China International Marine Containers (Group) Co., Ltd.
The First Quarterly Report 2009
§1. Important Notice
1.1 The Board of Directors, the Supervisory Committee, as well as directors, supervisors
and other senior management personnel 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 accept,
individually and collectively, the responsibility for the factuality, accuracy and
completeness of the information set forth herein.
1.2 The Financial Report of the first quarterly report period has not been audited.
1.3 Fu Yuning (Chairman of the Board of the Company), Mai Boliang (the Company’s
Person-in-charge of accounting) and Jin Jianlong (Person-in-charge of the accounting
agency and the accounting project) hereby confirm that the Financial Report enclosed in
this quarterly report is factual and complete.
§2. Company Profile
2.1 Main accounting data and financial indicators
Unit: (RMB) Yuan
31 Mar. 2009 31 Dec. 2008 Increase/decrease (%)
Total assets 34,314,579,000.00 34,557,863,000.00 -0.70%
Owners’ equity attributable to the
parent company
13,610,135,000.00 13,428,901,000.00 1.35%
Share capital 2,662,396,000.00 2,662,396,000.00 0.00%
Net assets per share attributable to
owners of the parent company
5.11 5.04 1.39%
Jan.-Mar. 2009 Jan.-Mar. 2008 Increase/decrease (%)
Total operation income 4,258,608,000.00 11,987,885,000.00 -64.48%
Net profit attributable to owners of the
parent company
418,973,000.00 405,811,000.00 3.24%
Net cash flow arising from operating
activities
1,032,627,000.00 -4,110,878,000.00 125.12%
Net cash flow per share arising from
operating activities
0.3879 -1.544 125.12%
Basic earnings per share 0.1574 0.1524 3.28%2
Diluted earnings per share 0.1574 0.1524 3.28%
Return on equity 3.08% 2.48% 0.60%
Return on equity after deducting
extraordinary gains and losses
-0.39% 2.77% -3.16%
Items of extraordinary gains and losses
Amount from year-begin
to the end of the reporting
period
Profit and loss from disposal of non-current assets, -130,000.00
Governmental subsidies 14,149,000.00
Profit or loss from change in fair value by holding tradable financial assets and liabilities, and
investment income from disposal of tradable financial assets and liabilities as well as salable financial
assets, excluding the effective hedging businesses related with the normal operations of the company
594,972,000.00
Other non-operating income and expenses besides the above items 7,871,000.00
Profit and loss from outward entrusted loaning 2,585,000.00
The impact on taxes due to the above-mentioned items -145,122,000.00
Amount influenced by minority interest -2,530,000.00
Total 471,795,000.00
Notes to items of extraordinary gains and losses:
Naught
2.2 Total number of shareholders at the end of the reporting period, as well as the shares
held by the top ten shareholders holding shares not subject to trading moratorium
Unit: Share
Total number of shareholders at period-end 311,981
Shares held by the top ten shareholders not subject to trading moratorium
Name of shareholder (full name)
Number of tradable shares not subject to
trading moratorium held at period-end
Type of share
China Merchants (CIMC) Investment Limited 432,176,844 Domestically listed foreign shares
COSCO Container Industries Limited 266,239,604 RMB ordinary shares
COSCO Container Industries Limited 148,320,037 Domestically listed foreign shares
China Merchants (CIMC) Holdings Limited 173,643,136 Domestically listed foreign shares
CMBLSA RE FTIF TEMPLETON ASIAN GRW
FD GTI 5496
58,257,531 Domestically listed foreign shares
China Merchants Securities (HK) Co., Ltd. 56,882,988 Domestically listed foreign shares
LONG HONOUR INVESTMENTS LIMITED 25,322,106 Domestically listed foreign shares
HTHK/CMG FSGUFP-CMG FIRST STATE
CHINA GROWTH FD
24,250,634 Domestically listed foreign shares
Industrial & Commercial Bank of China—Nuoan
Stock Securities Investment Fund
18,000,000 RMB ordinary shares
TEMPLETON EMERGING MARKETS
INVESTMENT TRUST
12,801,432 Domestically listed foreign shares
TOYO SECURITIES ASIA LIMITED-A/C 12,489,469 Domestically listed foreign shares3
CLIENT.
TEMPLETON DRAGON FUND,INC. 10,565,295 Domestically listed foreign shares
§3. Significant Events
3.1 Particulars about major changes of items and financial indexes of the main accounting
statements, as well as the reasons for changes
√Applicable □Inapplicable
In Mar. 2009, China’s export volume and container handling volume closely relating to the
container transportation demand both registered rebounds compared to the last period, with
the decreases significantly narrowing over the same period of last year. In spite of that, the
market demand for dry cargo container remained the same. Therefore, the Company
basically kept its production half of dry cargo containers. Compared with the first and
fourth quarters of 2008, the reporting quarter saw total sales of the Company’s reefer
containers amounting to 20,000 TEU, almost down by 50%; and total sales of the
Company’s special containers reaching 12,200 TEU, decreasing respectively by 57% and
15%.
Affected by the economic situation and market environment, the market demand and orders
of reefer containers and special containers were expected to face a certain degree of
pressure and uncertainty in the future.
In the first quarter, the Company achieved total sales of road transportation vehicles
reaching 15,200 units, down by 44% compared to the same period of last year.
The operation income of the first quarter decreased by 64.48% over the same period of last
year, mainly because the Company’s plants of dry cargo containers were still basically in a
production halt, which considerably reduced the sales revenue, while those plants enjoyed a
normal production in the same period of last year.
The investment gains in the first quarter increased by 1,083.17% compared to the same
period of last year, mainly due to that the Company sold part of the available-for-sale
financial assets (the shares of China Merchants Bank).
The net cash flows arising from operating activities rose by 125.12% over the same period
of last year, mainly due to that the Company’s plants of dry cargo containers were in a
production halt, which led to a significant decrease of the expenses for purchasing raw
materials; and that the accounts receivable in the third quarter of 2008 were recovered,
which considerably reduced the occupancy rate of the operational funds.
3.2 Analysis and explanation on the progress of significant events and the influence, as well
as the solutions
□Applicable √Inapplicable4
3.3 Execution of commitments made by the Company, shareholders and actual controller
√Applicable □Inapplicable
Commitments made Contents of commitments Execution
Commitments concerning
share merger reform
Naught Naught
Commitments concerning
share trading moratorium
COSCO Container Industries Limited (the original non-tradable
share holder) made the commitments as follows:
(1) According to relevant regulations, it would not list for
trading or transfer the original non-tradable shares held by it
through Shenzhen Stock Exchange within 12 months beginning
from the first trading day after the implementation of the
Company’s share merger reform.
(2) After expiration of the above commitment, in line with
relevant regulations, the original non-tradable shares could be
sold through listing and trading in Shenzhen Stock Exchange,
but the proportion of the shares sold in the total shares of the
Company should not exceed 5% within 12 months, as well as
not exceed 10% within 24 months.
The relevant commitments made in
the share merger reform were
faithfully fulfilled.
Commitments made in the
purchase report or the report on
equity changes
Naught Naught
Commitments made in major
assets reorganization
Naught Naught
Commitments made in stock
issuance
Naught Naught
Other commitments (including
supplementary commitments)
Naught Naught
3.4 Warnings of possible losses or significant changes of the accumulative net profit made
during the period from the year-begin to the end of the next reporting period compared to
the same period of last year according to prediction, as well as explanations on the reasons
□Applicable √Inapplicable
3.5 Other significant events
3.5.1 Securities Investment
√Applicable □Inapplicable
Unit: (RMB) Yuan
No.
Type of
securities
Securities
code
Short form of
securities
Initial investment
amount (Yuan)
Number of shares
held (share)
Book value at
period-end
Proportion in
total
securities
investment
(%)
Gains/losses in the
reporting period
(Yuan)
1 H 000368
Sinotrans
Shipping Ltd.
21,831,056.68 2,996,500.00 5,099,395.44 8.69% -105,731.725
2 S G05.SI GoodPack 109,574,815.30 13,500,000.00 48,544,117.43 82.76% -5,267,806.91
Other securities investment held at period-end 6,471,209.65 - 5,014,804.57 8.55% 11,036.17
Gains/losses from securities investments sold in the
reporting period
- - - - 0.00
Total 137,877,081.63 - 58,658,317.44 100% -5,362,502.46
Notes concerning the securities investment: Naught
3.5.2 Interviews and visits in the reporting period
Date Venue Way of communication Visitors Topics discussed and materials provided
12 Jan. 2009 The Company Field research
China Life Issuance
Asset Management
Co., Ltd.
The Company’s strategies and operation
development, the trends of the market
and the industry, financial position,
capital expenditure, etc.
12 Jan. 2009 The Company By phone
CLSA, Morgan
Stanley Asia Pacific
Fund, J.P. Morgan
Same as above
12 Feb. 2009 The Company Field research
Goldman Sachs
Group
Same as above
13 Feb. 2009 Hong Kong By convening a meeting
The Company
attended the China
Machinery Day
Investor Meeting
conducted by BNP
Paribas Peregrine
Same as above
17 Feb. 2009 The Company Field research AP Fund Same as above
20 Feb. 2009 The Company Field research Merrill Lynch Same as above
12 Mar. 2009 The Company Field research
UFJ Securities Co.,
Ltd.
Same as above
12 Mar. 2009 The Company Field research
Brooke Capital
Limited
Same as above
23 Mar. 2009 The Company Field research
APG Asset
Management
Same as above
3.5.3 Other significant events
√Applicable □Inapplicable
(1) The Company’s subsidiary—CIMC Vehicles (Group) Co., Ltd. (hereinafter referred to
as “CIMC Vehicles”), Qianghu Tairui Investment Co., Ltd. (hereinafter referred to as
“Tairui Investment”) and Shenzhen Jiusi Investment Co., Ltd. (hereinafter referred to as
“Jiusi Investment”) signed the sponsorship agreement in Shenzhen on 9 Jan. 2009, planning
to establish, through joint capital, C&C Truck Co., Ltd. (hereinafter referred to as “C&C
Truck”). The C&C Truck was invested with a registered capital of RMB 1.2 billion, of6
which RMB 540 million came from CIMC Vehicles, taking up 45% of the registered capital.
For details, please refer to Public Notice of CIMC on External Investment (Public Notice
No.: 【CIMC】2009-003) disclosed on 23 Jan. 2009.
(2) On 16 Mar. 2009, the Company signed the cooperation agreement on
development-oriented financing with China Development Bank. For details, please refer to
Public Notice of CIMC on Signing the Cooperation Agreement on Development-oriented
Financing with China Development Bank (Public Notice No.: 【CIMC】2009-004)
disclosed on 23 Jan. 2009.
§4. Attachment
4.1 Balance sheet
Prepared by China International Marine Containers (Group) Co., Ltd. 31 Mar. 2009 Unit:
(RMB) Yuan
Closing balance Opening balance
Items
Consolidation Parent company Consolidation Parent company
Current assets:
Monetary funds 4,358,181,000.00 910,050,000.00 3,101,353,000.00 430,150,000.00
Transaction financial assets 139,192,000.00 -154,445,000.00 386,553,000.00
Notes receivable 482,220,000.00 853,406,000.00
Accounts receivable 3,594,503,000.00 4,193,731,000.00
Prepayments 1,035,234,000.00 1,014,391,000.00
Interest receivable 2,925,000.00 2,412,000.00
Dividend receivable 10,804,000.00 4,960,384,000.00 10,792,000.00 4,962,468,000.00
Other receivables 848,024,000.00 4,741,425,000.00 884,116,000.00 4,934,969,000.00
Inventories 7,854,630,000.00 7,833,378,000.00
Non-current assets due within 1
year
172,833,000.00 128,064,000.00
Other current assets 403,019,000.00 410,183,000.00
Total current assets 18,901,565,000.00 10,457,414,000.00 18,818,379,000.00 10,327,587,000.00
Non-current assets:
Financial assets available for
sale
904,475,000.00 871,410,000.00 1,264,613,000.00 1,239,956,000.00
Investments held to maturity
Long-term accounts receivable 387,138,000.00 501,903,000.00
Long-term equity investment 1,706,503,000.00 2,617,520,000.00 1,602,598,000.00 2,541,719,000.00
Investment real estate 79,966,000.00 79,244,000.00
Fixed assets 7,116,140,000.00 130,763,000.00 7,153,777,000.00 130,957,000.00
Construction in progress 1,094,549,000.00 11,174,000.00 943,560,000.00 6,662,000.00
Construction materials
Fixed assets disposal7
Productive biological assets
Oil assets
Intangible assets 2,583,077,000.00 32,847,000.00 2,645,457,000.00 32,990,000.00
Development expenses
Goodwill 1,146,955,000.00 1,150,251,000.00
Long-term deferred expenses 43,741,000.00 9,504,000.00 39,210,000.00 10,184,000.00
Deferred income tax assets 350,470,000.00 358,871,000.00
Other non-current assets
Total of non-current assets 15,413,014,000.00 3,673,218,000.00 15,739,484,000.00 3,962,468,000.00
Total assets 34,314,579,000.00 14,130,632,000.00 34,557,863,000.00 14,290,055,000.00
Current liabilities:
Short-term borrowings 2,412,519,000.00 136,670,000.00 2,206,688,000.00 100,000,000.00
Transaction financial liabilities 242,015,000.00 409,443,000.00 205,109,000.00
Notes payable 1,129,174,000.00 1,013,448,000.00
Accounts payable 3,571,228,000.00 4,391,266,000.00
Accounts received in advance 756,038,000.00 687,964,000.00
Payroll payable 658,346,000.00 239,017,000.00 757,307,000.00 241,309,000.00
Taxes payable 526,590,000.00 261,480,000.00 421,815,000.00 141,860,000.00
Interest payable 78,804,000.00 30,280,000.00 51,852,000.00 7,385,000.00
Dividend payable 32,486,000.00 32,456,000.00
Other payables 1,649,067,000.00 23,992,000.00 1,583,477,000.00 141,048,000.00
Estimated liabilities (current) 541,247,000.00 573,046,000.00
Non-current liabilities due
within 1 year
80,540,000.00 270,358,000.00 174,557,000.00
Other current liabilities 541,247,000.00 573,046,000.00
Total current liabilities 11,678,054,000.00 691,439,000.00 12,399,120,000.00 1,011,268,000.00
Non-current liabilities:
Long-term borrowings 6,892,466,000.00 5,886,643,000.00 6,548,215,000.00 6,002,938,000.00
Bonds payable
Long-term payables
Special payables 8,644,000.00 8,633,000.00
Deferred income 21,833,000.00 20,685,000.00
Estimated liabilities 41,438,000.00 41,383,000.00
Deferred income tax liabilities 527,943,000.00 68,641,000.00 605,379,000.00 123,081,000.00
Other non-current liabilities
Total non-current liabilities 7,492,324,000.00 5,955,284,000.00 7,224,295,000.00 6,126,019,000.00
Total liabilities 19,170,378,000.00 6,646,723,000.00 19,623,415,000.00 7,137,287,000.00
Owners’ equity (or shareholders’
equity):
Paid-in capital (or share capital) 2,662,396,000.00 2,662,396,000.00 2,662,396,000.00 2,662,396,000.00
Capital reserve 1,155,480,000.00 925,142,000.00 1,352,772,000.00 1,118,064,000.00
Less: treasury stock
Surplus reserve 3,577,588,000.00 3,577,588,000.00 3,577,588,000.00 3,577,588,000.008
General risk reserve
Retained profits 8,088,897,000.00 1,595,597,000.00 7,669,924,000.00 1,064,613,000.00
Foreign exchange difference -1,874,226,000.00 -1,276,814,000.00 -1,833,779,000.00 -1,269,893,000.00
Total equity attributable to owners
of the parent company
13,610,135,000.00 7,483,909,000.00 13,428,901,000.00 7,152,768,000.00
Minority interest 1,534,066,000.00 1,505,547,000.00
Total owners’ equity 15,144,201,000.00 7,483,909,000.00 14,934,448,000.00 7,152,768,000.00
Total liabilities and owners’
equity
34,314,579,000.00 14,130,632,000.00 34,557,863,000.00 14,290,055,000.00
4.2 Income Statement
Prepared by China International Marine Containers (Group) Co., Ltd. Jan.-Mar. 2009
Unit: (RMB) Yuan
Amount in this period Amount in the previous period
Items
Consolidation Parent company Consolidation Parent company
Ⅰ. Total operation revenue 4,258,608,000.00 30,000.00 11,987,885,000.00 29,000.00
Including: operation revenue 4,258,608,000.00 30,000.00 11,987,885,000.00 29,000.00
Interest income
Ⅱ. Total operation cost 4,268,949,000.00 48,736,000.00 11,465,603,000.00 -2,993,000.00
Including: cost of operation 3,589,862,000.00 2,000.00 10,755,701,000.10 1,000.00
Interest expenses
Business taxes and surcharges 3,816,000.00 3,858,000.00
Selling expenses 144,472,000.00 247,024,000.00
Administrative expenses 430,538,000.00 23,488,000.00 335,253,000.00 33,599,000.00
Financial expenses 105,684,000.00 25,246,000.00 103,785,000.00 -36,593,000.00
Asset impairment loss -5,423,000.00 19,982,000.00
Add: gain/loss from changes in fair value
(“-” for loss)
-79,109,000.00 50,976,000.00 -96,282,000.00 -85,870,000.00
Gain/loss from investment (“-” for
loss)
653,941,000.00 647,527,000.00 55,271,000.00 54,180,000.00
Including: investment gains from
affiliated enterprises and joint ventures
6,380,000.00 14,869,000.00
Gains/losses from foreign exchange
difference (“-” for loss)
Ⅲ. Operation profit (“-” for loss) 564,491,000.00 649,797,000.00 481,271,000.00 -28,668,000.00
Add: non-business income 22,636,000.00 3,255,000.00 12,888,000.00 4,956,000.00
Less: non-business expense 745,000.00 1,421,000.00 266,000.00
Including: losses from non-current
asset disposal
130,000.00 191,000.00
Ⅳ. Total profit (“-” for loss) 586,382,000.00 653,052,000.00 492,738,000.00 -23,978,000.00
Less: income tax expenses 144,028,000.00 122,068,000.00 49,082,000.00 -25,468,000.00
Ⅴ. Net profit (“-” for loss) 442,354,000.00 530,984,000.00 443,656,000.00 1,490,000.009
Attributable to owners of parent
company
418,973,000.00 405,811,000.00
Minority interest 23,381,000.00 37,845,000.00
Ⅵ. Earnings per share
(I) Basic earnings per share 0.1574 0.1524
(II) Diluted earnings per share 0.1574 0.1524
4.3 Cash Flow Statement
Prepared by China International Marine Containers (Group) Co., Ltd. Jan.-Mar. 2009
Unit: (RMB) Yuan
Amount of this period Amount of the previous period
Items
Consolidation Parent company Consolidation Parent company
1. Cash flows from operating activities
Cash received from sales of goods
or rendering of services
5,328,294,000.00 10,142,320,000.00 29,000.00
Net increase in disposal of
transaction financial assets
Tax and fare refunded 233,567,000.00 777,615,000.00
Other cash received from operating
activities
851,429,000.00 1,612,449,000.00 171,659,000.00 14,899,369,000.00
Sub-total of cash inflows from
operating activities
6,413,290,000.00 1,612,449,000.00 11,091,594,000.00 14,899,398,000.00
Cash paid for goods and services 4,551,447,000.00 13,625,959,000.00
Cash paid to and on behalf of
employees
362,163,000.00 15,437,000.00 639,589,000.00 14,870,000.00
Taxes and fares paid 194,883,000.00 251,000.00 302,366,000.00 250,000.00
Other cash paid relating to operating
activities
272,170,000.00 1,370,992,000.00 634,558,000.00 17,205,226,000.00
Sub-total of cash outflows from
operating activities
5,380,663,000.00 1,386,680,000.00 15,202,472,000.00 17,220,346,000.00
Net cash flows from operating
activities
1,032,627,000.00 225,769,000.00 -4,110,878,000.00 -2,320,948,000.00
2. Cash flows from investing activities:
Cash received from return of
investments
715,433,000.00 715,433,000.00 4,017,000.00
Cash received from investment
income
353,000.00 8,763,000.00 1,000.00 27,263,000.00
Net cash received from disposal of
fixed assets, intangible assets and other
long-term assets
71,000.00 294,000.00
Net cash received from disposal of
subsidiaries and other operating units
100,000,000.0010
Other cash received from investing
activities
16,364,000.00 20,392,000.00
Sub-total of cash inflows of
investing activities
732,221,000.00 724,196,000.00 124,704,000.00 27,263,000.00
Cash paid for acquiring fixed assets,
intangible assets and other long-term
assets
366,473,000.00 6,768,000.00 578,581,000.00 22,441,000.00
Cash paid for investments 207,767,000.00 184,842,000.00 550,682,000.00 319,650,000.00
Net cash paid for acquisition of
subsidiaries and other operating units
Other cash paid relating to investing
activities
6,374,000.00
Sub-total of cash outflows of
investing activities
574,240,000.00 191,610,000.00 1,135,637,000.00 342,091,000.00
Net cash flows of investing
activities
157,981,000.00 532,586,000.00 -1,010,933,000.00 -314,828,000.00
3. Cash flows of financing activities
Cash received from absorbing
investments
Including: Cash received from
minority shareholders of subsidiaries
Cash received from borrowings 2,057,257,000.00 136,772,000.00 8,060,927,000.00 2,282,286,000.00
Cash received from bonds issuing
Other cash received relating to
financing activities
Sub-total of cash inflows of
financing activities
2,057,257,000.00 136,772,000.00 8,060,927,000.00 2,282,286,000.00
Cash paid for settling debts 1,704,545,000.00 386,847,000.00 2,873,717,000.00 48,658,000.00
Cash paid for distribution of
dividends or profit or reimbursing
interest
162,821,000.00 26,744,000.00 171,341,000.00 37,814,000.00
Including: dividends or profits paid
to minority shareholders by subsidiaries
Other cash paid relating to financing
activities
Sub-total of cash outflows of
financing activities
1,867,366,000.00 413,591,000.00 3,045,058,000.00 86,472,000.00
Net cash flows of financing
activities
189,891,000.00 -276,819,000.00 5,015,869,000.00 2,195,814,000.00
4. Effect of foreign exchange rate
changes on cash and cash equivalents
-123,671,000.00 -1,636,000.00 -64,794,000.00 -8,885,000.00
5. Net increase of cash and cash
equivalents
1,256,828,000.00 479,900,000.00 -170,736,000.00 -448,847,000.0011
Add: Opening balance of cash and
cash equivalents
2,822,175,000.00 430,150,000.00 3,015,348,000.00 927,131,000.00
6. Closing balance of ash and cash
equivalents
4,079,003,000.00 910,050,000.00 2,844,612,000.00 478,284,000.00
4.4 Auditor’s report
Auditor’s opinion: un-audited.
China International Marine Containers (Group) Co., Ltd.
Apr. 28, 2009
