1、 Third Quarterly Report for 2006 1 China International Marine Containers(Group)Co.,Ltd.Third Quarterly Report for 2006 1.IMPORTANT NOTES:1.1 Board of Directors of China International Marine Containers(Group)Co.,Ltd.(hereinafter referred to as the Company)and directors individually and collectively a
2、ccept responsibility for the correctness,accuracy and completeness of the contents of this report and confirm that there are no material omissions or errors which would render any statement misleading.This report has been compiled in both Chinese and English.Should there be any discrepancy in the tw
3、o editions,the Chinese one shall prevail.1.2 No director stated that he(she)could not ensure the truthfulness,accuracy and completeness of the contents of the Quarterly Report or have objection for this report.1.3 All Directors have attended the Board meeting.1.4 The Third quarterly financial report
4、 of 2006 has not been audited.1.5 Chairman of the Board,Mr.Li Jianhong,President of the Company,Mr.Mai Boliang and General Manager of Financial Management Dept.,Mr.Jin Jianlong announce:ensure the correctness and completeness of financial report in this report.2.COMPANY PROFILE 2.1 Basic Information
5、 of the Company Short form of stock CIMC,CIMC-B Stock code 000039,200039 Secretary of the Board of Directors Representative in charge of securities affairs Name Yu Yuqun Wang Xinjiu Liaison Address No.2 R&D Center of CIMC,Shenkou Nanshan,Shenzhen,Guangdong No.2 R&D Center of CIMC,Shenkou Nanshan,She
6、nzhen,Guangdong Tel.(0755)2669 1130(0755)2680 2706 Fax(0755)2682 6579(0755)2681 3950 E-mail 2.2 Financial Information Third Quarterly Report for 2006 2 2.2.1 Main accounting data and financial indexes Unit:RMB000 At 30 Sep.2006 At 31 December 2005 Increase/decrease of the end of this report period o
7、ver the period-end of the last year(%)Total assets 23,086,344 17,020,469 35.64Total equity(excluding Minority interest)10,790,796 9,613,78712.24Equity per share 4.864.771.89 In the report period(Jul.-Sep.)From year-beginning to end of report period(Jan.-Sep.)Increase/decrease of this report period o
8、ver the same period of the last year(%)Net cash generated from operating activities-176,704100,345-Earnings per share(RMB yuan)0.37 0.97 23.33Rate of Return on Equity(%)7.61 19.92 1.77 2.2.2 Reconciliation of the Groups consolidated results and net assets prepared under International Financial Repor
9、ting Standards(“IFRS”)and the PRC Accounting Rules and Regulations Profit attributable to equity shareholders of the Company for the nine months ended 30 September2006 Total equity attributable to equity shareholders of the Company at30 September2006 RMB000 RMB000 Prepared under the PRC Accounting R
10、ules and regulations 2,185,493 10,677,816 Adjustments to align with IFRSs:(i)Adjustment to minority interests(19,268)(11,209)(ii)Adjustment to deferred tax assets(18,180)66,960(iii)Adjustment to goodwill and negative goodwill(46,613)(68,918)(iv)Adjustment to interest capitalisation 1,240 26,039(v)Ad
11、justment to trading securities 3,471 41,222(vi)Others 43,637 58,886 Prepared under IFRSs 2,149,780 10,790,796 2.3 Total shareholders and the top ten shareholders of circulation share at the Third Quarterly Report for 2006 3 end of the report period Total shareholders at the end of report period 102,
12、409 shareholders in total,including 84,450 shareholders of A-share and 17,959 shareholders of B-share Particulars about shares held by the top ten shareholders of circulation A-share No.Name of shareholders(full name)Holding circulation shares at the period-end Type(A-share,B-share,H-share or other)
13、1 GALAXY STANDARD CHARTERED-CITIGROUP GLOBAL MARKETS LIMITED 20,964,815 A 2 BANK OF COMMUNICATIONS AN SHUN SECURITIES INVESTMENT FUND 19,705,350 A 3 BANK OF COMMUNICATIONS KE RUI SECURITIES INVESTMENT FUND 16,620,178 A 4 INDUSTRIAL AND COMMERCIAL BANK OF CHINA E FUND VALUE WELL-CHOSEN STOCK SECURITI
14、ES INVESTMENT FUND 13,030,932 A 5 INDUSTRIAL AND COMMERCIAL BANK OF CHINA Southern Security Value-adding Foundation 8,994,941 A 6 CHINA CONSTRUCTION BANK ICBC CREDIT SUISSE WELL-CHOSEN BALANCE MIXED SECURITIES INVESTMENT FUND 8,012,940 A 7 NATIONAL SOCIAL INSURANCE FUND 109 PORTFOLIO 7,854,678 A 8 B
15、ANK OF COMMUNICATIONS HSBC JIN TRUST 2016 LIFE CYCLE OPEN SECURITIES INVESTMENT FUND 7,815,847 A 9 YU LONG SECURITIES INVESTMENT FUND 6,000,000 A 10 BANK OF CHINA HARVEST SERVICE VALUE-ADDING INDUSTRIAL SECURITIES INVESTMENT FUND 5,780,337 A Particulars about shares held by the top ten shareholders
16、of circulation B-share 1 CHINA MERCHANTS CIMC INVESTMENT LIMITED 360,143,203 B 2 CHINA MERCHANTS CIMC HOLDINGS LIMITED 144,702,613 B 3 41,288,246 B 4 36,859,756 B 5 35,660,120 B 6 21,101,755 B 7 19,992,925 B 8 16,818,676 B 9 15,205,657 B 10 14,792,140 B 3.Discussion and Analysis of the Management 3.
17、1 Brief analysis to the whole operating activities of the Company in the report period Third Quarterly Report for 2006 4(1)Summary of operating achievements For the nine months ended 30 September 2006,the revenue realized by the Company amounts to RMB 25,291,527,000 and the net profit RMB 2,149,780,
18、000,down by 0.97%and 19.25%respectively compared with the same period of last year.Main financial indicators remained favorable:the assets-liability ratio is 49.83%;the net asset per share is RMB 4.86;the return on equity is 19.92%;and the net cash generated from operating activities per share is RM
19、B 0.05.(2)Industry background During the year,the global economy has gone smoothly,and the economy and foreign trade of China growth remains at a fast speed.Global seaborne trade is booming.In the 3rd quarter,the throughput of containers in Chinese major port reached 24,500,000 TEU,up by 22.6%year-o
20、n-year.The 2nd and 3rd quarter are the peak seasons of container shipping,correspondingly,the 2nd and 3rd quarter are also the peak seasons for container demand.In the second half year 2006,production capacity in the container industry rises fast,new factories built by lots of manufacturers have bee
21、n launched into operation,and the one with a capacity of 200,000 TEUs being built by the Group in Yangshan,Shanghai is about to be put into operation.There is a relatively peak season for the domestic land transport vehicle market in the second half year 2006;demand in the oversea vehicle market,esp
22、ecially the strong consumption demand in the USA,has promoted the growth of cargo for multi-modal transport in North America,which is favorable to the grow of orders for container framework vehicles.Demand in the steel market begins to bounce back since the 2nd quarter,and the price of the Corten st
23、eel used in the container manufacture also rises from over USD 400 per ton at the beginning of the year to nearly USD 600 per ton in the 3rd quarter.(3)Businesses development Container business:Demand for containers is still booming in the 3rd quarter,and the Group has sold 486,200 TEU containers.Th
24、e accumulated quantity of containers sold between January and September hits 1,258,000 TEU,up by 9.48%year-on-year,and that includes the following:dry containers 1,113,200 TEU,up by 8.08%year-on-year;special containers 83,500 TEU,up by 51.55%year-on-year;and reefer containers 61,300 TEU,down by 4.16
25、%.In the 3rd quarter,orders are full at the main dry container factories of the Group.Price of dry containers continues to rise and has exceeded USD 2,000 per TEU,up by 30%than that at the beginning of the year.The special container business has also increased,especially the tanker containers,of whi
26、ch sales volumes amounted to 5,991 units,up by 29.68%year-on-year.Road Transportation vehicles business:The accumulated sales revenue realized from January to September 2006 amounts to RMB 5,097,076,000,up by 63.20%year-on-year;vehicles of different types sold amount to 68,220 sets,up by 78.35%year-
27、on-year,of which the vehicles sold by Vanguard National Trailer company in the Third Quarterly Report for 2006 5 USA total 5,542 sets,up by 88.50%year-on-year.In the second half year 2006,main vehicle factories of the Group keep running at double shifts.In the 3rd quarter,the orders for the containe
28、r framework vehicles,which are the main products exported to North America by the Group,are full and increase fast.The Group has continued to improve the distribution of the production bases of the road transportation vehicle business.The Northwest base of CIMC vehicle production located in Baiyin o
29、f Gansu Province,of which the construction started in February 2006,has been finished and launched into operation in September.Construction on the Northeast production base of CIMC vehicle located in Yingkou of Liaoning Province started in March 2006.Up to now,construction and equipment installation
30、 and debugging of the 1st phase project of CIMC Vehicle(Liaoning)Co.,Ltd have been finished,and the 1st phase project shall be launched into production in October 2006.This will allow CIMC vehicles to cover the Northwest and Northeast markets in the future.3.1.1 Main business industry or product,whi
31、ch occupied 10%of income from main business lines or total profit from main business A pplica ble Inapplicable Unit:RMB000 Industry Revenue Cost of sales Gross Margin(%)Containers 20,209,387 17,539,354 13.21Road Transportation vehicles 5,097,076 4,307,297 15.49 3.1.2 Characteristic of periodicity an
32、d season period of the Companys operation A pplica ble Inapplicable Container production has some changes according to seasons:generally speaking,the demands in the 1st and 4th quarters are relatively low,while the 2nd and 3rd quarters are peak seasons.The road transportation vehicle business has no
33、 obvious seasonal characteristics.3.1.3 Profit structure in the report period(material changes in proportions of profit from main operations,profit from other business,period expense,investment earnings,subsidy income and net income and expenditure of non-operating in total profits than those of the
34、 last report period and reasons)A pplicabl e Inapplicable 3.1.4 Explanation on reason and material change in main operations and its structure compared with the previous year A pplicabl e Inapplicable 3.1.5 Explanation on reason and material change in profitability capability of main Third Quarterly
35、 Report for 2006 6 operations(gross profit ratio)compared with the previous year A pplicabl e Inapplicable 3.2 Analysis and explanation on significant events and their influence and solutions A pplicabl e Inapplicable 3.3 Particulars about changes in accounting policies,accounting estimate,consolida
36、ted scope and significant accounting errors and explanation on reasons A pp licabl e Inapplicable 3.4 Relevant explanation on the Board of Directors and the Supervisory Committee under the situation of being audited and provided“Qualified opinion”A pplicabl e Inapplicable 3.5 Estimation on accumulat
37、ive net profit from the beginning of the year to the end of next report period to be loss probably or the warning of its material change compared with the corresponding period of the last year and explanation on reason A pplicabl e Inapplicable 3.6 Rolling adjustment to annual business plan or budge
38、t ever disclosed A pplicabl e Inapplicable 3.7 Special commitments made by the shareholders originally holding non-circulating shares during the share merger reform and the their implementations A pp licabl e Inapplicable China International Marine Containers(Group)Co.,Ltd.Oct.26,2006 China Internat
39、ional Marine Containers(Group)Ltd.Consolidated financial statements for the nine months period ended 30 September 2006 7 Consolidated income statement for the nine months period ended 30 September 2006(unaudited)Nine months ended 30 September 2006 2005 RMB000 RMB000 Revenue 25,291,527 25,538,673Cost
40、 of sales(21,647,889)(21,224,326)Gross profit 3,643,638 4,314,347 Other revenue 235,713 104,665Other net income 403,030 176,906Distribution costs(728,260)(466,634)Administrative expenses(846,865)(822,548)Other operating expenses(142,799)(74,382)Profit from operations 2,564,457 3,232,354 Finance cost
41、s(83,546)(199,804)Share of profits less losses of associates 13,264 4,344Profit before taxation 2,494,175 3,036,894 Income tax(200,827)(207,406)Profit for the period 2,293,348 2,829,488=Attributable to:Equity shareholders of the Company 2,149,780 2,662,272 Minority interests 143,568 167,216 Profit f
42、or the period 2,293,348 2,829,488=Earnings per share(RMB Yuan)Basic 0.97 1.20=China International Marine Containers(Group)Ltd.Consolidated financial statements for the nine months period ended 30 September 2006 8 Consolidated balance sheet as at 30 September 2006(unaudited)30 September 31 December 2
43、006 2005 RMB000 RMB000(audited)Non-current assets Property,plant and equipment 4,313,520 4,185,522 Lease prepayments-non-current portion 696,278 638,800 Construction in progress 539,325 236,765 Timber concession rights 67,825 73,905 Intangible assets 25,979 28,649 Goodwill 236,052 105,068 Interest i
44、n associates 146,483 159,456 Finance lease receivable 63,652 68,006 Prepayment for investments 116,190 38,830 Deferred tax assets 66,195 85,843 Other financial assets 302,130 291,536 6,573,629 5,912,380-Current assets Lease prepayments-current portion 17,213 15,590 Trading securities 353,210 419,401
45、 Inventories 4,723,647 3,435,181 Trade and other receivables 8,540,509 4,409,694 Cash and cash equivalents 2,878,036 2,828,223 16,512,615 11,108,089-Current liabilities Trade and other payables 8,252,064 4,891,039 Bank loans 1,392,857 501,520 Current taxation 103,958 129,202 Provisions 550,367 552,0
46、86 10,299,246 6,073,847-Net current assets 6,213,369 5,034,242-Total assets less current liabilities 12,786,998 10,946,622-Non-current liabilities Bank loans 1,204,500 435,650-NET ASSETS 11,582,498 10,510,972=China International Marine Containers(Group)Ltd.Consolidated financial statements for the n
47、ine months period ended 30 September 2006 9 Consolidated balance sheet as at 30 September 2006(unaudited)(continued)30 September 31 December 2006 2005 RMB000 RMB000(audited)CAPITAL AND RESERVES Share capital 2,218,663 2,016,967Reserves 8,572,133 7,596,820 Total equity attributable to equity sharehol
48、ders of the Company 10,790,796 9,613,787 Minority interests 791,702 897,185 TOTAL EQUITY 11,582,498 10,510,972=China International Marine Containers(Group)Ltd.Consolidated financial statements for the nine months period ended 30 September 2006 10Consolidated cash flow statement for the nine months p
49、eriod ended 30 September 2006(unaudited)Nine months ended 30 September 2006 2005 RMB000 RMB000Operating activities Profit before taxation 2,494,175 3,036,894Adjustments for:Depreciation 243,673 205,872 Impairment losses of prepayment for investments-5,414 Impairment losses of positive goodwill 67,68
50、2 14,498 Amortisation of other intangible assets 2,799 1,318 Amortisation of timber concession rights 4,280 4,392 Gain on recognition of negative goodwill(120)(366)Net loss on sale of property,plant and equipment 929 1,110 Bank interest income(52,663)(14,179)Finance costs 83,546 98,339 Net gains on
