China International Marine Containers (Group) Co., Ltd. The First Quarterly Report 2010

Transcription

1 China International Marine Containers (Group) Co., Ltd. The First Quarterly Report Important Notice 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 accept, individually and collectively, the responsibility for factuality, accuracy and completeness of the information set forth herein. 1.2 The Financial Report of this first quarterly report has not been audited by an accounting firm. 1.3 Fu Yuning (Principal of the Company), Mai Boliang (Principal of Accounting) and Jin Jianlong (Person-in-charge of the accounting firm 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 Dec Increase/decrease (%) Total assets (Yuan) 48,432,286, ,358,383, % Owners equity attributable to shareholders of listed company (Yuan) 14,549,861, ,198,208, % Share capital (Unit: share) 2,662,396, ,662,396, % Net assets per share attributable to shareholders of listed company (Yuan/share) % Jan.-Mar Jan.-Mar Increase/decrease (%) Total operation income (Yuan) 7,774,491, ,258,608, % Net profit attributable to shareholders of listed company (Yuan) 354,372, ,973, % Net cash flows from operating (Yuan) -1,527,619, ,032,627, % Net cash flows per share from operating (Yuan/share) % Basic earnings per share (Yuan/share) % Diluted earnings per share (Yuan/share) % Weighted average ROE (%) 2.46% 3.08% -0.62% Weighted average ROE after deducting extraordinary gains and losses (%) 1.51% -0.39% 1.90% 1

2 Items of extraordinary gains and losses Amount from year-begin to period-end Profit and loss from disposal of non-current assets -7, Governmental subsidies 15,155, Income from investment cost on acquiring subsidiaries, jointly-run enterprises and joint ventures lower than fair value of identifiable net assets of investee entities that should be enjoyed by the Company Profit or loss from changes in fair value of tradable financial assets and liabilities held, and investment income from disposal of tradable financial assets and liabilities as well as available-for-sale financial assets, excluding the effective hedging businesses related with normal operation of the Company 80,333, ,842, Other non-business incomes and expenses except for items above 16,267, Effect on income tax -40,796, Effect on minority interest -17,824, Total 136,970, Explanation on important items of extraordinary gains and losses 2.2 Total number of shareholders at period-end, as well as shares held by top ten shareholders holding shares not subject to trading moratorium Unit: Share Total number of shareholders at period-end 223,640 Name of shareholder (full name) China Merchants (CIMC) Investment Limited COSCO Container Industries Limited COSCO Container Industries Limited CMBLSA RE FTIF TEMPLETON ASIAN GRW FD GTI 5496 HTHK/CMG FSGUFP-CMG FIRST STATE CHINA GROWTH FD Bank of China Harvest Sustaining Open-ended Securities Investment Fund LONG HONOUR INVESTMENTS LIMITED China Construction Bank-China Prosperous Selected Stock-type Securities Investment Fund INDUSTRIAL & COMMERCIAL BANK OF CHINA E FUND VALUE GROWTH MIXED SECURITIES INVESTMENT FUND BIAL/HSBC GLOBAL INVESTMENT FUNDS CHINESE EQUITY Shares held by top ten shareholders not subject to trading moratorium Number of tradable shares not subject to trading moratorium held at period-end Type of share 661,076,323 Domestically listed foreign shares 432,171,843 RMB ordinary shares 148,320,037 Domestically listed foreign shares 65,612,033 Domestically listed foreign shares 38,355,782 Domestically listed foreign shares 30,685,612 RMB ordinary shares 25,322,106 Domestically listed foreign shares 21,256,587 RMB ordinary shares 19,004,364 RMB ordinary shares 18,717,037 Domestically listed foreign shares Notes: China Merchants (CIMC) Investment Limited holds 661,076,323 shares of the Company, of which 349,973 shares are held through the account of the proxy China Merchants Securities (HK) Co., Ltd.. 2

3 3. Significant Events 3.1 Significant changes in main accounting statement items and financial indicators as well as reasons for such changes Applicable Inapplicable Along with gradual recovery of the global economy, export and the container trade of China was picking up. Demand for containers in the shipping market was growing. As such, the Company was receiving more and more orders. For the period from Jan. to Mar. 2010, accumulative sales of the Company s dry cargo containers stood at 102,900 TEU, exceeding total sales throughout the previous year; accumulative sales of reefer containers stood at 16,200 TEU, representing a year-on-year decrease of 19.00%; and accumulative sales of special containers stood at 9,500 TEU, down by 22.14% as compared with the same period of last year. Along with faster economic recovery in the future and gradual expansion of production capacity in the sector, orders for the container industry are expected to further increase with prices on the rise. Due to governmental subsidies and the need to supplement stock, China economy speeded up in the first quarter. Demand for the Company s road transportation vehicles showed a strong growth with accumulative sales in the first quarter standing at 30,200 TEU, up by 98.68% as compared with the same period of last year. In terms of the offshore engineering business, the Company had successfully made itself the controlling shareholder of Yantai Raffles. Engineering projects at hand were moving on smoothly and hull closure for four semi-submersible drilling platforms had been accomplished. In the first quarter of 2010, operating income grew by 82.56% from the same period of last year, which was mainly because: The Company s production of dry cargo containers had resumed and Yantai Raffles was included in consolidated statements, which greatly boosted sales income. For the first quarter of 2010, a net profit of RMB 354 million was achieved, which was mainly because: The Company offset and wrote off inventory falling price reserves about RMB 373 million and Yantai Raffles was included in consolidated statements, which increased the profit by RMB 115 million. Transactional financial assets increased by % as compared with that at the year-begin, which was mainly because Yantai Raffles was included in consolidated statements; Accounts receivable grew by 82.24% as compared with that at the year-begin, which was mainly because Yantai Raffles was included in consolidated statements; Inventories grew by 53.84% from that at the year-begin, which was mainly because production of dry-cargo containers resumed and raw material purchase increased significantly; Short-term borrowings increased by % from that at the year-begin, which was mainly because Yantai Raffles was included in consolidated statements and the Company s production scale resumed; Accounts received in advance increased by 39.47% from that at the year-begin, which was mainly because Yantai Raffles was included in consolidated statements; Investment income was down by 98.08% as compared with the same period of last year, 3

4 which was mainly because shares of China Merchants Bank held by the Company were sold and a significant income was achieved in the first quarter of the previous year; Non-business income was up by % as compared with the same period of last year, which was mainly because the negative goodwill arising from the acquisition of Yantai Raffles was recorded into gains and losses; Net cash flows from operating were down by % as compared with the same period of last year, which was mainly because the Company resumed production of dry cargo containers and expenses on raw material purchase thus increased considerably. 3.2 Analysis and explanation on progress and influence of significant events, as well as relevant solutions Applicable Inapplicable 3.3 Execution of commitments made by the Company, shareholders and actual controller Applicable Inapplicable Commitments Commitment maker Specific contents of commitments Execution Commitments concerning share reform Commitments concerning share trading moratorium Commitments made in Commitments concerning floating shares subject to trading moratorium becoming tradable The Company s Board of Directors and the sponsor CITIC Securities are of the opinion that up until now, COSCO Container Industries Limited has strictly executed relevant commitments made in the stock rights splitting reform. None Inapplicable Inapplicable the acquisition report or None Inapplicable Inapplicable the report on equity changes Commitments made in major assets reorganization Commitments made in stock issuance Other commitments (including supplementary commitments) None Inapplicable Inapplicable None Inapplicable Inapplicable None Inapplicable Inapplicable The Company s Board of Directors and the sponsor CITIC Securities are of the opinion that up until now, COSCO Container Industries Limited has strictly executed relevant commitments made in the stock rights splitting reform. 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 report period compared to the same period of last year according to prediction, as well as explanations on reasons Applicable Inapplicable 3.5 Other significant events Securities Investment Applicable Inapplicable Unit: (RMB) Yuan 4

5 Serial No. Type of Securities Short form of securities code securities Sinotrans 1 H Shipping Ltd. Number of Initial shares held at investment period-end amount (Yuan) (share) Book value at period-end (Yuan) Proportion in total securities investment (%) Gains/losses in report period (Yuan) 21,768, ,996,500 9,774, % 289, S G05.SI GoodPack 109,261, ,00, ,947, % 40,709, Other securities investment held at period-end 4,495, ,838, % 1, Gains/losses from securities investments sold in report period Total 135,525, ,560, % 41,001, Researches, interviews and visits received in report period Time Place Way of reception Visitor or caller Main discussion and materials provided by the Company 4 Jan The Company Field research UBS Securities Recent development trends in the industry, status of the Company s main business and investment progress; outlook of the industry and the Company s main business in Jan The Company Field research Orient Securities, Bank of China Investment Management 7 Jan The Company Field research Guangzhou Securities, Morgan Stanley Huaxin Funds 8 Jan The Company Field research Value Partners 8 Jan The Company Field research Customer of Shenyin & Wanguo Securities 12 Jan The Company Field research Changsheng Fund Management, China Minzu Securities TX Investment, ICBC Credit Suisse 14 Jan The Company Field research Asset Management, Pacific Securities, Lord Abbett China 14 Jan The Company By telephone Guosen Securities 15 Jan The Company Field research China Universal Asset Management, Dacheng Fund Management 18 Jan The Company Field research Nomura Securities 19 Jan The Company Field research Nomura Securities (HK) 20 Jan The Company Field research Harvest Fund Management 26 Jan The Company By telephone First Shanghai Securities 27 Jan The Company By telephone Customer of ABN AMRO Securities 28 Jan The Company Field research E Fund Management, KGI Securities, China Galaxy Securities 5

6 28 Jan The Company Field research BNP Paribas Peregrine 28 Jan The Company By telephone Customer of CICC 29 Jan The Company By telephone Capital Securities 8 Feb The Company Field research CLSA Asia-Pacific Markets 24 Feb The Company Field research Manulife Teda Fund Management, Ping An Securities 6 25 Feb The Company Field research Standard Chartered Bank 25 Feb The Company Field research GF Securities 26 Feb The Company By telephone Nomura Securities 26 Feb The Company Field research 5 Mar The Company Field research China Post Fund, First-Trust Fund Management, UBS SDIC Customer of BOC International (China) Limited 8 Mar The Company Field research Taikang Asset Management 11 Mar The Company Field research Nikko Asset Management 23 Mar The Company By telephone Customer of CICC 23 Mar The Company By telephone Customer of Shenyin & Wanguo 24 Mar The Company Field research Morgan Stanley and its customer 25 Mar The Company Field research Dacheng Fund Management, Harvest Fund Management Other significant events Applicable Inapplicable (1) In the report period, there existed no provision of capital for the controlling shareholder or its related parties and no provision of external guarantees in violation of the prescribed procedure; (2) In Feb. 2010, the Company reached an agreement with the Russia MNP Group, intending to acquire 75% equity of Friede Goldman United ( F&G ) at the price of USD 75 million. For more details, please refer to the public notice disclosed on 2 Feb (public notice No.: [CIMC] ). Up until 31 Mar. 2010, the said transaction had not been concluded. 3.6 Investment in derivative products Applicable Inapplicable By 31 Mar. 2010, main financial instrument held by the Company were forward exchange or option contract and interest forward-forward swap contract. Risk of interest forward-forward swap contract was nearly related Analysis on risks and control measures of holding to fluctuation of interest rate. Risk of foreign exchange or option contract positions of derivatives in the report period (including related to of risk from interest exchange market and certainty of future cash but not limited to market risk, liquidity risk, credit flow from foreign currency income. Control measures of derivative risk, operation risk, law risk, etc.) instrument showed in the following: control amount of new derivative instrument; aimed 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 31,584,000 from Jan.-Mar Fair value of derivative

7 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 Company s accounting policy and specific accounting No principles of the derivatives in the report period compared with the last report 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 Positions of derivatives held by the Company at period-end Applicable Inapplicable Type of contract Contract amount at period-begin Contract amount at period-end Unit: (RMB) Yuan Gain/loss in report period Proportion of the contract amount at period-end in the Company s net assets at period-end 1. Forward foreign exchange contract 1,469,500, ,839,652, ,180, % 2. Interest rate swaps 2,172,069, ,370,373, ,565, % 3. Option contracts JPY 346,401, ,401, ,969, % Total 3,987,971, ,556,427, ,584, % 4. Attachment 4.1 Balance sheet Prepared by China International Marine Containers (Group) Co., Ltd. 31 Mar Unit: (RMB) Yuan Items Closing balance Opening balance Consolidation Parent company Consolidation Parent company Current assets: Monetary funds 4,788,902, ,680, ,269,217, ,738, Transaction financial assets 202,748, ,772, Notes receivable 1,517,036, ,690,845, Accounts receivable 7,039,281, ,862,604, Prepayments 2,978,376, ,073,559, Interest receivable Dividend receivable ,731,199, ,735,874, Other receivables 1,576,847, ,238,414, ,123,489, ,265,606, Inventories 10,389,847, ,753,566, Non-current assets due within 1 year 432,105, ,036,

8 Other current assets 271,414, ,242, Total current assets 29,196,556, ,111,293, ,535,330, ,639,218, Non-current assets: Financial assets available for sale 1,150,709, ,041,407, ,175,785, ,052,070, Investments held to maturity Long-term accounts receivable 1,017,986, ,942, Long-term equity investment 1,310,165, ,465,965, ,930,811, ,978,100, Investment real estate 61,239, ,606, Fixed assets 10,060,287, ,724, ,695,033, ,936, Construction in progress 528,711, ,312, ,269, ,906, Construction materials Fixed assets disposal Productive biological assets Oil assets Intangible assets 3,147,020, ,964, ,777,626, ,249, Development expenses Goodwill 1,469,129, ,206,522, Long-term deferred expenses 37,668, ,106, ,513, ,770, Deferred income tax assets 452,816, ,946, Other non-current assets Total of non-current assets 19,235,730, ,699,478, ,823,053, ,224,031, Total assets 48,432,286, ,810,771, ,358,383, ,863,249, Current liabilities: Short-term borrowings 8,391,427, ,529, ,157,477, ,564, Transaction financial liabilities 159,223, ,182, ,036, ,224, Notes payable 1,317,967, ,226,091, Accounts payable 6,970,922, ,462,255, Accounts received in advance 1,772,155, ,270,602, Payroll payable 703,648, ,739, ,425, ,286, Taxes payable 490,135, ,975, ,011, ,814, Interest payable 20,588, ,441, ,844, ,673, Dividend payable 23,517, ,434, Other payables 1,901,418, ,233, ,476,903, ,234, Estimated liabilities (current) 529,291, ,801, Non-current liabilities due within 1 year 432,248, ,287, ,472, ,839, Other current liabilities Total current liabilities 22,712,539, ,880,386, ,197,351, ,696,634, Non-current liabilities: Long-term borrowings 7,220,205, ,879,528, ,608,560, ,078,728, Bonds payable Long-term payables

9 Special payables 13,898, ,639, Estimated liabilities ,381, Deferred income tax liabilities 612,817, ,844, ,722, ,128, Other non-current liabilities 117,911, ,099, Total non-current liabilities 7,964,831, ,019,372, ,334,401, ,214,856, Total liabilities 30,677,370, ,899,758, ,531,752, ,911,490, Owners equity (or shareholders equity): Paid-in capital (or share capital) 2,662,396, ,662,396, ,662,396, ,662,396, Capital reserve 1,624,786, ,013,364, ,557,703, ,045,202, Less: treasury stock Surplus reserve General risk reserve Retained profits 3,577,588, ,577,588, ,577,588, ,577,588, Undistributed profit 8,583,904, ,926,178, ,229,532, ,932,874, Foreign exchange difference -1,898,813, ,268,513, ,829,011, ,266,301, Total equity attributable to owners of the parent company 14,549,861, ,911,013, ,198,208, ,951,759, Minority interest 3,205,055, ,628,423, Total owners equity 17,754,916, ,911,013, ,826,631, ,951,759, Total liabilities and owners equity 48,432,286, ,810,771, ,358,383, ,863,249, Income Statement Prepared by China International Marine Containers (Group) Co., Ltd. Jan.-Mar Unit: (RMB) Yuan Items Amount in this period Amount in the previous period Consolidation Parent company Consolidation Parent company Ⅰ. Total operation revenue 7,774,491, ,258,608, , Including: operation revenue 7,774,491, ,258,608, , Interest income Ⅱ. Total operation cost 7,455,228, ,517, ,268,949, ,736, Including: cost of operation 7,041,582, ,589,862, , Interest expenses Business taxes and surcharges 6,219, ,816, Selling expenses 178,374, ,472, Administrative expenses 487,098, ,923, ,538, ,488, Financial expenses 113,113, , ,684, ,246, Asset impairment loss -371,158, ,423, Add: gain/loss from changes in fair value ( - for loss) loss) Gain/loss from investment ( - for 72,585, ,109, ,976, ,561, ,332, ,941, ,527, Including: investment gains from 1,290, ,380,

10 affiliated enterprises and joint ventures Gains/losses from foreign exchange difference ( - for loss) Ⅲ. Operation profit ( - for loss) 404,409, ,185, ,491, ,797, Add: non-business income 113,011, , ,636, ,255, Less: non-business expense 1,263, , Including: losses from non-current asset disposal 7, , Ⅳ. Total profit ( - for loss) 516,157, ,543, ,382, ,052, Less: income tax expenses 96,655, ,847, ,028, ,068, Ⅴ. Net profit ( - for loss) 419,502, ,696, ,354, ,984, company Attributable to owners of parent 354,372, ,696, ,973, ,984, Minority interest 65,130, ,381, Ⅵ. Earnings per share (I) Basic earnings per share (II) Diluted earnings per share VII Other syntheses income -36,755, ,050, ,601, ,843, VIII Total syntheses income 382,747, ,746, ,753, ,141, Total syntheses income attributable to owners of parent company Total syntheses income attributable to minority interest 339,939, ,746, ,234, ,141, ,808, ,519, Cash Flow Statement Prepared by China International Marine Containers (Group) Co., Ltd. Jan.-Mar Unit: (RMB) Yuan Items Amount of this period Amount of the previous period Consolidation Parent company Consolidation Parent company 1. Cash flows from operating Cash received from sales of goods or rendering of services 6,769,099, ,328,294, Net increase in disposal of transaction financial assets Tax and fare refunded 134,917, ,567, Other cash received from operating 19,066, ,500,989, ,429, ,612,449, Sub-total of cash inflows from operating 6,923,082, ,500,989, ,413,290, ,612,449, Cash paid for goods and services 7,355,835, ,551,447, Cash paid to and on behalf of employees 491,153, ,120, ,163, ,437, Taxes and fares paid 312,519, ,533, ,883, ,

11 Other cash paid relating to operating 291,194, ,461,901, ,170, ,370,992, Sub-total of cash outflows from operating 8,450,701, ,485,554, ,380,663, ,386,680, Net cash flows from operating -1,527,619, ,435, ,032,627, ,769, Cash flows from investing : Cash received from return of investments 12,131, ,131, ,433, ,433, Cash received from investment income , ,763, Net cash received from disposal of fixed assets, intangible assets and other 273, , long-term assets Net cash received from disposal of subsidiaries and other operating units ,298, Other cash received from investing ,364, Sub-total of cash inflows of investing 12,404, ,429, ,221, ,196, Cash paid for acquiring fixed assets, intangible assets and other long-term 319,906, ,072, ,473, ,768, assets Cash paid for investments 11,735, ,735, ,767, ,842, Net cash paid for acquisition of subsidiaries and other operating units 290,948, Other cash paid relating to investing Sub-total of cash outflows of investing 622,589, ,807, ,240, ,610, Net cash flows of investing -610,185, ,622, ,981, ,586, Cash flows of financing Cash received from absorbing investments 89,999, Including: Cash received from minority shareholders of subsidiaries Cash received from borrowings 4,039,652, ,166,557, ,057,257, ,772, Cash received from bonds issuing Other cash received relating to financing Sub-total of cash inflows of financing 4,129,651, ,166,557, ,057,257, ,772,

12 Cash paid for settling debts 2,309,869, ,166,475, ,704,545, ,847, Cash paid for distribution of dividends or profit or reimbursing 75,800, ,186, ,821, ,744, interest Including: dividends or profits paid to minority shareholders by subsidiaries Other cash paid relating to financing Sub-total of cash outflows of financing 2,385,669, ,186,661, ,867,366, ,591, Net cash flows of financing 1,743,982, ,104, ,891, ,819, Effect of foreign exchange rate changes on cash and cash equivalents -12,203, ,953, ,671, ,636, Net increase of cash and cash equivalents -406,025, ,000, ,256,828, ,900, Add: Opening balance of cash and cash equivalents 4,396,525, ,680, ,822,175, ,150, Closing balance of ash and cash equivalents 3,990,500, ,680, ,079,003, ,050, Audit report Audit opinion:the finical statement has not been audited. 12