing subsidiaries was also completed.
3. As for the internal control upgrade model for the offshore engineering business, the first
monthly report on internal control progress was submitted, to which the Internal Control
Establishment and Improvement Committee gave a positive reply.
4. Shenzhen Southern CIMC Container Manufacturing Co., Ltd.—the pilot subsidiary for
the internal control upgrade in the container business, CIMC Finance Co., Ltd.—the pilot
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Report for the First Quarter of 2011 of China International Marine Containers (Group) Co., Ltd.
subsidiary in finance, and Enric (Langfang) Energy Equipment Integration Co., Ltd.—the
pilot subsidiary in the energy and chemical business, were all building their internal control
upgrade models as scheduled.
5. For subsidiaries that would carry out the internal control upgrade subsequently, they sent
representatives to pilot subsidiaries for learning, which laid a foundation for their
application of the internal control upgrade model.
6. Together with departments in charge of rules, the Company issued the Circular on
Establishing and Improving 35 Core Internal Control Rules of CIMC, with responsible
departments being specified. The 35 basic internal control rules were to be established and
improved in 2011 as required by the Internal Control Regulations.
7. Re-checks on internal control of vehicle marketing subsidiaries in Guangzhou, Jiangsu,
Jiangxi and Xinjiang as well as Nantong CIMC Tank Equipment Co., Ltd. were completed.
And the report on internal control establishment and improvement of CIMC SSC was also
finished.
8. Reviews on the Company’s management rules for purchases and expenses were finished.
Part B: Main problems encountered in the work done for internal control and relevant
policy suggestions
I. As for the rewards and punishments for listed companies according to their internal
control performance mentioned by the CSRC at the end of the training courses on internal
control establishment and improvement for listed companies in Shenzhen, it was hoped that
they could be issued as an official document so that the Company’s employees could attach
great importance to internal control establishment and improvement.
II. The Company has over 200 subordinate enterprises. It was planned at the beginning of
the year that the supervision team will go to 73 enterprises for supervision and guidance.
But the number may be reduced in view of the actual work progress. Some enterprises may
adopt a procedure of long-distance supervision and guidance of the Company, application
of models, establishing internal control by their own and cross-checking among enterprises.
Policy suggestions: Considering the present internal control situation of Chinese enterprises,
it is suggested that the internal control establishment and improvement campaign should be
carried out with focuses step by step under the principle of ―substance over form‖. Key and
significant defects in some procedures directly related to financial reporting should be
corrected first in 2011. Afterwards, the efforts should continue to establish and improve
internal control in listed companies step by step according to all the 18 guidelines for
implementation of internal control regulations.
3.3 Commitments made by the Company, its shareholders and actual controller
Commitments made by the Company, its directors, supervisors, senior executives,
shareholders holding over 5% of the Company’s shares, actual controller and other related
parties in the reporting period, or such commitments carried down into the reporting period
□Applicable √Inapplicable
3.4 Warnings of possible loss or large-margin year-on-year change of the accumulative net
profit made during the period from the beginning of the year to the end of the next reporting
period according to prediction, as well as explanations on the reasons
√Applicable □Inapplicable
Performance forecast Increase substantially over the same period of the last year
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Report for the First Quarter of 2011 of China International Marine Containers (Group) Co., Ltd.
From year-begin to the end of
Same period of last year Increase/decrease（%）
the next report period
Estimated accumulative net
228,139.00 -- 273,766.80 91,255.60 Increase 150 -- 200
profit (RMB 0’000)
Basic earnings per share
0.857 -- 1.0283 0.3428 Increase 150 -- 200
(RMB/share)
The performance of our company is affected by the global economic, and the production of dry cargo
containers started to resume in the first half year, but with low levels of production and sale as well as
profitability. Starting from the second half of 2010, adequate orders for dry cargo containers were
Notes to performance forecast
received with a considerable rise in their prices. As for the first half of 2011, the production and sale
volume as well as profitability of the Company’s dry cargo containers remained high, with great
growth also in its energy, chemical and liquefied food businesses.
3.5 Other significant events
3.5.1 Securities Investment
√Applicable □Inapplicable
Unit: RMB’000
Proportion in
total
Number held
Initial securities
Serial Type of Code of Abbr. of at the Closing Gain/loss for the
investment investments at
No. securities securities securities period-end carrying amount reporting period
(Yuan) the
(share)
period-end
(%)
Weifu
1 Stock 000581 High-Technolo 44,361 1,917,410 75,757 16.04% -4,174
gy
2 Stock 000858 Wuliangye 149,082 4,669,817 148,920 31.53% -162
3 Stock 200581 Su Weifu-B 60,859 4,221,033 104,948 22.22% 2,956
Sinotrans
4 Stock 00368 20,853 2,996,500 6,360 1.35% -1,062
Shipping-H
5 Stock G05.SI GoodPack 104,666 13,500,000 136,262 28.85% -5,070
Other securities investments held at the period-end - - - - -
Gain/loss on securities investments sold in the
- - - - -
reporting period
Total 379,821 - 472,247 100% -7,512
3.5.2 Researches, interviews and visits received in the reporting period
Main discussion and materials provided by the
Time Place Way of reception Visitor or caller
Company
Business structure of the Company, latest
The
China Merchants conditions of the industry and the Company’s
5 Jan. 2011 Company Field research
Securities main business lines, investment progress and
building
the outlook for the industry in 2011
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Report for the First Quarter of 2011 of China International Marine Containers (Group) Co., Ltd.
The
Shanghai Chongyang
6 Jan. 2011 Company Field research Ditto
Investment
building
The Merrill Lynch,
7 Jan. 2011 Company Field research Goldman Sachs Ditto
building (Asia)
Clients of Deutsche
Bank, RCM, Fidelity,
7 Jan. 2011 Beijing One-to-many conference Ditto
Neuberger Berman,
Invesco HK, Be
Rich Banco
International
12 Jan. 2011 Eastern plant Field research Ditto
Investment (Asia),
Bosera Funds
The
13 Jan. 2011 Company Field research Triskele Capital Ditto
building
Daiwa Securities
The
Investment (HK),
17 Jan. 2011 Company Field research Ditto
Nikko Asset
building
Management
The Oriental Patron
19 Jan. 2011 Company Field research Securities, Great Wall Ditto
building Securities
The Goldman Sachs,
20 Jan. 2011 Company Field research CITIC-Prudential Ditto
building Fund Management
The
UOB Fund
24 Jan. 2011 Company By phone Ditto
Management
building
Clients of Guosen
The Securities, Lombarda
15 Feb. 2011 Company Field research China Fund Ditto
building Management,
ChinaAMC
ChinaAMC, Harvest
16 Feb. 2011 Shenzhen One-to-many conference Ditto
Fund
The
18 Feb. 2011 Company Field research Value Partners Ditto
building
The
CICC, Sinolink
23 Feb. 2011 Company Field research Ditto
Securities
building
24 Feb. 2011 The Field research Morgan Stanley Ditto
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Report for the First Quarter of 2011 of China International Marine Containers (Group) Co., Ltd.
Company
building
The
Fuh Hwa Securities
23 Mar. 2011 Company Field research Ditto
Investment Trust
building
The
JP Morgan and its Talks about the Company’s business
23 Mar. 2011 Company By phone
clients performance in 2010
building
Building of
China Merchants
China Talks about the Company’s business
23 Mar. 2011 One-to-many conference Securities, China
Merchants performance in 2010
Merchants Fund
Securities
Business structure of the Company, latest
The
conditions of the industry and the Company’s
24 Mar. 2011 Company Field research Bosera Funds
main business lines, investment progress and
building
the outlook for the industry in 2011
The China Securities,
28 Mar. 2011 Company Field research China Merchants Ditto
building Fund
The
29 Mar. 2011 Company Field research GF Securities Ditto
building
The Liuhe Capital,
30 Mar. 2011 Company Field research Huashang Fund Ditto
building Management
The
Theleme Parterners
31 Mar. 2011 Company Field research Ditto
Capital
building
3.6 Investment in derivative products
√Applicable □Inapplicable
By 31 Mar. 2011, main financial instruments held by the Company were
forward exchanges or option contracts and interest forward-forward swap
contracts. Risk of foreign exchange or option contract related to of risk from
Analysis on risks and control measures of holding
interest exchange market and certainty of future cash flow from foreign
positions of derivatives in the report period (including
currency income. Control measures of derivative instrument showed in the
but not limited to market risk, liquidity risk, credit
following: being prudent in selecting derivative financial instruments to
risk, operation risk, law risk, etc.)
invest in; aiming at derivative transaction, the Company formulated strict
and regular inner examination and approval system and operation process,
and defined procedure of examination and approve to control relevant risks.
Changes of market prices or fair values in the report Gains and losses from fair value changes of derivative financial instrument
period of the invested derivatives, and the analysis on was RMB -53,422,000 from Jan.-Mar. 2011. Fair value of derivative
the fair value of the derivatives should include how to financial instrument was defined according to market quote of financial
use, and the relevant assumptions and parameters institution.
Whether significant changes happened to the No
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Report for the First Quarter of 2011 of China International Marine Containers (Group) Co., Ltd.
Company’s accounting policy and specific accounting
principles of the derivatives in the reporting period
compared with the last reporting period
We are of the opinion that: The Company was able to standardize its
Specific opinion from independent directors, sponsors investment in derivative products according to relevant regulations and rules
of regulatory authorities and the principle of prudence. The relevant internal
or financial consultants on the Company’s derivatives
approval mechanism and operation procedures were complete with effective
investment and risk control
risk control.
3.6.1 Positions of derivatives held by the Company at period-end
√Applicable □Inapplicable
Unit: RMB’000
Proportion of the
contract amount at
Contract amount at Contract amount at Gain/loss in reporting
Type of contract period-end in the
period-begin period-end period
Company’s net assets
at period-end
1. Forward foreign exchange contract 4,673,302 5,048,585 -61,646 28.57%
2. Interest rate swaps 2,370,373 3,037,126 -8,487 17.19%
3. Option contracts –JPY 370,909 212,195 16,711 1.20%
Total 7,414,584 8,297,906 -53,422 46.96%
§4 Attachments
4.1 Balance sheet
Prepared by China International Marine Containers (Group) Co., Ltd. 31 Mar. 2011 Unit: RMB’000
Closing balance Opening balance
Items
Consolidation The Company Consolidation The Company
Current Assets:
Monetary funds 6,030,625 1,133,546 4,655,696 419,945
Settlement reserves
Lendings to banks and other
financial institutions
Transactional financial assets 545,731 224,795 525,661 162,298
Notes receivable 410,240 508,585 31,000
Accounts receivable 10,795,299 8,129,836
Accounts paid in advance 3,060,774 2,433,447
Premiums receivable
Reinsurance premiums
receivable
Receivable reinsurance contract
reserves
Interest receivable 5,031 4,732
Dividend receivable 4,243,405 4,243,437
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Report for the First Quarter of 2011 of China International Marine Containers (Group) Co., Ltd.
Other accounts receivable 3,360,688 5,776,057 2,236,272 4,175,168
Financial assets purchased
under agreements to resell
Inventories 16,669,870 13,423,747
Non-current assets due within 1
765,948 1,185,502
year
Other current assets 677,980 688,030
Total current assets 42,322,186 11,377,803 33,791,508 9,031,848
Non-current assets:
Entrusted loans and advances
granted
Available-for-sale financial
769,558 761,825 768,467 759,401
assets
Held-to-maturity investments
Long-term accounts receivable 2,107,072 1,336,257
Long-term equity investment 1,545,153 3,752,478 1,548,332 3,662,478
Investing property 82,550 77,356
Fixed assets 10,058,381 142,679 10,006,466 144,692
Construction in progress 1,991,420 27,373 1,697,664 25,224
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 3,246,268 25,767 3,218,571 23,109
R&D expense
Goodwill 1,200,428 1,168,594
Long-term deferred expenses 23,587 6,042 27,978 4,999
Deferred income tax assets 534,767 489,456
Other non-current assets
Total of non-current assets 21,559,184 4,716,164 20,339,141 4,619,903
Total assets 63,881,370 16,093,967 54,130,649 13,651,751
Current liabilities:
Short-term borrowings 14,512,707 1,780,564 8,309,309 480,897
Borrowings from Central Bank
Customer bank deposits and
due to banks and other financial
institutions
Borrowings from banks and
other financial institutions
Transactional financial
1,613 3,810 556
liabilities
Notes payable 2,390,368 2,538,623 200,000
Accounts payable 10,003,529 9,117,500
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Report for the First Quarter of 2011 of China International Marine Containers (Group) Co., Ltd.
Accounts received in advance 1,964,593 1,935,731
Financial assets sold for
repurchase
Handling charges and
commissions payable
Employee’s compensation
1,520,835 366,015 1,365,532 368,275
payable
Tax payable 935,739 60,034 789,155 59,080
Interest payable 33,322 16,744 13,168 5,522
Dividend payable 16,022 16,046
Other accounts payable 1,691,118 169,730 2,388,367 9,407
Estimated liabilities (current) 664,553 649,573
Reinsurance premiums payable
Insurance contract reserves
Payables for acting trading of
securities
Payables for acting
underwriting of securities
Non-current liabilities due
2,852,566 2,729,785 2,844,521 2,729,353
within 1 year
Other current liabilities
Total current liabilities 36,586,965 5,122,872 29,971,335 3,853,090
Non-current liabilities:
Long-term borrowings 5,582,580 3,662,940 3,912,148 2,473,381
Transactional financial
134,158 130,890 154,292 136,846
liabilities (non-current)
Bonds payable
Long-term payables 117,227 118,858
Specific payables 16,472 16,442
Estimated liabilities
Deferred income tax liabilities 655,531 54,685 572,866 50,291
Other non-current liabilities 197,113 178,008
Total non-current liabilities 6,703,081 3,848,515 4,952,614 2,660,518
Total liabilities 43,290,046 8,971,387 34,923,949 6,513,608
Owners’ equity (or shareholders’
equity)
Paid-up capital (or share
2,662,396 2,662,396 2,662,396 2,662,396
capital)
Capital reserves 776,637 268,344 1,349,420 852,264
Less: Treasury stock
Specific reserves
Surplus reserves 2,861,050 2,861,050 3,577,588 3,577,588
Provisions for general risks
13
Report for the First Quarter of 2011 of China International Marine Containers (Group) Co., Ltd.
Retained profits 11,631,386 1,330,790 10,689,335 1,579,889
Foreign exchange difference -262,255 -2,055,682 -1,533,994
Total equity attributable to owners
17,669,214 7,122,580 16,223,057 7,138,143
of the Company
Minority interests 2,922,110 2,983,643
Total owners’ equity 20,591,324 7,122,580 19,206,700 7,138,143
Total liabilities and owners’
63,881,370 16,093,967 54,130,649 13,651,751
equity
4.2 Income Statement
Prepared by China International Marine Containers (Group) Co., Ltd. Jan.-Mar. 2011 Unit: RMB’000
Jan.-Mar. 2011 Jan.-Mar. 2010
Items
Consolidation The Company Consolidation The Company
I. Total operating revenues 17,056,642 700 7,774,491
Including: Sales income 17,056,642 700 7,774,491
Interest income
Premium income
Handling charge and
commission income
II. Total operating cost 15,276,163 38,487 7,455,228 25,517
Including: Cost of sales 13,737,695 28 7,041,582
Interest expenses
Handling charge and
commission expenses
Surrenders
Net claims paid
Net amount withdrawn for
the insurance contract reserve
Expenditure on policy
dividends
Reinsurance premium
Taxes and associate
28,944 6,219
charges
Selling and distribution
532,147 178,374
expenses
Administrative expenses 796,056 58,634 487,098 24,923
Financial expenses 188,867 -20,175 113,113 594
Asset impairment loss -7,546 -371,158
Add: Gain/(loss) from change in
-64,456 -1,222 72,585
fair value (―-‖ means loss)
Gain/(loss) from investment
9,523 23 12,561 11,332
(―-‖ means loss)
14
Report for the First Quarter of 2011 of China International Marine Containers (Group) Co., Ltd.
Including: share of profits in
5,996 1,290
associates and joint ventures
Foreign exchange gains (―-‖
means loss)
III. Business profit (―-‖ means
1,725,546 -38,986 404,409 -14,185
loss)
Add: non-operating income 86,620 68 113,011 642
Less: non-operating expense 4,387 1,263
Including: loss from non-current
1,726 7
asset disposal
IV. Total profit (―-‖ means loss) 1,807,779 -38,918 516,157 -13,543
Less: Income tax expense 508,744 502 96,655 -6,847
V. Net profit (―-‖ means loss) 1,299,035 -39,420 419,502 -6,696
Attributable to owners of the
1,358,250 -39,420 354,372 -6,696
Company
Minority shareholders’
-59,215 65,130
income
VI. Earnings per share
(I) basic earnings per share 0.5102 0.1331
(II) diluted earnings per
0.5102 0.1331
share
Ⅶ. Other comprehensive incomes 59,313 -1,463 -36,755 -34,050
Ⅷ. Total comprehensive incomes 1,358,348 -40,883 382,747 -40,746
Attributable to owners of the
1,419,881 -40,883 339,939 -40,746
Company
Attributable to minority
-61,533 42,808
shareholders
4.3 Cash Flow Statement
Prepared by China International Marine Containers (Group) Co., Ltd. Jan.-Mar. 2011 Unit: RMB’000
Jan.-Mar. 2011 Jan.-Mar. 2010
Items
Consolidation The Company Consolidation The Company
I. Cash flows from operating
activities:
Cash received from sale of
commodities and rendering of 13,179,786 6,769,099
service
Net increase of deposits from
customers and dues from banks
Net increase of loans from the
central bank
Net increase of funds borrowed
from other financial institutions
15
Report for the First Quarter of 2011 of China International Marine Containers (Group) Co., Ltd.
Cash received from premium of
original insurance contracts
Net cash received from
reinsurance business
Net increase of deposits of
policy holders and investment
fund
Net increase of disposal of
tradable financial assets
Cash received from interest,
handling charges and
commissions
Net increase of borrowings
from banks and other financial
institutions
Net increase of funds in
repurchase business
Tax refunds received 923,424 134,917
Other cash received relating to
168,341 1,130,298 19,066 1,500,989
operating activities
Subtotal of cash inflows from
14,271,551 1,130,298 6,923,082 1,500,989
operating activities
Cash paid for goods and
18,184,133 7,355,835
services
Net increase of customer
lendings and advances
Net increase of funds deposited
in the central bank and amount
due from banks
Cash for paying claims of the
original insurance contracts
Cash for paying interest,
handling charges and
commissions
Cash for paying policy
dividends
Cash paid to and for employees 936,803 19,037 491,153 15,120
Various taxes paid 532,957 430 312,519 8,533
Other cash payment relating to
616,611 2,688,231 291,194 1,461,901
operating activities
Subtotal of cash outflows from
20,270,504 2,707,698 8,450,701 1,485,554
operating activities
Net cash flows from operating
-5,998,953 -1,577,400 -1,527,619 15,435
activities
16
Report for the First Quarter of 2011 of China International Marine Containers (Group) Co., Ltd.
II. Cash flows from investing
activities:
Cash received from disposal of
12,131 12,131
investments
Cash received from return on
23 23
investments
Net cash received from disposal
of fixed assets, intangible assets 1,877 273
and other long-term assets
Net cash received from disposal
of subsidiaries or other business 11,298
units
Other cash received relating
to investing activities
Subtotal of cash inflows
1,900 23 12,404 23,429
from investing activities
Cash paid to acquire fixed
assets, intangible assets and other 510,662 6,107 319,906 1,072
long-term assets
Cash paid for investment 92,271 160,231 11,735 11,735
Net increase of pledged loans
Net cash paid to acquire
subsidiaries and other business 48,917 290,948
units
Payment of cash relating to
other investing activities
Subtotal of cash outflows from
651,850 166,338 622,589 12,807
investing activities
Net cash flows from investing
-649,950 -166,315 -610,185 10,622
activities
III. Cash Flows from Financing
Activities:
Cash received from capital
89,999
contributions
Including: Cash received from
minority shareholder investments
by subsidiaries
Cash received from
11,344,274 2,750,000 4,039,652 1,166,557
borrowings
Cash received from issuance
of bonds
Other cash received relating to
financing activities
Subtotal of cash inflows from 11,344,274 2,750,000 4,129,651 1,166,557
17
Report for the First Quarter of 2011 of China International Marine Containers (Group) Co., Ltd.
financing activities
Repayment of borrowings 3,472,397 250,000 2,309,869 1,166,475
Cash paid for interest
expenses and distribution of 160,678 41,375 75,800 20,186
dividends or profit
Including: dividends or profit
paid by subsidiaries to minority
shareholders
Other cash payments relating
to financing activities
Sub-total of cash outflows from
3,633,075 291,375 2,385,669 1,186,661
financing activities
Net cash flows from financing
7,711,199 2,458,625 1,743,982 -20,104
activities
IV. Effect of foreign exchange
rate changes on cash and cash 18,394 -1,307 -12,203 -1,953
equivalents
V. Net increase in cash and cash
1,080,690 713,603 -406,025 4,000
equivalents
Add: Cash and cash
3,797,415 419,945 4,396,525 137,680
equivalents at year-begin
VI. Cash and cash equivalents at
4,878,105 1,133,548 3,990,500 141,680
the end of the year
4.4 Auditor’s report
Auditor’s opinion: un-audited
18
