CIMC Report

China International Marine Containers (Group) Co., Ltd.
(a joint stock company incorporated in the People's Republic of China with limited liability)
A Share Stock Code: 000039
H Share Stock Code: 2039
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The Board of Directors of the Company, the Supervisory
Committee and the Directors, Supervisors and senior
management of the Company warrant that there are
no materi al omi ssi ons from, or mi srepresentati on
or mi sl eadi ng statements contai ned i n thi s i nteri m
report ( Report) , and j oi ntl y and several l y accept
full responsibility for the truthfulness, accuracy and
completeness of the information contained in this Report.
This Report has been reviewed and approved at the 6th
meeting of the seventh session of the Board. All Directors
have attended the 6th meeting of the seventh session of
the Board.
The fi nanci al statements of the Group have been
prepared in accordance with China Accounting Standards
for Business Enterprises. The interim financial statements
and notes (collectively Financial Report) of the Group
have not been audited.
Nei ther any control l i ng sharehol der ( i ncl udi ng i ts
subsidiaries) nor substantial shareholder (including its
subsidiaries) of the Company has utilized the funds of the
Company for non-operating purposes.
The Company proposes not to declare any interim cash
dividend, bonus shares or convert shares from reserves
into share capital.
Mr. Li Jianhong, Chairman of the Board, and Mr. Jin
Jianlong, the person-in-charge of accounting affairs
and accounti ng department of the Company ( the
financial controller), hereby warrant the truthfulness and
completeness of the Financial Report contained in this
Report.
This Report contains certain forward-looking statements
made on the basi s of subj ecti ve assumpti ons and
judgments on future policy and economy, which are
subject to risks, uncertainties and assumptions. The
actual outcome may differ materially from such forward-
looking statements. Investors should be aware that undue
reliance on or use of such information may lead to risks
of investment.
This Report has been prepared in both Chinese and
English. In the event of any inconsistency between the
two versions, the Chinese version shall prevail.
IMPORTANT NOTICE
DEFINITIONS 02
I. CORPORATE PROFILE 04
II. SUMMARY OF ACCOUNTING DATA
AND FINANCIAL INDICATORS 07
III. MANAGEMENTS DISCUSSION
AND ANALYSIS 09
IV. CHANGES IN SHARE CAPITAL AND
INFORMATION ON SUBSTANTIAL
SHAREHOLDERS 34
V. INFORMATION ON DIRECTORS,
SUPERVISORS AND SENIOR
MANAGEMENT 40
VI. REPORT OF THE BOARD 43
VII. SIGNIFICANT EVENTS 56
VIII. INDEX TO INFORMATION DISCLOSURE 64
IX. INTERIM FINANCIAL REPORT
(UNAUDITED) 69
X. DOCUMENTS AVAILABLE FOR
INSPECTION 276
Contents
Interim Report 2013
02
DEFINITIONS
In this Report, unless the context otherwise requires, the following expression shall have the following meanings:
Board or Board of Directors the board of directors of the Company;
CASBE Accounting Standards for Business Enterprises Basic Standard and 38
Specific Accounting Standards issued by the Ministry of Finance of the
Peoples Republic of China on 15 February 2006, and application guidance and
interpretations to Accounting Standards for Business Enterprises and other
related regulations subsequently issued;
CIMC Enric CIMC Enric Holdings Limited (), a company incorporated
in the Cayman Islands with limited liability on 28 September 2004 and listed on
the Main Board of the Hong Kong Stock Exchange (Hong Kong stock code: 3899)
on 20 July 2006 and a subsidiary of our Company;
CIMC Hong Kong China International Marine Containers (Hong Kong) Limited (
), a company incorporated in Hong Kong on 30 July 1992
with limited liability and a wholly-owned subsidiary of the Company;
CIMC Raffles CI MC Raffl es Offshore (Si ngapore) Li mi ted, a company i ncorporated i n
Singapore on 7 March 1994 with limited liability and a wholly-owned subsidiary
of the Company;
CIMC Tianda Shenzhen CIMC-Tianda Airport Support Co., Ltd. (
), a company incorporated in the PRC on 18 July 1992 and a subsidiary of our
Company;
CIMC Vehicle CIMC Vehicle (Group) Co., Ltd. ( ), a company
incorporated in the PRC on 29 August 1996 and a subsidiary of our Company;
Company China International Marine Containers (Group) Co., Ltd. (
), a joint stock company incorporated under the laws of the
PRC with limited liability, the H shares of which are listed on the main board
of the Hong Kong Stock Exchange and the A shares of which are listed on the
Shenzhen Stock Exchange;
Corporate Governance Code the Corporate Governance Code contained in Appendix 14 of the Hong Kong
Listing Rules;
CSRC China Securities Regulatory Commission ();
Director(s) the director(s) of the Company;
Group, we, our and us the Company and its subsidiaries;
Hong Kong The Hong Kong Special Administrative Region of the PRC;
Hong Kong Stock Exchange The Stock Exchange of Hong Kong Limited;
Hong Kong Listing Rules Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong
Limited;
Interim Report 2013
03
DEFINITIONS
Jack-up Drilling Platform a jack-up drilling platform is a mobile oil rig commonly used for shallow water
operation. Most jack-up rigs operate in water depths ranging from 250 to 400
feet. This oil drilling equipment is generally used for mounting machinery,
power supply, equipment and accommodation facilities for drilling and certain
liftable spud legs on a platform floating on the water;
Model Code the Model Code for Securities Transactions by Directors of Listed Issuers
contained in Appendix 10 of the Hong Kong Listing Rules;
ONE Model Optimization Never Ending, the lean management system of CIMC;
PRC or China the Peoples Republic of China;
QHSE A management system that guides and controls an organisation in respect of
Quality, Health, Safety and Environment;
Reporting Period The six months started from 1 January 2013 and ended on 30 June 2013;
RMB or Renminbi Renminbi, the lawful currency of the PRC;
Semi-submersible Drilling Platform A semi-submersible drilling platform is a mobile oil rig, the upper part of the
hull structure is the working deck and the lower part comprises two lower
hulls, with the parts connected by support columns. When in operation, the
lower hulls are submerged into the water. A semi-submersible platform is
generally used in deep seas with water depths ranging from 600-3600m. The
platform typically uses a dynamic positioning system for positioning;
SFO the Securities and Futures Ordinance, Chapter 571 of the Laws of Hong Kong;
Shareholder(s) holder(s) of our Shares;
Shenzhen Listing Rules Rules Governing the Listing of Securities on the Shenzhen Stock Exchange;
Shenzhen Stock Exchange the Shenzhen Stock Exchange;
Supervisory Committee the Supervisory Committee of the Company;
Supervisor(s) the member(s) of the Supervisory Committee of the Company;
TEU twenty-foot equivalent unit, a standard unit of measurement of the volume of a
container with a length of 20 feet, height of 8 feet and 6 inches and width of 8
feet; and
US$, or U.S. dollars United States dollars, the lawful currency of the United States of America.
04
I. CORPORATE PROFILE
1.1 COMPANY INFORMATION
Legal Chinese Name of the Company:
Abbreviated Chinese Name of the Company:
English Name of the Company: China International Marine Containers (Group) Co., Ltd.
Abbreviated English Name of the Company: CIMC
Legal Representative: Li Jianhong
Authorised representatives: Mai Boliang, Yu Yuqun
1.2 CONTACT PERSONS AND MEANS OF COMMUNICATION
Secretary to the Board, Company Secretary: Yu Yuqun
Assistant Company Secretary: Cheong Sui Fai
Contact Address: CIMC R&D Centre,
2 Gangwan Avenue,
Shekou, Nanshan District,
Shenzhen, Guangdong 518067, PRC
Contact Telephone: (86) 755 2669 1130
Facsimile:: (86) 755 2682 6579
Email Address shareholder@cimc.com
Representative of Securities Affairs: Wang Xinjiu
Contact Address: CIMC R&D Centre,
2 Gangwan Avenue,
Shenzhen, Guangdong 518067, PRC
Contact Telephone: (86) 755 2680 2706
Facsimile: (86) 755 2681 3950
Email Address: shareholder@cimc.com
Interim Report 2013
05
Representative in Hong Kong: Cheong Sui Fai
Contact Address: 3101-2 Infinitus Plaza,
199 Des Voeux Road Central,
Hong Kong
Contact Telephone: (852) 2528 9386
Facsimile: (852) 2865 9877
Email Address: dickens.cheong@enric.com.hk
1.3 BASIC PROFILE
Registered Address and Address of
Head Office:
8th Floor, CIMC R&D Centre,
2 Gangwan Avenue,
Shenzhen, Guangdong, PRC
Postal Code: 518067
Company Website: http://www.cimc.com
Email Address: shareholder@cimc.com
Principal Place of Business in Hong Kong: 3101-2 Infinitus Plaza,
199 Des Voeux Road Central,
Hong Kong
Enterprise Legal Business License
Registration Number:
440301501119369
Taxation Registration Number: 440300618869509
Organisation Code: 61886950-9
First Registration Date of the Company: 14 January 1980
First Registration Place of the Company: Shenzhen Administration of Industry and Commerce
1.4 INFORMATION DISCLOSURE AND LOCATIONS FOR DOCUMENTS FOR INSPECTION
Designated Newspapers for
Information Disclosure:
A Shares: China Securities Journal, Securities Times,
and Shanghai Securities News
Authorized websites on which this Report is
made available:
A Shares: http://www.cninfo.com.cn
H Shares: http://www.hkexnews.hk
Legal Website: www.cimc.com
Places at which this Report is Available: Office of the Secretary to the Board,
Financial Management Department,
CIMC R&D Centre, 2 Gangwan Avenue,
Shekou, Nanshan District, Shenzhen,
Guangdong 518067, PRC
06
1.5 STOCK OF THE COMPANY
Stock Exchange on which A Shares are Listed: Shenzhen Stock Exchange
Abbreviated Stock Name for A Shares: CIMC
Stock Code: 000039
Stock Exchange on which H Shares are Listed: Hong Kong Stock Exchange
Abbreviated Stock Name for H Shares: CIMC, ZJHD (Note)
Stock Code: 02039, 299901 (Note)
Note: Both the abbreviated stock name and the stock code were only used by the
original B Shares Shareholders of the Company in the PRC in respect of their
trading of H Shares of the Company after H Shares of the Company were listed
on the Hong Kong Stock Exchange.
1.6 OTHER RELEVANT INFORMATION
Hong Kong Share Registrar: Computershare Hong Kong Investor Services Limited
Address: Rooms 1712-1716, 17th Floor, Hopewell Centre,
183 Queens Road East, Wan Chai, Hong Kong
Compliance Adviser: Guotai Junan Capital Limited
Address: 27/F, Low Block, Grand Millennium Plaza,
181 Queens Road Central, Hong Kong
Hong Kong Lawyers: Paul Hastings
Address: 21-22/F, Bank of China Tower, 1 Garden Road,
Central, Hong Kong
PRC Lawyers: Commerce & Finance Law Offices
Address: 6/F, NCI Tower, A12 Jianguomenwai Avenue,
Chaoyang District, Beijing, China
Auditors: PricewaterhouseCoopers Zhong Tian CPAs Limited Company
Address: 11th Floor, PricewaterhouseCoopers Centre,
2 Corporate Avenue, 202 Hu Bin Road,
Huangpu District, Shanghai 200021, PRC
Interim Report 2013
07
II. SUMMARY OF ACCOUNTING DATA AND FINANCIAL INDICATORS
2.1 KEY ACCOUNTING DATA PREPARED IN ACCORDANCE WITH CASBE
During the Reporting Period, the Company did not make retrospective adjustments to or restate the accounting data of
previous years due to changes in accounting policies and correction of accounting errors.
Unit: RMB thousand
Items
The Reporting
Period
(January
June 2013)
The
corresponding
period of
last year
(January
June 2012)
Changes
from the
corresponding
period of
last year to the
Reporting Period
(%)
Revenue 28,585,158 27,364,446 4.46%
Profit from operations 1,117,169 1,439,124 (22.37)%
Profit before income tax expense 1,160,046 1,493,051 (22.30)%
Income tax expense 444,817 485,373 (8.36)%
Profit for the period 715,229 1,007,678 (29.02)%
Attributable to:
Equity holders of the Company 551,972 933,710 (40.88)%
Non-controlling interest 163,257 73,968 120.71%
Net profit attributable to shareholders of the Company
after deducting non-recurring profit or loss 513,212 906,470 (43.38)%
Unit: RMB thousand
Items
As at the end of
the Reporting
Period
(30 June 2013)
As at the end of
last year
(31 December
2012)
Changes from
the end of
last year to the
Reporting Period
(%)
Total current assets 42,978,287 38,346,189 12.08%
Total non-current assets 25,792,033 24,646,191 4.65%
Total assets 68,770,320 62,992,380 9.17%
Total current liabilities 33,156,612 25,540,032 29.82%
Total non-current liabilities 12,759,756 15,335,191 (16.79)%
Total liabilities 45,916,368 40,875,223 12.33%
Shareholders equity 22,853,952 22,117,157 3.33%
Attributable to:
Equity holders of the Company 19,603,024 19,513,176 0.46%
Non-controlling interest 3,250,928 2,603,981 24.84%
Share capital (thousand shares) 2,662,396 2,662,396 0.00%
Net cash flows from/(used in) operating activities (3,021,559) (2,107,043) (43.40)%
Net cash flows from/(used in) investing activities (892,669) (1,785,683) 50.01%
Net cash flows from/(used in) financing activities 2,924,851 1,335,284 119.04%
08
II. SUMMARY OF ACCOUNTING DATA AND FINANCIAL INDICATORS
2.2 KEY FINANCIAL INDICATORS
Key Financial Indicators
The Reporting
Period (January
June 2013)
The
corresponding
period of
last year
(January
June 2012)
Changes from the
corresponding
period of last year
to the Reporting
Period (%)
Basic earnings per share attributable to shareholders of
the Company (RMB/share) 0.2073 0.3507 (40.88)%
Diluted earnings per share attributable to shareholders of
the Company (RMB/share) 0.2070 0.3495 (40.77)%
Weighted average return on net assets (%) 2.78% 4.93% (2.15)%
Weighted average return on net assets after deducting
non-recurring profit or loss (%) 2.59% 4.92% (2.33)%
Net cash flows from operating activities per share (RMB/share) (1.13) (0.79) (43.04)%
As at the end of
the Reporting
Period
(30 June 2013)
As at the end
of last year
(31 December
2012)
Changes from
the end of
last year to the
Reporting
Period (%)
Net assets per share attributable to shareholders of
the Company (RMB/share) 7.36 7.33 0.46%
Gearing ratio (%) (Note) 66.77% 64.89% 1.88%
Note: Calculation method for gearing ratio: calculated based on total liabilities divided by total assets of the Company at the respective dates
2.3 NON-RECURRING PROFIT OR LOSS ITEMS AND AMOUNTS
Unit: RMB thousand
Item Amount
Gains from disposal of non-current assets (2,783)
Government grants recognised in profit or loss for the current period 36,011
(except those closely related to the operation of the enterprise, for a fixed quota or for
a fixed amount in accordance with national unified standards)
Except for the effective hedging activities related to the Companys ordinary activities,
profit or loss arising from changes in fair value of financial assets and
financial liabilities held for trading, and investment income from disposal of
financial assets and financial liabilities held for trading and available-for-sale financial assets 32,496
Gains from debt restructuring (20)
Other non-operating income/expenses other than the above items 5,255
Payment received from non-financial enterprises for using funds and recognised
in profit or loss for the current period 3,121
Effect of income tax (25,556)
Effect of minority interests (after tax) (9,764)
Total 38,760
Interim Report 2013
09
III. MANAGEMENTS DISCUSSION AND ANALYSIS
3.1 OVERVIEW OF OPERATING RESULTS
DURING THE REPORTING PERIOD
Impacted by the global macro-economic conditions,
the Groups business confronted with substantial
pressure and challenges from January to June 2013.
The Groups revenue slightly increased compared
wi th the same peri od l ast year, but net profi t
declined substantially compared with the same
period last year. From January to June 2013, the
Groups revenue amounted to RMB28,585 million,
representi ng an i ncrease of 4. 46% compared
with the same period last year and its net profit
attributable to equity holders of the Company
amounted to RMB552 mi l l i on, representi ng a
decrease of 40.88% compared wi th the same
period last year, mainly due to the decrease in
consolidated gross profit margin of the Groups
businesses and the increase in costs including
financial expenses against the overall challenging
economic environment during the Reporting Period.
3.2 ANALYSIS OF PRINCIPAL OPERATIONS DURING THE REPORTING PERIOD
Year-on-year changes in key financial data
Unit: RMB thousand
Items
The reporting
period (January
June 2013)
The
corresponding
period of
last year
(January
June 2012)
Changes from the
corresponding
period of last year
to the Reporting
Period (%)
Revenue 28,585,158 27,364,446 4.46%
Cost of sales 24,160,416 23,013,597 4.98%
Selling and distribution expenses 921,175 863,756 6.65%
General and administrative expenses 1,714,217 1,655,709 3.53%
Financial expenses 454,826 236,439 92.37%
Income tax expenses 444,817 485,373 (8.36)%
Technology development costs 126,942 95,105 33.48%
Net profit attributable to equity holders of the Company 551,972 933,710 (40.88)%
Net cash flows from operating activities (3,021,559) (2,107,043) (43.40)%
Net cash flows from investing activities (892,669) (1,785,683) 50.01%
Net cash flows from financing activities 2,924,851 1,335,284 119.04%
Net (decrease)/increase of cash and cash equivalents (1,164,186) (2,658,816) 56.21%
10
Financial expenses
During the Reporting Period, the Groups financial
expense amount ed t o RMB454. 826 mi l l i on,
representing an increase of RMB218.387 million
compared with RMB236.439 million in the same
period of 2012, or an increase of approximately
92.37%, which was mainly due to the increase in
exchange loss resulting from the changes of foreign
exchange rates during the Reporting Period.
Technology development costs
During the Reporting Period, the Groups technology
devel opment costs amounted to RMB126. 942
million, representing an increase of RMB31.837
mi l l i on compared wi t h RMB95. 105 mi l l i on i n
the same peri od of 2012, or an i ncrease of
approximately 33.48%, which was mainly due to the
Groups increased efforts in technology research
and development.
Net profit attributable to equity holders of
the Company
During the Reporting Period, the Groups net profit
attributable to equity holders of the Company
amounted to RMB551.972 million, representing a
decrease of RMB381.738 million compared with
RMB933.710 million in the same period of 2012,
or a decrease of approximately 40.88%, which
was mainly due to the decrease in consolidated
gross profi t margi n of the Groups busi nesses
and the i ncrease i n costs i ncl udi ng fi nanci al
expenses against the overall challenging economic
environment during the Reporting Period.
Net cash flows from operating activities
During the Reporting Period, the Groups net cash
outflows from operating activities amounted to
RMB3,021.559 million, representing an increase of
RMB914.516 million compared with RMB2,107.043
million in the same period of 2012, or an increase
of approximately 43.40%, which was mainly due to
increased occupation of working capital as a result
of the fact that the Group was in relatively peak
season of production and operation in the second
quarter during the Reporting Period.
Net cash flows from investing activities
outflows from investing activities amounted to
RMB892.669 million, representing a decrease of
RMB893.014 million compared with RMB1,785.683
million in the same period of 2012, or a decrease
of approximately 50.01%, which was mainly due
to less cash payment for the Groups investment
during the Reporting Period.
Net cash flows from financing activities
i nfl ows from fi nanci ng acti vi ti es amounted to
RMB2,924.851 million, representing an increase of
RMB1,589.567 million compared with RMB1,335.284
million in the same period of 2012, or an increase
of approxi matel y 119. 04%, whi ch was mai nl y
due to the Groups financing activities to satisfy
the increased fund requirements of the Groups
operating activities during the Reporting Period.
Net cash and cash equivalents
Duri ng the Reporti ng Peri od, the Groups net
decrease of cash and cash equivalents amounted
to RMB1,164.186 million, representing a decrease of
RMB1,494.630 million compared with RMB2,658.816
million in the same period of 2012, or a decrease of
approximately 56.21%.
Interim Report 2013
11
3.3 SEGMENT RESULTS
The Group is principally engaged in the manufacture
of modern transportati on equi pment, energy,
chemi cal , l i qui d food equi pment and offshore
engineering equipment as well as the provision of
relevant services, including the design, manufacture
and service of international standard dry containers,
reefer contai ners, regi onal speci al contai ners,
tank containers, wooden container floorboards,
road tank trucks, natural gas equipment and static
tanks, road transportation vehicles, Jack-up Drilling
Platforms, Semi-submersible Drilling Platforms,
special vessels and airport facilities. In addition,
the Group is also engaged in logistics service and
equi pment manufacturi ng, rai l way equi pment
manufacturing, real estate development, financing
leases and other businesses. Currently, the Group
ranks No. 1 in the world in terms of output and
sales of standard dry containers, reefer containers
and tank containers. The Group is also the Chinas
largest manufacturer of road transportation vehicles
and one of Chinas leading offshore engineering
equipment enterprises.
Dur i ng t he Repor t i ng Per i od, t he pr oduct s
contributing 10% or more to the Groups revenue
or operati ng profi t i ncl uded contai ners, road
transportation vehicles, and energy, chemical and
food equipment.
Container Manufacturing Business
The Groups container business mainly involves
standard dry containers, standard reefer containers
and speci al contai ners. The speci al contai ner
busi ness pri mari l y i ncl udes t he modul ari zed
construction products and products such as 53-foot
containers for inland transport in North America,
European pallet-wide containers, bulk containers,
special reefer containers and flatrack containers.
In the first half of 2013, given the slow recovery
of European and American economies and the
i nsuf f i ci ent shi ppi ng demand due to cycl i cal
industrial factors, the container industry performed
slightly below expectation with a small increase
in overall capacity across the industry, though the
overall capacity utilization was only around 50% and
the market share of each manufacturer remained
stable in general. Due to the increased off-season
orders during the traditional slack season, the peak
season delivered no peak performance.
In the first half of 2013, the total sales of the
Groups ordinary dry containers were 641,500 TEUs,
representing a year-on-year increase of 15.01% (the
first half of 2012: 557,800 TEUs). The total sales of
reefer containers were 49,400 TEUs, representing
a year-on-year decrease of 39.39% (the first half
of 2012: 81,500 TEU). The total sales of special
containers were 30,800 units, representing a year-
on-year decrease of 6.67% (the first half of 2012:
33,000 units). In the first half of 2013, affected by
market factors such as the overall weak demand,
declining price of reefer containers and fluctuation
in the price of dry cargo containers within a narrow
range at low level as well as the decline in gross
profit margin, the container segment recorded
revenue of RMB12,314.928 million, representing a
year-on-year decrease of 9.92% and the net profit
was RMB410.226 million, representing a year-on-
year decrease of 48.73%.
12
In the first half of the year, the Group continued
to push forward the optimisation of production
allocation of standard containers and endeavoured
to promote the effi ci ency of producti on l i nes
of containers and the design and research and
development of new types of containers. The Group
compl eted the phase one constructi on of the
factory of CIMC Taicang Refrigeration Equipment
Logi sti cs Co., Ltd., and part of the phase one
construction of production lines of Qingdao CIMC
Reefer Container Manufacture Co., Ltd.. In respect
of special container and modularized construction
products busi nesses, the Group strengthened
the competitiveness of the core products in a
comprehensi ve manner, and consol i dated the
leading position of existing mainstream products, so
as to enhance the market share.
By adopting a business model of integrated design,
factory manufacturing and on-site installation,
the Groups modularized construction products
business enjoyed a promising growth potential
due to advantages including quick transferability,
fast building, zero pollution and recyclability which
are in line with the new concept of environmental
protection and the new industry development trend.
In April 2013, the container-based hospital donated
by the Company to the Yaan earthquake-stricken
area was put into operation quickly. The Group has
possessed the ability of independent design and
proprietary intellectual property rights in respect of
modularized construction products and participated
i n t he preparat i on of t he nat i onal st andard
Technical Specifications for Modularized Container
Housing, which was approved in April 2013 by
relevant governmental authorities to be included
into the standards series of China Construction
Association.
Road Transportation Vehicle Business
With a strategic vision of relying on domestic
competitive strengths to offer global customers
first-class land logistics equipment and services,
CIMC Vehicle, a subsidiary of the Company, adheres
to the strategic development of the full value chain
businesses including the design and development of
products, manufacturing and delivery of products,
sales and services, customer tracking and feedback
and others. Currently, it has established a special
vehicle family consisting of 10 series and more than
1,000 models, including container semi-trailers,
flatbed/staked-side semi-trailers, low-flatbed semi-
trailers, vehicle loaded semi-trailers, stake trucks,
van trucks, tank trucks, tipping trucks, sanitation
trucks and special vehicles. These products cover
major domestic and international markets.
In the first half of the year, the demand from semi-
trailers in logistics industry underwent a weak
demand due to the slowdown in domestic economic
growth and tightened capital. The demand from
engineering modified vehicles revived to some
extent as a result of the expected impact from
the tightened emission standards implemented
by the government and the larger-than-expected
impact from the real estate recovery. In overseas
market, orders from emerging market increased
rapidly. While its market position in North America
remained stable, and the Group began to enter in
the European market. The year of 2013 was also the
Interim Report 2013
13
first year for the mass production of Silvergreen, a
new type of semi-trailer, which posted a loss during
the Reporting Period.
Under the abovementioned domestic and overseas
economic and industrial circumstances, our vehicle
segment recorded a slight decrease in operating
revenue, whi l e the product sal es remai ned a
steady trend. Except for dump trucks and logistics
semi-trailers, the sales of major products either
increased or remained the same as compared
with the same period of last year. The total sales
of road transportation vehicles were 53,000 units
(sets) in the first half of 2013, representing a year-
on-year decrease of 0.33%. The sales revenue
was RMB6,673.349 million, representing a year-
on-year decrease of 2.17% and the net profit was
RMB390.164 million, representing a year-on-year
increase of 353.54%, which was mainly due to the
increase in investment gains as a result of the
sale of shares of CIMC Enric held by it during the
Reporting Period.
I n the fi rst hal f of 2013, our vehi cl e segment
cont i nued t o i mpl ement a st eady operat i on
strategy and the investment focused on technology
upgrades and constructi on of the marketi ng
network. The segment distributed high value-added
new products in the mature distribution system and
regional markets and deepened the cooperation
with major customers, and achieved breakthroughs
in the orders from emerging markets; the segment
accelerated the construction of Burg Silvergreen
(BSG) factory in Germany, pushed forward the cost
improvement scheme, and gradually establish and
improve the European BSG components supply
system in China; the segment continued to take
various measures to adjust product structure and
optimize cost, so as to reduce losses and improve
cost efficiency; the segment initialised the research
and development project of advanced tipping trucks
modules which targeted markets covering China
and Europe as well as development projects for two
products including advanced van trailer for logistics
and advanced semi -trai l er for transportati on,
whi ch targeted the PRC market; the segment
also continued to push forward the subsequent
construction of the Chengdu Logistics Park project.
In the first half of 2013, benefiting from the surging
market demand from natural gas-fired heavy trucks,
C&C Trucks Co., Ltd. (C&C Trucks), an associate
45% owned by the Company, recorded a notable
year-on-year increase in sales volume with revenue
amounti ng to RMB873 mi l l i on, whi ch however
incurred losses. C&C Trucks continued to develop
medium and heavy trucks and lightweight products
with an aim to reduce product weight and improve
the sales of tractor trucks, while continuing to
vigorously develop LNG heavy truck products and
launch competitive series of medium and heavy
trucks. In the first half of 2013, C&C Trucks initiated
the first 13-liter engine for LNG heavy trucks and
the hybrid 6K13N natural gas-fired engine has met
the National V Emission Standard. In July 2013, 15
units of 6x4 heavy tipping trucks and 5 units of 6x4
heavy tractor trucks were delivered to Bolivia. It is
also the first time for its trucks to export in bulk to
the international market.
Energy, Chemical and Food Equipment
Business
The Groups subsidiary CIMC Enric is principally
engaged in design, development, manufacturing,
engineering and sales of various transportation,
storage and processing equipment widely used in
three sectors namely energy, chemical and liquid
food, as well as provision of relevant technical and
maintenance services. Its energy and chemical
equipment products and services are supplied
throughout China and are exported to Southeast
Asia, Europe and North and South Americas; and
from its production base in Europe, its liquid food
equi pment products and servi ces are offered
worldwide.
Dri ven by the i ncreasi ng demand for natural
gas and special gas storage and transportation
equipment from the world, most notably in China,
the energy equipment business continued its robust
growth in the first half of 2013 and the demand
for tank containers, a major product line of the
chemical equipment business, was also improved.
Amid the improving business environment for the
liquid food equipment business, the acquisition of
certain assets from Ziemann Group in Germany
14
also expanded the product family of CIMC Enric.
Therefore, in the first half of 2013, our energy,
chemical and food equipment business recorded
revenue of RMB5,565.543 mi l l i on, representi ng
a year-on-year increase of 23.11% and the net
profi t was RMB391.627 mi l l i on, representi ng a
year-on-year increase of 52.56%. Among which,
the revenue from energy (natural gas) equipment
business of CIMC Enric was RMB2,521.843 million,
representing a year-on-year increase of 26.11%;
the revenue from chemical equipment business
was RMB1,507.202 million, representing a year-on-
year increase of 5.37% and the revenue from liquid
food equipment business was RMB799.876 million,
representing a year-on-year increase of 100.50%.
In particular, the liquid food equipment business
recorded a substantial growth in turnover due to
the exploration in emerging markets coupled with
the contribution from Ziemann International GmbH.
The promi si ng prospects of LNG storage and
transportation equipment were further confirmed
by t he l at est nat ural gas ut i l i zat i on pol i cy
promulgated by the National Development and
Reform Commission. During the past two years,
CIMC Enric has taken the lead to carry out a series
of projects to expand production capacity of energy
equipment, allowing it to capture the opportunities
from the increasing demand for CNG/LNG storage
and transportati on equi pment fuel l ed by the
accelerating consumption of natural gas. In the
first half of 2013, CIMC Enric carried forward the
capacity expansion campaign for natural gas-filling
station systems and LNG cylinders for vehicles to
cater for the strong demand from the booming
natural gas vehicle (NGV) industry in China. The
capital expenditures were mainly used in production
capacity expansion of LNG cylinders for vehicles in
Zhangjiagang and Shijiazhuang, as well as further
expansion of production capacity for natural gas-
filling station systems in Langfang.
In the first half of 2013, TGE Gas Engineering GmbH
(TGE GAS), a gas engineering company in which
the Company holds 60% equity interest, made
strenuous efforts to explore the market, optimize
project management and reduce costs so as to
improve profitability. During the first half of the year,
as some of the new projects of TGE GAS were still at
the beginning stage, the upfront income recognized
was minimum. In the first half of the year, the
EPC projects including No. 4 tank farm project for
the LNG receiving terminal of Guangdong Dapeng
LNG Company Limited (No.4 Tank Farm Project of
Guangdong Dapeng) and the storage tank project
for the LNG receiving terminal of CNOOC Shenzhen
Natural Gas Co., Ltd. (CNOOC Shenzhen Diefu
Project) undertaken by the consortium comprising
TGE GAS and SINOPEC Ningbo Engineering Company
Limited were under smooth progress. These two
projects were located in Dapeng Bay, Shenzhen city.
The No.4 Tank Farm Project of Guangdong Dapeng
was to build a LNG storage tank with a capacity of
160,000 cubic meters, while the CNOOC Shenzhen
Diefu Project was one of the 175 key construction
projects of Guangdong Province with an aim to
devel op i nto a provi nce wi th powerful mari ne
economic strength, comprising four LNG storage
tanks with a capacity of 160,000 cubic meters each
and the ancillary gas facilities. Both projects are
scheduled to be completed in 2015.
Interim Report 2013
15
I n the fi rst hal f of thi s year, TGE GAS further
enhanced the post-acquisition integration with
TECHNODYNE INTERNATIONAL COMPANY LTD., an
UK professional design company of cryogenic tanks,
and the collaboration and business exploration with
Nanjing Yangzi Petrochemical Design Engineering
Company Ltd. (YPDI), a majority-owned subsidiary
of the Company. The full containment concrete
cryogenic ethylene storage tank project in Ningbo
with a capacity of 20,000 cubic meters which was
jointly contracted and designed by TGE GAS and
YPDI had been successfully delivered, while the full
containment concrete ethylene storage tank project
in Yangzhou Aoke with a capacity of 50,000 cubic
meters was under construction, and the project of
Xinpu Chemical (Taizhou) Co., Ltd. comprising the
cryogenic ethylene tank project with a capacity of
30,000 cubic meters and the ancillary facilities was
basically completed. TGE GAS and YPDI cooperated
to further expl ore the fi el d of cryogeni c LNG
receiving terminal/storage tanks. Currently, the LNG
storage tank project with a capacity of 30,000 cubic
meters in Jincheng Huagang jointly undertaken by
both parties was under smooth progress.
Furthermore, the acquisition of certain assets from
Ziemann Group in Germany has benefited CIMC
Enric in R&D in relation to the one-stop turnkey
solutions for processing and delivery of liquid foods
so as to provide an access to broader resources
and advanced technologies.
On 7 May 2013, the Group through its wholly-owned
subsidiary CIMC Hong Kong converted 495,000,000
preference shares in CIMC Enric into its ordinary
shares. Upon completion of such conversion, the
Group indirectly held 1,322,335,645 ordinary shares
in CIMC Enric, representing 70.14% of its issued
ordinary shares.
Offshore Engineering Business
We are one of the leading offshore engineering
equipment manufacturers in China and have been
participating in the competitive international market
of offshore engineering business all the time. Our
major products include Jack-up Drilling Platforms,
Semi-submersible Drilling Platforms, and auxiliary
vessels for offshore engineering projects.
In the first half of 2013, the offshore engineering
business of the Group recorded sales revenue
of RMB1,519.799 million, representing a year-on-
year increase of 22.09%. It incurred a net loss
of RMB195.473 million, representing a year-on-
year increase of 32.87%. The substantial increase
in revenue was mainly due to the fewer projects
under construction in the same period last year,
most of which were previously unqualified for
revenue recognition due to their progress in initial
construction. In the first half of 2013, except that
several self-constructed projects realised a sales
revenue, the number of projects commenced initial
constructi on i ncreased. Moreover, the Jack-up
Drilling Platform and the Semi-submersible Drilling
Pl atform entered the mi d or l ate constructi on
stages, resulting in part of recognized revenue.
However, loss in the first half of the year increased
as compared with that of the corresponding period
of last year, which was due to the fact that the
revenue recognized in the first half of the year was
16
insufficient to cover operating expenses because
most of our orders on hand were secured in the
second half of 2012 and thus construction of the
projects were commenced at a relatively late time,
coupled with an increase in finance costs.
Si nce 2013, the devel opment of our offshore
engineering business has continued to benefit
from a favourable policy environment. The national
industrial policies have begun to lend substantive
funding and project support so as to push forward
the industrialization and to expedite the mergers
and restructuring of major offshore engineering
and shipbuilding enterprises in future. According to
the Notice on Organization and Implementation of
the 2013 Offshore Engineering Equipment Research
and Development and Industrialization Program
issued by the National Development and Reform
Commission in February 2013, three categories of
12 offshore engineering equipment products were
clearly included as products with special national
support, i ncl udi ng maj or offshore engi neeri ng
equipment and ancillary equipment and systems,
new offshore engi neeri ng equi pment, and key
offshore engineering underwater equipment. At
the instruction of the national policies, the Group
is expected to further reinforce its proprietary
design and construction capabilities for the existing
offshore engineering product lines, and gain official
recognition and strong supports to its attempts on
domestically manufactured key equipment.
As at 30 June 2013, CIMC Raffles, a wholly owned
subsi di ary of our Group, al ready del i vered 6
deepwater Semi -submersi bl e Dri l l i ng Pl atforms
whi ch offi ci al l y commenced operati on i n the
waters of North Sea of Norway, Brazil and other
regi ons, wi t h good f unct i onal i t y and normal
operati on. COSLpi oneer, the fi rst domesti cal l y
manuf act ured deepwat er Semi - submer si bl e
Drilling Platform delivered by CIMC Raffles, ranked
among the forerunners for many times in terms of
comprehensive strengths among over 30 drilling
platforms of Statoil operating in the North Sea, and
was named Platform of the Month. CIMC Raffles
has established a reputable brand image in the
North Sea market in Europe, winning the attention
and recognition of major international customers.
Currently, 10 Jack-up Drilling Platforms of CIMC
Raffles were delivered and under construction,
i ncl udi ng Caspi an Dri l l er, a Jack-up Dri l l i ng
Platform delivered in October 2012 in Astrakhan,
Russia which is the first overseas high-end offshore
engineering EPC project undertaken by a Chinese
enterprise. SSCV 1# and SSCV 2#, two deepwater
semi -submersi bl e l i f ti ng pl atf orms whi ch are
independently designed, through research and
development, and constructed by CIMC Raffles,
reached the delivery stage and are expected to
be delivered to the customer in the second half of
2013.
The project on four deepwater and super deepwater
Semi - submer si bl e Dr i l l i ng Pl at f or ms under
construction was in smooth progress. In June 2013,
the North Dragon deepwater Semi-submersible
Drilling Platform for North Sea of North Sea Rigs As
(NSR) commenced construction, which will serve the
North Sea and Barents Sea Oilfields, Norway. The
Jack-up Drilling Platform built for Sinopec Shengli
Oilfield Construction Limited, named New Shengli
#1 commenced construction and is expected to be
completed by the end of March 2014, and it will be
used for oil and gas development in Bohai Bay area.
I n respect of expansi on of our markets and
customers, CIMC Raffles continued to focus on the
Semi-submersible Drilling Platform and Jack-up
Drilling Platform markets, endeavoured to reinforce
the expansion of major international and domestic
customers, and aimed to strengthen the market
exploration of high-margin products in the first half
of 2013. CIMC Raffles has received bid invitations
Interim Report 2013
17
for certain projects from Technip, the worlds largest
offshore engi neeri ng company, and Ensco, the
worlds second-largest drilling services company. As
at 30 June 2013, CIMC Raffles had certain orders in
respect of four Semi-submersible Drilling Platforms
which secured the largest market share in the
domestic market.
In terms of international market, CIMC Raffles and
Frigstad Offshore Pte Ltd., a subsidiary of Frigstad
Deepwater Ltd, signed an EPC contract of 2+4 ultra-
deep water Semi-submersible Drilling Platforms
in January 2013. Such drilling platform was the
7th generation developed by Frigstad Engineering
Company. The conf i r med t wo pl at f or ms are
expected to be delivered in the fourth quarter of
2015 and the second quarter of 2016.
In terms of domestic market, CIMC Raffles achieved
breakthrough in obtaining orders from PetroChina
and SinoPec, among which the effective orders
including the construction of six jack-up platforms
and the reconstruction of one jack-up platform. In
April 2013, CIMC Raffles won the bid for the New
Shengli #1 Jack-up Drilling Platform of Sinopec
Shengli Oilfield Construction Limited, which marked
the fi rst wi nni ng bi d si nce the si gni ng of the
strategic cooperation agreement on supply between
CIMC Raffles and SinoPec in 2012.
In the first half of the year, CIMC Raffles accelerated
the enhancement of i ts research and desi gn
capabilities and project management capabilities
through optimizing the production of large-sized
module and summarizing the experience on mass
production of drilling platforms. With the help of the
so-called innovation platform of CIMC Offshore
Research Institute, CIMC Raffles integrated the key
enterprises in the industry and educational and
research institutions in the process of innovation.
By designing jointly with internationally renowned
desi gn compani es i n the deep water area, i t
endeavored to promote the j oi ntl y desi gned
products to enter the mainstream of global markets.
CI MC Raffl es cooperates wi th Transocean, the
worlds largest drilling services company, to develop
new products. The cooperation with Technip has
also improved the QHSE level. Moreover, it has
establ i shed strategi c cooperati on wi th maj or
international suppliers such as Siemens and NOV.
Airport Facilities Equipment Business
The Groups ai rport faci l i ti es busi ness mai nl y
includes passenger boarding bridges, air cargo
handling systems, ground services equipment (GSE)
(shuttle buses), and vertical car parking spaces,
logistics products and related services.
Given the nature of the Groups airport facilities
business, following the completion of production of
certain products in the first half of a year, most of
the field installation and delivery work is typically
completed in the second half. Therefore, sales
revenue and profit are generally realized in the
second half of each year.
In the first half of 2013, CIMC Tianda, a 70%-owned
subsi di ary of the Company, sol d 79 sets and
produced 140 sets of passenger boarding bridges.
Airport facilities equipment business recorded sales
revenue of RMB225.451 million, representing a
year-on-year increase of 227.11%. Its net loss was
RMB14.689 million, decreasing by approximately
54.35% as compared with the loss for the same
period last year. The substantial increase in revenue
was mainly due to the good sales performance in
passenger boarding bridges in the first half of 2013,
as well as the lower base of last year. The loss
was mainly due to the fact that certain products
manufactured in the first half of the year had not
been sold out and the expenses also incurred
during the period.
18
The Group remained positive about the growing
demand of passenger boarding bridges business.
The Group continued to expand the international
market, and obtained orders from Togo, Mayotte
and Nigeria for the first time in the first half of the
year. With sufficient orders, CIMC Tiandas market
position remained stable. In the next few years, it
is expected that the automatic logistics equipment
market i n Chi na woul d mai ntai n a growth of
20%. The Group accel erated i ts penetrati on i n
the automati c l ogi sti cs equi pment market by
establ i shi ng Shenzhen CI MC Ti anda Logi sti cs
System Engineering Co., Ltd. on 18 April 2013. The
company received a great number of orders in the
first half of the year, marking a new penetration in
the automobile and pharmaceuticals industries. In
terms of airport GSE business, the overall business
of shut t l e bus devel oped smoot hl y, and t he
research and development of bi-directional airport
shuttle buses was successfully completed and
such products have been sold to Hong Kong and
Australia. The Group was also exploring market of
other airport special vessels. The domestic market
demand for three dimensional car parking spaces
remained relatively high, thus the current business
model achieved noticeable results and the orders
remained strong, and the largest order for intelligent
three dimensional car parking spaces in China in
this year was obtained. The Group also expanded
i nto the busi ness of ai rport baggage handl i ng
systems through acquisition. In August 2012, it
purchased 14.99% equity interests in Pteris Global
Limited (Pteris, a company listed on the Main
Board of the Singapore Exchange Limited, stock
code: J74), becoming its single largest shareholder.
On 30 July 2013, the Company announced to inject
its 70% equity interests in CIMC Tianda into Pteris
and as consi derati on, Pteri s woul d i ssue new
shares to the Company. The transaction amount
will be approximately RMB486.331 million. Upon
compl eti on of the transacti on, the Companys
shareholding in Pteris will increase from 14.99% to
63.88% if no adjustment mechanisms are triggered.
By means of coordination and integration, the
Companys investment in Pteris will further develop
its business with competitive edge such as airport
baggage handling system, global airport logistics
management system and i nternati onal ai rl i ne
catering management system, with an emphasis on
high-end technologies such as logistics sorting and
system integration, so as to seize the opportunities
in the development of domestic and international
civil aviation markets.
Other Principal Businesses
Logistics service and equipment
manufacturing business
The Group is committed to offering comprehensive
logistic solution and specialized logistic equipments
for customers in different industries. The Group
has a container stack yard service network across
the nation which provides container services such
as shipping agency, freight forwarding, logistics
and transportation, repairment, storage, and the
sal es, l easi ng, refurbi shment and repackagi ng
of secondhand contai ners. I n the fi rst hal f of
Interim Report 2013
19
2013, with the consolidation of the results of the
newly acquired Zhenhua Logistic Group Co., Ltd.
(Zhenhua Group) on 1 April 2013, the operating
i ncome from our contai ner servi ces busi ness
amounted to RMB1,489.343 million and its net
profit was RMB34.571 million. The Group provides
logistic services based on its standardized logistic
appliances, which offers transportation service
solutions regarding finished automobiles based
on special containers, logistic service solutions
regarding logistic of liquid based on IBC containers,
logistic service solutions regarding transportation
of automobiles based on pallet boxes as well as
pallet leasing and repairing services. The logistic
equipment products of the Group mainly comprise
of the pal l et contai ners for vehi cl e, l ogi sti cs,
food, chemi cal and agri cul tural purposes, and
the intermediate bulk container (IBC) made of
stainless steel for chemical and food usage, as
well as specialised logistic equipment. Our main
manufacturing bases are located in Dalian, Tianjin,
Foshan and Wuhu. In the first half of 2013, the
Company sold 370,000 units (sets) of logistics
equi pment, representi ng a decrease of 9.76%
from 410,000 uni ts (sets) for the same peri od
l ast year. The sal es revenue was RMB671.042
million, representing a year-on-year decrease of
approximately 3.01%. In addition, the Company
recorded a net prof i t of RMB32. 778 mi l l i on,
representing a decrease of approximately 28.42%
as compared with the corresponding period of the
previous year, which was primarily due to the lower
selling price and gross profit margin as a result of
market competition and fluctuation of exchange
rate of JPY.
The Group proact i vel y devel oped i nnovat i ve
businesses in the trade and financial services
of contai ner l ogi sti cs and contai ner servi ces
throughout the whole life span of containers, and
sought new business opportunities arising in the
upgrading of coastal industries, the development
of Central and Western China, urbanization, energy
conservation and emission reduction, as well as
the development of recycling economy. On 6 March
2013, the Group acquired 36.78% equity interests
in Zhenhua Group. After the transaction, the Group
held 75% equity interests in Zhenhua Group, thus
Zhenhua Group became the Groups subsidiary from
1 April 2013. With its headquarter located in Tianjin,
Zhenhua Group i s mai nl y engaged i n l ogi sti cs
and transportation business. This transaction will
strengthen the competitiveness of the Group in
terms of comprehensive logistics services.
Due to mul ti pl e factors such as the dramati c
depreciation of Japanese Yen and the slowdown in
domestic economic growth, the logistic appliances
business in major overseas markets recorded a
depressed demand, while selling prices decreased
and costs hiked. However, the automobile industry
i n the domesti c market mai ntai ned a growth
of over 10%, automobi l e export conti nued to
increase, leading to the demand growth for logistic
appl i ances. Chi na- manuf act ured commerci al
vehi cl es and constructi on machi nery products
enjoyed considerable competitiveness and demand
in overseas emerging markets. From a long-term
perspective, this is favorable for the development
of artery logistics based on self-owned equipment
and the growth of the Groups domestic logistics
services business. In February 2013, Shenzhen
Sout h CI MC Logi st i cs Li mi t ed, t he Gr oups
20
subsi di ary, and Shenzhen Xi nhe Cheng Suppl y
Chain Management Co., Ltd. set up a joint venture,
Shenzhen CIMC New Process of Automotive Supply
Chain Management Company Limited, in which
the Group holds 60% equity interests. The principal
business of the joint venture is automobile supply
chain management.
Real estate development business
In first half of 2013, there was no fundamental
change in the macro control policies relating to
the real estate industry in China, the accumulated
ef f ect s cont i nued and t he mar ket pressure
remained relatively high. In the first half of the year,
Shenzhen CIMC Real Estate Development Co., Ltd.
(), a subsidiary of the
Group, continued to push forward the construction
and sal es of proj ects i n Yangzhou, Zhenj i ang,
Jiangmen and Yangjiang as planned, and carried
out the early stage preparations for the project
of CIMC Innovation Industrial Park in Songshan
Lake of Dongguan (),
and the projects in Longhua of Shenzhen and
Kunshan of Jiangsu Province. During the Reporting
Period, the Groups real estate business recorded
contracted i ncome from sal es of commerci al
housing of RMB873.47 million, representing a year-
on-year increase of 2.5 times. In addition, this
segment also realized an income from preselling
activities of approximately RMB1.1 billion. Since the
recognition and delivery of the developed projects
this year were concentrated in the second half of
the year, during the Reporting Period, the segment
recorded revenue of RMB173.754 million and loss of
RMB3.086 million.
The Group owns a parcel of land for industrial
use with an area of 524,200 square meters in
Qi anhai Shenzhen-Hongkong Modern Servi ce
Industry Cooperation Zone of Shenzhen (Qianhai
Cooperation Zone). In the first half of the year, the
Company carried out in-depth communications
wi th Shenzhen Government and Authori ty of
Qianhai Cooperation Zone in respect of the future
development of the land, and initially received
recognition and support from the government,
although no concrete development plan has been
reached yet. The Company will actively participate in
the future development and construction of Qianhai
in accordance with the requirements of the overall
plan formulated for Qianhai, with a view to make
new contributions for the development of Qianhai
and embody the Companys new value. In addition
to Qianhai Zone of Shenzhen, the Group holds
land reserves or industrial land parcels the use of
which are expected to be changed into commercial
development in various regions including Shekou
and Pingshan (in Shenzhen), Songshan Lake (in
Dongguan), Yangjiang (in Guangdong), Qingdao (in
Shandong), Yangzhou and Zhenjiang (in Jiangsu) and
Baoshan (in Shanghai).
Interim Report 2013
21
Rai l way equi pment manuf act ur i ng
business
Affected by a number of adverse factors including
t he domest i c economi c sl owdown and weak
demand as well as insufficient production orders
of the Company which led to an averagely low
rate of operation, the Groups railway equipment
manuf acturi ng busi ness recorded revenue of
RMB35.613 million during the Reporting Period,
representing a decrease of approximately 72.85%
as compared with the same period of the previous
year, and loss of RMB19.497 million, representing
an increase of approximately 235.46% as compared
with the loss of the same period of the previous
year.
Financial business
In respect of financial business, the Group took
an overall approach to enhance the efficiency and
effectiveness of its internal capital utilization and
assist itself to realize its objectives in industrial
strategi c devel opment, i ndustri al restructuri ng
and market competition, and was devoted to the
establishment of a financial service system which
matches its role as a world leading manufacturer,
so as to become a profit growth point of the Group.
The main operating subsidiaries consist of CIMC
Financing and Leasing Co., Ltd. and CIMC Finance
Company Ltd. In the first half of 2013, the segment
recorded revenue of RMB210.062 million and net
profit of RMB96.448 million, representing a decrease
of 8.31% and an increase of 15.47% respectively
compared with the same period of last year.
In the first half of the year, CIMC Financing and
Leasing Co., Ltd. achieved breakthrough in terms of
significant projects and investment, endeavored to
complete the container leasing project with CMA
CGM, and vigorously developed the business of
offshore engineering leasing and vehicle leasing
through resource integration, which resulted in
significant development in the project of Jack-up
Drilling Platform of CIMC Raffles. By establishing
Qianhai Leasing Company, it actively explored new
business opportunities, innovated and improved the
business model of modularized building leasing.
In the first half of the year, by establishing highly
efficient operation system, CIMC Finance Company
Ltd. further improved its governance flow and
the base management of human resources, while
promoting the three core capabilities of innovation,
marketing and risk management and fostering the
four business focuses on foreign exchange, supply
chain financing, notes and intermediary business.
Through centralized management and efficient
operation on the capital pool of the Group, CIMC
Finance Company Ltd. supported the strategic
investment of the Group and its significant projects,
leading to a further enhancement of efficiency
in capital utilization. In June 2013, CIMC Finance
Company Ltd. was approved to enter the domestic
interbank lending market and the business of cross-
border RMB settlement for members of the Group.
With the approval by the Peoples Bank of China, the
system of electronic commercial bills went online.
All these new financial instruments expanded the
channels of short-term capital investment and
financing for CIMC Finance Company Ltd., which
further enhanced the efficiency of capital utilization
and improved the quality of financial service.
22
3.4 COMPOSITION OF PRINCIPAL BUSINESSES
3.4.1 By industry and by product
Unit: RMB thousand
By industry or by product
Revenue
during the
Reporting
Period
Cost of sales
during the
Reporting
Period
Gross profit
margin
during the
Reporting
Period (%)
Changes
in revenue
from the
corresponding
period of
last year
(%)
Changes in
cost of sales
from the
corresponding
period of
last year (%)
Changes in
gross profit
margin
from the
corresponding
period of
last year (%)
By industry
Container 12,314,928 10,654,483 13.48% (9.92)% (8.70)% (1.16)%
Road transportation vehicle 6,673,349 5,699,538 14.59% (2.17)% (3.17)% 0.88%
Energy, chemical and food
equipment 5,565,543 4,446,564 20.11% 23.11% 20.43% 1.77%
Offshore engineering 1,519,799 1,504,615 1.00% 22.09% 36.68% (10.56)%
Airport facilities equipment 225,451 164,554 27.01% 227.11% 242.64% (3.31)%
Others 2,825,635 2,230,209 21.07% 96.93% 154.50% (17.86)%
Offset on consolidation (539,547) (539,547)
Total 28,585,158 24,160,416 15.48% 4.46% 4.98% (0.42)%
By product
Container 12,314,928 10,654,483 13.48% (9.92)% (8.70)% (1.16)%
Road transportation vehicle 6,673,349 5,699,538 14.59% (2.17)% (3.17)% 0.88%
Energy, chemical and food
equipment 5,565,543 4,446,564 20.11% 23.11% 20.43% 1.77%
Offshore engineering 1,519,799 1,504,615 1.00% 22.09% 36.68% (10.56)%
Airport facilities equipment 225,451 164,554 27.01% 227.11% 242.64% (3.31)%
Others 2,825,635 2,230,209 21.07% 96.93% 154.50% (17.86)%
Offset on consolidation (539,547) (539,547)
Total 28,585,158 24,160,416 15.48% 4.46% 4.98% (0.42)%
Interim Report 2013
23
3.4.3 Reasons for material changes in principal
businesses and its structure
There was no material change in profit composition
or prof i t source of the Company duri ng the
Reporting Period.
3.4.4 Reasons for materi al changes i n the
prof i tabi l i ty ( gross prof i t margi n) of
principal businesses as compared with
last year
The Company recorded a decrease in consolidated
gross profi t margi n from pri nci pal busi nesses
as compared with the corresponding period of
the previous year, which was mainly attributable
to various market factors such as overall weak
demands to container services, declining price of
reefer containers and fluctuation in the price of
dry cargo container within a narrow range at low
level, as well as the intrinsic factors such as limited
recognized revenue due to the late commencement
of construction of some projects.
3.4.5 Reasons for material changes in the profit
composition during the Reporting Period
as compared with last year
During the Reporting Period, there was no material
change in the profit composition as compared with
last year.
3.4.6 The business nature, major products or
services and net profit of the investee
companies that contributed more than
10% of the net profit
Dur i ng t he Repor t i ng Per i od, t here was no
single investee company whose net profit would
contribute 10% or above to the net profit of the
Company.
3.4.7 St at us of f ut ur e devel opment s and
pl ans di scl osed i n publ i cl y di scl osed
documents such as prospectus, offering
memorandum and assets reorganisation
report of the Company that continued into
the Reporting Period
There was no future devel opment and pl ans
disclosed in publicly disclosed documents such
as prospectus, offering memorandum and assets
reorgani sati on report that conti nued i nto the
Reporting Period.
3.4.2 By region
Unit: RMB thousand
Region
Revenue
during the
Reporting
Period
Changes
in revenue
from the
corresponding
period of
last year (%)

China 13,646,979 8.95%
Asia (excluding China) 3,413,649 41.40%
America 5,399,426 (0.61)%
Europe 5,238,156 (11.37)%
Others 886,948 (18.01)%
Total 28,585,158 4.46%
24
3.4.8 The review and summary of the progress
of the operating plan of the Company
disclosed during previous periods
None.
3.5 ANALYSIS OF CORE COMPETITIVE
ADVANTAGES
A devel opment strategy focusi ng on
core businesses to accelerate industrial
upgrades
After the global financial crisis in 2008, we stepped
up the paces of industrial upgrades, focusing on
strategic emerging businesses including natural gas
equipment and offshore engineering equipment
while setting foot in financial, logistics and other
modern services.
At present, we have built up a diversified business
portfol i o, i ncl udi ng contai ner busi ness, whi ch
continues to take the lead in the industry, as well
as road transportation vehicles, energy, chemical
and liquid food equipment and offshore engineering
businesses with strong competitive edges in the
PRC. The long-term focus on core business to
constantly sharpen competitiveness in the industry
is the core competitive advantage of the Group.
A n e n t e r p r i s e f r a me wo r k a n d
management system f or conti nuous
improvement and sustainability
The Company has developed a set of effective
management models covering business philosophy,
governance structure and management mechanism,
thus establ i shi ng the competi ti ve advantages
over i ts ri val s. A standardi zed and ef f ecti ve
corporate governance structure is the institutional
safeguards of the Companys sustai nabl e and
healthy development. In recent years, the Company
l aunched the strategi c upgrade campai gn of
building an empowering platform for sustainable
healthy development of CIMC. According to the
organizational transformation direction of layering
management, the Company established a three-
tier management model comprising the Executive
Committee, special committees and the Board of
Directors as well as a 5S core management process.
By introducing the lean management concept and
promoting the ONE management model to meet
the goal of continuous improvements, the Company
has established an innovative and forward-looking
management system to ensure sustainable and
healthy development of its businesses.
Manufacturing management capabilities
ensuring high quality at low costs
With the accumulation of large-scale, serialized
and standardized management experience and
capabilities in the area of container manufacturing
over the years and its continuous improvements
and upgrades, the Group bri ngs i nto ful l pl ay
of its manufacturing technologies and process
management with high efficiency and competitive
costs as wel l as the core capabi l i ti es i n l ean
product i on management across i t s busi ness
segments.
Integrated resources and collaborative
development capacity
In the container sector, the Group has completed
industrial consolidation through a series of mergers
and acquisitions, and fully integrated supply chain,
production and manufacturing, services and other
processes to secure its leading cost advantage
and leadership in the industry. Hence, on the basis
of the existing resources and manufacturing and
operating strengths, the Group is able to cultivate
new businesses and industry chains for resource
sharing and development synergy. The Group is also
diversifying into other business segments, aiming
to capitalize on local strengths and integrate global
resources to establish a new business ecosystem.
Technological research and development
capabilities
The Company always attaches great importance
t o t echnol ogi cal research and devel opment
capabilities through: (1) developing mid-to-long
term development strategy to optimize R&D system
and pl atform and accel erate devel opment of
Interim Report 2013
25
products and technologies as well as evolution of
existing products; (2) adhering to the core value
of unlimited innovations to promote R&D of new
products, technologies, processes and equipment,
while constantly improving the mechanism for
identifying, inspiring and promoting innovations to
speed up the commercialization of technological
achievements; and (3) strengthening protection
of intellectual property including the construction
of intellectual property rights system covering
technical secrets and copyrights, and establishing
and improving an all-round effective mechanism for
protecting, operating, safeguarding and preventing
infringement of intellectual property.
In addition to a national enterprise technology
center, the Group has 25 group-level technology
centers under 9 core business segments, including
5 research institutes and 20 technical sub-centers.
Capitalizing on its strong R&D organization, the
Group is well positioned to translate its leading
technol ogi es i nto competi ti ve advantages and
business success for customers.
3.6 MAJ OR RI SK FACTORS OF THE
COMPANY AND EFFECTS
In the second half of 2013, the Company will still
face up with the following macroeconomic and
policy risks against its business environment:
(1) depressed orders of contai ners, vehi cl es
and other businesses with overcapacity and
low utilization of production capacity, due
to the combination of slow global economic
recovery in a low-growth cycle, declining
external demand for China, a slowdown in
export growth, higher energy dependence
and escalating volatility in bulk raw material
prices;
(2) risks in exchange rate fluctuations as a result
of a potentially one-side rapid appreciation of
the RMB exchange rate in the changing and
volatile financial market;
(3) hiking costs as a result of numerous pressures
on t he Gr oups busi ness devel opment
and operati ons such as the mi d-to-l ong
term challenges including the forthcoming
structural adjustment for Chinas economy,
the decreasing demographic dividend and the
requirements on low carbon, environmental
protection, energy conservation and emission
reduction;
(4) a decline in business profit margins due to
the high pressure of market competition from
some industries;
(5) the investment risks in offshore engineering
equi pment busi ness whi ch i s a sect or
requiring tremendous investment and a long
payback period. While offshore engineering
as a st rat egi c emergi ng i ndust r y i s t o
benefit from policy supports, the domestic
offshore engineering industry is exposed to
the potentially intensified competition from
leading foreign offshore engineering players
as well as new entrants such as domestic
tradi ti onal shi pbui l ders and capi tal s. The
Companys offshore engineering business,
gi ven i ts l i mi ted resources and capaci ty,
is faced up with the challenge to maintain
t he l eadershi p i n t he i ndust ry, as wel l
as the chal l enges agai nst i ts central i zed
procurement, order management and delivery
on schedul e and wi thi n budget from the
parallel design and construction of multiple
projects.
3.7 PROSPECTS AND INITIATIVES
3.7.1 Industry Development Trend and Market
Outlook
Looking into the second half of 2013, as the US
economic recovery is expected to accelerate, the
downside trend of European economy is eased but
with uncertainties, and the recovery of emerging
economies is slower than the expectation, the
growth rate of global economy remained to stabilize
and rebound at a low level.
In respect of container business, the authoritative
i nsti tuti ons l owered the esti mates for growth
i n gl obal contai ner trade for 2013 due to the
estimated weaker annual demand for containers
as a result of certain impacts on international
26
contai ner trade such as the pol ari zed gl obal
economic pattern mixed with a slow recovery in
the United States, the lingering weakness in the
Eurozone and the slowdown in the growth rate of
emerging economies while the situation of supply
over demand i n rel ati on to shi ppi ng capaci ty
will remain. Meanwhile, the pressure from high
container inventory in the industry due to a weak
performance in the peak season might substantially
impact the container demand in the second half of
2013. It is expected that the demand for standard
dry containers in the second half year is less likely
to rebound, while the demand for reefer containers
is expected to recover by the end of the year;
whereas the demand for special containers should
remain relatively stable.
I n r espect of r oad t ranspor t at i on vehi cl e
business, as the U.S. economy is expected to
continue to recover in the second half of 2013,
the demand for maj or products wi l l mai ntai n
stable, and the demand for flatbed vehicles should
rebound from a prolonged recession. Emerging
markets are expected to witness relatively stable
demand for special vehicles, given the absence of
new stimulus packages. Given the relatively slow
economic growth in China, it is expected that the
overall demand of the industry would continue
to fall and the low entrance barrier would lead to
overcapacity and fierce competition. However, as
the government will implement the economic policy
of ensuring growth, the rising investment in real
estate, urban rail transit and railway construction
would still play a positive role in fueling market
demand. On the other hand, the country enforced
the policy of upgrading from National III Standard
to National IV Standard for emission from diesel
vehicles this year and local governments would
gradually enforce the national policies on regulating
oversi ze and overl oad vehi cl es on road i n a
stringent manner, which would promote lighter
vehi cl es, thus generati ng surgi ng demand on
vehicles upgrades. The gradual shift from yellow
sticker to green sticker in relation to emission
standard, an indication of vehicles qualifying for a
higher emission standard, would also stimulate the
demand for upgrading vehicles in the future.
I n r espect of ener gy, chemi cal and f ood
equi pment busi ness, t he gl obal economy
was navi gat i ng i nt o a recovery t rack duri ng
t he Report i ng Peri od, al bei t st i l l wi t h some
uncertainties. Recently the State Council announced
a series of new policies to support environmental
protection and energy conversation industries.
I n t he f i r st hal f of 2013, t he nat ur al gas
consumption in the PRC was 81.5 billion cubic
meters, representing an increase of 13.1%; natural
gas imports also surged by 24.6% to approximately
24.7 billion cubic meters compared with the same
period last year. According to the forecast by the
International Energy Agency, China will expend
approximately US$240 billion from 2012 to 2035
i n natural gas transportati on and di stri buti on
infrastructure and LNG industry chains. Moreover,
the demand for natural gas application equipment
will be further stimulated by the considerations
including the concerns about air pollution and cost
efficiency, and the encouragement by Chinese oil
and gas companies on using natural gas to fuel
motor vehicles.
In respect of offshore engineering business,
the external macro environment should remain
stable in the second half of 2013. The international
oil prices currently still remain at a high level of
US$100-110, allowing oil companies to sustain their
upstream investment enthusiasm in offshore oil and
gas sectors, while the replacement and evolution
of obsolete platform will still experience a long
cycle. Therefore, the potential demand for jack-
up platforms would be huge, while the moderately
deepwater semi -submersi bl e pl atforms woul d
become a demand driver for the second half of
the year and in the future. In particular, due to
the deficiency in manufacturing capabilities, the
market in Brazil that attracted global attention will
turn to international market to seek equipment
to cover the exi sti ng gap, whi ch i mpl i es new
opportunities and as a result, the Chinese offshore
engineering enterprises will also benefit from such
unprecedented opportunities.
The competitive landscape in offshore engineering
equi pment manuf act ur i ng sect or remai ned
essentially unchanged in 2013. However, given the
saturated production capacity of enterprises in
South Korea and Singapore, the global construction
of jack-up platform has shifted to China in the first
half of 2013. Among the total jack-up platforms
commencing construction, China has taken a larger
Interim Report 2013
27
market share than Singapore. Many shipyards in
China turn to offshore engineering market, the jack-
up platform market in particular, which exacerbates
the competition in domestic offshore engineering
market and increases potential industrial risks.
3.7.2 Overall Operation Targets and Initiatives
for our Businesses Development
Adapting to the global economic restructuring in
the second half of 2013, the Group will continue
to deepen its industrial restructuring and strategic
upgrades, carry out syst emat i c upgrades i n
terms of development strategy, business model,
organizational culture, operational management and
other areas, and continue to implement layering
management and precision management so as to
establish an accumulative continuous improvement
mechani sm, l ayi ng a new foundati on for the
sustainable and healthy development of the Group.
In respect of the container business, we will
i mpl ement l ean management, and strengthen
services and collaboration. Through research and
devel opment i n technol ogy and management,
we stri ve to break through the manufacturi ng
bottlenecks from the rising costs of productive
resources, environmental protection and labor-
intensive conditions. We will also optimize resource
allocation to increase asset operational efficiency
while enhancing the decision-making level of this
segment.
In respect of the road transportation vehicle
business, we will: (1) further expand our business in
the European market, optimise production cost and
improve supply chains; (2) continue to develop our
North American market, invest in new products and
establish and enhance our network of distributors;
(3) launch new products for high-end logistics vans;
and (4) increase investment in the vehicle logistics
park business, and build Xian Vehicle Logistics Park
().
In respect of the energy, chemical and food
equi pment busi ness, by remai ni ng cauti ousl y
optimistic to the industry outlook, the Group will
continue to expand its principal businesses and
enhance the core competitiveness in order to
further consolidate its leadership in the equipment
manufacturi ng market, and proacti vel y tap on
new income streams for sustainable and healthy
development. The Group will establish strategic
pl ans and carry out prospecti ve research on
energy equipment and engineering aspects so
as to grasp potential development opportunities.
We will set up and improve a business-oriented
management model and system and strengthen
internal collaboration to ensure healthy business
growth i n the future. We wi l l ful l y uti l i ze the
production capacities of the newly constructed and
expanded production bases as well as production
lines by improving the operational efficiency of
the cryogeni c equi pment busi ness. The Group
will strive to maintain the leading position of its
tank container manufacturing business through
improvements in production cost control, quality
and profitability. We will, by taking advantage of
business collaboration and the complementary
advantages of China and Europe, enhance our
management ability for engineering projects and
strengthen the devel opment of more turnkey
proj ects, wi th a parti cul ar focus on cryogeni c
tanks, filling station projects, small and medium-
sized liquefied and petrochemical gas storage and
processing projects, chemical spherical tanks and
special containers for nuclear energy. In respect
of hi gh- pressure, l ow- t emperat ure, medi um-
pressure containers, tank containers and liquid food
equipment, the expansion strategy will be continued
to amplify our customer base. In particular, the
Group will capitalize on the brand, market network,
producti on technol ogy, automated processi ng,
project credentials and other resources of Ziemman
International GmbH to facilitate its overseas and
domestic market development.
In respect of offshore engineering business,
the key objectives for the second half of the year
include: (1) striving to fulfill the delivery conditions
of the projects, enhancing the communication and
cooperation with target customers, so as to realize
project sale or lease; (2) continuing to implement
the focus strategy in market, intensifying efforts
i n expl ori ng mai nstream customers, compete
for new orders, and increasing the utilization of
production capacity; (3) comprehensively pushing
forward the cost control to improve gross profit
margin of projects; (4) pushing forward the design
and technological shaping of platforms, so as to
enhance the capability as a general contractor
(EPC); and (5) strengthening basic management and
improving QHSE management level.
28
In respect of airport facilities equipment business,
in the second half of the year, we will consolidate
and improve the market position of passenger
boarding bridges, and tap into new market in the
second half of the year. We will pay attention to
the integration following the acquisition of Pteris
of Singapore, and commence market cooperation.
We will also seek new growth opportunities in
the field of GSE and automation logistics business
and complete the construction of the new base
i n Shenzhen and the earl y stage preparati on
for production bases in other regions as well as
pushing forward the technology management and
research of development of new products.
In respect of logistics service and equipment
manufacturing business, we will push forward the
key project businesses such as engine packaging
and i n rel at i on t o cust omers of aut omobi l e
components in the second half of the year. In
addition, we will initialise packaging and logistics
projects for components of passenger vehicles,
light trucks and commercial vehicles, so as to
enlarge customer groups. We will also reinforce the
lean management of each business and promote
the cold chain projects, and study the timing for
entering the e-commerce logistics market.
In respect of real estate development business, in
the second half of the year, the Group will strive for
progressive success in projects situated in Longhua,
Tai zi wan, Qi anhai and Pi ngshan (i n Shenzhen)
as well as in Baoshan (in Shanghai), ensure the
commencement of construction of projects situated
in Songshan Lake (in Dongguan) and Jiaozhou (in
Qingdao), and continue to develop various markets
including Jiangmen (in Guangdong) and Yangzhou
(in Jiangsu), so as to expand our land reserves for
future projects and achieve simultaneous operation
of a number of projects.
3.8 REVIEW OF FINANCIAL RESOURCES
DISCLOSED IN ACCORDANCE WITH
THE HONG KONG LISTING RULES
3.8.1 Revenue and pr of i t at t r i but abl e t o
shareholders of the Company
For details of revenue and profit attributable to
shareholders of the Company during the Reporting
Peri od, pl ease ref er t o t he sect i ons headed
II. Summary of Accounting Data and Financial
I ndi cators as wel l as Overvi ew of operati ng
results during the Reporting Period and Analysis
of principal operations during the Reporting Period
under III. Managements Discussion and Analysis
in this Report.
3.8.2 Liquidity and financial resources
As at 30 June 2013, the Groups cash on hand
amounted to RMB3,705.414 million (31 December
2012: RMB5,221.539 million). The Group has always
maintained sufficient cash on hand to repay the
bank loans due, and will concurrently continue to
remain prudent in managing its future development
and capital expenditure.
As at 30 June 2013, the Groups bank l oans,
debentures payable and other current liabilities
( i ssuance of commerci al paper s) amount ed
to RMB23,978.803 mi l l i on (31 December 2012:
RMB20,799.527 million).
As at 30 June 2013, the Groups net cash flows from
operating activities amounted to RMB(3,021.559)
million (2012: RMB(2,107.043) million). The Group
had appropriated an amount of RMB14,047.704
mi l l i on (2012: RMB15,241.020 mi l l i on) of bank
l oans and made repayment of bank l oans of
RMB10, 908. 473 mi l l i on ( 2012: RMB12, 309. 686
million).
Interim Report 2013
29
3.8.3 Capital structure
The Groups capital structure consists of equity interests attributable to shareholders and liabilities. As at 30 June
2013, the equity interests attributable to shareholders amounted to RMB22,853.952 million and the total liabilities
amounted to RMB45,916.368 million and total assets amounted to RMB68,770.320 million.
Significant changes in assets items
Unit: RMB thousand
Assets Notes
As at
30 June 2013
As at
31 December
2012
Changes in amount and
percentage
Changes
in amount
Percentage
change (%)

Cash at bank and on hand (1) 3,705,414 5,221,539 (1,516,125) (29)%
Financial assets held for
trading current portion (2) 160,570 405,092 (244,522) (60)%
Notes receivable (3) 1,246,167 778,109 468,058 60%
Accounts receivable (4) 12,725,556 8,238,033 4,487,523 54%
Advance to suppliers (5) 2,520,119 1,213,042 1,307,077 108%
Investment properties (6) 284,977 183,668 101,309 55%
Long-term prepaid expenses (7) 95,175 47,947 47,228 99%
Notes:
(1) Cash at bank and on hand: mainly due to the centralised management of funds by the Group.
(2) Financial assets held for trading: due to changes in the investment costs and fair values of equity instruments held for trading in the Reporting Period.
(3) Bills receivable: mainly due to the increase in sales settled by bills in the Reporting Period.
(4) Accounts receivable: mainly due to the fact that the Reporting Period was a peak season for production and sales.
(5) Advance to suppliers: mainly due to the increase in procurement of raw materials in the Reporting Period.
(6) Investment properties: mainly due to the acquisition of Zhenhua Group in the Reporting Period.
(7) Long-term prepaid expenses: mainly due to the increase in insurance premium for finance lease items in the Reporting Period.
30
Significant changes in liabilities items
Unit: RMB thousand
Liabilities Notes
As at
30 June 2013
As at
31 December
2012
Changes in amount and
percentage
Changes in
amount
Percentage
change (%)

Short-term borrowings (1) 7,540,666 5,438,407 2,102,259 39%
Taxes payable (2) 340,631 747,530 (406,899) (54)%
Interest payable (3) 68,989 203,288 (134,299) (66)%
Dividends payable (4) 782,117 38,747 743,370 1919%
Current portion of non-current
liabilities within one year (5) 2,538,641 1,261,940 1,276,701 101%
Other current liabilities (6) 2,448,805 2,448,805
Financial liabilities held for
trading non-current portion (7) 34,234 82,242 (48,008) (58)%
Long-term borrowings (8) 4,996,681 7,641,785 (2,645,104) (35)%
Notes;
(1) Short-term borrowings: mainly due to financing arrangements arising from an increase in the scale of production and sales in the Reporting Period.
(2) Taxes payable: mainly due to the filing and settlement of enterprise income tax in the Reporting Period.
(3) Interest payable: mainly due to the settlement of interest of debentures payable in the Reporting Period.
(4) Dividends payable: mainly due to the dividends for ordinary shares declared but unpaid in the Reporting Period.
(5) Current portion of non-current liabilities: mainly due to the long-term borrowings due within one year that were transferred in.
(6) Other current liabilities: mainly due to the issuance of commercial papers by the Group in the Reporting Period.
(7) Financial liabilities held for trading non-current portion; mainly due to changes in the fair values of derivative financial instruments in the Reporting
Period.
(8) Long-term borrowings: mainly due to the long-term borrowings that were due in the Reporting Period and transferred to the current portion of non-
current liabilities.
Interim Report 2013
31
Gearing ratio
The gearing ratios of the Group were calculated
based on the Groups total debts divided by total
assets as at the respective dates. The gearing
ratio of the Group increased from 64.89% as at
31 December 2012 to 66.77% as at 30 June 2013,
mainly due to the fact that the Group was in peak
season of production and operation during the
interim period coupled with the increase in current
liabilities as a result of increased occupation of
working capital.
3.8.4 Foreign exchange risk
The majority currency of the Groups revenue is
U.S. dollars, while most of its expenditure is made
in Renminbi. The exchange rates of Renminbi are
affected by domestic and international economic
and political changes, and demand for and supply
of Renminbi. Future exchange rates of Renminbi
against other currencies may vary significantly from
the current exchange rates, the amount of which
would affect the operating results and financial
position of the Group.
3.8.5 Pledge of assets
For details of the pledge of assets of the Group,
please refer to note V.22 to the Financial Report
prepared in accordance with CASBE in this Report.
3.8.6 Capital commitments
For details of the capital commitments of the Group,
please refer to note IX.1 to the Financial Report
3.8.7 Contingent liabilities
For details of the contingent liabilities of the Group,
please refer to note VIII.1 to the Financial Report
3.8.8 Significant investments
For details of the significant investments of the
Group, please refer to the section of Investment
of the Company under VI. Report of the Board in
this Report.
3.8.9 Future plans for significant investments
and expected source of funding
The operati ng and capi tal expendi tures of the
Group are mainly financed by our own fund and
external financing. The Group will take a prudent
attitude to enhance its operating cash flow. The
Group has sufficient resources of funding to meet
requirements of capital expenditure and working
capital during the year.
3.8.10 Capital expenditure and financing plan
Based on changes in the economic situation and
operati ng envi ronment, as wel l as the needs
for the Groups strategic upgrade and business
development, the capital expenditure of the Group
in 2013 is approximately RMB6.1 billion, among
which approximately RMB1.85 billion was actually
expensed in the first half of the year. Various forms
of financing arrangements will be considered in the
second half of the year.
32
3.8.11 Events after the balance sheet date
(1) On 3 Jul y 2013, CI MC Fi nanci al Leasi ng
(Hong Kong) Ltd. (CIMC FL (HK)) signed a
shipbuilding contract with Dalian Shipbuilding
I ndustry Co., Ltd. for the constructi on of
seven 8,800 TEU container vessels. The total
contract price for the shipbuilding contract
amounted to approximately RMB3,675 million
in equivalent. On the same day, CIMC FL
(HK) signed a container vessel finance lease
contract (Charter Agreement (DCIC)) for a
term of 204 months with a subsidiary of MSC
Mediterranean Shipping Company SA. (MSC).
For details, please refer to the announcement
dated 3 July 2013 published by the Company
on Chi na Secur i t i es J our nal , Shanghai
Securities News, Securities Times and CNINFO
(www.cninfo.com.cn) and the websites of Hong
Kong Stock Exchange (www.hkexnews.hk) and
the Company (www.cimc.com).
(2) On 24 Jul y 2013, CI MC FL (HK) si gned a
shi pbui l di ng cont ract wi t h New Ti mes
Shipbuilding Co., Ltd. for the construction of
five 8,800 TEU container vessels. The total
contract price for the shipbuilding contract
amounted to approximately RMB2,622 million
in equivalent. On the same day, CIMC FL
(HK) signed a container vessel finance lease
contract (Charter Agreement (NTS)) for a
term of 204 months with a subsidiary of MSC.
For details, please refer to the announcement
dated 24 July 2013 published by the Company
(www.cninfo.com.cn) and the websites of Hong
Kong Stock Exchange (www.hkexnews.hk) and
the Company (www.cimc.com).
(3) On 29 July 2013, CIMC Hong Kong, a wholly-
owned subsidiary of the Company, signed
a sale and purchase agreement with Pteris,
CIMC Hong Kong intends to inject its entire
equi ty i nterests i n Techman (Hong Kong)
Limited (Techman (HK)) into Pteris, and as
consideration, Pteris will issue new shares to
CIMC Hong Kong (or its nominee). Techman
(HK), which will hold 70% equity interests in
CIMC Tianda upon completion of the CIMC
Tianda restructuring, is a limited company
incorporated in Hong Kong. CIMC Hong Kong
has reached an agreement i n respect of
the acquisition of the entire equity interests
in Techman (HK). Upon completion of the
Techman (HK) Acquisition, Techman (HK) will
become a wholly-owned subsidiary of CIMC
Hong Kong.
The consideration for the transaction was
approxi mat el y S$96, 303, 200 ( equi val ent
to approxi matel y RMB486,331,000). Upon
settlement, the equity interests of CIMC Hong
Kong in Pteris are expected to increase from
approximately 14.99% at present to 63.88%
( up to approxi matel y 65. 80%, subj ect to
certain adjustment mechanisms). As a result,
after completion of the transaction, Pteris will
become a subsidiary of the Company through
CI MC Hong Kong, and CI MC Ti anda wi l l
become a subsidiary of Pteris, and thus CIMC
Tianda will continue to be a subsidiary of the
Company.
For detai l s, pl ease refer to the rel evant
announcements dated 29 July 2013 published
(www.cninfo.com.cn), and the websites of the
Hong Kong Stock Exchange (www.hkexnews.hk)
and the Company (www.cimc.com).
Interim Report 2013
33
3.8.12 Employment, training and development
As at 30 J une 2013, t he Gr oup had 58, 243
employees in total. The total staff cost during the
Reporting Period, including Directors remuneration,
contribution to the retirement benefit schemes and
share option schemes, amounted to approximately
RMB2,308.870 million, representing approximately
8.08% of the Groups revenue.
The Group provides salary and bonus payment
to i ts empl oyees based on thei r performance,
qualification, experience and market conditions. The
share option scheme aims to recognize the previous
contribution of Directors and core employees to
the Group and reward them for their long-term
service. Other benefits include contribution to the
governmental pensi on schemes and i nsurance
plans for employees in mainland China.
The Group regul arl y revi ews i ts remunerati on
policies, including Directors remuneration payable,
and strives to formulate an improved incentive and
assessment mechanism based on the operating
results of the Group and market conditions.
34
IV. CHANGES IN SHARE CAPITAL AND INFORMATION ON SUBSTANTIAL SHAREHOLDERS
4.1 CHANGES IN SHARE CAPITAL OF THE COMPANY DURING THE REPORTING
PERIOD
There is no change in share capital of the Company during the Reporting Period.
As at 31 December 2012 Increase/decrease (+/-) As at 30 June 2013
Numbers of
shares
Percentage
(%) New Issue Bonus Issue
Conversion
from
Reserves Others Sub-total
Numbers of
shares
Percentage
(%)
I. Shares with selling
restrictions 371,026 0.01% 0 0 0 0 0 371,026 0.01%
1. State-owned shares 0 0% 0 0 0 0 0 0 0%
2. Shares held by state-owned
legal persons 0 0% 0 0 0 0 0 0 0%
3. Shares held by other
domestic investors 0 0% 0 0 0 0 0 0 0%
Of which: Shares held by
domestic legal
persons 0 0% 0 0 0 0 0 0 0%
Shares held by
domestic natural
persons 0 0% 0 0 0 0 0 0 0%
4. Shares held by foreign
investors 0 0% 0 0 0 0 0 0 0%
Of which: Shares held by
foreign legal
persons 0 0% 0 0 0 0 0 0 0%
Shares held by
foreign natural
persons 0 0% 0 0 0 0 0 0 0%
5. Senior management shares
(Note) 371,026 0.01% 0 0 0 0 0 371,026 0.01%
II. Shares without selling
restrictions 2,662,025,025 99.99% 0 0 0 0 0 2,662,025,025 99.99%
1. RMB-denominated ordinary
shares (A Shares) 1,231,544,516 46.26% 0 0 0 0 0 1,231,544,516 46.26%
2. Shares traded in non-
RMB currencies and
listed domestically 0 0% 0 0 0 0 0 0 0%
3. Shares traded in non-
RMB currencies and
listed overseas (H Shares) 1,430,480,509 53.73% 0 0 0 0 0 1,430,480,509 53.73%
4. Others 0 0% 0 0 0 0 0 0 0%
III. Total Shares 2,662,396,051 100.00% 0 0 0 0 0 2,662,396,051 100.00%
Note: Senior management shares do not include the 329,802 A shares of the Company held by Li Ruiting.
During the Reporting Period, there was no changes
in share capital or related approval and transfer, nor
was there any effect on financial indicators such as
basic earnings per share, diluted earnings per share
and net assets per share attribute to shareholders
of ordinary shares of the Company in the latest year
and the latest period.
Interim Report 2013
35
Changes in the structure of shareholders of the Company
On 20 May 2013, the Company was notified by COSCO Pacific Ltd. (COSCO Pacific) of its intention to transfer all
issued shares and relevant shareholders loan agreements of its subsidiary, COSCO Container Industries Limited
(COSCO Container), to its connected person, Long Honour (Long Honour).
COSCO Container was originally the second largest shareholder of the Company and held 432,171,843 A Shares
and 148,320,037 H Shares of the Company, which accounted for approximately 21.80% of the total issued share
capital of the Company. Long Honour directly held 25,322,106 H Shares of the Company which accounted for
approximately 0.95% of the total issued share capital of the Company.
On 27 June 2013, such transfer of equity interest was completed. As at the end of the Reporting Period, Long
Honour was the second largest shareholder of the Company and its shareholding percentage was approximately
22.75%. The shares and the shareholding percentage of the Company held by China Ocean Shipping (Group)
Company (COSCO), the ultimate holding company of COSCO Pacific and Long Honour, remained unchanged
upon the completion of such transfer of equity interest.
4.2 NUMBER OF SHAREHOLDERS AND SHAREHOLDINGS OF THE COMPANY
4.2.1 Number of Shareholders
As at the end of the Reporting Period, the number of shareholders of the Company was 146,641, including 3
holders of H Shares and 146,638 holders of A Shares, of which 146,640 were shareholders of shares without
selling restrictions while 1 was shareholder of shares with selling restrictions.
Based on the public information available to the Company and as far as the Directors were aware, the minimum
public float of the Company as at 30 June 2013 satisfied the requirements of the Hong Kong Listing Rules.
4.2.2 Shareholdings of shareholders interested in 5% or more of the share capital of the Company
Total number of shareholders as at the end of the Reporting Period 146,641
Name of shareholder
Nature of
shareholder
Type of
shares
Shareholding
percentage
(%)
Number of
Shares held as
at the end of
the Reporting
Period (share)
Changes
(increase/
decrease)
during the
Reporting
Period
Number
of shares
with selling
restrictions
(share)
Number
of shares
without selling
restrictions
(share)
Status of being
pledged or frozen
Status of
Shares
Number of
shares

HKSCC NOMINEES LIMITED Foreign legal
person
H Shares 53.73% 1,430,480,309 1,430,480,309
COSCO CONTAINER INDUSTRIES LIMITED
()
Foreign legal
person
A Shares 16.23% 432,171,843 432,171,843
China Merchants Bank Co., Ltd. Everbright
Pramerica Advantage Allocation Securities
Investment Fund (
)
Domestic Non-
state-owned
legal person
A Shares 1.04% 27,762,496 27,762,496
New China Life Insurance Company Ltd.
Dividends Personal Dividends
018L-FH002 Shenzhen (
-018L-FH002)
Domestic Non-
state-owned
legal person
A Shares 0.90% 23,903,176 23,903,176
China Minsheng Banking Corp., Ltd.
Yinhua SZSE 100 ETF Classified
Securities Investment Fund (
100)
Domestic Non-
state-owned
legal person
A Shares 0.44% 11,668,306 11,668,306
Wang Zhiyao () Domestic natural
person
A Shares 0.42% 11,274,325 11,274,325
Bosera Value Growth Securities
Investment Fund
()
Domestic Non-
state-owned
legal person
A Shares 0.40% 10,589,347 10,589,347
Bank of China E Fund SZSE 100 Index
Tradable Open-Ended ETF
Securities Investment Fund
(100
)
Domestic Non-
state-owned
legal person
A Shares 0.40% 10,580,066 10,580,066
PICC Life Insurance Company Limited
Dividends Individual Insurance
Dividends (
)
Domestic Non-
state-owned
legal person
A Shares 0.37% 9,783,809 9,783,809
PICC Property and Casualty Company Limited
Traditional General Insurance Products
(
)
Domestic Non-
state-owned
legal person
A Shares 0.36% 9,663,737 9,663,737
Explanation on any affiliated relationships
and acting in concert relationships
among the aforesaid shareholders
Nil
36
4.2.3 Shareholdings of the top ten Shareholders
Name of Shareholder (Full name)
Nature of
shareholder
Type of
shares
Shareholding
percentage (%)
Total
number of
Shares held
Number
of Shares
with selling
restrictions
Status of being
pledged or frozen
Status of
shares
Number of
shares

HKSCC NOMINEES LIMITED Foreign legal
person
H Shares 53.73% 1,430,480,309
COSCO CONTAINER INDUSTRIES LIMITED
()
Foreign legal
person
A Shares 16.23% 432,171,843
China Merchants Bank Co., Ltd. Everbright Pramerica
Advantage Allocation Securities Investment Fund
(
)
Domestic non-
state-owned
legal person
A Shares 1.04% 27,762,496
New China Life Insurance Company Ltd. Dividends
Personal Dividends 018L-FH002 Shenzhen
(
018L-FH002)
Domestic non-
state-owned
legal person
A Shares 0.90% 23,903,176
China Minsheng Banking Corp., Ltd. Yinhua SZSE
100 ETF Classified Securities Investment Fund
( 100)
Domestic non-
state-owned
legal person
A Shares 0.44% 11,668,306
Wang Zhiyao () Domestic natural
person
A Shares 0.42% 11,274,325
Bosera Value Growth Securities Investment Fund
()
Domestic non-
state-owned
legal person
A Shares 0.40% 10,589,347
Bank of China E Fund SZSE 100 Index Tradable
Open-Ended ETF Securities Investment Fund
(100
)
Domestic non-
state-owned
legal person
A Shares 0.40% 10,580,066
PICC Life Insurance Company Limited Dividends
Individual Insurance Dividends
()
Domestic non-
state-owned
legal person
A Shares 0.37% 9,783,809
PICC Property and Casualty Company Limited
Traditional General Insurance Products
()
Domestic non-
state-owned
legal person
A Shares 0.36% 9,663,737
Interim Report 2013
37
4.2.4 Shareholdings of the top ten Shareholders without selling restrictions
Name of Shareholder
Number
of shares
without selling
restrictions held
at the end of
the Reporting
Period
Type of shares
Type of
shares
Number of
shares

HKSCC NOMINEES LIMITED 1,430,480,309 H Shares 1,430,480,309
COSCO CONTAINER INDUSTRIES LIMITED () 432,171,843 A Shares 432,171,843
China Merchants Bank Co., Ltd. Everbright Pramerica Advantage
Allocation Securities Investment Fund (
) 27,762,496 A Shares 27,762,496
New China Life Insurance Company Ltd. Dividends Personal
Dividends 018L-FH002 Shenzhen (
-018L-FH002) 23,903,176 A Shares 23,903,176
China Minsheng Banking Corp., Ltd. Yinhua SZSE 100 ETF
Classified Securities Investment Fund
(100) 11,668,306 A Shares 11,668,306
Wang Zhiyao () 11,274,325 A Shares 11,274,325
Bosera Value Growth Securities Investment Fund
() 10,589,347 A Shares 10,589,347
Bank of China E Fund SZSE 100 Index Tradable Open-Ended ETF
Securities Investment Fund
( 100) 10,580,066 A Shares 10,580,066
PICC Life Insurance Company Limited Dividends
Individual Insurance Dividends
() 9,783,809 A Shares 9,783,809
PICC Property and Casualty Company Limited Traditional
General Insurance Products
() 9,663,737 A Shares 9,663,737
Explanation on the affiliated relationships or acting in concert
relationships among each of the aforesaid top ten Shareholders
of shares without selling restrictions, and between the top ten
Shareholders of Shares without selling restrictions and the
top ten Shareholders Nil
38
4.2.5 Disclosure of shareholdings of the Substantial Shareholders and other persons under SFO
As far as the Directors are aware, as at 30 June 2013, the persons (other than a Director, Supervisor or chief
executive of the Company) who had interests or short positions in the shares and underlying shares of the
Company which are required to be disclosed to the Company pursuant to Section 2 and 3 of Part XV of the SFO
are as follows:
Name of shareholder
Type of
shares held
Number of
shares (share) Capacity
Percentage of
such shares
in the same
class of the
issued share
capital (%)
Percentage of
total issued
share capital
(%)

China Merchants Group Limited
1
H Shares 679,927,917(L) Interest of Corporation
Controlled by the Substantial
Shareholder 47.53 25.54
China Ocean Shipping (Group) Company
(COSCO)
2
A Shares 432,171,843(L) Interest of Corporation
H Shares 173,642,143(L) Interest of Corporation
Hony Capital Management Limited
3
H Shares 137,255,434 (L) Interest of Corporation
Templeton Asset Management Ltd. H Shares 129,086,286 (L) Investment manager 9.02 4.85
(L) Long position
Note 1: China Merchants Group Limited, through various subsidiaries, had an interest in the H shares of the Company, all the 679,927,917 H shares (long
position) were held in the capacity as interest of corporation controlled by the substantial shareholder.
Note 2: COSCO, through various subsidiaries, had an interest in the A shares and H shares of the Company, all the 432,171,843 A shares (long position) and
173,642,143 H Shares (long position) were held in the capacity as interest of corporation controlled by the substantial shareholder.
Note 3: Hony Capital Management Limited, through various subsidiaries, had an interest in the H shares of the Company, all the 137,255,434 H shares (long
position) were held in the capacity as interest of corporation controlled by the substantial shareholder.
Interim Report 2013
39
As at 30 June 2013, as far as the Directors were
aware, save as disclosed above, no other person
(other than a Director, Supervisor or chief executive
of the Company) had any interest or short position
in the shares of the Company recorded in the
register of interests in shares and short positions
required to be kept by the Company pursuant to
Section 336 of the SFO.
4.3 I NFORMATI ON ON SUBSTANTI AL
SHAREHOLDERS, CONTROLLI NG
SHAREHOLDERS AND THE ACTUAL
CONTROLLER
4.3.1 Change of controlling shareholders during
the Reporting Period
There is no controlling shareholder of the Company.
4.3.2 Change of actual controller during the
Reporting Period
There is no actual controller of the Company.
4.3.3 Substantial Shareholders
The substantial shareholders of the Company are
China Merchants Group Limited and COSCO.
China Merchants Group Limited was incorporated
on 14 October 1986 i n the PRC wi th l i mi ted
liability. Its registered capital is RMB10.05 billion
and its legal representative is Fu Yuning. Its three
core business sectors focus on the construction,
operation and service in respect of transportation
and related infrastructure (ports, toll roads, energy
transportation and logistics), financial investment
and management, property devel opment and
management.
COSCO was incorporated on 27 April 1961 in the
PRC with limited liability. Its registered capital is
RMB4,103.367 million and its legal representative is
Wei Jiafu. COSCO is an international company with
businesses covering marine transportation, logistics
terminals, ship building and repairing.
Except for the abovementioned China Merchants
Group Limited and COSCO, no other legal person or
individual holds 10% or more of the shares of the
Company (excluding HKSCC Nominees Limited).
4.3.4 The equity interest structure between the Company and the substantial Shareholders
CIMC
COSCO
(Hong Kong)
Group Limited
LONG HONOUR
INVESTMENTS
LIMITED
COSCO
China Merchants
Group Limited
China Merchants
Holdings (International)
Company Limited
China Merchants
(CIMC)
Investment Limited
Other A Shareholders Other H Shareholders
COSCO Container
Industries Limited
100%
100%
100%
54.75%
100%
100% 100%
0.95% 21.80% 25.54% 30.04% 21.67%
State-owned Assets Supervision
and Administration Commission
of the State Council
40
V. INFORMATION ON DIRECTORS, SUPERVISORS AND SENIOR MANAGEMENT
5.1 CHANGES IN SHAREHOLDINGS OF DIRECTORS, SUPERVISORS AND SENIOR
MANAGEMENT
5.1.1 There is no change in shareholdings of Directors, Supervisors and Senior Management
during the Reporting Period.
5.1.2 As at 30 June 2013, the shares of the Company held by the Directors, Supervisors and the chief executive, and
the interests and short positions held by the Directors, Supervisors and the chief executive of the Company in
any shares, underlying shares or debentures of the Company or any of its associated corporations (within the
meaning of Part XV of the SFO) which are required to be notified to the Company and the Hong Kong Stock
Exchange under section 7 and 8 of Part XV of the SFO, including interests and short positions which the Directors
or Supervisors are taken or deemed to have under such provisions of the SFO, or which are required to be and
are recorded in the register required to be kept under section 352 of the SFO, or otherwise required to be notified
by the Directors, Supervisors and chief executives to the Company and the Hong Kong Stock Exchange under the
Model Code, were as follows:
(1) Interests in the shares of the Company:
Name Position Capacity
H/A
Shares
Number
of shares
held at the
beginning
of the
Reporting
Period
(Share)
Number
of shares
held at the
end of the
Reporting
Period
(Share)
Change
(Share)
Nature of
interest
Percentage
of shares
under the
same class
(%)
Percentage
of total
issued
shares (%)

Mai Boliang Executive Director,
President
Beneficial
Owner
A Shares 494,702 494,702 - Long position 0.04% 0.02%
Li Ruiting Supervisor Beneficial
Owner
A Shares 329,802 329,802 - Long position 0.03% 0.01%
(2) Interests in the underlying shares of the Company:
For details of the interests in the underlying shares of the Company held by Directors, Supervisors and the
chief executive of the Company as at 30 June 2013, please refer to the section Share Incentives and the
Share Option Scheme under VI. Report of the Board of this Report.
Interim Report 2013
41
(3) Interests in the shares in associated corporations of the Company:
Name Position
Associated
corporation Capacity
Number
of shares
held at the
beginning of
the Reporting
Period
(share)
Number of
shares held
at the end of
the Reporting
Period
(share)
Change
(share)
Reason for
the change

Mai Boliang Executive Director,
President
CIMC Vehicle Beneficiary of
a trust
10,350,000 10,350,000 - -
Save as disclosed above, as at 30 June 2013, none of the Directors, Supervisors and chief executives held
any interest or short position in the shares, underlying shares and bonds (within the meaning of Part XV
of the SFO) of the Company and any of its associated corporations, which are required to be notified to
the Company and the Hong Kong Stock Exchange under Divisions 7 and 8 of Part XV of the SFO, including
interests and short positions which are taken or deemed to have under such provisions of the SFO, or
which are required to be recorded in the register required to be kept under section 352 of the SFO, or
otherwise required to be notified to the Company and the Hong Kong Stock Exchange under the Model
Code contained in Appendix 10 of the Hong Kong Listing Rules.
5.2 APPOINTMENT AND RESIGNATION OF DIRECTORS, SUPERVISORS AND SENIOR
MANAGEMENT DURING THE REPORTING PERIOD
The election of the new session of the Board of Directors was conducted at the 2012 Annual General Meeting of
the Company held on 28 June 2013. Mr. Ding Huiping, Mr. Jin Qingjun and Mr. Xu Jingan retired as independent
non-executive Directors of the Company. The resolutions in relation to the appointment of Mr. Li Jianhong, Mr. Xu
Minjie, Mr. Wang Hong and Mr. Wang Xingru as non-executive Directors, Mr. Mai Boliang as executive Director and
Mr. Li Kejun, Mr. Pan Chengwei and Mr. Wong Kwai Huen, Albert as independent non-executive Directors were
considered and approved at the 2012 Annual General Meeting.
At the employees representatives meeting of the Company held on 28 June 2013, Mr. Li Ruiting was elected
as Supervisor representing the employees of the 7th Session of the Supervisory Committee of the Company.
At the 2012 Annual General Meeting held on 28 June 2013, Mr. Lui Sai Kit Eddie and Ms. Wong Sin Yue Cynthia
were elected as Supervisors representing the Shareholders, and Mr. Feng Wanguang resigned as Supervisor
representing the employees on the same day.
42
For details, please refer to relevant announcements published on China Securities Journal, Securities Times,
Shanghai Securities News and CNINFO (www.cninfo.com.cn) and the websites of Hong Kong Stock Exchange
(www.hkexnews.hk) and the Company (www.cimc.com) on 28 June 2013.
Name Position
Appointment
or Removal Date of change
Reason for
the change

Ding Huiping Independent non-executive
Director
Retired due to
term expiration
28 June 2013 Retired due to
term expiration
Jin Qingjun Independent non-executive
Director
Retired due to
term expiration
term expiration
Xu Jingan Independent non-executive
Director
Retired due to
term expiration
term expiration
Feng Wanguang Supervisor representing the
employees
Retired due to
term expiration
term expiration
Li Kejun Independent non-executive
Director
Appointment 28 June 2013 Appointment
Pan Chengwei Independent non-executive
Director
Wong Kwai Huen, Albert Independent non-executive
Director
Li Ruiting Supervisor representing the
employees
Note: Non-executive Director Wang Xingru already resigned on 19 July 2013.
5.3 CHANGES IN INFORMATION OF DIRECTORS AND SUPERVISORS
Under the disclosure requirements of Rule 13.51B(1) of the Hong Kong Listing Rules, the changes in information
of Directors and Supervisors during the Reporting Period are as follows:
Mr. Li Kejun, the independent non-executive Director of the Company, has been appointed as an independent
director of Weichai Heavy-duty Machinery Co., Ltd. (a company list on the Shenzhen Stock Exchange with stock
code: 000880) in May 2013, and as an independent director of Jiangsu Sinopacific Shipbuilding Group Co., Ltd. in
June 2013.
Interim Report 2013
43
VI. REPORT OF THE BOARD
6.1 REVIEW OF RESULTS OF OPERATIONS DURING THE REPORTING PERIOD AND
THE BUSINESS PROSPECTS OF THE COMPANY
For review of results of operations during the Reporting Period and the business prospects of the Company,
please refer to II. Summary of Accounting Data and Financial Indicators and III. Managements Discussion and
Analysis in this Report.
6.2 INVESTMENT OF THE COMPANY
6.2.1 External Equity Investments
(1) External Investments
External Investments
Investments in the Reporting Period
(RMB thousand)
Investments in
the corresponding
period of last year
(RMB thousand) Change (%)
408,667
Investees
Company name Principal activities
The Companys
share percentage
of interest in
investees (%)
Zhenhua Logistics Group Co., Ltd. Transportation
of goods, etc.
36.78%
(2) Equity investment in Financial institutions
Company name Company type
Initial
investment
cost (RMB
thousand)
Number
of shares
held at the
beginning of
the Reporting
Period (share)
Shareholding
at the
beginning of
the Reporting
Period (%)
Number of
shares held
at the end of
the Reporting
Period (share)
Shareholding
at the end of
the Reporting
Period (%)
Book value
at the end of
the Reporting
Period (RMB
thousand)
Profit or loss
during the
Reporting
Period (RMB
thousand)
Classification
in accounts
Source of
shareholding
Bank of
Communications
Schroder
Non-listed financial
institutions
8,125 5% 5% 8,125 Long-term
equity
investment
Legal person
shares
Total 8,125 8,125
44
(3) Securities Investment
Securities Stock code
Abbreviation of
stock name
Initial
investment
cost (RMB
thousand)
Number
of shares
held at the
beginning of
the Reporting
Period (000)
Shareholding
at the
beginning of
the Reporting
Period (%)
Number of
shares held
at the end of
the Reporting
Period (000)
Shareholding
at the end of
the Reporting
Period (%)
Book value
at the end of
the Reporting
Period (RMB
thousand)
Profit or loss
during the
Reporting
Period (RMB
thousand)
Classification
in accounts
Source of
shareholding
Shares 600016 Minsheng
Bank
10,440 1,000 0.0035% 8,570 (1,870) Financial
assets held
for trading
Acquired from
secondary
market
Shares 200581 Su Weifu-B 49,471 3,000 0.44% 500 0.07% 10,753 3,346 Financial
assets held
for trading
Acquired from
secondary
market
Shares 368 Sinotrans Ship H 20,076 2,997 0.08% 2,997 0.08% 4,440 (48) Financial
assets held
for trading
Acquired from
secondary
market
Shares G05.SI GoodPack 100,764 13,500 2.58% 13,500 2.58% 103,975 (23,071) Financial
assets held
for trading
Acquired from
secondary
market
Other securities investment held at
the end of the Reporting Period
412
Profit or loss from securities investment
sold during the Reporting Period
(15,934)
Total 180,751 19,497 17,997 128,150 (37,577)
On 30 June 2013, the balance of other financial assets available-for-sale of the Group represented equity
investments to China Merchants Bank Co., Ltd., China Merchants Securities Co., Ltd. and Otto Energy Limited,
amounting to RMB133,702,000, RMB436,576,000 and US$912,000 (equivalent to approximately RMB5,635,000),
respectively.
6.2.2 Entrusted wealth management, derivatives investment and entrustment loans
(1) Derivatives investment
Unit: RMB thousand
Name of the
derivatives
investment operator
Affiliated
relations
Related
party
transaction
or not
Type of
derivatives
investment
Initial
investment
amount of
derivatives
investment
Date of
commencement
Date of
termination
Investments
at the
beginning of
the Reporting
Period
Provision for
impairment
(if any)
Investments
at the end
of the
Reporting
Period
Proportion of
investments
at the end of
the Reporting
Period to
net assets of
the Company
at the end of
the Reporting
Period (%)
Actual
profit
or loss
during the
Reporting
Period
HSBC/Standard
Chartered/China
Merchants Bank, etc.,
Nil No Foreign exchange
forward contract
7 August 2012 23 December 2014 3,008,961 4,337,966 22.13% 8,686
China Development
Bank/China
Construction Bank
Nil No Interest rate swap
contract
21 December 2008 29 December 2018 1,005,680 803,231 4.10% 55,628
Total 4,014,641 5,141,197 26.23% 64,314
Interim Report 2013
45
Source of funds of derivatives investment Self-funded.
Risk analysis of positions in derivatives during the
Reporting Period and explanations of risk control
measures (including but not limited to market risk,
liquidity risk, credit risk, operation risk, legal risk
etc.)
As at 30 June 2013, the derivative financial instruments held by
the Group mainly consisted of foreign exchange forward and
interest rate swap contracts. The risks in interest rate swap
contracts are closely related to interest rate fluctuations. Foreign
exchange forwards are exposed to the risks in foreign currency
markets and the certainty of the Groups future foreign currency
cash i nfl ows. The Group exerci ses control over deri vati ve
financial instruments mainly through: prudently choosing and
deciding on the type and quantity of additional derivative
financial instruments; and establishing strict and standard
internal approval system and operational process for derivative
transactions, where the approval and authorization procedures
at relevant levels are clearly defined to control the associated
risks.
Changes in market price or product fair value of
derivatives invested during the Reporting Period,
where specific methods and relevant assumptions
and parameters used shall be disclosed in the
analysis of derivatives fair value
During the Reporting Period, the Groups derivative financial
instruments recorded fair value gains/losses of RMB64.314
million. The fair values of the Groups derivative financial
instruments are determined based on the quoted market prices
from external financial institutions.
Explanations of any significant changes in the
Companys accounti ng pol i ci es and speci fi c
accounting principles on derivatives between the
Reporting Period and the last reporting period
Nil
Specific opinions of independent Directors on
the derivatives investment and risk control of the
Company
Independent Directors believe that in accordance with the
regulations and requirements of regulatory authorities, the
Company has followed the principle of prudence and established
sound internal approval system and operational process to
manage its derivative investments, and the risk control is
effective.
(2) Entrustment loans
During the Reporting Period, the Company had no entrustment loans.
6.2.3 Principal subsidiaries and associates
Please refer to the relevant information in the section headed Analysis of Principal Operations under
III. Managements Discussion and Analysis in this Report for details of the operations principal subsidiaries and
associates.
The details on the subsidiaries that began and ceased to be consolidated into the accounts of the Company
during the Reporting Period are set out in note IV.4 to the Financial Report prepared in accordance with CASBE
as set out in this Report.
46
6.2.4 Significant Projects using funds other than raised proceeds
Event
Total amount
of investment
(RMB000)
Amount of
investment
during the
Reporting Period
(RMB000)
Actual amount of
investment as at
the end of the
Reporting Period
(RMB000) Progress
Acquisition of 36.78% equity
interest in Zhenhua Group 710,811 408,667 710,811 Completed
6.3 ESTIMATE ON THE OPERATING RESULTS FOR THE PERIOD FROM JANUARY TO
SEPTEMBER 2013
Based on the Companys reasonable estimates, the possibility that the accumulated net profit made during
the period from the beginning of the year to the end of the next reporting period turns to a loss or records a
significant change when compared to the same period of last year is relatively remote.
6.4 IMPLEMENTATION OF PROFIT DISTRIBUTION OF THE COMPANY DURING THE
REPORTING PERIOD
During the Reporting Period, the proposed profit distribution plan for 2012 was passed at the 2012 Annual
General Meeting on 28 June 2013 in accordance with the relevant requirements of the Articles of Association
of the Company: the Company paid a cash dividend of RMB2.30 (inclusive of tax) for every 10 shares to
Shareholders, totalling RMB612,351,091.73, which was calculated based on total share capital of 2,662,396,051
shares of the Company as at the end of 2012. The Company completed the payment of the 2012 final dividend on
15 August 2013.
6.5 PLAN FOR PROFIT DISTRIBUTION OR CONVERSION OF CAPITAL RESERVE
FUND INTO SHARE CAPITAL
During the Reporting Period, the Company did not have any plan for profit distribution or conversion of capital
reserve fund into share capital
6.6 MAJOR CUSTOMERS AND SUPPLIERS
During the Reporting Period, the aggregate purchase attributable to the five largest suppliers of the Group was
RMB2,111.029 million, representing approximately 28.68% of the Groups total purchase.
During the Reporting Period, the aggregate revenue derived from the five largest customers was RMB4,657.835
million, representing approximately 16.29% of the Groups total operating revenue.
None of the Directors, Supervisors and their associates or shareholders (who to the knowledge of the Directors
were holding 5% or more of the Companys share capital) had any interest in any of the above-mentioned
suppliers and customers.
Interim Report 2013
47
6.7 OPERATIONS OF THE BOARD OF DIRECTORS
6.7.1 The convening of Board meetings and special committee meetings and the issues resolved
During the Reporting Period, the Board of Directors has convened six Board meetings and passed the following
resolutions:
Name of meeting Date of meeting Resolution considered
The first meeting of the
Sixth Board of Directors for 2013
31 January 2013 Resolution on reverse merger and acquisition of
Pteris by injecting the interests in CIMC Tianda
The second meeting of the
21 March 2013 1. Resolution on the second meeting of the
2. Resolution on financing arrangements for
2013
3. Resolution on application for destroying part
of the accounting files for 1981 to 1993
4. Resolution on the revision of annual caps
for continuing connected transaction with
COSCO Pacific proposed at the shareholders
general meeting for approval
5. Resolution on implementation of day-to-day
related party transactions in 2012
The third meeting of the
23 April 2013 1. Resolution on provision of external
guarantee by the member of the Group
applied by CIMC Finance Company Ltd.
2. Resolution on provision of credit guarantee
by CIMC Vehicle and its controlling
subsidiaries to their respective dealers and
customers
3. Resolution on provision of guarantee by
CIMC Vehicle to its subsidiaries in respect of
bank facilities
4. Resolution on provision of guarantee to
subsidiaries in respect of bank facilities and
projects for 2013
5. Resolution on the third meeting for 2013
The fourth meeting of the
26 April 2013 Resolution on the report for the first quarter of
2013
The fifth meeting of the
28 June 2013 No resolution
Seventh Board of Directors for 2013
28 June 2013 Resolution on the first meeting for 2013
48
Audit Committee
During the Reporting Period, the Audit Committee held two meetings by way of passing written resolution:
sixth session for 2013
8 March 2013 No resolution
20 March 2013 1. Audit opinion on the Internal Control and
Self-Appraisal Report of CIMC in 2012
2. Audit opinion on the implementation of day-
to-day related party transactions in 2012
3. Audit opinion on the assessment of work of
accounting firm and the recommendation of
auditing institution for 2013
4. Audit opinion on the continuing connected
transaction with COSCO Pacific and the
newly amended annual caps proposed at the
shareholders general meeting for approval
5. Audit opinion on the financial report of 2012
of the Company
Remuneration and Appraisal Committee
During the Reporting Period, the Remuneration and Appraisal Committee held two meetings:
20 March 2013 Audit opinion on the disclosure of remuneration
of the Directors, Supervisors and Senior
Management of the Company
25 June 2013 No resolution
Nomination Committee
During the Reporting Period, the Nomination Committee did not hold any meeting.
Strategic Committee
The Strategic Committee of the Company held various meetings from time to time to discuss important matters
of the Company. At the same time, the Companys investment review committee under the Strategic Committee
also held 2 meetings to give full evaluations on the Companys major investments and acquisitions, which
provided a strong basis for the decision of the Board of Directors.
Interim Report 2013
49
6.7.2 Members of the Board of Directors and attendance rate of Directors
Position Name Attendance Rate (%)
Chairman Li Jianhong 100%
Vice Chairman Xu Minjie 100%
Executive Director Mai Boliang 100%
Non-executive Director Wang Hong 100%
Non-executive Director Wang Xingru (Note 2) 67%
Independent non-executive Director Ding Huiping (Note 1) 100%
Independent non-executive Director Jin Qingjun (Note 1) 100%
Independent non-executive Director Xu Jingan (Note 1) 100%
Independent non-executive Director Li Kejun 100%
Independent non-executive Director Pan Chengwei 100%
Independent non-executive Director Wong Kwai Huen, Albert 100%
Note 1: Ding Huiping, Jin Qingjun and Xu Jingan resigned as the independent non-executive Directors on 28 June 2013.
Note 2: Wang Xingru resigned as the non-executive Director on 19 July 2013.
6.8 SHARE INCENTIVE AND SHARE OPTION SCHEME
6.8.1 Summary of Share Option Incentive Scheme
(1) Share Option Scheme of the Company:
To establish and improve an incentive-constraint mechanism, and effectively combine the interests of the
shareholders, the interests of the Company and the personal interests of individuals, a Share Option Scheme of
China International Marine Containers (Group) Co., Ltd. (the CIMC Share Option Scheme) was considered and
approved at the Extraordinary General Meeting of the Company on 17 September 2010. According to such plan,
54,000,000 share options and the second tranche of 6,000,000 share options were registered on 26 January 2011
and 17 November 2011, respectively. For details, please refer to the relevant announcements published on the
websites of the Shenzhen Stock Exchange and the Company as well as the 2012 Annual Report of the Company.
The first batch of the aforesaid share options has been exercisable since 28 September 2012. As at 30 June 2013,
the amount of share options already exercised was 0, representing 0.00% of the total amount of share options
under the CIMC Share Option Scheme.
(2) The Share Incentive Plan of CIMC Enric, a subsidiary of the Company:
CIMC Enric, a subsidiary of the Company, has adopted a share option plan according to the ordinary resolution
passed at its extraordinary general meeting held on 12 July 2006. The plan aims to reward and give back to
employees and directors of CIMC Enric and other eligible persons for their contributions to CIMC Enric. On
11 November 2009, CIMC Enric granted share options to several eligible persons according to the scheme to
subscribe for 43,750,000 ordinary shares with par value of HK$0.01 per share in the share capital of CIMC Enric in
total (2009 Enric Share Option); CIMC Enric granted share options to several eligible persons on 28 October 2011
according to the scheme to subscribe for 38,200,000 ordinary shares with par value of HK$0.01 per share in the
share capital of CIMC Enric in total (2011 Enric Share Option). Please refer to the relevant announcements of
CIMC Enric published on the website of Hong Kong Stock Exchange and the 2012 annual report of the Company
published on the websites of Shenzhen Stock Exchange, the Hong Kong Stock Exchange and the Company for
details.
As at 30 June 2013, a total of 3,350,000 share options of the 2009 Enric Share Options and 2,350,000 share
options of the 2011 Enric Share Options were lapsed, respectively.
50
(3) The Equity Trust Scheme of CIMC Vehicle:
An equity trust scheme of CIMC Vehicle was considered and approved at the general meeting of the Company
on 17 October 2007 for implementation (the CIMC Vehicle Equity Trust Scheme). Pursuant to the scheme, the
senior management related to the vehicle business of the Company and the key employees of the Companys
subsidiary CIMC Vehicle (the CIMC Vehicle Scheme Participants) held 20% equity interests in CIMC Vehicle by
capital increase of RMB220.7 million through Shenzhen International Trust & Investment Co., Ltd. (
). Please refer to the relevant announcements and the 2012 annual report of the Company
published on the websites of the Shenzhen Stock Exchange and the Company for details.
As at 30 June 2013, the CIMC Vehicle Equity Trust Scheme had distributed 214,860,000 share options, representing
97.35% of the total trust scheme.
6.8.2 Implementation of Share Incentive Scheme of the Company and its Influence
Scope of participants during the
Reporting Period
The first tranche of 54,000,000 share options granted to
181 senior management and key technical personnel of the
Company; the second tranche of 6,000,000 share options
granted to 48 key techni cal personnel and mi ddl e-l evel
management.
Total equity granted during the
Reporting Period (share)
0
Total equity exercised during the
0
Total equity cancelled during the
0
Total equity lapsed during the
0
Total equity granted but outstanding
at the end of the Reporting Period on a
cumulative basis (share)
60,000,000
Total equity granted and exercised
at the end of the Reporting Period on a
cumulative basis (share)
0
Adjustments to grant price and exercise
price during the Reporting Period and
latest grant price and exercise price
after such adjustments
The initial exercise price for the first tranche was RMB12.39
which was adjusted to RMB11.58 after implementation of
the dividend distribution proposals for 2010 and 2011; the
initial exercise price for the second tranche was RMB17.57
which was adjusted to RMB17.11 after implementation of
the dividend distribution proposal 2011. During the Reporting
Period, there was no adjustment to the exercise price.
Interim Report 2013
51
Grant and Exercise of Interest of Directors,
Supervisors and Senior Management during the Reporting Period
Name Position
Number of
granted interest
during the
Reporting Period
(share)
Number of
exercised interest
during the
Reporting Period
(share)
Number of
outstanding
interest at the end
of the Reporting
Period (share)
Mai Boliang President, Executive
Director
0 0 3,800,000
Zhao Qingsheng Vice President 0 0 1,500,000
Liu Xuebin Vice President 0 0 1,500,000
Wu Fapei Vice President 0 0 1,000,000
Li Yinhui Vice President 0 0 1,000,000
Yu Ya Vice President 0 0 1,000,000
Zhang Baoqing Vice President 0 0 1,000,000
Yu Yuqun Secretary to the Board 0 0 1,000,000
Jin Jianlong General Manager of
Finance Department
0 0 1,000,000
Zeng Beihua General Manager of
Treasury Department
0 0 1,000,000
Li Ruiting Supervisor 0 0 1,300,000
Equity changes arising from exercise by participants
Measurement of fair value of equity instrument Fair value of share option is estimated based on the
binomial lattice model. Contract term of the share
option is used as the input variable of this model, and
the binomial lattice model includes estimation of early
exercise of the option.
Valuation model, parameters and selection criteria
Apportion period and result for fair value of
equity instrument
Note: Mr. Li Ruiting was granted the share options on 28 September 2010. He was elected as the Supervisor representing the employees at the election held at
the employees meeting on 28 June 2013.
6.9 INTERESTS IN COMPETING BUSINESS
None of the substantial shareholders, Directors, Supervisors and Senior Management and their respective
associates (as defined in the Hong Kong Listing Rules) of the Company were interested in any business which
competes or may compete with businesses of the Group.
52
6.10 REPURCHASE, SALE OR REDEMPTION OF SECURITIES
The Group did not repurchase, sell or redeem any of the securities of the Company during the Reporting Period.
6.11 SUFFICIENCY OF PUBLIC FLOAT
Based on the public information of the Company and within the knowledge of the Directors, the Directors
confirmed that the public float of the Company satisfied relevant requirements under the Hong Kong Listing Rules
as at the date of this Report.
6.12 SOCIAL RESPONSIBILITY
In the first half of 2013, the Group continued to implement the vision and strategy of corporate social
responsibility, with its commitment to the harmonious, sustainable development of the economy, society and
environment as guided by the scientific development concept, endeavouring to lift the social responsibility
project to a new level.
The Company continued to maintain healthy development and was still managed to achieve satisfactory
operating results under a complex and difficult external environment to create value for shareholders and
make contributions to local economic growth and employment as well as community development. In line
with its actual situations, the Company incorporated the concept of social responsibility into its development
strategies and daily operations; accelerated the pace of development of the emerging industries; accelerated
updating and upgrading of internal obsolete production capacity to enhance equipment manufacturing level
and automation level for improving overall labour production efficiency; stepped up the push for the lean ONE
Model to enhance delicacy management level; solved the bottleneck problems in a proactive approach by means
of new industrialization, such as environment and resources constraints over industrial development; further
implemented the people-oriented and mutual business cultural philosophy to provide staff with a better return
and promote staff development; stepped up investment to push forward R&D of new products, conducted
studies on the application of various new technologies, new materials and new procedures, and established a
collaborative product R&D and market development system; and extended services to provide customers with
professional industry solutions and to enhance value creativity and industrial competitiveness.
The Company donated a complex removable miniature hospital to the earthquake stricken area in Yaan in April
2013. The modularized construction products of the Company have played an indispensable role during the
disaster relief and recovery and thus receiving wide social attention and recognition.
6.13 RELATIONSHIPS WITH INVESTORS
6.13.1 Effective market communication and interaction
During the first half year of 2013, the Company continued to actively carry out sincere communications with
investors and analysts by a variety of means including results presentation and road shows, and achieved more
than 28 times of communication with analysts and fund managers.
Interim Report 2013
53
6.13.2 Reception of investors for research, communication and interviews during the Reporting
Period
Date of reception Venue of reception Mode
Type of party
received Party received
Main topics of
discussion and
information provided
7 January 2013 Company Field research Organization UBS Bu siness structure
of the Company,
recent industrial
developments, main
business situations
and investment
progress of the
Company, as well as
industry outlook in
2013
11 January 2013 Company Field research Organization RBC Investment Banking Same as above
14 January 2013 Company Field research Organization First Capital, China Life
Insurance, China Merchants
Securities, Morgan Stanley
Huaxin and Sun Life
Everbright Life
Same as above
15 January 2013 Company Field research Organization Harvest Fund Same as above
21 January 2013 Company Field research Organization UBS International Same as above
25 January 2013 Company Field research Organization CITIC Securities Same as above
28 January 2013 East factory Field research Organization Morgan Stanley and BNP Paribas Same as above
29 January 2013 Company Field research Organization HSBC and Standard Chartered
Bank
Same as above
31 January 2013 Company Field research Organization Morgan Stanley and Barclays
Bank
Same as above
31 January 2013 Zhangjiagang and
Nantong
Field research Organization UBS International and Merrill
Lynch
Same as above
4 February 2013 Company Field research Organization HSBC and Atlantis Investment Same as above
5 February 2013 Company Field research Organization Deutsche Bank Same as above
22 March 2013 Hong Kong Field research Organization Securities analysts and fund
managers
Re sults representation
regarding 2012
Annual Report
25 March 2013 Hong Kong Field research Organization Morgan Stanley, HSBC and their
customers
Ro ad show of annual
results of 2012
28 March 2013 Singapore Field research Organization Goldman Sachs and its
customers
Ro ad show of annual
results of 2012
9 April 2013 Yantai Field research Organization DnB, Moon Capital and Religare
Capital
Re cent industrial
developments, main
business situations
and investment
progress of the
offshore engineering
business, as well as
industry outlook in
2013
54
Type of party
Main topics of
discussion and
10 April 2013 Company Field research Organization Shenyin Wanguo Bu siness structure
of the Company,
recent industrial
developments, main
business situations
and investment
progress of the
Company, as well as
industry outlook in
2013
19 April 2013 Company Field research Organization Jefferies and its customers, USB
and its customers
Same as above
6 May 2013 East factory Field research Organization Guoyuan Securities, Perritex
Investment (),
Eastern Bay Investment,
Yingtai Investment (
) and Shanghai Rising
Investment
Same as above
21 May 2013 East factory Field research Organization Daiwa Securities Same as above
23 May 2013 Company Field research Organization UBS Same as above
30 May 2013 Company Field research Organization Soochow Securities Same as above
4 June 2013 Company Field research Organization Neuberger Berman Same as above
6 June 2013 Yantai Field research Organization Guosen Securities, Shanghai
Changxin Asset Management
(), Taikang
Assets, DM capital, Everbright
Pramerica, Merrill Lynch,
Essence Securities, Huatai
Securities, Haitong Securities,
Rising Investment, Shenzhen
Perritex Investment(
), Caida Securities,
BOCI Securities, Yingtai
Investment (),
Harvest Fund, Guotai Fund,
Hong Yuan Securities and
Panther Asset Management
Recent industrial
developments,
main business
situations and
investment
progress of
the offshore
engineering
business, as
well as industry
outlook in 2013
Interim Report 2013
55
Type of party
Main topics of
discussion and
7 June 2013 Wuhu Field research Organization Guosen Securities, Guotai Fund,
Taikang Assets, Everbright
Pramerica, Merrill Lynch,
Essence Securities, Huatai
Securities, Everbright
Securities, Haitong Securities,
Rising Investment, Shenzhen
Perritex Investment (
), Caida Securities,
BOCI Securities, Hong Yuan
Securities, Jefferies and its
customers
Recent industrial
developments,
main business
situations and
investment
progress of the
heavy truck
business, as
well as industry
outlook in 2013
18 June 2013 Langfang Field research Organization Everbright Securities, China Re
Asset, Infore Capital, Wanjia
Fund, Essence Securities,
Huatai Securities, Haitong
Securities, Golden Nest
Capital, China Merchants
Securities, BOCI Securities,
HuaChuang Securities,
Shenyin Wanguo, Shanghai
Sunflower Investment (
), Shanghai Elegant,
CICC, J.P. Morgan, Guotai
Junan, GF securities, Guoyuan
Securities (Hong Kong), CICC
and Bosera Funds
Re cent industrial
developments, main
business situations
and investment
progress of the
energy and chemical
business, as well as
industry outlook in
2013
19 June 2013 Zhangjiagang Field research Organization Everbright Securities, China Re
Asset, Infore Capital, Wanjia
Fund, Essence Securities,
Huatai Securities, Haitong
Securities, Golden Nest
Capital, China Merchants
Securities, BOCI Securities,
HuaChuang Securities,
Shenyin Wanguo, Shanghai
Sunflower Investment (
), Shanghai Elegant,
CICC, J.P. Morgan, Guotai
Junan, GF securities, Guoyuan
Securities (Hong Kong) and
Bosera Funds
Same as above
26 June 2013 Shanghai Field research Organization Merrill Lynch and Nomura Asset
Management
Business structure
of the Company,
recent industrial
developments, main
business situations,
investment progress
and industry outlook in
2013
56
VII. SIGNIFICANT EVENTS
7.1 CORPORATE GOVERNANCE
Overview
During the Reporting Period, the Company strictly complied with related national regulations and new laws and
regulations as well as documents introduced by the China Securities Regulatory Commission, the CSRC Shenzhen
Bureau, the Shenzhen Stock Exchange and the Hong Kong Stock Exchange, constantly enhanced the corporate
governance, and kept the Companys operation standardised. During the Reporting Period, the Company revised
Rules and Procedures of the Shareholders General Meeting, Rules and Procedures of the Board of Directors and
Rules and Procedures of Supervisory Committee, reviewed the previous establishment of and actual work on the
internal control and risk management system of the Company, ascertained the plans for recent internal control of
the Company and the objectives, principles and tasks for long-term internal control of the Company.
In the first half of 2013, the Company continued the implementation of internal control and regulation. Last year,
the establishment progress of the corporate internal control system surpassed the 80% mark; on such basis, the
Company will strive to introduce the corporate internal control system to almost all entities within 2013. In the
first half of the year, business segments, such as logistics, real estate, energy and chemical, vehicles and finance,
have devised monthly plans under the guidance of the headquarters of the Group, and the plans were initiated;
the Company continued to press ahead the four key internal control tasks arranged in 2012, i.e. the internal
control talent fostering system, hierarchical preparation of internal control manual, standard internal control
project and E-KRI key risk indicators, achieving preliminary success.
Appointed as one of the 22 key enterprises for the 2011 CSRC Shenzhen Bureau pilot program of the Basic
Norms for Enterprise Internal Control (Norms for Internal Control) and related ancillary guidelines, the Company,
with reference to requirements of the Norms for Internal Control, successively revised the Regulations on
Raised Funds, the Insider Registration and Management System and the Administrative Rules for Related Party
Transactions.
Compliance with the Corporate Governance Code
The Company has complied with the code provisions under the Corporate Governance Code set out in Appendix
14 of the Hong Kong Listing Rules during the Reporting Period.
The Board of Directors and Its Operation
During the Reporting Period, the shareholders general meeting, the Board of Directors, the Supervisory
Committee and each special Board committee of the Board of Directors duly performed their own duties and
operated in a proactive manner, which guaranteed the Companys robust operation in compliance with rules
and its sustained healthy development. During the Reporting Period, the Company held 17 meetings of various
natures. Among them were one shareholders general meetings, six meetings of the Board of Directors, six
meetings of the special Board committees of the Board of Directors and four meetings of the Supervisory
Committee. Please refer to the section of Operations of the Board of Directors under VI. Report of the Board
in this Report.
The Audit Committee
The Company has appointed independent non-executive Directors and established the Audit Committee pursuant
to the requirements of the Hong Kong Listing Rules. At the end of the Reporting Period, the members of the Audit
Committee under the Board of Directors consisted of Mr. Pan Chengwei (Chairman of the Audit Committee under
the Board of Directors with professional qualifications and experience in relation to financial management such
as accounting), Mr. Li Kejun and Mr. Wong Kwai Huen, Albert. On 26 August 2013, the Audit Committee reviewed
the interim financial report of the Company and its subsidiaries for the six months ended 30 June 2013, and
agreed to present the same to the Board of Directors for consideration.
Interim Report 2013
57
Compliance with the Model Code by Directors, Supervisors and Employees Concerned for
Securities Transactions
The Company has adopted the standards prescribed in the Model Code contained in Appendix 10 of the Hong
Kong Listing Rules as the code of conduct in dealing in shares of the Company by Directors and Supervisors. After
inquiries, all the Directors and Supervisors confirmed that they had complied with the Model Code contained in
Appendix 10 of the Hong Kong Listing Rules and adopted by the Company during the Reporting Period.
Save for the work relationship inside the Company, there was no relationship among the Directors, the
Supervisors and the senior management in respect of financial affairs, businesses, family members and other
aspects of significance.
Save for the service contracts entered into with the Company, the Directors and the Supervisors of the Company
had no personal beneficial interests, directly or indirectly, in any material contracts entered into by the Company
or its subsidiaries in the first half of 2013.
Independence of and separation from the substantial shareholders
The Company is independent of its substantial shareholders: China Merchants Group Limited and China
Ocean Shipping (Group) Company and their respective subsidiaries in respect of business, personnel, asset,
organizational structure and finance. The Company has independent and comprehensive business operations and
management capabilities.
The shareholders general meeting
Duri ng the Reporti ng Peri od, the Company hel d the 2012 annual general meeti ng on 28 June 2013
i n Shenzhen. The noti ce, conveni ng, hol di ng and pol l i ng procedures were i n compl i ance wi th the
relevant requirements of the PRC Company Law, the Articles of Association and the Hong Kong Listing
Rules. The announcement on the related resolutions of the meeting was published on 29 June 2013
in China Securities Journal, Shanghai Securities News, Securities Times and on the websites of cninfo
(http://www.cninfo.com.cn), and on 28 June 2013 on the websites of the Hong Kong Stock Exchange
(http://www.hkexnews.hk) and the Company (http://www.cimc.com).
The operation of the Supervisory Committee
During the Reporting Period, three meetings of the Sixth Session and one meeting of the Seventh Session of
the Supervisory Committee of the Company were held with 9 resolutions reviewed and 2 events briefed. The
Supervisory Committee was in attendance at two on-site meetings of the Board of Directors, and attended one
shareholders general meeting.
During the Reporting Period, each operation of the Company was in compliance with rules, and the Company will
continue to prioritise the establishment of the internal control system and step up efforts to improve corporate
governance in strict accordance with the requirements of the PRC Company Law, the PRC Securities Law, the
Hong Kong Listing Rules and the related laws and regulations, so as to raise the level of standardized operation
of the Company and achieve the sustainable development of the Company.
58
7.2 INTERNAL CONTROL AND INTERNAL AUDIT
In the first half of 2013, the Company examined the operation of the internal control system of each of its
subsidiaries, and the results of the examination had passed the review of the Internal Control Committee; the
Internal Control Committee of the Company held the first meeting in 2013, at which the Committee was briefed
on the work progress of the Companys internal control in 2012 and the plan for the work in 2013 which was
approved after the review of the Audit Committee of the Board of Directors; the Company began amending the
existing systems for internal control and internal review, in the hope of formulating systems that could adapt to
the new situation as soon as possible; the Company organized each department to prepare a self-assessment
report on internal control for 2012, and PricewaterhouseCoopers Zhong Tian CPAs Limited completed internal
control and audit works and issued unqualified opinions on internal control; the Company prepared its work
conference on internal control and internal review for 2013, systematically summarised the work on internal
control and internal review since 2012, solicited opinions on the amendment to the internal control and internal
review system under the layered management, interpreted the COSO New Framework on international internal
control, summarized and exchanged views on the work development of the four key internal control tasks, and
invited external experts to offer professional enhancement training and give suggestions on the arrangement of
the future work for the deepening of internal control.
The Company continued to achieve overall coverage of the internal control system, and set the 2013 objectives
to achieve such goal. In the first half of the year, business segments devised monthly plans under the guidance
of the headquarters of the Group, and implemented the plans; the Company continued to push forward the four
key internal control tasks, i.e. the internal control talent fostering system, preparation of hierarchical internal
control manual, standard internal control project and E-KRI key risk indicators planned in the 2012; teamed
up with professional functional departments, the Company and such departments jointly deepened the ad
hoc management of risks in enterprise acquisition, procurement business, employment and cost control; the
Company welcomed the visits of professional parties of external companies, and conducted in-depth exchanges;
the Company advocated and implemented the code of conduct for the Directors and employees in the Group, so
as to establish a healthy and transparent system with continued efforts in improving the anti-fraud mechanism.
Interim Report 2013
59
7.3 MATERIAL LITIGATION AND ARBITRATION EVENTS
Basics of the
Litigation
(Arbitration)
Amounts
involved
Expected
liabilities
generated
or not
Progress on
the Litigation
(Arbitration)
Trial decisions
of the Litigation
(Arbitration) and
its impacts
The
enforcement
of the trial
decisions of
the Litigation
(Arbitration)
Disclosure
date
Disclosure
index
The semi-
submersible oil
drilling platforms
named SS
Pantanal and
SS Amazonia
built by CIMC
Raffles and its
subsidiaries for
subsidiaries of
Schahin Group
in Brazil were
delivered in
November 2010
and April 2011,
respectively.
CIMC Raffles and
its subsidiaries
also provided
advances
for Schahin
Holdings SA and
its six related
companies for
the construction
of the drilling
platforms.
US $208 million
(equivalent to
approximately
RMB1.3 billion)
No CIMC Raffles and
its subsidiaries
lodged law suit
and arbitration
applications in New
York, the US and
London, the UK
respectively against
Schahin Holdings
SA and its six
related companies.
The Company won
the case in the
US with US$694.7
million being
awarded, pending
performance by the
defendants.
The Company
won the case
in London with
US$19.6 million
being awarded. The
defendants filed an
appeal.
Th e Company is
optimistic on
the litigation
and arbitration
results and will
actively take
legal actions
in favour of
shareholders
interests.
However, as
the case is
still pending,
there are
uncertainties
and the
outcome of
the litigation
may affect the
Companys
profits of 2013
or subsequent
periods to a
certain extent.
Case still
pending

7.4 MATTERS QUESTIONED BY THE MEDIA
None.
7.5 ASSET TRANSACTIONS
7.5.1 Acquisition of assets
For details of the asset acquisitions of the Company during the Reporting Period, please refer to Note IV.6 and 10
to the Financial Report prepared in accordance with CASBE contained in this Report.
60
7.5.2 Disposal of assets
For details of the asset disposals of the Company during the Reporting Period, please refer to Note IV.11 to the
Financial Report prepared in accordance with CASBE contained in this Report.
7.5.3 Corporate mergers
For details of the corporate mergers of the Group during the Reporting Period, please refer to note IV.6 to the
Financial Report prepared in accordance with CASBE in this Report.
7.6 MATERI AL CONNECTED TRANSACTI ONS DI SCLOSED ACCORDI NG TO
SHENZHEN LISTING RULES
7.6.1 Connected transactions in relation to daily operation
Connected
parties
Affiliated
relations
Type of
connected
transaction
Details of
connected
transaction
Pricing principle of
connected transaction
Price of
connected
transaction
Connected
transaction
amount
(RMB000)
Proportion
in amount
of same
type of
transaction
(%)
Connected
transaction
settlement
method
Available
market
price
of similar
transactions
Date of
disclosure
Disclosure
Index
Other connected
parties
Other connected
parties
Purchase of
goods
Purchase of
goods
In compliance with the
approval procedure of
normal non-connected
transactions
130,476 0.54%
Other connected
parties
Other connected
parties
Purchase of
goods
Purchase of
goods
transactions
4,780 0.02%
Key
management
personnel
Key
management
personnel
Payment of
remuneration
for receiving
services
Payment of
remuneration
for receiving
services
9,344
Other connected
parties
Other connected
parties
Sale of goods Sale of
containers/
vehicles
transactions
1,029,673 3.60%
Total 1,174,273
Details of substantial sales return Nil
Projected total amount of continuing connected transactions
during the period by type and actual performance
during the Reporting Period (if any)
Nil
Reason for substantial difference between transaction prices and
referential market prices (if applicable)
N/A
Interim Report 2013
61
7.6.2 Connected transaction in relation to assets acquisition and disposal
During the Reporting Period, the Company had no connected transactions in relation to acquisition and disposal
of assets.
7.6.3 Material connected transaction in relation to joint external investment
During the Reporting Period, the Company had no material connected transactions relating to joint external
investment.
7.6.4 Non-operating creditors and debtors with connected parties
Connected
party Affiliated relations
Type of claims and
liabilities Reason
Whether
non-operating
capital is
being used
or not
Opening
balance
(RMB0000)
Amount
incurred
during the
Reporting
Period
(RMB0000)
Closing
balance
(RMB0000)
Gasfin Minority shareholder
of subsidiaries
Due to related party Proportionate
shareholder loans
No 45,660 2,816 42,844
Shanghai
Fengyang
Associate
of the Group
Due from related party Proportionate
shareholder loans
No 177,482 76,879 100,603
XYW Associate
of the Group
shareholder loans
No 3,953 70 3,883
MSC Associate
of the Group
shareholder loans
No 287,505 4,878 282,627
During the Reporting Period, the Company had no appropriation and settlement of funds.
7.6.5 Other material connected transactions
During the Reporting Period, the Group had no other material connected transactions.
7.7 MATERIAL CONTRACTS AND THE PERFORMANCE THEREOF
7.7.1 Trusteeship, Sub-contracting or Leasing
During the Reporting Period, the Company had no trusteeship, sub-contracting or leasing in relation to assets
of other companies which contributed to more than 10% (including 10%) of the Companys total profits for the
period.
62
7.7.2 Particulars of guarantees
Unit: RMB thousand
External guarantees undertaken by the Company (excluding guarantees provided to its subsidiaries)
Name of guaranteed party
Disclosure date of
the announcement
in relation to the
guaranteed amount
Guaranteed
amount
Actual date of
event (date
of signing the
agreement)
Actual
guaranteed
amount
Type of
guarantee
Duration of
guarantee
Discharged
or not
Whether
in favour of
any related
party
(Yes/No)
Customers and distributors of CIMC Vehicle 24 April 2013 1,900,000 1 January 2013 471,257 Suretyship 1-2 years No No
Guarantee provided by a subsidiary to another
subsidiary
24 April 2013 16,200,000 1 January 2013 4,411,000 Suretyship 1-2 years No No
Total external guaranteed amount approved
during the Reporting Period (A1)
2,409,000 Total actual external guaranteed amount
during the Reporting Period (A2)
482,320
Total external guaranteed amount approved as
at the end of the Reporting Period (A3)
18,100,000 Total balance of actual guaranteed amount
as at the end of the Reporting Period (A4)
4,882,257
Guarantees provided by the Company to its subsidiaries
Name of guaranteed party
Disclosure date of
the announcement
in relation to the
guaranteed amount
Guaranteed
amount
Actual date of
event (date of
signing the
agreement)
Actual
guaranteed
amount
Type of
guarantee
Duration of
guarantee
Discharged
or not
Whether
in favour of
any related
party
(Yes/No)
Subsidiaries of CIMC 24 April 2013 10,845,000 1 January 2013 4,950,000 Suretyship 1-2 years No No
CIMC Hong Kong 24 April 2013 3,065,000 1 December 2011 2,300,000 Suretyship 3 years No No
Total guaranteed amount to its subsidiaries
approved during the Reporting Period (B1)
684,000 Total actual guaranteed amount to its
subsidiaries during the Reporting Period (B2)
1,907,000
Total guaranteed amount to its subsidiaries
approved as at the end of the Reporting
Period (B3)
13,410,000 Total balance of actual guaranteed amount
to its subsidiaries as at the end of the
Reporting Period (B4)
7,250,000
Total guaranteed amount provided by the
Company (being the sum of the above
two major items)
Total guaranteed amount approved
during the Reporting Period (A1 + B1)
3,093,000 Total actual guaranteed amount
during the Reporting Period (A2 + B2)
2,389,320
Total guaranteed amount approved as
at the end of the Reporting Period (A3 + B3)
31,510,000 Total balance of actual guaranteed amount as
at the end of the Reporting Period (A4 + B4)
12,132,257
Ratio of total actual guaranteed amount (A4 + B4) to the net asset of the Company 61,89%
Among which:
Guaranteed amount provided for shareholders, actual controller and their related parties (C) 0
Guaranteed amount provided directly or indirectly to guaranteed parties with gearing ratio exceeding 70% (D) 5,506,190
Total guaranteed amount in excess of 50% of net asset value (E) 2,330,745
Total guaranteed amount of the above three items (C+D+E) 7,836,935
Explanation of assumption of possible joint and several liability for undue guarantees (if any) The guarantor shall assume joint and several liability of repayment if the debtor fails to repay the debts.
Explanation of external guarantees in violation of prescribed procedures (if any) Nil
During the Reporting Period, the Group had no compound guarantees.
Interim Report 2013
63
7.7.3 Other material contracts
During the Reporting Period, the Company had not entered into any other material contract.
7.7.4 Other material transactions
During the Reporting Period, the Company did not have other material transaction.
7.8 ENGAGEMENT AND DISENGAGEMENT OF FIRM OF ACCOUNTANTS
The interim Financial Report contained in this Report have not been audited.
7.9 PENALTIES AND REMEDIES
During the Reporting Period, the Company had not experienced any penalties and remedies.
7.10 EXPLANATION ON OTHER MATERIAL MATERS
(1) On 26 April 2013, the Company entered into a series of memoranda of understanding on investment and
cooperation in Dongguan City with Dongguan Municipal Government and governments of relevant local
districts and towns. For relevant information, please refer to the announcement of China International
Marine Containers (Group) Co., Ltd. in relation to entering into memoranda of understanding on investment
and cooperation with Dongguan Municipal Government (reference no.[CIMC] 2013-015) disclosed in China
Securities Journal, Shanghai Securities News, Securities Times, cninfo website (www.cninfo.com.cn), the
Companys website (www.cimc.com), and the website of the Hong Kong Stock Exchange (www.hkexnews.hk)
on 27 April 2013. As at the date of this Report, no formal agreement or contract has been entered into by
the Company in respect of the above-mentioned memoranda of understanding on cooperation.
(2) During the Reporting Period, the Company planned to proceed with the proposed bond issue. For relevant
information, please refer to the Announcement of China International Marine Containers (Group) Co., Ltd.
in Relation to the Proposed Issuance of US$ Guaranteed Bonds by Its Subsidiary (reference no.[CIMC] 2013-
016) disclosed in China Securities Journal, Shanghai Securities News, Securities Times, cninfo website (www.
cninfo.com.cn), the Companys website (www.cimc.com) and the website of the Hong Kong Stock Exchange
(www.hkexnews.hk) on 3 May 2013. As at the date of this Report, the above proposed bonds have not
been issued.
64
VIII. INDEX TO INFORMATION DISCLOSURE
8.1 INDEX TO INFORMATION DISCLOSURE FOR A SHARES
Event Name of newspaper
Date of
publication
Website and searching
route of publication
CIMC: Announcement in relation to its subsidiary
entering into a memorandum of understanding
with Pteris on acquisitions
China Securities Journal,
Shanghai Securities News and
Securities Times
2013-02-07 http://www.cninfo.com.cn/
CIMC: Announcement in relation to resolutions of
the 1st meeting of the Sixth Session of the Board
of Directors in 2013
Securities Times
CIMC: Announcement in relation to the date of
Board meeting
Securities Times
CIMC: Self-assessment report on internal control
for 2012
Securities Times
CIMC: 2012 Annual Report China Securities Journal,
Securities Times
CIMC: 2012 Corporate Social Responsibility Report China Securities Journal,
Securities Times
CIMC: Summary of 2012 Annual Report China Securities Journal,
Securities Times
CIMC: 2012 Annual Audit Report China Securities Journal,
Securities Times
the 2nd meeting of the Sixth Session of the Board
Securities Times
CIMC: Announcement in relation to resolutions
of the 1st meeting of the Sixth Session of the
Supervisory Committee in 2013
Securities Times
CIMC: Implementation Rules of the Audit
Committee of the Board of Directors (March
2013)
Securities Times
CIMC: Implementation Rules of the Strategy
Committee of the Board of Directors (March
2013)
Securities Times
CIMC: Implementation Rules of the Remuneration
and Appraisal Committee of the Board of
Directors (March 2013)
Securities Times
CIMC: Announcement in relation to audit opinion
on the Self-Assessment Report on CIMCs
Internal Control for 2012 of the Sixth Session of
the Supervisory Committee
Securities Times
CIMC: Work report of independent Directors for
2012
Securities Times
Interim Report 2013
65
Date of
publication
CIMC: Independent Directors specific explanations
and independent opinions on use of funds by
related parties in 2012
Securities Times
CIMC: Independent Directors independent opinions
on the Self-Assessment Report on CIMCs Internal
Control for 2012
Securities Times
CIMC: Independent Directors specific explanations
and independent opinions on guarantees to
external parties in 2012
Securities Times
CIMC: Announcement in relation to implementation
of day-to-day related party transactions in 2012
Securities Times
CIMC: Announcement in relation to the
contemplated day-to-day related party
transactions for 2013 and 2014
Securities Times
on appointment of senior management members
Securities Times
on implementation of day-to-day related party
transactions in 2012
Securities Times
CIMC: Independent Directors specific opinions on
investment in derivative products and relevant
risk control in 2012
Securities Times
CIMC: Special report on use of funds by the
Companys controlling shareholders and other
related parties
Securities Times
CIMC: Internal Control Audit Report China Securities Journal,
Securities Times
on the proposal to the shareholders general
meeting for approval of continuing connected
transactions to be conducted with COSCO Pacific
Limited and revision of annual transaction caps
Securities Times
CIMC: Announcement in relation to the date of
Board meeting
Securities Times
CIMC: Notice of the 2012 annual general meeting China Securities Journal,
Securities Times
CIMC: Rules of procedure of the Supervisory
Committee (April 2013)
Securities Times
66
Date of
publication
CIMC: Announcement in relation to provision of
guarantees to subsidiaries and their respective
dealers and customers in respect of application
for banking facilities for 2013
Securities Times
CIMC: Statement of the parties who nominate
candidates for independent Director (I)
Securities Times
CIMC: Rules of procedure of the shareholders
general meeting (April 2013)
Securities Times
CIMC: Statement of the candidates for independent
Director (Pan Chengwei)
Securities Times
Director (Wong Kwai Huen, Albert)
Securities Times
candidates for independent Director (III)
Securities Times
candidates for independent Director (II)
Securities Times
Director (Li Kejun)
Securities Times
on provision of credit guarantees by CIMC Vehicle
(Group) Co., Ltd. and its subsidiaries to their
respective dealers and customers
Securities Times
on nomination of candidates for the Directors
and Independent Directors of the Seventh
Session of the Board of Directors
Securities Times
on appointment of the accounting firm
Securities Times
CIMC: Rules of procedure of the Board of Directors
(April 2013)
Securities Times
CIMC: Announcement in relation to resolutions
of the 2nd meeting of the Sixth Session of the
Securities Times
the 3rd meeting of the Sixth Session of the Board
Securities Times
Interim Report 2013
67
Date of
publication
CIMC: Main body of First Quarterly Report of 2013 China Securities Journal,
Securities Times
CIMC: Full text of First Quarterly Report of 2013 China Securities Journal,
Securities Times
CIMC: Announcement in relation to entering into
memoranda of understanding on investment
and cooperation with Dongguan Municipal
Government
Securities Times
CIMC: Indicative announcement in relation to
recent progress on its subsidiary entering into
a memorandum of understanding with Pteris on
acquisitions
Securities Times
CIMC: Announcement in relation to proposed
issuance of US$ guaranteed bonds by its
subsidiary
Securities Times
CIMC: Indicative announcement in relation to
change in shareholding of its shareholder
Securities Times
CIMC: Detailed report on the change in equity
interests
Securities Times
CIMC: Condensed report on the change in equity
interests
Securities Times
CIMC: Indicative announcement in relation to the
2012 annual general meeting
Securities Times
CIMC: Legal Opinion on the 2012 annual general
meeting
Securities Times
the 2012 annual general meeting
Securities Times
the 1st meeting of the Seventh Session of the
Securities Times
the 1st meeting of the Seventh Session of the
Board of Directors in 2013
Securities Times
the staff meeting
Securities Times
68
8.2 INDEX TO INFORMATION DISCLOSURE FOR H SHARES
Event Date of publication
Monthly Return of Equity Issuer on Movements in Securities of
CIMC for the month ended 31 December 2012
2013-01-02 http://www.hkexnews.hk/
Monthly Return of Equity Issuer on Movements in Securities for
the month ended 31 January 2013
Announcement of China International Marine Containers
(Group) Co., Ltd. in relation to its subsidiary entering into a
memorandum of understanding with Pteris on acquisitions
the month ended 28 February 2013
Notice of Board Meeting 2013-03-07 http://www.hkexnews.hk/
Results Announcement for the year ended 31 December 2012 2013-03-22 http://www.hkexnews.hk/
Revision of annual caps for continuing connected transaction
for the years ending 31 December 2013 and 2014
the month ended 31 March 2013
Notice of Board Meeting 2013-04-16 http://www.hkexnews.hk/
Delay in dispatch of circular in relation to continuing connected
transaction
Revision of annual caps for continuing connected transaction
for the years ending 31 December 2013 and 2014, general
mandate to issue shares, proposed election and appointment
of Directors and Supervisors and Notice of the Annual
General Meeting
Notice of Annual General Meeting for the year 2012 2013-04-24 http://www.hkexnews.hk/
Form of Proxy for the Annual General Meeting to be held on
Friday, 28 June 2013
Reply Slip 2013-04-24 http://www.hkexnews.hk/
2012 Annual Report 2013-04-24 http://www.hkexnews.hk/
First Quarterly Report of 2013 2013-04-26 http://www.hkexnews.hk/
(Group) Co., Ltd. in relation to entering into memoranda of
understanding on investment and cooperation
the month ended 30 April 2013
Proposed Issuance of US$ Guaranteed Bonds 2013-05-03 http://www.hkexnews.hk/
(Group) Co., Ltd. in relation to recent progress on its
subsidiary entering into a memorandum of understanding
with Pteris on acquisitions
(Group) Co., Ltd. in relation to Change in Shareholding of its
Shareholder
the month ended 31 May 2013
Closure of Register of Members for H Shares Proposed Final
Dividend of 2012
Interim Report 2013
69
IX. INTERIM FINANCIAL REPORT (UNAUDITED)
(I) Auditors opinions
The interim Financial Report has not been audited.
(II) Financial Statements
Consolidated Balance Sheet
At 30 June 2013
(All amounts in RMB000 unless otherwise stated)
(English Translation for Reference Only)
Note
30 June
2013
31 December
2012
Assets
Current assets:
Cash at bank and on hand V.1 3,705,414 5,221,539
Financial assets held for trading V.2 160,570 405,092
Notes receivable V.3 1,246,167 778,109
Accounts receivable V.4 12,725,556 8,238,033
Advance to suppliers V.6 2,520,119 1,213,042
Interest receivable 5,688 14,410
Other receivables V.5 2,729,163 2,114,435
Inventories V.7 17,516,418 18,034,726
Current portion of non-current assets V.8 1,619,432 1,636,332
Other current assets V.9 749,760 690,471
Total current assets 42,978,287 38,346,189
Non-current assets:
Financial assets held for trading V.2 420
Available-for-sale financial assets V.10 575,913 609,751
Long-term receivables V.11 2,738,621 2,540,574
Long-term equity investments V.12 1,465,195 1,913,762
Investment property V.13 284,977 183,668
Fixed assets V.14 12,194,109 11,608,747
Construction in progress V.15 2,683,227 2,279,993
Intangible assets V.16 3,572,211 3,273,750
Goodwill V.17 1,283,876 1,267,162
Long-term prepaid expenses V.18 95,175 47,947
Deferred tax assets V.19 707,899 717,797
Other non-current assets V.20 190,410 203,040
Total non-current assets 25,792,033 24,646,191
Total assets 68,770,320 62,992,380
70
Consolidated Balance Sheet
At 30 June 2013
Note
30 June
2013
31 December
2012
Liabilities and shareholders equity
Current liabilities:
Short-term borrowings V.23 7,540,666 5,438,407
Financial liabilities held for trading V.24 9,640 12,856
Notes payable V.25 843,538 989,710
Accounts payable V.26 8,174,932 7,059,420
Advances from customers V.27 2,535,564 2,722,482
Employee benefits payable V.28 1,908,563 2,019,563
Taxes payable V.29 340,631 747,530
Interest payable V.30 68,989 203,288
Dividends payable V.31 782,117 38,747
Other payables V.32 5,216,363 4,292,597
Provisions V.33 748,163 753,492
Current portion of non-current liabilities V.34 2,538,641 1,261,940
Other current liabilities V.9 2,448,805
Total current liabilities 33,156,612 25,540,032
Non-current liabilities:
Financial liabilities held for trading V.24 34,234 82,242
Long-term borrowings V.35 4,996,681 7,641,785
Debentures payable V.36 6,455,527 6,462,235
Long-term payable V.37 162,885 145,103
Payables for specific projects V.38 535 4,802
Deferred tax liabilities V.19 735,528 650,394
Other non-current liabilities V.39 374,366 348,630
Total non-current liabilities 12,759,756 15,335,191
Total liabilities 45,916,368 40,875,223
Shareholders equity:
Share capital V.40 2,662,396 2,662,396
Capital reserve V.41 1,147,962 930,482
Surplus reserve V.42 3,059,836 3,059,836
Undistributed profits V.43 13,332,416 13,392,795
Difference on translation of foreign currency financial statements (599,586) (532,333)
Total equity attributable to shareholders of the Company 19,603,024 19,513,176
Minority interests 3,250,928 2,603,981
Total equity 22,853,952 22,117,157
Total liabilities and shareholders equity 68,770,320 62,992,380
The accompanying notes form an integral part of these financial statements.
Interim Report 2013
71
Balance Sheet
At 30 June 2013
Note
30 June
2013
31 December
2012
Assets
Current assets:
Cash at bank and on hand XII.1 256,882 447,387
Financial assets held for trading XII.2 8,570 177,450
Dividends receivable XII.3 3,828,729 4,066,711
Other receivables XII.4 11,083,513 10,860,103
Total current assets 15,177,694 15,551,651
Non-current assets:
Available-for-sale financial assets XII.5 570,278 601,356
Long-term equity investments XII.6 6,863,429 6,831,621
Fixed assets 133,948 139,120
Construction in progress 720 4,950
Intangible assets 15,789 15,931
Long-term prepaid expenses 6,854 5,649
Deferred tax assets XII.17 66,101 53,983
Total non-current assets 7,657,119 7,652,610
Total assets 22,834,813 23,204,261
72
Balance Sheet
At 30 June 2013
Note
30 June
2013
31 December
2012
Liabilities and shareholders equity
Current liabilities:
Short-term borrowings XII.7 339,828 465,703
Financial liabilities held for trading XII.8 1,142 8,987
Employee benefits payable XII.9 715,104 657,886
Taxes payable XII.10 8,339 43,493
Interest payable XII.11 37,994 187,691
Dividends payable XII.12 612,351
Other payables XII.13 4,418,962 3,574,947
Current portion of non-current liabilities XII.14 2,535,513 1,257,100
Total current liabilities 8,669,233 6,195,807
Non-current liabilities:
Financial liabilities held for trading XII.8 34,161 81,944
Long-term borrowings XII.15 1,737,000 3,875,845
Debentures payable XII.16 5,992,125 5,990,833
Total non-current liabilities 7,763,286 9,948,622
Total liabilities 16,432,519 16,144,429
Shareholders equity:
Share capital V.40 2,662,396 2,662,396
Capital surplus XII.18 351,703 334,259
Surplus reserve V.42 3,059,836 3,059,836
Undistributed profits 328,359 1,003,341
Total equity 6,402,294 7,059,832
Total liabilities and shareholders equity 22,834,813 23,204,261
Interim Report 2013
73
Consolidated Income Statement
For the period from 1 January 2013 to 30 June 2013
Note
From 1
January to
30 June
2013
From 1
January to
30 June
2012
Item
I. Revenue V.44 28,585,158 27,364,446
II. Cost of sales V.44 24,160,416 23,013,597
Taxes and surcharges V.45 147,141 162,351
Selling and distribution expenses V.46 921,175 863,756
General and administrative expenses V.47 1,714,217 1,655,709
Financial expenses V.48 454,826 236,439
Asset impairment losses V.51 34,838 (24,986)
Add: Profit/(losses) from changes in fair value V.49 9,741 (14,934)
Add: Investment income V.50 (45,117) (3,522)
Including: Share of profit of associates
and joint ventures (64,960) (10,095)
III. Operating profit 1,117,169 1,439,124
Add: Non-operating income V.52 52,760 77,031
Less: Non-operating expenses V.53 9,883 23,104
Including: Income/(loss) on disposal of
non-current assets 1,631 4,705
IV. Total profit 1,160,046 1,493,051
Less: Income tax expenses V.54 444,817 485,373
V. Net profit 715,229 1,007,678
Net profit attributable to equity holders of the Company 551,972 933,710
Minority shareholders 163,257 73,968
VI. Earnings per share
(I) Basic earnings per share (RMB) V.55 0.2073 0.3507
(II) Diluted earnings per share (RMB) V.55 0.2070 0.3495
VII. Other comprehensive income V.56 (65,254) 35,279
VIII. Total comprehensive income 649,975 1,042,957
Total comprehensive income attributable to equity holders
of the Company 465,306 980,741
Total comprehensive income attributable to minority
shareholders 184,669 62,216
74
Income Statement
Note
From 1
January to
30 June
2013
From 1
January to
30 June
2012
Item
I. Revenue XII.19 119,187 233
II. Cost of sales XII.19 17
Tax and surcharges 15,581 11,947
General and administrative expenses 199,845 277,077
Financial expenses 96,775 107,311
Add: Profit/(losses) from changes in fair value XII.20 39,821 3,458
Investment income XII.21 85,810 364,578
III. Operating profit (loss) (67,383) (28,083)
Add: Non-operating income XII.22 665 2,082
Less: Non-operating expenses 262 322
Including: Losses on disposal of
non-current assets 63 (1,319)
IV. Total profit (loss) (66,980) (26,323)
Less: Income tax expenses XII.23 (4,349) (21,606)
V. Net profit (loss) (62,631) (4,717)
VI. Other comprehensive income XII.24 (23,309) 36,809
VII. Total comprehensive income (85,940) 32,092
Interim Report 2013
75
Consolidated Cash Flow Statement
Note
From 1
January to
30 June
2013
From 1
January to
30 June
2012
Item
I. Cash flows from operating activities:
Cash received from sale of goods and
rendering of services 24,572,443 25,950,382
Refund of taxes and surcharges 1,074,747 1,089,739
Other cash received relating to operating activities V.57(1) 256,763 152,728
Sub-total of cash inflows from operating activities 25,903,953 27,192,849
Cash paid for goods and services 24,710,071 24,935,924
Cash paid to and on behalf of employees 2,148,977 2,051,733
Payments of taxes and surcharges 1,267,328 1,343,578
Other cash paid relating to operating activities V.57(2) 799,136 968,657
Sub-total of cash outflows 28,925,512 29,299,892
Net cash flows from operating activities V.58(1) (3,021,559) (2,107,043)
II. Cash flows from investing activities:
Cash received from disposal of investments 220,682
Cash received from return on investments 26,100
Net cash received from disposal of fixed assets,
intangible assets and other long-term assets 203,227 21,949
Other cash received relating to investing activities V.57(3) 73,000
Sub-total of cash inflows from investing activities 496,909 48,049
Cash paid for acquisition of fixed assets, intangible assets
and other long-term assets 1,041,204 870,260
Cash paid for investments 244,528
Net cash paid for acquisition of subsidiaries 275,374 718,944
Other cash paid relating to investing activities V.57(4) 73,000
Sub-total of cash outflows from investing activities 1,389,578 1,833,732
Net cash flows from investing activities (892,669) (1,785,683)
76
Consolidated Cash Flow Statement
Note
From 1
January to
30 June
2013
From 1
January to
30 June
2012
Item
III. Cash flows from financing activities:
Cash received from capital contributions 201,435
Including: Cash received from capital contributions
by minority shareholders of subsidiaries 201,435
Cash received from borrowings 14,047,704 15,241,020
Other cash received relating to financing activities V.57(5) 570,599
Sub-total of cash inflows from financing activities 14,819,738 15,241,020
Cash repayments of borrowings 10,908,473 12,309,686
Cash payments for distribution of dividends and
profits or interest expenses 581,156 1,581,590
Including: Cash payments for dividends and profits to
minority shareholders of subsidiaries 38,273 23,224
Cash paid relating to financing activities V.57(6) 405,258 14,460
Sub-total of cash outflows from financing activities 11,894,887 13,905,736
Net cash inflow/(outflow) from financing activities 2,924,851 1,335,284
IV. Effect of foreign exchange rate changes on cash
and cash equivalents (174,809) (101,374)
V. Net (decrease)/increase in cash and cash equivalents V.58(1) (1,164,186) (2,658,816)
Add: cash and cash equivalents at the
beginning of the period 4,397,512 6,563,253
VI. Cash and cash equivalents at the end of the period 3,233,326 3,904,437
Interim Report 2013
77
Cash Flow Statement
Note
From 1
January to
30 June
2013
From 1
January to
30 June
2012
Item
I. Cash flows from operating activities:
Cash received from sales of goods or rendering of services 103,604
Cash received relating to other operating activities 8,308,198 8,948,916
Sub-total of cash inflows 8,411,802 8,948,916
Cash paid to and on behalf of employees 48,585 47,532
Payments of taxes and surcharges 43,153 16,801
Cash paid relating to other operating activities 7,649,472 9,860,729
Net cash inflow/(outflow) from operating activities XII.25 670,592 (976,146)
II. Cash flows from investing activities:
Cash received from disposal of investments 138,987
Cash received from returns on investments 155,821 427,796
Net cash received from disposal of fixed assets 1,923 2,005
Net cash received from disposal of subsidiaries 4,218
Sub-total of cash inflows 296,731 434,019
Cash paid to acquire fixed assets and other long-term assets 6,591 7,683
Cash paid to acquire investments 116,194 703,657
Sub-total of cash outflows 122,785 711,340
Net cash inflows/(outflows) from investing activities 173,946 (277,321)
III. Cash flows from financing activities
Cash received from borrowings and
sub-total of cash inflows 892,047 3,997,130
Cash repayments of borrowings 1,501,080 784,267
Cash payments for interest expenses and
distribution of dividends or profits 409,150 1,349,880
Cash payments relating to other financing activities 16,591 14,461
Net cash inflows/(outflows) from financing activities (1,034,774) 1,848,522
IV. Effect of foreign exchange rate changes on cash
and cash equivalents (253) 916
V. Net (decrease)/increase in cash and cash equivalents XII.25 (190,489) 595,971
Add: cash and cash equivalents at beginning of year 444,913 427,874
VI. Cash and cash equivalents at 30 June 2013 XII.25 254,424 1,023,845
78
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79
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80
NOTES TO THE INTERIM FINANCIAL REPORT (UNAUDITED)
I. GENERAL INFORMATION
China International Marine Containers (Group) Co., Ltd. (the Company), formerly China International Marine
Containers Co., Ltd., was a Sino-foreign joint venture set up by China Merchants Group, the East Asiatic Company
(Denmark) and Ocean Containers Inc. (USA). In December 1992, as approved by Shen Fu Ban Fu [1992] No.1736
issued by the General Office of the Peoples Government of Shenzhen and ShenRen Yin Fu Zi (1992) No.261
issued by Shenzhen Special Economic Zone Branch of Peoples Bank of China, the Company was restructured
as an incorporated company set up by directional subscription and was renamed as China International Marine
Containers Co., Ltd. by the original corporate shareholders of the Company. On 31 December 1993 and 17
January 1994 respectively, the Company issued ordinary shares denominated in Renminbi for domestic investors
(A Shares) and for foreign shares issued domestically (B Shares), and commenced trading on Shenzhen Stock
Exchange. Pursuant to Shen Fu Ban Fu [1993] No.925 issued by the General Office of the Peoples Government
of Shenzhen and Shen Zheng Ban Fu [1994] No.22 issued by Shenzhen Securities Administration Office. On 1
December 1995, as approved by the State Administration of Industry and Commerce, the Company changed its
name to China International Marine Containers (Group) Co., Ltd.
On 19 December 2012, the Companys B shares changed listing location and went public on the Main Board of the
Hong Kong Stock Exchange through the way of introduction. Henceforth, all the companys B shares converted to
overseas listed foreign shares (H shares). Up to 31 December 2012, the share capital of the Company amounted
to 2,662,396,051 shares. Please refer to Note V.40 for details of the share capital.
The principal activities of the Company and its subsidiaries (together referred to as the Group) are the
manufacturing of modern transportation facilities, facilities for energy, food, chemistry and rendering of relative
services. Detailed activities are the manufacturing and repairing of containers and other relevant business;
utilizing the Groups equipment to process and manufacture various parts, structure components and relevant
machines; providing cutting, punching, moulding, riveting surface treatment (including sand/paint spraying,
welding and assembly) and other processing services; developing, manufacturing and selling of various high-tech
and high performance special vehicles and semi-trailers; leasing of containers; developing, production and sales
of high-end fuel gas equipments such as pressure container and compressor; providing integrated services for
natural gas distribution; production of static container and pot-type wharf equipments and providing EP+CS
(engineering procurement and construction supervision) technical service for the storage and processing of LNG,
LPG and other petrochemical gases. Apart from the above, the Group is also engaged in manufacturing of logistic
equipment and related services, marine projects, railway trucks production and property development, etc.
CIMC Enric Holdings Limited, the subsidiary of the Group, is listed in the Main Board of the Hong Kong Stock
Exchange. The principal activities of the Group are the design, development, manufacturing, engineering and
sales of, and the provision of technical maintenance service for, a wide spectrum of transportation, storage and
processing equipment that is widely used in energy, chemical and liquid food industries.
These financial statements have been approved for issue by the Companys Board of Directors on 27 August
2013.
Interim Report 2013
81
II. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES
1. Basis of preparation
The interim financial statements were prepared in accordance with the Basic Standard and 38 specific standards
of the Accounting Standards for Business Enterprises issued by the Ministry of Finance on 15 February 2006,
and the Application Guidance for Accounting Standards for Business Enterprises, Interpretations of Accounting
Standards for Business Enterprises and other relevant regulations issued thereafter (hereafter collectively
referred to as the Accounting Standards for Business Enterprises or CAS) and the disclosure requirements in
the Regulation on the Contents and Formats of Companies Issuing Public Shares, No. 3: Contents and Formats
for Half-year Financial Reports as revised by the China Securities Regulatory Commission in 2013. The same
accounting policies are followed in the interim financial statements as compared with financial statements for
the year 2012. According to Accounting Standards for Business Enterprises No. 32-Interim Financial Reporting,
notes to interim financial statements are properly compared with annual report.
2. Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company for the period from 1 January 2013 to 30 June 2013 are in compliance
with the Accounting Standards for Business Enterprises, and truly and completely present the financial position of
the Consolidated and the Company as of 30 June 2013 and of their financial performance, cash flows and other
information for the period from 1 January 2013 to 30 June 2013.
3. Accounting year
The Companys accounting year starts on 1 January and ends on 31 December.
4. Recording currency
Functional currency is determined by the Company and its subsidiaries on the basis of the currency in which
major income and costs are denominated and settled.
The functional currency of the Company and its subsidiaries domiciled in PRC are Renminbi. Hong Kong and
the overseas subsidiaries use local currencies as their functional currencies. Foreign currencies are defined as
currency other than functional currency.
Financial statements of the Company are presented in Renminbi. For subsidiaries using currencies other than
Renminbi as their functional currencies, the Company translates the financial statements of these subsidiaries
into Renminbi (see Note II.8).
82
ESTIMATES (CONTINUED)
5. Accounting treatments for business combinations involving enterprises under and
those not under common control
(1) Business combinations involving enterprises under common control
A business combination involving enterprises under common control is a business combination in which all of the
combining enterprises are ultimately controlled by the same party or parties both before and after the business
combination, and that control is not transitory. The assets and liabilities obtained are measured at the carrying
amounts as recorded by the enterprise being combined at the combination date. The difference between the
carrying amount of the net assets obtained and the carrying amount of consideration paid for the combination (or
the total face value of shares issued) is adjusted to capital premium in the capital reserve. If the balance of the
capital premium is insufficient, any excess is adjusted to retained earnings. Any costs directly attributable to the
combination shall be recognised in profit or loss for the current period when occurred. The combination date is
the date on which one combining enterprise effectively obtains control of the other combining enterprises.
(2) Business combinations involving enterprises not under common control
A business combination involving enterprises not under common control is a business combination in which all
of the combining enterprises are not ultimately controlled by the same party or parties both before and after
the business combination. Where 1) the aggregate of the fair value at the acquisition date of assets transferred
(including the acquirers previously held equity interest in the acquiree), liabilities incurred or assumed, and equity
securities issued by the acquirer, in exchange for control of the acquiree, exceeds 2) the acquirers interest in the
fair value at the acquisition date of the acquirees identifiable net assets, the difference is recognised as goodwill
(see Note II.18). Where 1) is less than 2), the difference is recognised in profit or loss for the current period.
The costs of the issuance of equity or debt securities as a part of the consideration paid for the acquisition are
included as a part of initial recognition amount of the equity or debt securities. Other acquisition-related costs
arising from the business combination are recognised as expenses in the periods in which the costs are incurred.
The difference between the fair value and the carrying amount of the assets transferred is recognised in profit or
loss. The acquirees identifiable asset, liabilities and contingent liabilities, if satisfying the recognition criteria, are
recognised by the Group at their fair value at the acquisition date. The acquisition date is the date on which the
acquirer effectively obtains control of the acquiree.
Interim Report 2013
83
6. Preparation of consolidated financial statements
The scope of consolidated financial statements is based on control and the consolidated financial statements
comprise the Company and its subsidiaries. Control is the power to govern the financial and operating policies
of an enterprise so as to obtain benefits from its operating activities. In assessing control, potential voting rights,
such as warrants and convertible bonds, that are currently exercisable or convertible, are taken into account. The
financial position, financial performance and cash flows of subsidiaries are included in the consolidated financial
statements from the date that control commences until the date that control ceases.
Where a subsidiary was acquired during the reporting period, through a business combination involving
enterprises under common control, the financial statements of the subsidiary are included in the consolidated
financial statements as if the combination had occurred at the date that the ultimate controlling party first
obtained control. The opening balances and the comparative figures of the consolidated financial statements are
also restated. In the preparation of the consolidated financial statements, the subsidiarys assets and liabilities
based on their carrying amounts are included in the consolidated balance sheet, and financial performance is
included in the consolidated income statement, respectively, from the date that the ultimate parent company of
the Company obtains the control of the subsidiary to be consolidated.
Where a subsidiary was acquired during the reporting period, through a business combination involving
enterprises not under common control, the identifiable assets and liabilities of the acquired subsidiaries are
included in the scope of consolidation from the date that control commences, based on the fair value of those
identifiable assets and liabilities at the acquisition date.
For a business combination not involving enterprises under common control and achieved in stages, the Group
remeasures its previously-held equity interest in the acquiree to its fair value at the acquisition date. The
difference between the fair value and the carrying amount is recognised as investment income for the current
period; the amount recognised in other comprehensive income relating to the previously-held equity interest in
the acquiree is reclassified as investment income for the current period.
Where the Company acquires a minority interest from a subsidiarys minority shareholders or disposes of a
portion of an interest in a subsidiary without a change in control, the difference between the amount by which
the minority interests are adjusted and the amount of the consideration paid or received is adjusted to the
capital reserve (capital surplus) in the consolidated balance sheet. If the credit balance of capital reserve (capital
surplus) is insufficient, any excess is adjusted to retained earnings.
When the Group loses control of a subsidiary due to the disposal of a portion of an equity investment, the Group
derecognises assets, liabilities, minority interests and other related items in owners equity in relation to that
subsidiary. The remaining equity investment is remeasured at its fair value at the date when control is lost. Any
gains or losses therefore incurred are recognised as investment income for the current period when control is
lost.
84
6. Preparation of consolidated financial statements (Continued)
Minority interest is presented separately in the consolidated balance sheet within shareholders equity. Net profit
or loss attributable to minority shareholders is presented separately in the consolidated income statement below
the net profit line item.
When the amount of loss for the current period attributable to the minority shareholders of a subsidiary exceeds
the minority shareholders portion of the opening balance of shareholders equity of the subsidiary, the excess is
allocated against the minority interests.
When the accounting period or accounting policies of a subsidiary are different from those of the Company, the
Company makes necessary adjustments to the financial statements of the subsidiary based on the Companys
own accounting period or accounting policies. Intra-group balances and transactions, and any unrealised profit
or loss arising from intra-group transactions, are eliminated in preparing the consolidated financial statements.
Unrealised losses resulting from intra-group transactions are eliminated in the same way as unrealised gains but
only to the extent that there is no evidence of impairment.
7. Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, deposits that can be readily drawn on demand, and
short-term and highly liquid investments that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value.
8. Foreign currency transactions and translation of financial statements denominated
in foreign currency
When the Group receives capital in foreign currencies from investors, the capital is translated to functional
currency at the spot exchange rate at the date of the receipt. Other foreign currency transactions are, on initial
recognition, translated to functional currency at the rates that approximate the spot exchange rates at the dates
of the transactions.
A spot exchange rate is an exchange rate quoted by the Peoples Bank of China. A rate that approximates the
spot exchange rate is a rate determined under a systematic and rational method, normally the average exchange
rate of the current period or the weighted average exchange rate.
Monetary items denominated in foreign currencies are translated to functional currency at the spot exchange
rate at the balance sheet date. The resulting exchange differences, except for those arising from the principal
and interest of specific foreign currency borrowings for the purpose of acquisition, construction or production
of qualifying assets (see Note II.16), are recognised in profit or loss. Non-monetary items denominated in foreign
currencies that are measured at historical cost are translated to functional currency using the foreign exchange
rate at the transaction date. Non-monetary items denominated in foreign currencies that are measured at fair
value are translated using the foreign exchange rate at the date the fair value is determined; the resulting
exchange differences are recognised in profit or loss, except for the differences arising from the translation of
available-for-sale financial assets, which are recognised as other comprehensive income in capital reserve. The
effect of exchange rate changes on cash presented separately in the cash flow statement.
Interim Report 2013
85
8. Foreign currency transactions and translation of financial statements denominated
in foreign currency (Continued)
The assets and liabilities of foreign operation are translated to functional currency at the spot exchange rates at
the balance sheet date. The equity items, excluding Retained earnings, are translated to functional currency at
the spot exchange rates at the transaction dates. The income and expenses of foreign operation are translated to
functional currency at the rates that approximate the spot exchange rates at the transaction dates. The resulting
translation differences are recognised in a separate component of equity. Upon disposal of a foreign operation,
the cumulative amount of the translation differences recognised in equity which relates to that foreign operation
is transferred to profit or loss in the period in which the disposal occurs. The cash flows of overseas operations
are translated at the spot exchange rates on the dates of the cash flows. The effect of exchange rate changes on
cash presented separately in the cash flow statement.
9. Financial instruments
Financial instruments include cash at bank and on hand, derivatives, investments in debt and equity securities
other than long-term equity investments (see Note II.12), receivables, payables, loans, borrowings, debentures
payable and share capital.
(1) Recognition and measurement of financial assets and financial liabilities
A financial asset or financial liability is recognised in the balance sheet when the Group becomes a party to the
contractual provisions of a financial instrument.
The Group classifies financial assets and liabilities into different categories at initial recognition based on the
purpose of acquiring assets or assuming liabilities: financial assets and financial liabilities at fair value through
profit or loss, loans and receivables, held-to-maturity investments, available-for-sale financial assets and other
financial liabilities.
Financial assets and financial liabilities are measured initially at fair value. For financial assets and financial
liabilities at fair value through profit or loss, any related directly attributable transaction costs are charged to
profit or loss; for other categories of financial assets and financial liabilities, any related directly attributable
transaction costs are included in their initial costs. Subsequent to initial recognition financial assets and liabilities
are measured as follows:
Financial assets and financial liabilities at fair value through profit or loss (including financial assets or
financial liabilities held for trading)
A financial asset or financial liability is classified as at fair value through profit or loss if it is acquired or
incurred principally for the purpose of selling or repurchasing it in the near term or if it is a derivative,
unless the derivative is a designated and effective hedging instrument, or a financial guarantee contract or
a derivative that is linked to and must be settled by delivery of an unquoted equity instrument (without a
quoted price from an active market) whose fair value cannot be reliably measured.
Subsequent to initial recognition, financial assets and financial liabilities at fair value through profit or
loss are measured at fair value, and changes therein are recognised in profit or loss. Interests and cash
dividends received during the period in which such financial assets are held, as well as the gains or losses
arising from disposal of these assets are recognised in profit or loss for the current period.
86
9. Financial instruments (Continued)
(1) Recognition and measurement of financial assets and financial liabilities (Continued)
Receivables
Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in
an active market.
Subsequent to initial recognition, receivables are measured at amortised cost using the effective interest
method.
Available-for-sale financial assets
Available-for-sale financial assets include non-derivative financial assets that are designated upon initial
recognition as available for sales and other financial assets which do not fall into any of the above
categories. Available-for-sale financial assets are included in other current assets on the balance sheet if
management intends to dispose of them within 12 months after the balance sheet date.
Available-for-sale financial assets are measured at fair value subsequent to initial recognition and changes
therein, except for impairment losses and foreign exchange gains and losses from monetary financial
assets, which are recognised directly in profit or loss, are recognised as other comprehensive income
in capital reserve. When an investment is derecognised, the cumulative gain or loss is reclassified from
equity to profit or loss. Interests on available-for-sale investments in debt instruments calculated using
the effective interest method during the period in which such investments are held and cash dividends
declared by the investee on available-for-sale investments in equity instruments are recognised as
investment income, which is recognised in profit or loss for the period.
Interim Report 2013
87
(1) Recognition and measurement of financial assets and financial liabilities (Continued)
Other financial liabilities
Financial liabilities other than the financial liabilities at fair value through profit or loss are classified as
other financial liabilities.
Other financial liabilities include payables, borrowings, debentures payable, and the liabilities arising from
financial guarantee contracts.
Payables, including accounts payable and other payables, are recognised initially at fair value and
subsequently measured at amortised cost using the effective interest method.
Borrowings and debentures payable are recognised initially at fair value, net of transaction costs incurred,
and subsequently measured at amortised cost using the effective interest method.
Financial guarantees are contracts that require the Group (i.e. the guarantor) to make specified payments
to reimburse the beneficiary of the guarantee (the holder) for a loss the holder incurs because a specified
debtor fails to make payment when due in accordance with the terms of a debt instrument. Where the
Group issues a financial guarantee, subsequent to initial recognition, the guarantee is measured at the
higher of the amount initially recognised less accumulated amortisation and the amount of a provision
determined in accordance with the principles of contingencies (see Note II.21).
(2) Presentation of financial assets and financial liabilities
Financial assets and financial liabilities are presented separately in the balance sheet and are not offset. However,
a financial asset and a financial liability are offset and the net amount presented in the balance sheet when both
of the following conditions are satisfied:
the Group has a legal right to set off the recognised amounts and the legal right is currently enforceable;
and
the Group intends either to settle on a net basis, or to realise the financial asset and settle the financial
liability simultaneously.
88
(3) Determination of fair value
If there is an active market for a financial asset or financial liability, the quoted price in the active market is used
to establish the fair value of the financial asset or financial liability.
If no active market exists for a financial instrument, a valuation technique is used to establish the fair value.
Valuation techniques include using recent arms length market transactions between knowledgeable, willing
parties, reference to the current fair value of another instrument that is substantially the same, discounted cash
flow analysis, option pricing models, and etc. The Group calibrates the valuation technique and tests it for validity
periodically.
(4) Derecognition of financial assets and financial liabilities
A financial asset is derecognised if the Groups contractual rights to the cash flows from the financial asset
expire; if the financial asset has been transferred and the Group transfers substantially all the risks and rewards
of ownership of the financial asset to the transferee; or if the financial asset has been transferred and the Group
has not retained control of the financial asset, although the Group neither transfers nor retains substantially all
the risks and rewards of ownership of the financial asset.
Where a transfer of a financial asset in its entirety meets the criteria for derecognition, the difference between
the two amounts below is recognised in profit or loss:
the carrying amount of the financial asset transferred;
the sum of the consideration received from the transfer and any cumulative gain or loss that has been
recognised directly in equity.
The Group derecognises a financial liability (or part of it) only when the underlying present obligation (or
part of it) is discharged, cancelled or expires. The difference between the carrying amount of the financial
liability or the derecognised part of the financial liability and the consideration paid is recognised in profit
or loss.
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(5) Impairment of assets
The carrying amounts of financial assets (other than those at fair value through profit or loss) are reviewed at
each balance sheet date to determine whether there is objective evidence of impairment. If any such evidence
exists, an impairment loss is recognised.
Objective evidences that a financial asset is impaired include but are not limited to evidence arising from the
following events:
(a) significant financial difficulty of the issuer or obligor;
(b) a breach of contract by the borrower, such as a default or delinquency in interest or principal payments;
(c) it becoming probable that the borrower will enter bankruptcy or other financial reorganisations;
(d) the disappearance of an active market for that financial asset because of financial difficulties of the issuer;
(e) significant changes with an adverse effect that have taken place in the technological, market, economic
or legal environment in which the issuer operates, indicating that the cost of the investment in the equity
instrument may not be recovered by the investor;
(f) a significant or prolonged decline in the fair value of an investment in an equity instrument below its cost.
The Group assesses all available-for-sale financial assets on an individual basis at each balance sheet date.
Impairment loss should be recognised if the fair value of an equity instrument has reached 50% or less of
its initial investment cost or in the case that the fair value has been less than the initial investment cost for
more than one year or longer. The Group will consider other relevant factors, such as the price volatility, to
determine whether an impairment loss should be recognised for the equity instrument if the decline in the
fair value of an equity instrument is 20% or more but less than 50% of its initial investment cost.
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(5) Impairment of assets (Continued)
For the calculation method of impairment of receivables, refer to Note II.10, The impairment of other financial
assets are measured as follows:
Available-for-sale financial assets
Available-for-sale financial assets are assessed for impairment on an individual basis. When an
available-for-sale financial asset is impaired, the cumulative loss arising from decline in fair value that has
been recognised directly in equity is reclassified to profit or loss even though the financial asset has not
been derecognised.
If, after an impairment loss has been recognised on an available-for-sale debt instrument, the fair value
of the debt instrument increases in a subsequent period and the increase can be objectively related to
an event occurring after the impairment loss was recognised, the impairment loss is reversed through
profit or loss. An impairment loss recognised for an investment in an equity instrument classified as
available-for-sale is not reversed through profit or loss.
(6) Equity instrument
An equity instrument is a contract that proves the ownership interest of the assets after deducting all liabilities in
the Company.
The consideration received from the issuance of equity instruments net of transaction costs is recognised in
shareholders equity.
Consideration and transaction costs paid by the Company for repurchasing self-issued equity instruments are
deducted from shareholders equity.
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10. Receivables
Receivables comprise accounts receivable and other receivables. Accounts receivable arising from sale of goods
or rendering of services are initially recognised at fair value of the contractual payments from the buyers or
service recipients.
Receivables are assessed for impairment both on an individual basis and on a collective group basis.
Where impairment is assessed on an individual basis, an impairment loss in respect of a receivable is calculated
as the excess of its carrying amount over the present value of the estimated future cash flows (exclusive of
future credit losses that have not been incurred) discounted at the original effective interest rate. All impairment
losses are recognised in profit or loss.
The assessment is made collectively where receivables share similar credit risk characteristics (including those
having not been individually assessed as impaired), based on their historical loss experiences, and adjusted by
the observable figures reflecting present economic conditions.
If, after an impairment loss has been recognised on receivables, there is objective evidence of a recovery in value
of the financial asset which can be related objectively to an event occurring after the impairment was recognised,
the previously recognised impairment loss is reversed through profit or loss. A reversal of an impairment loss will
not result in the assets carrying amount exceeding that which would have been determined had no impairment
loss been recognised in prior years.
(1) Receivables that are individually significant and impairment provided on an individual basis:
Criteria of provision for receivable
that are individually significant and
impairment provided on an individual
basis.
Individually significant receivables are the receivables with the individual
amount of RMB10 million or above or accounting for 5% or more of the
total receivables.
Method of provision for receivable
that are individually significant and
basis.
An impairment loss is calculated as the excess of its carrying amount
over the present value of the estimated future cash flows (exclusive
of future credit losses that have not been incurred) discounted at the
original effective interest rate.
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10. Receivables (Continued)
(2) Receivable that are individually insignificant but impairment provided on an individual basis:
Criteria of provision for receivables
that are individually insignificant but
basis.
Within the receivables whose amounts are individually insignificant,
impairment is assessed on an individual basis for the overdue receivables
unpaid after collection efforts or with unique characteristics.
Method of provision for bad debts. An impairment loss is calculated as the excess of its carrying amount
over the present value of the estimated future cash flows (exclusive
of future credit losses that have not been incurred) discounted at the
original effective interest rate.
(3) Receivables that are assessed for impairment on a collective group basis:
The assessment is made collectively where receivables share similar credit risk characteristics, including those
having not been individually assessed as impaired according to the preceding paragraphs (1) and (2).
Determination method of the group
based on credit risk characteristics
Accounts receivable are divided into six groups of containers, vehicles,
energy and chemistry equipment, offshore engineering, other business,
and due from related parties, land lease prepayments and operating
deposits according to the industry and business nature of customers and
the characteristics of the receivables. As to other groups like due from
related parties, land lease prepayments operating deposits, and etc, if
the credit risk is assessed low after grouping based on the assessment
on credit risk and their historical loss experience, no impairment loss is
recognised for those groups.
Group 1 Containers
Group 2 Trailers
Group 3 Tank equipments
Group 4 Other business
Methods of provision for receivables assessed on a collective group basis (based on an ageing analysis, a
percentage of the total balance and others)
Containers Provision is determined based on an ageing analysis
Trailers Provision is determined based on an ageing analysis
Tank equipments Provision is determined based on an ageing analysis
Other business Provision is determined based on an ageing analysis
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10. Receivables (Continued)
(3) Receivables that are assessed for impairment on a collective group basis: (Continued)
For the above groups, provision is made based on their respective ageing analysis follows:
Percentage of total accounts receivable (%)
Ageing Group 1 Group 2 Group 3 Group 4
Within 1 year (inclusive) 5% 1.5-5% 5% 5%
1 to 2 years (inclusive) 30% 1.5-10% 30% 30%
2 to 3 years (inclusive) 100% 1.5-30% 100% 100%
Over 3 years 100% 100% 100% 100%
Note: Among the aforesaid ageing groups, the provision of Trailers is determined based on natural age, while others are determined based on the overdue
age.
(4) When the Group transfers the accounts receivable to the financial institutions without
recourse, the difference between the proceeds received from the transaction and their
carrying amounts and the related taxes is recognised in profit or loss for the current period.
11. Inventories
(1) Classification
Inventories include raw materials, work in progress, semi-finished goods, finished goods and reusable materials.
Reusable materials include low-value consumables, packaging materials and other materials, which can be used
repeatedly but do not meet the definition of fixed assets.
(2) Cost of inventories
Cost of inventories is calculated using the weighted average method.
(3) The underlying factors in the determination of net realisable values of inventories and basis
of provision for decline in value of inventories
Inventories are initially measured at cost. Cost of inventories comprises all costs of purchase, costs of conversion
and other expenditures incurred in bringing the inventories to their present location and condition. Borrowing
costs directly related to the production of qualifying inventories are also included in the cost of inventories (see
Note II.16). In addition to the purchasing cost of raw materials, work in progress and finished goods include direct
labour costs and an appropriate allocation of production overheads.
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11. Inventories (Continued)
(3) The underlying factors in the determination of net realisable values of inventories and basis
of provision for decline in value of inventories (Continued)
At the balance sheet date, inventories are carried at the lower of cost and net realisable value.
Net realisable value is the estimated selling price in the normal course of business less the estimated costs to
completion and the estimated expenses and related taxes necessary to make the sale. The net realisable value
of materials held for use in the production of inventories is measured based on the net realisable value of the
finished goods in which they will be incorporated. The net realisable value of the quantity of inventory held
to satisfy sales or service contracts is based on the contract price. If the quantities of inventories specified in
sales contracts are less than the quantities held by the Group, the net realisable value of the excess portion of
inventories shall be based on general selling prices.
Any excess of the cost over the net realisable value of each class of inventories is recognised in profit or loss as
a provision for diminution in the value of inventories.
(4) Inventory system
The Group maintains a perpetual inventory system.
(5) Amortisation of reusable material including low-value consumables and packaging material
Reusable materials including low-value consumables and packaging materials are amortised in full when received
for use. The amounts of the amortisation are included in the cost of the related assets or profit or loss.
12. Long-term equity investments
(1) Investment cost
(a) Long-term equity investments acquired through a business combination
The initial investment cost of a long-term equity investment obtained through a business combination
involving entities under common control is the Companys share of the carrying amount of the
subsidiarys equity at the combination date. The difference between the initial investment cost and
the carrying amounts of the consideration given is adjusted to share premium in capital reserve. If the
balance of the share premium is insufficient, any excess is adjusted to retained earnings.
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12. Long-term equity investments (Continued)
(1) Investment cost (Continued)
(a) Long-term equity investments acquired through a business combination (Continued)
For a long-term equity investment obtained through a business combination not involving enterprises
under common control, if it is achieved in stages, the initial cost comprises the carrying value of
previously-held equity investment in the acquiree immediately before the acquisition date, and the
additional investment cost at the acquisition date; if it is achieved otherwise, the initial investment
cost comprises the aggregate of the fair value of assets transferred, liabilities incurred or assumed,
and equity securities issued by the Company, in exchange for control of the acquiree.
(b) Long-term equity investments acquired otherwise than through a business combination
An investment in a subsidiary acquired otherwise than through a business combination is initially
recognised at actual payment cost if the Group acquires the investment by cash, or at the fair value
of the equity securities issued if an investment is acquired by issuing equity securities, or at the value
stipulated in the investment contract or agreement if an investment is contributed by shareholders.
(2) Subsequent measurement
(a) Investments in subsidiaries
In the Companys separate financial statements, long-term equity investments in subsidiaries are accounted
for using the cost method. Except for cash dividends or profit distributions declared but not yet distributed
that have been included in the price or consideration paid in obtaining the investments, the Company
recognises its share of the cash dividends or profit distributions declared by the investee as investment
income irrespective of whether these represent the net profit realised by the investee before or after the
investment. The investments in subsidiaries are stated in the balance sheet at cost less impairment losses.
In the Groups consolidated financial statements, investments in subsidiaries are accounted for in
accordance with the principles described in Note II. 6.
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(2) Subsequent measurement (Continued)
(b) Investment in jointly controlled enterprises and associates
A jointly controlled enterprise is an enterprise which operates under joint control (see Note II.12(3)) in
accordance with a contractual agreement between the Group and other parties.
An associate is an enterprise over which the Group has significant influence (see Note II.12(3)).
An investment in a jointly controlled enterprise or an associate is subsequently accounted for using the
equity method, unless the investment is classified as held for sale (see Note II.28).
The Group makes the following accounting treatments when using the equity method:
Where the initial investment cost of a long-term equity investment exceeds the Groups interest in
the fair value of the investees identifiable net assets at the date of acquisition, the investment is
initially recognised at the initial investment cost. Where the initial investment cost is less than the
Groups interest in the fair value of the investees identifiable net assets at the date of acquisition, the
investment is initially recognised at the investors share of the fair value of the investees identifiable
net assets, and the difference is charged to profit or loss.
After the acquisition of the investment, the Group recognises its share of the investees profit or loss
after deducting the amortisation of the debit balance of equity investment difference, which was
recognised by the Group before the first-time adoption of CAS, as investment income or losses, and
adjusts the carrying amount of the investment accordingly. The debit balance of the equity investment
difference is amortised using the straight-line method over the period of 10 years in accordance with
previous accounting standards. Once the investee declares any cash dividends or profit distributions,
the carrying amount of the investment is reduced by that amount attributable to the Group.
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(2) Subsequent measurement (Continued)
(b) Investment in jointly controlled enterprises and associates (Continued)
The Group recognises its share of the investees net profits or losses after making appropriate
adjustments to align the accounting policies or accounting periods with those of the Group based on
the fair values of the investees identifiable net assets at the date of acquisition. Unrealised profits
and losses resulting from transactions between the Group and its associates or jointly controlled
enterprises are eliminated to the extent of the Groups interest in the associates or jointly controlled
enterprises. Unrealised losses resulting from transactions between the Group and its associates or
jointly controlled enterprises are eliminated in the same way as unrealised gains but only to the
extent that there is no evidence of impairment.
The Group discontinues recognising its share of net losses of the investee after the carrying amount
of the long-term equity investment and any long-term interest that in substance forms part of the
Groups net investment in the associate or the jointly controlled enterprise is reduced to zero, except
to the extent that the Group has an obligation to assume additional losses. Where net profits are
subsequently made by the associate or jointly controlled enterprise, the Group resumes recognising
its share of those profits only after its share of the profits equals the share of losses not recognised.
The Group adjusts the carrying amount of the long-term equity investment for changes in owners
equity of the investee other than those arising from net profits or losses, and recognises the
corresponding adjustment in equity.
(c) Other long-term equity investments
Other long-term equity investments refer to investments where the Group does not have control, joint
control or significant influence over the investees, and the investments are not quoted in an active market
and their fair value cannot be reliably measured.
Such investments are initially recognised at the cost determined in accordance with the same principles as
those for jointly controlled enterprises and associates, and then accounted for using the cost method. Cash
dividends or profit distributions declared by subsidiaries and attributed to the Company shall be recognised
as investment income irrespective of whether these represent the net profit realised by the investee before
or after the investment, except those that have been declared but unpaid at the time of acquisition and
therefore included in the price paid or the consideration.
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(3) Basis for determining the existence of joint control or significant influence over an investee
Joint control is the contractual agreed sharing of control over an investees economic activity, and exists only
when the strategic financial and operating decisions relating to the activity require the unanimous consent of the
parties sharing the control. The following evidences shall be considered when determining whether the Group
can exercise joint control over an investee:
no single venturer is in a position to control the operating activities unilaterally;
operating decisions relating to the investees economic activity require the unanimous consent of the
parties sharing the control;
if the parties sharing the control appoint one venturer as the operator or manager of the joint venture
through the contractual arrangement, the operator must act within the financial and operating policies that
have been agreed by the venturers in accordance with the contractual arrangement.
Significant influence is the power to participate in the financial and operating policy decisions of an investee but
is not control or joint control over those policies. The following one or more evidences shall be considered when
determining whether the Group can exercise significant influence over an investee:
representation on the board of directors or equivalent governing body of the investee;
participation in policy-making processes;
material transactions between the investor and the investee;
interchange of managerial personnel;
provision of essential technical information
(4) Method of impairment testing and measuring
For the method of impairment testing and measuring for subsidiaries, jointly controlled enterprises and
associates, refer to Note II.20.
For other long-term equity investments, the carrying amount is required to be tested for impairment at the
balance sheet date. If there is objective evidence that the investments may be impaired, the impairment shall be
assessed on an individual basis. The impairment loss is measured as the amount by which the carrying amount
of the investment exceeds the present value of estimated future cash flows discounted at the current market
rate of return for a similar financial asset. Such impairment loss is not reversed. The other long-term equity
investments are stated at cost less impairment losses in the balance sheet.
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13. Investment properties
Investment properties are properties held either to earn rental income or for capital appreciation or for both.
Investment properties are accounted for using the cost model and stated in the balance sheet at cost less
accumulated depreciation, amortisation and impairment losses. Subsequent expenditures incurred in relation to
an investment property are included in the cost of the investment property when it is probable that the associated
economic benefits will flow to the Group and their costs can be reliably measured; otherwise, the expenditures
are recognized in profit or loss in the period in which they are incurred. An investment property is depreciated or
amortised, less its estimated residual value, using the straight line method over its estimated useful life, unless
the investment properties are classified as held for sale (see Note II.28). For the method of impairment testing
and measuring, refer to Note II.20.
The useful lives, residual value rate and depreciation/amortisation rate of each class of investment properties are
as follows:
Item
Useful life
(years)
Residual
value rate (%)
Depreciation/
Amortisation
rate (%)
Land use rights 29 50 years 2 3.4%
Plant and buildings 20 30 years 10% 3 4.5%
When an investment property is transferred to owner-occupied properties, it is reclassified as fixed asset or
intangible asset at the date of the transfer. When an owner-occupied property is transferred out for earning
rentals or for capital appreciation, the fixed asset or intangible asset is reclassified as investment properties at its
carrying amount at the date of the transfer.
The investment propertys estimated useful life, net residual value and depreciation (amortisation) method applied
are reviewed and adjusted as appropriate at each year-end.
An investment property is derecognised on disposal or when the investment property is permanently withdrawn
from use and no future economic benefits are expected from its disposal. The net amount of proceeds from
sale, transfer, retirement or damage of an investment property after its carrying amount and related taxes and
expenses is recognised in profit or loss for the current period.
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14. Fixed assets
(1) Recognition
Fixed assets represent the tangible assets held by the Group for use in the production of goods or supply of
services, for rental to others or for operation and administrative purposes with useful lives over one year.
The cost of a purchased fixed asset comprises the purchase price, related taxes, and any directly attributable
expenditure for bringing the asset to working condition for its intended use. The cost of self-constructed assets is
measured in accordance with the policy set out in Note II.15.
Where parts of an item of fixed asset have different useful lives or provide benefits to the Group in different
patterns thus necessitating use of different depreciation rates or methods, each part is recognised as a separate
fixed asset.
The subsequent costs including the cost of replacing part of an item of fixed assets are recognised in the carrying
amount of the item if the to recognise fixed assets criteria are satisfied, and the carrying amount of the replaced
part is derecognised. The costs of the day-to-day servicing of fixed assets are recognised in profit or loss as
incurred.
Fixed assets are stated in the balance sheet at cost less accumulated depreciation and impairment losses.
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14. Fixed assets (Continued)
(2) Depreciation
Fixed assets are depreciated using the straight-line method to allocate the cost of the assets to their estimated
residual values over their estimated useful lives, unless the fixed asset is classified as held for sale (see Note
II.28). For the fixed assets that have been provided for impairment loss, the related depreciation charge is
prospectively determined based upon the adjusted carrying amounts over their remaining useful lives. The
estimated useful lives, residual values and depreciation rates of each class of fixed assets are as follows:
Classes
Residual
Period
(years)
Depreciation
value rate
Depreciation
rate
Plants and buildings 20 30 years 10% 3 4.5%
Machinery and equipment 10 -12 years 10% 7.5 -9%
Office and other equipment 3 5 years 10% 18%-30%
Motor vehicles 5 years 10% 18%
Dock, wharf 50 years 10% 1.8%
Offshore engineering equipment 15 30 years 10% 3 6%
Useful lives, residual value and depreciation methods are reviewed at least at each year-end.
(3) For the method of impairment testing and measuring, refer to Note II.20.
(4) Basis for identification of fixed assets held under finance leases and related measurement
For criteria of recognition and method of measuring for fixed assets under a finance lease, refer to Note II.27(3).
(5) Disposal
The carrying amount of a fixed asset shall be derecognized:
on disposal;
when no future economic benefits are expected to be generated from its use or disposal.
Gains or losses arising from the retirement or disposal of an item of fixed asset are determined as the difference
between the net disposal proceeds and the carrying amount of the item and are recognised in profit or loss on
the date of retirement or disposal.
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15. Construction in progress
Construction in progress is measured at actual cost. The cost of self-constructed assets includes the cost of
materials, direct labour, capitalised borrowing costs (see Note II.16), and any other costs directly attributable to
bringing the asset to working condition for its intended use.
A self-constructed asset is included in construction in progress before it is transferred to fixed asset (and
becomes depreciable from the next month) when it is ready for its intended use. No depreciation is provided
against construction in progress. Construction in progress is stated in the balance sheet at cost less impairment
losses (see Note II.20).
16. Borrowing costs
Borrowing costs incurred directly attributable to the acquisition, construction or production of a qualifying asset
are capitalised as part of the cost of the asset.
Except for the above, other borrowing costs are recognised as financial expenses in the income statement when
incurred.
During the capitalisation period, the amount of interest (including amortisation of any discount or premium on
borrowing) to be capitalised in each accounting period is determined as follows:
Where funds are borrowed specifically for the acquisition, construction or production of a qualifying asset,
the amount of interest to be capitalised is the interest expense calculated using effective interest rates
during the period less any interest income earned from depositing the borrowed funds or any investment
income on the temporary investment of those funds before being used on the asset.
Where funds are borrowed generally and used for the acquisition, construction or production of a
qualifying asset, the amount of interest to be capitalised on such borrowings is determined by applying
a capitalisation rate to the weighted average of the excess amounts of cumulative expenditures on the
asset over the above amounts of specific borrowings. The capitalisation rate is the weighted average of the
interest rates applicable to the general-purpose borrowings.
The effective interest rate is determined as the rate that exactly discounts estimated future cash flow through
the expected life of the borrowing or, when appropriate, a shorter period to the initially recognised amount of the
borrowings.
During the capitalisation period, exchange differences related to the principal and interest on a specific-purpose
borrowing denominated in foreign currency are capitalised as part of the cost of the qualifying asset. The
exchange differences related to the principal and interest on foreign currency borrowings other than a
specific-purpose borrowing are recognised as a financial expense in the period in which they are incurred.
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16. Borrowing costs (Continued)
The capitalisation period is the period from the date of commencement of capitalisation of borrowing costs to
the date of cessation of capitalisation, excluding any period over which capitalisation is suspended. Capitalisation
of borrowing costs commences when expenditure for the asset is being incurred, borrowing costs are being
incurred and activities of acquisition, construction or production that are necessary to prepare the asset for its
intended use or sale are in progress, and ceases when the assets become ready for their intended use or sale.
Capitalisation of borrowing costs is suspended when the acquisition, construction or production activities are
interrupted abnormally and the interruption lasts over three months.
17. Intangible assets
Intangible assets are stated in the balance sheet at cost less accumulated amortisation (where the estimated
useful life is finite) and impairment losses (see Note II.20). For an intangible asset with finite useful life, its cost
less residual value and impairment loss is amortised on the straight-line method or other more appropriate
methods that can reflect the pattern in which the assets economic benefits are expected to be realised over its
estimated useful life, unless the intangible asset is classified as held for sale (see Note II.28).
The respective amortisation periods for such intangible assets are as follows:
Item Amortisation periods (years)
Land use rights 20 50
Maritime space use rights 40 50
Technological know-how and trademarks 5 10
Timber concession rights 20
Customer relationships 3 8
Customer contracts 3 4
For an intangible asset with a finite useful life, review of its useful life and amortisation method is performed at
each year-end, with adjustment made as appropriate.
An intangible asset is regarded as having an indefinite useful life and is not amortised when there is no
foreseeable limit to the period over which the asset is expected to generate economic benefits for the Group. At
the balance sheet date, the Group does not have any intangible assets with indefinite useful lives.
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17. Intangible assets (Continued)
Expenditures on an internal research and development project are classified into expenditures on the research
phase and expenditures on the development phase. Research is original and planned investigation undertaken
with the prospect of gaining new scientific or technical knowledge and understanding. Development is the
application of research findings or other knowledge to a plan or design for the production of new or substantially
improved materials, devices, products or processes before the start of commercial production or use.
The expenditure on an internal research and development project is classified into expenditure on the research
phase and expenditure on the development phase based on its nature and whether there is material uncertainty
that the research and development activities can form an intangible asset at end of the project.
Expenditure on the research phase is recognised in profit or loss in the period in which it is incurred. Expenditure
on the development phase is capitalised only if all of the following conditions are satisfied:
it is technically feasible to complete the intangible asset so that it will be available for use or sale;
management intends to complete the intangible asset, and to use or sell it;
it can be demonstrated how the intangible asset will generate economic benefits;
there are adequate technical, financial and other resources to complete the development and the ability
to use or sell the intangible asset; and the expenditure attributable to the intangible asset during its
development phase can be reliably measured.
Other development expenditures that do not meet the conditions above are recognised in profit or loss in the
period in which they are incurred. Development costs previously recognised as expenses are not recognised as
an asset in a subsequent period. Capitalised expenditure on the development phase is presented as development
costs in the balance sheet and transferred to intangible assets at the date that the asset is ready for its intended
use.
18. Goodwill
Goodwill represents the excess of cost of acquisition over the acquirers interest in the fair value of the
identifiable net assets of the acquiree under the business combination involving entities not under common
control.
Goodwill is not amortised and is stated at cost less accumulated impairment losses (see Note II.20). On disposal
of an asset group or a set of asset groups, any attributable amount of purchased goodwill is written off and
included in the calculation of the profit or loss on disposal.
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19. Long-term prepaid expenses
Long-term prepaid expenses are amortised on a straight-line method within the beneficial period:
Item Amortisation period (years)
Water and electricity capacity enlargement expenses 5 to 10 years
Rental 2 to 10 years
Others 5 to 10 years
20. Impairment of assets other than inventories, financial assets and other long-term
investments
Fixed assets, construction in progress, intangible assets with finite useful lives, investment properties measured
using the cost model and long-term equity investments in subsidiaries, joint ventures and associates are tested
for impairment if there is any indication that the assets may be impaired at the balance sheet date. If the result
of the impairment test indicates that the recoverable amount of an asset is less than its carrying amount, a
provision for impairment and an impairment loss are recognised for the amount by which the assets carrying
amount exceeds its recoverable amount. The recoverable amount is the higher of an assets fair value less
costs to sell and the present value of the future cash flows expected to be derived from the asset. Provision
for asset impairment is determined and recognised on the individual asset basis. If it is not possible to estimate
the recoverable amount of an individual asset, the recoverable amount of a group of assets to which the asset
belongs is determined. A group of assets is the smallest group of assets that is able to generate independent
cash inflows.
Goodwill that is separately presented in the financial statements is tested at least annually for impairment,
irrespective of whether there is any indication that it may be impaired. In conducting the test, the carrying value
of goodwill is allocated to the related asset groups or groups of asset groups which are expected to benefit from
the synergies of the business combination. If the result of the test indicates that the recoverable amount of an
asset group or group of asset groups, including the allocated goodwill, is lower than its carrying amount, the
corresponding impairment loss is recognised. The impairment loss is first deducted from the carrying amount
of goodwill that is allocated to the asset group or group of asset groups, and then deducted from the carrying
amounts of other assets within the asset groups or groups of asset groups in proportion to the carrying amounts
of assets other than goodwill.
Once an impairment loss is recognised, it is not reversed in a subsequent period.
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21. Provisions and contingent liabilities
Provisions for product warranties, onerous contracts etc. are recognised when the Group has a present
obligation, it is probable that an outflow of economic benefits will be required to settle the obligation, and the
amount of the obligation can be measured reliably.
A provision is initially measured at the best estimate of the expenditure required to settle the related present
obligation. Factors surrounding a contingency, such as the risks, uncertainties and the time value of money, are
taken into account as a whole in reaching the best estimate of a provision. Where the effect of the time value of
money is material, the best estimate is determined by discounting the related future cash outflows. The increase
in the discounted amount of the provision arising from passage of time is recognised as interest expense.
The carrying amount of provisions is reviewed at each balance sheet date and adjusted to reflect the current
best estimate.
In terms of a possible obligation resulting from a past transaction or event, whose existence will only be
confirmed by the occurrence or non-occurrence of uncertain future events or a present obligation resulting from
a past transaction or event, where it is not probable that the settlement of the above obligation will cause an
outflow of economic benefits, or the amount of the outflow cannot be estimated reliably, the possible or present
obligation is disclosed as a contingent liability.
22. Share-based payments
(1) Classification
Share-based payment transactions in the Group are classified as equity-settled share-based payments and
cash-settled share-based payments.
(2) Method to determine the fair value of equity instruments
Fair value of stock option is estimated based on binomial lattice model. Contract term of the stock option is
used as the input variable of this model. The binomial lattice model includes estimation of early execution of the
option. The following factors are taken into account when using the binomial lattice model: (1) exercise price of
the option; (2) vesting period; (3) current price of basic stocks; (4) expected fluctuation of stocks; (5) expected
dividends of stocks; (6) risk-free rate within the option term.
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22. Share-based payments (Continued)
(3) Basis of the best estimate of the number of equity instruments expected to vest
At each balance sheet date during the vesting period, the Group makes the best estimation according to the
latest information of the number of employees who are granted to vest and revises the number of equity
instruments expected to vest. On vesting date, the estimate shall be equal to the number of equity instruments
that ultimately vested.
(4) Accounting treatment for share-based payment
Equity-settled share-based payments
Where the Group uses shares or other equity instruments as consideration for services received from the
employees, the payment is measured at the fair value of the equity instruments granted to the employees
at the grant date. If the equity instruments granted to employees vest immediately, the fair value of the
equity instruments granted is, on grant date, recognised as relevant cost or expenses with a corresponding
increase in capital reserve. If the equity instruments granted to employees do not vest until the completion
of services for a vesting period, or until the achievement of a specified performance condition, the Group,
at each balance sheet date during the vesting period, makes the best estimation according to the latest
information of the number of employees who are granted to vest and revises the number of equity
instruments expected to vest. Based on the best estimation, the Group recognises the services received
for the current period as related costs or expenses, with a corresponding increase in capital reserve, at an
amount equal to the fair value of the equity instruments at the grant date.
Cash-settled share-based payments
Where the Group receives services from employees by incurring a liability to deliver cash or other assets
for amounts that are determined based on the price of shares or other equity instruments, the service
received from employees is measured at the fair value of the liability incurred. If the rights under a
cash-settled share-based payment do not vest until the completion of services for a vesting period, or until
the achievement of a specified performance condition, the Group, at each balance sheet date during the
vesting period, recognises the services received for the current period as related costs or expenses, with
a corresponding increase in liability, at an amount equal to the fair value of the liability based on the best
estimate of the outcome of vesting.
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23. Revenue recognition
Revenue is the gross inflow of economic benefit in the periods arising in the course of the Groups ordinary
activities when the inflows result in increase in shareholders equity, other than increase relating to contributions
from shareholders. Revenue is recognised in profit or loss when it is probable that the economic benefits will
flow to the Group, the revenue and costs can be measured reliably and the following respective conditions are
met.
(1) Sale of goods
Revenue from sale of goods is recognised when all of the general conditions stated above and following
conditions are satisfied:
The significant risks and rewards of ownership of goods have been transferred to the buyer;
The Group retains neither continuing managerial involvement to the degree usually associated with
ownership nor effective control over the goods sold.
Revenue from the sale of goods is measured at the fair value of the considerations received or receivable under
the sales contract or agreement.
(2) Rendering of services
Revenue from rendering of services is measured at the fair value of the considerations received or receivable
under the contract or agreement.
At the balance sheet date, where outcome of a transaction involving the rendering of services can be estimated
reliably, revenue from the rendering of services is recognised by reference to the stage of completion of the
transaction based on the progress of work performed.
Where outcome of rendering of services cannot be estimated reliably, if the costs incurred are expected to be
recoverable, revenues are recognised to the extent that the costs incurred that are expected to be recoverable,
and an equivalent amount is charged to profit or loss as service cost; if the costs incurred are not expected to be
recoverable, the costs incurred are recognised in profit or loss and no service revenue is recognised.
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23. Revenue recognition (Continued)
(3) Revenue from construction contracts
Where the outcome of a construction contract can be estimated reliably, contract revenue and contract expenses
associated with the construction contract are recognised at the balance sheet date using the percentage of
completion method.
The stage of completion of a contract is determined based on completion of a physical proportion of the contract
work.
When the outcome of a construction contract cannot be estimated reliably:
If the contract costs can be recovered, revenue is recognised to the extent of contract costs incurred that
can be recovered, and the contract costs are recognised as contract expenses when incurred;
If the contract costs cannot be recovered, the contract costs are recognised as contract expenses
immediately when incurred, and no contract revenue is recognized.
Construction contract revenue includes initial revenue stipulated by contract and increased amount generated by
contract alteration.
Increased amount cannot be recognized as contract revenue unless the following contract alteration terms are all
satisfied:
Client accepts and confirms the increased amount generated by contract alteration;
Increased amount can be reliably measured.
Contract anticipated loss is recognised when estimated total construction contract cost exceeds contract
revenue. Provision should be made for contract anticipated loss and charged into profit and losses for the current
period.
(4) Transfer of asset use rights
Interest income is recognised on a time proportion basis with reference to the principal outstanding and the
applicable effective interest rate.
Income from an operating lease is recognised on a straight-line basis over the period of the lease.
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24. Employee benefits
Employee benefits mainly include wages or salaries, bonuses, allowances and subsidies, staff welfare, social
security contributions, housing funds, labour union funds, employee education funds and other expenditures
incurred in exchange for service rendered by employees. Except for termination benefits, employee benefits
are recognised as a liability in the period in which the associated services are rendered by employees, with a
corresponding increase in the cost of relevant assets or expenses in the current period.
(a) Social insurance and housing fund
Pursuant to the relevant laws and regulations of the PRC, employees of the Group participate in the social
insurance system established and managed by government organisations. The Group makes social insurance
contributions including contributions to basic pension insurance, basic medical insurance, unemployment
insurance, work-related injury insurance, maternity insurance and etc. as well as contributions to housing fund.
Based on salaries of the employees, basic pensions insurance is provided for monthly according to stipulated
proportions (10% to 22%) and not exceeding the stipulated upper limit, which is paid to local labour and social
security institutions. The social insurance and housing fund contributions are recognised as part of the cost of
assets or charged to profit or loss on an accrual basis. Except for the above contributions, the Group does not
have any other obligations in this respect.
(b) Termination benefits
When the Group terminates the employment relationship with employees before the employment contracts
expire, or provides compensation as an offer to encourage employees to accept voluntary redundancy, a
provision for the termination benefits provided is recognised in profit or loss when both of the following
conditions have are satisfied:
The Group has a formal plan for the termination of employment or has made an offer to employees for
voluntary redundancy, which will be implemented shortly;
The Group is not allowed to withdraw from termination plan or redundancy offer unilaterally.
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25. Government grants
Government grants are transfers of monetary assets or non-monetary assets from the government to the
Group at nil consideration except for the capital contribution from the government as an investor in the Group,
including refund of taxes and financial subsidies, etc.. Special funds such as investment grants allocated by
the government, if clearly defined in official documents as part of capital reserve are dealt with as capital
contributions, and not regarded as government grants.
A government grant is recognised when the conditions attached to it can be complied with and the government
grant can be received.
If a government grant in the form of transfer of monetary assets, the grant is measured at the amount received
or receivable. For a government grant in the form of transfer of non-monetary assets, it is measured at fair value;
if the fair value is not reliably determinable, the grant is measured at nominal amount.
A government grant related to an asset is recognised as deferred income, and evenly amortised to profit or
loss over the useful life of the related asset. Government grants measured at nominal amounts are recognised
immediately in profit or loss for the current period. For government grants related to income, where the grant is
a compensation for related expenses or losses to be incurred by the Group in the subsequent periods, the grant
is recognised as deferred income, and included in profit or loss over the periods in which the related costs are
recognised; where the grant is a compensation for related expenses or losses already incurred by the Group, the
grant is recognised immediately in profit or loss for the current period.
26. Deferred tax assets and deferred tax liabilities
Deferred tax assets and liabilities arise from deductible and taxable temporary differences respectively, being
the differences between the carrying amounts of assets and liabilities for financial reporting purposes and their
tax bases, which include the deductible losses and tax credits carry forward to subsequent periods. Deferred tax
assets are recognised to the extent that it is probable that future taxable profits will be available against which
deductible temporary differences can be utilised.
Deferred tax is not recognised for the temporary differences arising from the initial recognition of assets or
liabilities in a transaction that is not a business combination and that affects neither accounting profit nor
taxable profit (or tax loss). No deferred tax liability is recognised for a temporary difference arising from the initial
recognition of goodwill.
At the balance sheet date, the amount of deferred tax recognised is measured based on the expected manner of
recovery or settlement of the carrying amount of the assets and liabilities, using tax rates that are expected to be
applied in the period when the asset is recovered or the liability is settled in accordance with tax laws.
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26. Deferred tax assets and deferred tax liabilities (Continued)
The carrying amount of a deferred tax asset is reviewed at each balance sheet date. The carrying amount of
a deferred tax asset is reduced to the extent that it is no longer probable that sufficient taxable profits will be
available to allow the benefit of the deferred tax asset to be utilised. Such reduction is reversed to the extent
that it becomes probable that sufficient taxable profits will be available.
Deferred tax liabilities are recognised for temporary differences arising from investments in subsidiaries,
associates and joint ventures, except where the Group is able to control the timing of reversal of the temporary
difference, and it is probable that the temporary difference will not reverse in the foreseeable future. When it is
probable that the temporary differences arising from investments in subsidiaries, associates and joint ventures
will be reversed in the foreseeable future and that the taxable profit will be available in the future against which
the temporary differences can be utilised, the corresponding deferred tax assets are recognized.
At the balance sheet date, deferred tax assets and liabilities are offset if all the following conditions are met:
the taxable entity has a legally enforceable right to set off current tax assets against current tax liabilities;
and
they relate to income taxes levied by the same tax authority on either the same taxable entity; or different
taxable entities which either intend to settle the current tax liabilities and assets on a net basis, or to
realize the assets and settle the liabilities simultaneously, in each future period in which significant amounts
of deferred tax liabilities or assets are expected to be settled or recovered.
27. Operating and finance leases
A lease is classified as either a finance lease or an operating lease. A finance lease is a lease that transfers
substantially all the risks and rewards incidental to ownership of a leased asset to the lessee, irrespective of
whether the legal title to the asset is eventually transferred. An operating lease is a lease other than a finance
lease.
(1) Operating lease charges
Rental payments under operating leases are recognised as costs or expenses on a straight-line basis over the
lease term.
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27. Operating and finance leases (Continued)
(2) Assets leased out under operating leases
Fixed assets leased out under operating leases, except for investment properties (see Note II.13) are depreciated
in accordance with the Groups depreciation policies described in Note II.14(2). Impairment losses are provided
for in accordance with the accounting policy described in Note II.20. Other leased out assets under operating
leases are amortised using the straight-line method. Income derived from operating leases is recognised in the
income statement using the straight-line method over the lease term. If initial direct costs incurred in respect of
the assets leased out are material, the costs are initially capitalised and subsequently amortised in profit or loss
over the lease term on the same basis as the lease income. Otherwise, the costs are charged to profit or loss
immediately.
(3) Assets acquired under finance leases
When the Group acquires an asset under a finance lease, the asset is measured at an amount equal to the
lower of its fair value and the present value of the minimum lease payments, each determined at the inception
of the lease. At the commencement of the lease term, the minimum lease payments are recorded as long-term
payables. The difference between the value of the leased assets and the minimum lease payments is recognised
as unrecognised finance charges. Initial direct costs that are attributable to a finance lease incurred by the Group
are added to the amounts recognised for the leased asset. Depreciation and impairment losses are accounted for
in accordance with the accounting policies described in Notes II.14(2) and II.20, respectively.
If there is a reasonable certainty that the Group will obtain ownership of a leased asset at the end of the lease
term, the leased asset is depreciated over its estimated useful life. Otherwise, the leased asset is depreciated
over the shorter of the lease term and its estimated useful life.
Unrecognised finance charge under finance lease is amortised using an effective interest method over the lease
term. The amortisation is accounted for in accordance with principles of borrowing costs (see Note II.16).
At the balance sheet date, long-term payables arising from finance leases, net of the unrecognised finance
charges, are presented as long-term payables or non-current liabilities due within one year, respectively, in the
balance sheet.
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27. Operating and finance leases (Continued)
(4) Assets leased out under finance leases
At the commencement of the lease term, the Group recognises the aggregate of the minimum lease receipts
determined at the inception of a lease and the initial direct costs as finance lease receivable. The difference
between the aggregate of the minimum lease receipts, the initial direct costs, and the aggregate of their present
value is recognised as unearned finance income.
Unearned finance income is allocated to each accounting period during the lease term using the effective interest
method. At the balance sheet date, finance lease receivables, net of unearned finance income, are presented as
long-term receivables or non-current assets due within one year, respectively in the balance sheet.
28. Assets held for sale
A held-for-sale asset is classified as held for sale when the Group has made a decision and signed a
non-cancellable agreement on the transfer of the asset with the transferee, and the transfer is expected to be
completed within one year. Such non-current assets may be fixed assets, intangible assets, and investment
properties subsequently measured using the cost model, long-term equity investment etc. but not include
financial assets and deferred tax assets. Non-current assets held for sale are stated at the lower of carrying
amount and net realisable value. Any excess of the carrying amount over the net realisable value is recognised
as impairment loss. At balance sheet date, non-current assets held for sale are presented under Other current
assets.
29. Hedge accounting
Hedge accounting is a method which recognises the offsetting effects on profit or loss of changes in the fair
values of the hedging instrument and the hedged item in the same accounting period(s).
Hedged items are the items that expose the Group to risks of changes in fair value or future cash flows and that
are designated as being hedged. The Groups hedged item include a forecast transaction that is settled with a
fixed amount of foreign currency and expose the Group to foreign currency risk.
A hedging instrument is a designated derivative whose changes in fair value or cash flows are expected to offset
changes in the fair value or cash flows of the hedged item. For a hedge of foreign currency risk, a non-derivative
financial asset or non-derivative financial liability may also be used as a hedging instrument.
The hedge is assessed by the Group for effectiveness on an ongoing basis and judged whether it has been highly
effective throughout the accounting periods for which the hedging relationship was designated. A hedge is
regarded as highly effective if both of the following conditions are satisfied:
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29. Hedge accounting (Continued)
at the inception and in subsequent periods, the hedge is expected to be highly effective in achieving
offsetting changes in fair value or cash flows attributable to the hedged risk during the period for which the
hedge is designated;
the actual results of offsetting are within a range of 80% to 125%.
Cash flow hedges
A cash flow hedge is a hedge of the exposure to variability in cash flows. The portion of the gain or loss on the
hedging instrument that is determined to be an effective hedge is recognised directly in shareholders equity as a
separate component. That effective portion is adjusted to the lesser of the following in absolute amounts:
the cumulative gain or loss on the hedging instrument from inception of the hedge;
The cumulative change in present value of the expected future cash flows on the hedged item from
inception of the hedge.
The portion of the gain or loss on the hedging instrument that is determined to be an ineffective hedge is
recognised in profit or loss.
If a hedge of a forecast transaction subsequently results in the recognition of a non-financial asset or
non-financial liability, the associated gain or loss is removed from shareholders equity and recognised in profit or
loss in the same period during which the financial asset or financial liability affects profit or loss. However, if the
Group expects that all or a portion of a net loss recognised directly in shareholders equity will not be recovered
in future accounting periods, it reclassifies into profit or loss the amount that is not expected to be recovered.
If a hedge of a forecast transaction subsequently results in the recognition of a financial asset or a financial
liability, the associated gain or loss is removed from equity and recognised in profit or loss in the same period
during which the financial asset or financial liability affects profit or loss. However, if the Group expects that all
or a portion of a net loss recognised directly in shareholders equity will not be recovered in future accounting
periods, it reclassifies into profit or loss the amount that is not expected to be recovered.
For cash flow hedges, other than those covered by the preceding two policy statements, the associated gain or
loss is removed from shareholders equity and recognised in profit or loss in the same period or periods during
which the hedged forecast transaction affects profit or loss.
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29. Hedge accounting (Continued)
When a hedging instrument expires or is sold, terminated or exercised, or the hedge no longer meets the criteria
for hedge accounting, the Group will discontinue the hedge accounting treatments prospectively. In this case, the
gain or loss on the hedging instrument that remains recognised directly in shareholders equity from the period
when the hedge was effective shall not be reclassified into profit or loss and is recognised in accordance with
the above policy when the forecast transaction occurs. If the forecast transaction is no longer expected to occur,
the gain or loss on the hedging instrument that remains recognised directly in shareholders equity from the
period when the hedge was effective shall be reclassified into profit or loss immediately.
30. Dividend distribution
Cash dividend is recognised as a liability for the period in which the dividend is approved by the shareholders
meeting.
Dividends or distributions of profits proposed in the profit appropriation plan which will be authorised and
declared after the balance sheet date, are not recognised as a liability at the balance sheet date but disclosed in
the notes separately.
31. Related parties
If a party has the power to control, jointly control or exercise significant influence over another party, or vice
versa, or where two or more parties are subject to common control or joint control from another party, they are
considered to be related parties. Related parties may be individuals or enterprises. Enterprises with which the
Company is under common control only from the State and that have no other related party relationships are
not regarded as related parties of the Group. Related parties of the Group and the Company include, but are not
limited to:
(a) the Companys parent;
(b) the Companys subsidiaries;
(c) enterprises that are controlled by the Companys parent;
(d) investors that have joint control or exercise significant influence over the Group;
(e) enterprises or individuals if a party has control, joint control over both the enterprises or individuals and
the Group;
(f) joint ventures of the Group, including subsidiaries of joint ventures;
(g) associates of the Group, including subsidiaries of associates;
(h) principal individual investors and close family members of such individuals;
(i) key management personnel of the Group and close family members of such individuals;
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31. Related parties (Continued)
(j) key management personnel of the Companys parent and close family members of such individuals; and
(k) close family members of key management personnel of the Companys parent; and
(l) other enterprises that are controlled or jointly controlled by principal individual investors, key management
personnel of the Group, and close family members of such individuals.
Besides the related parties stated above determined in accordance with the requirements of CAS, the following
enterprises and individuals are considered as (but not restricted to) related parties based on the disclosure
requirements of Administrative Procedures on the Information Disclosures of Listed Companies issued by the
CSRC:
(m) enterprises or persons that act in concert that hold 5% or more of the Companys shares;
(n) individuals and close family members of such individuals who directly or indirectly hold 5% or more of the
Companys shares, supervisors for listed companies and their close family members;
(o) enterprises that satisfy any of the aforesaid conditions in (a), (c) and (m) during the past 12 months or will
satisfy them within the next 12 months pursuant to a relevant agreement;
(p) individuals who satisfy any of the aforesaid conditions in (i), (j) and (n) during the past 12 months or will
satisfy them within the next 12 months pursuant to a relevant agreement; and
(q) enterprises, other than the Company and subsidiaries controlled by the Company, which are controlled
directly or indirectly by an individual defined in (i), (j), (n) or (p), or in which such an individual assumes the
position of a director or senior executive.
32. Segment reporting
Reportable segments are identified based on operating segments which are determined based on the structure
of the Groups internal organisation, management requirements and internal reporting system. An operating
segment is a component of the Group that meets the following conditions:
It engages in business activities from which it may earn revenues and incur expenses;
Its financial performance are regularly reviewed by the Groups management to make decisions about
resource to be allocated to the segment and assess its performance;
The Group is able to obtain its financial information regarding financial position, financial performance and
cash flows, etc.
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32. Segment reporting (Continued)
Two or more operating segments may be aggregated into a single operating segment if the segments have same
or similar economic characteristics, and are similar in respect of the following aspects:
the nature of each product and service;
the nature of production processes;
the type or class of customers for the products and services;
the methods used to distribute the products or provide the services;
the legal and regulatory impact on manufacturing of products and rendering of services.
Inter-segment revenues are measured on the basis of actual transaction price for such transactions for segment
reporting, and segment accounting policies are consistent with those for the consolidated financial statements.
33. Critical accounting estimates and judgments
The preparation of financial statements requires management to make estimates and assumptions that affect the
application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual
results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future
periods affected.
Notes V.17, VII.3 and XI.3 contain information about the assumptions and their risk factors relating to impairment
of goodwill, share-based payments and fair value of financial instruments. Other key sources of estimation
uncertainty are as follows:
(1) Impairment of receivables
As described in Note II.10, receivables that are measured at amortised cost are reviewed at each balance sheet
date to determine whether there is objective evidence of impairment. If any such evidence exists, impairment
loss is recognised. Objective evidence of impairment includes observable data that comes to the attention of the
Group about loss events such as a significant decline in the estimated future cash flow of an individual debtor
or the portfolio of debtors, and significant changes in the financial condition that have an adverse effect on the
debtor. If there has been a change in the factors used to determine the provision for impairment which indicates
that the value of the receivables has recovered, the impairment loss recognised in prior years is reversed.
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33. Critical accounting estimates and judgments (Continued)
(2) Provision for diminution in value of inventories
As described in Note II.11, the net realisable value of inventories is under managements regular review, and
as a result, provision for diminution in value of inventories is recognised for the excess of inventories carrying
amounts over their net realisable value. When making estimates of net realisable value, the Group takes into
consideration the use of inventories held on hand and other information available to form the underlying
assumptions, including the inventories market prices and the Groups historical operating costs. The actual
selling price, the costs of completion and the costs necessary to make the sale and relevant taxes may vary
based on the changes in market conditions and product saleability, manufacturing technology and the actual use
of the inventories, resulting in the changes in provision for diminution in value of inventories. The net profit or
loss may then be affected in the period when the provision for diminution in value of inventories is adjusted.
(3) Impairment of assets except inventories, financial assets and other long-term equity
investment
As described in Note II.20, assets such as fixed assets, intangible assets and investment properties are reviewed
at each balance sheet date to determine whether the carrying amount exceeds the recoverable amount of the
assets. If any such indication exists, an impairment loss is recognized.
The recoverable amount of an asset (asset group) is the greater of its fair value less costs to sell and its
present value of expected future cash flows. Since a market price of the asset (the asset group) cannot be
obtained reliably, the fair value of the asset cannot be estimated reliably. In assessing value in use, significant
judgements are exercised over the assets production, selling price, related operating expenses and discounting
rate to calculate the present value. All relevant materials which can be obtained are used for estimation of the
recoverable amount, including the estimation of the production, selling price and related operating expenses
based on reasonable and supportable assumption.
(4) Depreciation and amortisation of assets such as fixed assets, intangible assets and
investment properties
As described in Note II.13, 14 and 17, investment properties, fixed assets and intangible assets are depreciated
and amortised over their useful lives after taking into account residual value. The useful lives of the assets are
regularly reviewed to determine the depreciation and amortisation costs charged in each reporting period. The
useful lives of the assets are determined based on historical experiences of similar assets and the estimated
technical changes. If there have been significant changes in the factors used to determine the depreciation or
amortisation, the rate of depreciation or amortisation is revised prospectively.
(5) Warranty provisions
As described in Note V.33, the Group makes provisions under the warranties it gives on the sale of its products
based mainly on the Groups recent claim experience. Because it is possible that the recent claim experience
may not be indicative of future claims that the Group will receive in respect of past sales, a considerable level of
managements judgement is required and exercised to estimate the provision. Any increase or decrease in the
provision will affect profit or loss in future years.
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33. Critical accounting estimates and judgments (Continued)
(6) Construction contract
As described in Note II.23, contract revenue and contract profit are recognised based on the stage of completion
of a contract which is determined with reference to the proportion of the physical construction work completed
to the total estimated construction work. Where a contract is completed substantially and its contract revenue
and contract expenses to completion can be reliably measured, the Group estimates contract revenue and
contract expenses with reference to its recent construction experience and the nature of the construction
contracts. For a contract that is not completed substantially, contract revenue that should be recognised based
on its stage of completion, is not recognised and disclosed in the financial statements. Therefore, at the balance
sheet date, actual total contract revenue and total contract cost may be higher or lower than the estimated total
contract revenue and total contract cost and any change of estimated total contract revenue and total contract
cost may have financial impact on future profit or loss.
(7) Income taxes
The Group is subject to income taxes in numerous jurisdictions. There are many transactions and events for
which the ultimate tax determination is uncertain during the ordinary course of business. Significant judgment is
required from the Group in determining the provision for income taxes in each of these jurisdictions. Where the
final tax outcome of these matters is different from the amounts that were initially recorded, such differences will
impact the income tax and deferred tax provisions in the period in which such determination is made.
Determining income tax provisions involves judgement on the future tax treatment of certain transactions. The
Group carefully evaluates tax implications of transactions and tax provisions are set up accordingly. The tax
treatment of such transactions is reconsidered periodically to take into account all changes in tax legislations.
Deferred tax assets are recognised for tax losses not yet used and temporary deductible differences. As those
deferred tax assets can only be recognised to the extent that it is probable that future taxable profit will be
available against which the unused tax credits can be utilised, managements judgment is required to assess the
probability of future taxable profits. Managements assessment is constantly reviewed and additional deferred
tax assets are recognised if it becomes probable that future taxable profits will allow the deferred tax asset to be
recovered.
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III. TAXATION
1. Main taxes categories and rates
Types of tax Taxable base Tax rate
Value added tax (VAT) (a) The output VAT calculated based on taxable income
from sales of goods and rendering of service according
to related tax laws, after subtracting the deductable
input VAT of the period, is VAT payable
6%, 11% and 17%
Business tax (a) Taxable operating income 3-5%
Urban maintenance and
construction tax
Business tax payable and VAT payable 7%
Income tax Taxable income Note 1
The Netherlands/Australia
service tax rate
Calculated based on revenue arising from sales of
goods or rendering of service, less deductible or
refundable taxes for purchase of goods
10-19%
(a) Pursuant to Circular on Printing and Issuing the Pilot Proposals for the Change from Business Tax to
Value-Added Tax(Cai Shui [2011] No.110), Circular on the Launch of Pilot for the Chang from Business
Tax to Value-Added Tax in Shanghai in the transportation industry and modern service industry (Cai Shui
[2011] No.111) and Circular on the Launch of Pilot for the Chang from Business Tax to Value-Added Tax in
Beijing and other 8 regions in the transportation industry and some modern service industries (Cai Shui
[2012] No.71) issued by the Ministry of Finance and the State Administration of Taxation, incomes from
transportation industry and some modern service industries (including logistics support service and tangible
movable property leasing) of the subsidiaries registered in Shanghai, Beijing, Tianjin, Jiangsu, Anhui, Zhejiang
(including Ningbo), Fujian (including Xiamen), Hubei, Guangdong (including Shenzhen) are applicable to VAT
since 1 January 2012, with tax rate of 11%, 6% and 17%.
Note 1: The income tax rates applicable to the Company and significant subsidiaries for the period are as follows:
January June 2013 January June 2012
The Company 25% 24%
Subsidiaries registered in China 15-25% 12.5-25%
Subsidiaries registered in Hong Kong 16.5% 16.5%
Subsidiaries registered in British Virgin Islands
Subsidiary registered in Suriname 36% 36%
Subsidiary registered in Cambodia 20% 20%
Subsidiary registered in US 15-35% 15-35%
Subsidiary registered in Germany 31.6% 31.6%
Subsidiary registered in Britain 28% 28%
Subsidiary registered in Australia 30% 30%
Subsidiary registered in the Netherlands 25.5% 25.5%
Subsidiary registered in Belgium 34% 34%
Subsidiary registered in Denmark 25% 25%
Subsidiary registered in Finland 26% 26%
Subsidiary registered in Poland 19% 19%
Subsidiary registered in Thailand 30% 30%
Subsidiary registered in Singapore 17% 17%
122
III. TAXATION (CONTINUED)
2. Preferential tax treatments
The Groups subsidiaries that are entitled to preferential tax treatments are as follows:
Name of enterprises
Local
statutory
tax rate
Preferential
rate Reasons
1 Shenzhen CIMC Tianda Airport
Support Co., Ltd.
25% 15% Recognised as high-tech enterprises, in
2011 entitled to 15% preferential rate
2 Shenzhen CIMC Intelligent
Technology Co., Ltd.
3 Zhangjiagang CIMC Sanctum
Cryogenic Equipment Co., Ltd.
4 Zhumadian CIMC Huajun Vehicle
Co., Ltd.
5 Enric (Bengbu) Compressor Co.,
Ltd.
6 Shanghai CIMC Reefer Containers
Co., Ltd.
7 Nantong CIMC Special
Transportation Equipment
Manufacture Co., Ltd.
8 Xinhui CIMC Special Transportation
Equipment Co., Ltd.
9 Dalian CIMC Logistics Equipment
Co., Ltd.
10 Shenzhen CIMC Special Vehicle
Co., Ltd.
11 Tianjin CIMC Logistics Equipment
Co., Ltd.
12 Luoyang CIMC Lingyu Automobile
Co., Ltd.
13 Wuhu CIMC Ruijiang Automobile
Co., Ltd.
14 Yangzhou CIMC Tong Hua Special
Vehicles Co., Ltd
15 Shijiazhuang Enric Gas Equipment
Co., Ltd.
16 Enric (Lang fang) Energy Equipment
Integration Co., Ltd.
17 JingmenHongtu Special Aircraft
Manufacturing Co., Ltd
18 Nantong CIMC Tank Equipment
Co., Ltd
19 Yangzhou Tonglee Reefer Container
Co., Ltd.
Interim Report 2013
123
III. TAXATION (CONTINUED)
2. Preferential tax treatments (Continued)
The Groups subsidiaries that are entitled to preferential tax treatments are as follows (Continued):
On 6 December 2007, State Council of Peoples Republic of China promulgated detailed implementation rules
of the New Tax Law. According to the implementation rules, starting from 1 January 2008, a withholding tax is
applied on dividends distributed by foreign-invested enterprises to Hong Kong and other overseas investors with
a tax rate of 5% and 10%, respectively. Therefore, as at 30 June 2013, temporary difference caused by the Groups
subsidiaries undistributed profits amounted to RMB5,181,578,000 (as at 31 December 2012: RMB4,810,979,000)
and deferred tax liabilities amounting to RMB427,274,000 (as at 31 December 2012: RMB405,726,000) were
recognised by the Group accordingly.
IV. BUSINESS COMBINATIONS AND THE CONSOLIDATED FINANCIAL STATEMENTS
1. Company status of significant subsidiaries
All subsidiaries of the Group were established or acquired through combination not under common control. There
is no acquisition of subsidiaries through combination under common control.
As at 30 June 2013, the number of companies included in the scope of consolidation added up to 386 Except for
the subsidiaries listed as below, the number of other subsidiaries held by the Group was 215, with total paid-in
capitals amounting to RMB120,719,724.54. Other subsidiaries mainly included those engaged in manufacturing
or service provision with small scale of operation and paid-in capital below RMB20 million or US$3 million
respectively. Other subsidiaries also included those investment holding companies registered in Hong Kong,
British Virgin Islands or other overseas countries with no other operating activities.
124
(CONTINUED)
1. Company status of significant subsidiaries (Continued)
(1) Subsidiaries obtained through establishment or business combination
(i) Domestic subsidiaries
Name Entity type
Registration
place
Registered capital
Business scope
Actual investment and
actual net amount
of investment of the
Company at the
end of the year
Shareholding
percentage
Voting
rights
Within
consolidation
scope Currency
Amount of
original
currency Currency
Amount of
original
currency
1 Shenzhen Southern
CIMC Containers
Manufacture
Co., Ltd. (SCIMC)
Corporation Guangdong,
China
US$ 16,600,000.00 Manufacture, repair and
sale of container, container
stockpiling business
US$ 16,600,000.00 100.00% 100.00% Yes
2 Shenzhen Southern
CIMC Eastern
Logistic Equipment
Manufacturing
Co., Ltd. (SCIMCEL)
China
US$ 80,000,000.00 Manufacture and repair
of container design
and manufacture of new-
style special road and port
mechanical equipment
US$ 80,000,000.00 100.00% 100.00% Yes
3 Xinhui CIMC Container
Co., Ltd. (XHCIMC)
China
US$ 24,000,000.00 Manufacture, repair and sale
of containers
US$ 16,800,000.00 70.00% 70.00% Yes
4 Nantong CIMC Shunda
Containers Co., Ltd.
(NTCIMC)
Corporation Jiangsu,
China
of containers
US$ 5,467,000.00 71.00% 71.00% Yes
5 Tianjin CIMC Containers
Co., Ltd. (TJCIMC)
Corporation Tianjin,
China
US$ 50,000,000.00 Manufacture and sale of
container as well as
relevant technical advisory;
container stockpiling
business
US$ 50,000,000.00 100.00% 100.00% Yes
6 Dalian CIMC Containers
Co., Ltd. (DLCIMC)
Corporation Dalian,
China
business
US$ 17,400,000.00 100.00% 100.00% Yes
7 Ningbo CIMC Logistics
Equipment Co., Ltd.
(NBCIMC)
Corporation Ningbo,
China
business
US$ 15,000,000.00 100.00% 100.00% Yes
Interim Report 2013
125
(CONTINUED)
(1) Subsidiaries obtained through establishment or business combination (Continued)
(i) Domestic subsidiaries (Continued)
Name Entity type
Registration
place
Registered capital
Business scope
actual net amount
Company at the
end of the year
Shareholding
percentage
Voting
rights
Within
consolidation
scope Currency
Amount of
original
currency Currency
Amount of
original
currency
8 Taicang CIMC Containers
Co., Ltd. (TCCIMC)
China
US$ 40,000,000.00 Manufacture and repair of
container
US$ 40,000,000.00 100.00% 100.00% Yes
9 Yangzhou Runyang
Logistics Equipments
Co., Ltd. (YZRYL)
China
of container
US$ 20,000,000.00 100.00% 100.00% Yes
10 Shanghai CIMC
Yangshan Logistics
Equipments Co., Ltd.
(SHYSLE)
Corporation Shanghai,
China
relevant technical advisory
US$ 20,000,000.00 100.00% 100.00% Yes
11 Shanghai CIMC Reefer
Containers Co., Ltd.
(SCRC)
China
refrigeration and heat
preservation device of
reefer container, refrigerator
car and heat Preservation car
US$ 28,520,000.00 92.00% 92.00% Yes
12 Nantong CIMC Special
Transportation
Equipment
Manufacture Co., Ltd.
(NTCIMCS)
China
US$ 10,000,000.00 Manufacture, sale and repair
of various trough, tank as
well as various special
storing and transporting
equipments and parts
US$ 7,100,000.00 71.00% 71.00% Yes
13 Xinhui CIMC Special
Transportation
Equipment Co., Ltd.
(XHCIMCS)
China
various container, semi-
finished container product
and relevant components
and parts; providing leasing
and maintenance service
US$ 16,600,000.00 100.00% 100.00% Yes
14 Nantong CIMC Tank
Equipment Co., Ltd.
(NTCIMCT)
China
finished container relevant
components and parts
US$ 18,395,000.00 70.14% 100.00% Yes
126
(CONTINUED)
Name Entity type
Registration
place
Registered capital
Business scope
actual net amount
Company at the
end of the year
Shareholding
percentage
Voting
rights
Within
consolidation
scope Currency
Amount of
original
currency Currency
Amount of
original
currency
15 Dalian CIMC Railway
Equipment Co., Ltd.
(DLCIMCS)
Corporation Liaoning,
China
US$ 20,000,000.00 Design, manufacture and sale
of various railway freight
equipment products such as
railway container flat car,
open wagon and hopper
wagon
US$ 20,000,000.00 100.00% 100.00% Yes
16 Nantong CIMC
Large-sized Tank
Co., Ltd.
China
US$ 47,700,000.00 Design, production and sale of
tank relevant parts;
undertaking tank-related
general contracting projects
US$ 47,700,000.00 100.00% 100.00% Yes
17 Shenzhen CIMC Special
Vehicle Co., Ltd.
(CIMCSV)
China
RMB 200,000,000.00 Development, production and
sales of various special-use
vehicles, as well as relevant
RMB 160,000,000.00 80.00% 100.00% Yes
18 Qingdao CIMC Special
Vehicle Co., Ltd.
(QDSV)
Corporation Shandong,
China
sales of various special-use
vehicles, refitting vehicles,
special vehicles, trailer
series as well as relevant
RMB 55,875,168.00 88.86% 100.00% Yes
19 Yangzhou CIMC Tonghua
Tank Equipment
Co., Ltd. (YZTHT)
China
US$ 17,500,000.00 Development and production
of various trailer, special-use
vehicles and tank
equipment as well as
US$ 14,000,000.00 80.00% 100.00% Yes
20 Shanghai CIMC Vehicle
Co., Ltd. (SHL)
China
RMB 90,204,082.00 Development, construction,
operation leasing, sales of
warehousing and auxiliary
facilities; property
RMB 72,163,265.60 80.00% 100.00% Yes
21 Beijing CIMC Vehicle
Co., Ltd. (BJVL)
Corporation Beijing,
China
RMB 20,000,000.00 Construction and operation
of auxiliary warehousing
equipments management
and relevant service
RMB 16,000,000.00 80.00% 100.00% Yes
22 CIMC Vehicle (Liaoning)
Co., Ltd. (LNVS)
China
RMB 40,000,000.00 Development and production
of various trailer, special-
use vehicles as well as
RMB 32,000,000.00 80.00% 100.00% Yes
Interim Report 2013
127
(CONTINUED)
Name Entity type
Registration
place
Registered capital
Business scope
actual net amount
Company at the
end of the year
Shareholding
percentage
Voting
rights
Within
consolidation
scope Currency
Amount of
original
currency Currency
Amount of
original
currency
23 Tianjin CIMC Special
Vehicles Co., Ltd.
(TJXV)
China
RMB 30,000,000.00 Production and sales of box
car, mechanical products,
metal structure member;
relevant advisory services
RMB 24,000,000.00 80.00% 100.00% Yes
24 CIMC -SHAC (XiAn)
Special Vehicle
Co., Ltd. (XASV)
Corporation XiAn,
China
of various trailer, special
vehicle and the components
and parts; providing relevant
technical service
RMB 30,000,000.00 60.00% 75.00% Yes
25 Gansu CIMC Huajun
Vehicle Co., Ltd. (GSHJ)
Corporation Gansu,
China
RMB 25,000,000.00 Refitting of special vehicles,
manufacture of trailer and
fittings as well automobile
fittings; sales of relevant
materials
RMB 20,000,000.00 80.00% 100.00% Yes
26 Xinhui CIMC Composite
Material Manufacture
CO., LTD (XHCM)
China
US$ 16,000,000.00 Production, development,
processing and sales of
various composite plate
products such as plastics,
plastic alloy
US$ 12,800,000.00 80.00% 100.00% Yes
27 Qingdao CIMC Eco-
Equipment Co., Ltd.
(QDHB)
China
RMB 137,930,000.00 Development, manufacture,
sales and service for
garbage treatment truck and
the components and parts
RMB 56,275,440.00 40.80% 51.00% Yes
28 Shanghai CIMC Special
Vehicle Co., Ltd.
(SHCIMCV)
China
of box trailer, box car as
well as relevant mechanical
products
RMB 24,663,000.00 82.21% 100.00% Yes
29 CIMC Financing and
Leasing Co., Ltd.
(CIMCVL)
China
RMB 70,000,000.00 Finance lease business;
disposal and maintenance
for residual value of
leased property; advisory
and warranty for leasing
transaction
RMB 70,000,000.00 100.00% 100.00% Yes
128
(CONTINUED)
Name Entity type
Registration
place
Registered capital
Business scope
actual net amount
Company at the
end of the year
Shareholding
percentage
Voting
rights
Within
consolidation
scope Currency
Amount of
original
currency Currency
Amount of
original
currency
30 Qingdao Refrigeration
Transport Equipment
Co., Ltd. (QDRV)
China
US$ 25,000,000.00 Manufacture and sales of
various refrigeration,
heat preservation and other
transport equipments and
spare parts
US$ 20,000,000.00 80.00% 100.00% Yes
31 Nantong CIMC Tank
Equipment Co., Ltd.
(NTCY)
China
large-sized tank, production
of various pressurization tank
car, special pressurization
trough, tank and parts
US$ 7,014,000.00 70.14% 100.00% Yes
32 Shenzhen CIMC
Tianda Airport
Support Ltd. (TAS)
China
US$ 13,500,000.00 Production and operation
of various airport-purpose
electromechanical
equipment products
US$ 9,450,000.00 70.00% 70.00% Yes
33 Xinhui CIMC Wood
Co., Ltd. (XHCIMCW)
China
US$ 15,500,000.00 Production of container-
purpose wood floor and
relevant products of various
specifications; providing
service
US$ 15,500,000.00 100.00% 100.00% Yes
34 Inner Mongolia Holonbuir
CIMC Wood Co., Ltd.
(NMGW)
Corporation Inner
Mongolia,
China
US$ 12,000,000.00 Production and sales of
various container wood
floors and wood products
for transport equipments
US$ 12,000,000.00 100.00% 100.00% Yes
35 Jiaxing CIMC Wood
Co., Ltd. (JXW)
Corporation Zhejiang,
China
US$ 5,000,000.00 Production and sales of
container wood floors,
wood products for transport
equipments and other wood
products
US$ 5,000,000.00 100.00% 100.00% Yes
36 Xuzhou CIMC Wood
Co., Ltd. (XZW)
China
RMB 50,000,000.00 Production and sales of
container wood floor;
purchasing and sales of timber
RMB 50,000,000.00 100.00% 100.00% Yes
Interim Report 2013
129
(CONTINUED)
Name Entity type
Registration
place
Registered capital
Business scope
actual net amount
Company at the
end of the year
Shareholding
percentage
Voting
rights
Within
consolidation
scope Currency
Amount of
original
currency Currency
Amount of
original
currency
37 Shenzhen Southern
CIMC Containers
Service Co., Ltd.
(SCIMCL)
China
US$ 5,000,000.00 Engaged in container
transshipment, stockpiling,
devanning, vanning,
maintenance
US$ 5,000,000.00 100.00% 100.00% Yes
38 Ningbo CIMC Container
Service Co., Ltd.
(NBCIMCL)
Corporation Ningbo,
China
RMB 30,000,000.00 Goods traffic; goods package,
sorting, examination and
logistics advisory service
RMB 30,000,000.00 100.00% 100.00% Yes
39 Shanghai CIMC Yangshan
Container Service
Co., Ltd. (SHYLE)
China
US$ 7,000,000.00 Container transshipment,
stockpiling, devanning,
vanning, and warehousing;
container maintenance,
try-off and technical service
US$ 6,650,000.00 95.00% 95.00% Yes
40 CIMC Shenfa
Development
Co., Ltd. (CIMCSD)
China
RMB 204,122,966.00 Investment, construction and
operation for infrastructure;
real estate development
and operation
RMB 204,122,966.00 100.00% 100.00% Yes
41 CIMC Vehicle (Xinjiang)
Co., Ltd. (SJ4S)
Corporation Xinjiang,
China
mechanical equipments
as well as relevant technical
development
RMB 64,000,000.00 80.00% 100.00% Yes
42 CIMC Vehicle (Group)
Co., Ltd. (HI)
China
US$ 168,000,000.00 Development, production and
sales of various high-tech
and high-performance special
vehicle and trailer series
US$ 134,400,000.00 80.00% 80.00% Yes
43 Qingdao CIMC Special
Reefer Co., Ltd.
(QDCSR)
China
finished container product
and parts
US$ 11,500,000.00 100.00% 100.00% Yes
130
(CONTINUED)
Name Entity type
Registration
place
Registered capital
Business scope
actual net amount
Company at the
end of the year
Shareholding
percentage
Voting
rights
Within
consolidation
scope Currency
Amount of
original
currency Currency
Amount of
original
currency
44 Tianjin CIMC Logistics
(TJCIMCLE)
China
US$ 5,000,000.00 Design, manufacture, sale,
maintenance and relevant
technical advisory for
logistics equipments and
relevant components and parts
US$ 5,000,000.00 100.00% 100.00% Yes
45 Dalian CIMC Logistics
Equipment Co., Ltd.
(DLL)
Corporation Dalian,
China
US$ 14,000,000.00 Design, manufacture, sale,
maintenance and relevant
technical advisory for
international trade, entrepot
trade, logistics equipment
and pressure vessel
US$ 14,000,000.00 100.00% 100.00% Yes
46 Chongqing CIMC
Co., Ltd. (CQLE)
Corporation Chongqing,
China
US$ 8,000,000.00 Design, manufacture, lease,
maintenance of container,
special container, other
logistic equipment and
relevant components and
parts
US$ 8,000,000.00 100.00% 100.00% Yes
47 Dalian CIMC Heavy
Co., Ltd. (DLZH)
China
US$ 45,170,000.00 International trade, entrepot
trade, design, manufacture,
sale, and relevant technical
advisory of pressure vessel;
manufacture and
installation, other service
of relevant components and
parts of pressure vessel
US$ 45,170,000.00 100.00% 100.00% Yes
48 Shenzhen CIMC
Intelligent Technology
Co., Ltd. (CIMC Tech)
China
RMB 20,000,000.00 Design, development,
sale, surrogate of Electron
production, software and
system
RMB 20,000,000.00 100.00% 100.00% Yes
49 CIMC Taicang
refrigeration equipment
logistics Co., Ltd.
(TCCRC)
China
RMB 450,000,000.00 Research and development,
production and sale of
reefer container and special
container
RMB 450,000,000.00 100.00% 100.00% Yes
Interim Report 2013
131
(CONTINUED)
Name Entity type
Registration
place
Registered capital
Business scope
actual net amount
Company at the
end of the year
Shareholding
percentage
Voting
rights
Within
consolidation
scope Currency
Amount of
original
currency Currency
Amount of
original
currency
50 Hunan CIMC Bamboo
Industry Development
Co., Ltd. (HNW)
Corporation Hunan,
China
RMB 28,000,000.00 Manufacturing and sale of
bamboo and wood product
RMB 28,000,000.00 100.00% 100.00% Yes
51 CIMC Jidong
(Qinhuangdao) Vehicles
Manufacture Co., Ltd
(QHDV)
Corporation Hebei,
China
RMB 70,000,000.00 Sale of car and car
RMB 42,000,000.00 60.00% 75.00% Yes
52 CIMC Energy Chemical
Engineering
technology Co., Ltd.
China
RMB 5,000,000.00 Design and development
projects for energy,
chemical food related
equipment; contractor
techniques transfer
RMB 5,000,000.00 100.00% 100.00% Yes
53 CIMC Management and
Training (Shenzhen)
Co., Ltd.
China
RMB 50,000,000.00 Design of marketing activities
scheme organization of
academic and commercial
conference and exhibition
RMB 50,000,000.00 100.00% 100.00% Yes
54 Yangzhou Lijun Industry
and Trade Co., Ltd.
(Yangzhou Lijun)
China
mechanical equipments
and parts; technical
advisory and other service
RMB 70,000,000.00 100.00% 100.00% Yes
55 Yangzhou Taili Special
Equipment Co., Ltd.
(Yangzhou Taili)
China
RMB 70,000,000.00 Design, manufacturing and
maintenance of containers,
board square cabin and
parts; relevant advisory and
service
RMB 70,000,000.00 100.00% 100.00% Yes
56 Yantai CIMC Marine
Engineering Academe
Co., Ltd. (MEA)
China
RMB 150,000,000.00 Research and development
of marine operation
platform and other marine
engineering service
RMB 150,000,000.00 100.00% 100.00% Yes
57 Shanghai Lifan Container
Service Co., Ltd.
(Shanghai Lifan)
China
RMB 1,000,000.00 Refitting and maintenance
of containers; providing
containers information
system management and
advisory service
RMB 420,000.00 42.00% 60.00% Yes
132
(CONTINUED)
Name Entity type
Registration
place
Registered capital
Business scope
actual net amount
Company at the
end of the year
Shareholding
percentage
Voting
rights
Within
consolidation
scope Currency
Amount of
original
currency Currency
Amount of
original
currency
58 CIMC Wood
Development Co., Ltd.
(CIMCWD)
China
sales of wood products for
various modern
transportation equipment
RMB 150,000,000.00 100.00% 100.00% Yes
59 Shenzhen CIMC
Skyspace Real Estate
Development Co., Ltd.
(CIMC Tianyu)
Corporation Shenzhen,
China
RMB 254,634,066.00 Real estate development RMB 229,170,659.40 90.00% 90.00% Yes
60 Yangzhou CIMC Grand
Space Real Estate
Development Co., Ltd
(CIMC Haoyu)
Note IV. 1(4)
China
RMB 25,000,000.00 Real Estate Development,
sales and leasing
RMB 23,500,000.00 94.00% 94.00% Yes
61 Jiangmen CIMC
Skyspace Real Estate
Co.,Ltd. (Jiangmen
Real Estate) Note IV. 1(4)
China
RMB 30,000,000.00 Real estate development,
projects sale of decoration
and building materials
RMB 27,000,000.00 90.00% 90.00% Yes
62 Ningbo Runxin
Container Co., Ltd
Corporation Ningbo
China
RMB 5,000,000.00 Cleaning and repair of
containers, stockpiling,
vanning and devanning
service
RMB 3,000,000.00 60.00% 60.00% Yes
63 Chengdu CIMC Vehicle
Co., Ltd. (CD Vehicle)
Corporation Sichuan
China
sale of various special-use
vehicles, as well as
Warehouse equipment
RMB 48,000,000.00 80.00% 80.00% Yes
64 CIMC Finance Company
(Finance Company)
Corporation Shenzhen
China
RMB 500,000,000.00 Providing financial service RMB 500,000,000.00 100.00% 100.00% Yes
65 Shenzhen CIMC
Investment Holding
company (SZ
Investment Holding)
China
RMB 75,000,000.00 Investment, sale and leasing
of containers and container
property
RMB 75,000,000.00 100.00% 100.00% Yes
Interim Report 2013
133
(CONTINUED)
Name Entity type
Registration
place
Registered capital
Business scope
actual net amount
Company at the
end of the year
Shareholding
percentage
Voting
rights
Within
consolidation
scope Currency
Amount of
original
currency Currency
Amount of
original
currency
66 Zhumadian CIMC Huajun
Vehicle Trading Co., Ltd.
(HJQM)
Corporation Henan
China
RMB 10,000,000.00 Sales and repair of various
vehicles, as well as relevant
RMB 8,000,000.00 80.00% 80.00% Yes
67 Zhumadian CIMC Huajun
Casting Co. Ltd.
(HJCAST)
Corporation Henan
China
RMB 297,762,000.00 Casting manufacturing for
Vehicle and coal mining
machinery
RMB 166,746,720.00 56.00% 70.00% Yes
68 Ocean Engineering
Design & Research
Institute of CIMC
(SHOE)
Corporation Shanghai
China
RMB 50,000,000.00 Design and research of marine
operation platform and
other ocean engineering
RMB 50,000,000.00 100.00% 100.00% Yes
69 Shenzhen CIMC
Investment Co., Ltd
(SZ Investment)
China
RMB 60,000,000.00 Equity investment, investment
management and related
investment business
RMB 60,000,000.00 100.00% 100.00% Yes
70 Shenzhen Sky Capital
Co., Ltd. (SESKYC)
China
RMB 90,000,000.00 Equity investment, investment
investment business
RMB 90,000,000.00 100.00% 100.00% Yes
71 Ningbo MRO Trading
Co.,Ltd. (MRO)
Corporation Ningbo
China
gas mask and other plastic
productions
RMB 10,000,000.00 100.00% 100.00% Yes
72 Shenzhen CIMC
Container Holding
Co., Ltd.
(Container Holding)
China
RMB 1,000,000,000.00 Equity investment, Investment
investment business
RMB 1,000,000,000.00 100.00% 100.00% Yes
73 Chengdu CIMC Logistics
Corporation Chengdu
China
RMB 7,500,000.00 Chemical liquid tank truck and
semi-trailer
RMB 6,000,000.00 80.00% 100.00% Yes
74 Shanxi CIMC Vehicle
Industry Garden
Corporation Shanxi
China
vehicle
RMB 64,000,000.00 80.00% 100.00% Yes
134
(CONTINUED)
Name Entity type
Registration
place
Registered capital
Business scope
actual net amount
Company at the
end of the year
Shareholding
percentage
Voting
rights
Within
consolidation
scope Currency
Amount of
original
currency Currency
Amount of
original
currency
75 Shenzhen CIMC Vehicle
Industry Garden
China
RMB 85,000,000.00 Investment management RMB 68,000,000.00 80.00% 100.00% Yes
76 CIMC modular building
design & Development.
Co. Ltd
Corporation Guangdong
China
RMB 50,000,000.00 Decoration engineering
construction engineering,
landscape engineering
design etc.
RMB 50,000,000.00 100.00% 100.00% Yes
77 CIMC modular
construction
investment Co. Ltd.
China
RMB 50,000,000.00 Equity investment
management, asset
management, real estate
development, sales
RMB 50,000,000.00 100.00% 100.00% Yes
78 CIMC cold chain
Investment Co. Ltd.
Corporation Shandong
China
RMB 809,000,000.00 Industrial investment,
project investment etc.
RMB 809,000,000.00 100.00% 100.00% Yes
79 CIMC Cold Chain
Research Institute
Company Limited
China
RMB 50,000,000.00 Standard marine refrigerated
containers, special
refrigerated containers,
refrigerated transport
vehicles
RMB 50,000,000.00 100.00% 100.00% Yes
80 Shenzhen CIMC
New Process of
Automotive Supply
Chain Management
Co. Ltd.
China
RMB 10,000,000.00 Supply chain management RMB 6,000,000.00 60.00% 60.00% Yes
Interim Report 2013
135
(CONTINUED)
(ii) Overseas subsidiaries
Name
Registration
place
Registered capital
Business scope
actual net amount of
investment of the
Company at the end
of the year
Shareholding
percentage
Voting
rights
Within
consolidation
scope Currency
Amount of
original
currency Currency
Amount of
original
currency
81 CIMC Holdings (B.V.I.) Limited
(CIMC BVI)
British Virgin
Islands
US$ 34,001.00 Investment US$ 34,001.00 100.00% 100.00% Yes
82 CIMC Tank Equipment
Investment Holdings Co., Ltd.
Hong Kong HKD 4,680,000.00 Investment HKD 4,680,000.00 100.00% 100.00% Yes
83 CIMC-SMM Vehicle (Thailand)
CO., LTD. (Thailand V)
Thailand Baht 260,000,000.00 Production and operation
of various special vehicles
Baht 213,200,000.00 82.00% 82.00% Yes
84 CIMC Vehicle Investment Holding
Co., Ltd. (CIMC Vehicle)
Hong Kong US$ 50,000.00 Investment US$ 40,000.00 80.00% 100.00% Yes
85 CIMC Europe BVBA (BVBA) Belgium EUR 18,550.00 Investment EUR 18,550.00 100.00% 100.00% Yes
86 China International Marine
Containers (Hong Kong)
Limited (CIMC Hong Kong)
Hong Kong HKD 2,000,000.00 Investment HKD 2,000,000.00 100.00% 100.00% Yes
87 CIMC Burg B.V. (BV) Holland EUR 60,000,000.00 Investment EUR 60,000,000.00 100.00% 100.00% Yes
88 Tacoba Forestry Consultant
Forestry N.V (Tacoba)
Suriname SF 3,000,000.00 Sale of wood SF 3,000,000.00 100.00% 100.00% Yes
89 Charm Wise Limited
(Charm Wise)
Hong Kong
China
US$ 1.00 Investment US$ 1.00 100.00% 100.00% Yes
90 Gold Terrain Assets Limited
(GTA)
British Virgin
Islands
91 Full Medal Holdings Ltd.
(Full Medal)
British Virgin
Islands
92 Charm Ray Holdings Limited
(Charm Ray)
Hong Kong
China
HKD 1.00 Investment HKD 0.70 70.14% 100.00% Yes
93 Charm Beat Enterprises Limited
(Charm Beat)
British Virgin
Islands
136
(CONTINUED)
(ii) Overseas subsidiaries (Continued)
Name
Registration
place
Registered capital
Business scope
investment of the
Company at the end
of the year
Shareholding
percentage
Voting
rights
Within
consolidation
scope Currency
Amount of
original
currency Currency
Amount of
original
currency
94 Sharp Vision Holdings Limited
(Sharp Vision)
Hong Kong
China
95 Sound Winner Holdings Limited
(Sound Winner)
British Virgin
Islands
96 Grow Rapid Limited
(Grow Rapid)
Hong Kong
China
97 Powerlead Holding Ltd.
(Powerlead)
British Virgin
Islands
98 Cooperatie Vela U.A. Holland EUR 18,000.00 Investment EUR 12,625.20 70.14% 100.00% Yes
99 Vela Holding B.V. Holland EUR 18,000.00 Investment EUR 12,625.20 70.14% 100.00% Yes
100CIMC ENRIC Tank and Process B.V. Holland EUR 14,038,200.00 Investment EUR 9,846,393.48 70.14% 100.00% Yes
101CIMC Financial Leasing (HK) Ltd.
(Financial Leasing)
Hong Kong
China
HKD 500,000.00 Finance Lease HKD 500,000.00 100.00% 100.00% Yes
102CIMC Offshore Holdings Limited
(CIMC Offshore)
Hong Kong
China
HKD 342,860,173.00 Investment HKD 342,860,173.00 100.00% 100.00% Yes
103Cooperatie CIMC U.A (COOP) Holland ERU 25,500,000.00 Investment EUR 25,500,000.00 100.00% 100.00% Yes
104North Sea Rigs Holdings (NSR) British Virgin
Islands
US$ 1.00 Finance leasing project
company
US$ 1.00 100.00% 100.00% Yes
Interim Report 2013
137
(CONTINUED)
(2) The Group does not have subsidiaries obtained through combination under common control
(3) Subsidiaries acquired through combinations not under common control
(i) Domestic subsidiaries
Name Entity type
Registration
place
Registered capital
Business scope
actual net amount
Company at the
end of the period
Shareholding
percentage
(%)
Voting
rights
(%)
Within
consolidation
scope Currency
Amount of
original
currency Currency
Amount of
original
currency
1 Luoyang CIMC Lingyu
Automobile CO., LTD.
(LYV)
Corporation Henan,
China
passenger car, tank car;
machining; operation of
import and export business
RMB 36,000,000.00 60.00% 75.00% Yes
2 Wuhu CIMC Ruijiang
Automobile CO LTD
(WHVS)
Corporation Anhui,
China
RMB 100,000,000.00 Development, production
and sales of various special
vehicles, ordinary
mechanical products and
metal structure parts
RMB 60,000,000.00 60.00% 75.00% Yes
3 Liangshan Dongyue
CIMC Vehicle Co., Ltd.
(LSDYV)
China
RMB 90,000,000.00 Production and sales of mixing
truck, special vehicle and
RMB 54,000,000.00 60.00% 75.00% Yes
4 Qingdao CIMC Container
Manufacture Co., Ltd
(QDCC)
China
container, processing
and manufacture of various
mechanical parts, structures
and equipment
US$ 27,840,000.00 100.00% 100.00% Yes
5 Qingdao CIMC Reefer
Container Manufacture
Co., Ltd. (QDCRC)
China
refrigeration and heat
preservation device of
reefer container, refrigerator
car and heat preservation
car; providing relevant
technical advisory and
maintenance service
US$ 86,846,680.00 100.00% 100.00% Yes
138
(CONTINUED)
(3) Subsidiaries acquired through combinations not under common control (Continued)
Name Entity type
Registration
place
Registered capital
Business scope
actual net amount
Company at the
end of the period
Shareholding
percentage
(%)
Voting
rights
(%)
Within
consolidation
scope Currency
Amount of
original
currency Currency
Amount of
original
currency
6 Tianjin CIMC North
Ocean Container
Co., Ltd. (TJCIMC)
China
container as well as vehicle,
ship, equipment and steel
structure specially used
for container; warehousing
and after sales service for
container
US$ 15,469,300.00 100.00% 100.00% Yes
7 Shanghai CIMC Baowell
Industries Co. Ltd
(SBWI)
China
US$ 27,000,900.00 94.74% 100.00% Yes
8 CIMC Vehicle (Shandong)
Co. Ltd. (KGR)
China
RMB 18,930,100.00 Development and
manufacture of refrigerator
car, tank car, trailer, box car,
special vehicles and various
series products
RMB 13,177,246.61 69.61% 87.01% Yes
9 Zhangzhou CIMC
Container Co., Ltd.
(ZZCIMC)
Corporation Fujian,
China
container as well as relevant
technical advisory
US$ 23,000,000.00 100.00% 100.00% Yes
10 Yangzhou CIMC
Tong Hua Special
Vehicles Co., Ltd.
(YZTH)
China
RMB 294,234,000.00 Development, production
and sales of various special-
use vehicles, refitting
vehicles, special vehicles,
trailer series as well as
parts
RMB 235,387,200.00 80.00% 100.00% Yes
11 Zhumadian CIMC
Huajun Vehicle Co. Ltd.
(HJCIMC)
Corporation Henan,
China
RMB 85,340,000.00 Refitting of special vehicles,
sales of trailer and fittings;
sales of vehicle-related
materials
RMB 68,272,000.00 80.00% 100.00% Yes
Interim Report 2013
139
(CONTINUED)
Name Entity type
Registration
place
Registered capital
Business scope
actual net amount
Company at the
end of the period
Shareholding
percentage
(%)
Voting
rights
(%)
Within
consolidation
scope Currency
Amount of
original
currency Currency
Amount of
original
currency
12 Zhangjiagang CIMC
Sanctum Cryogenic
Equipment Machinery
Co., Ltd. (SDY)
China
RMB 144,862,042.01 Development, manufacture
and installation of deep
freezing unit, petrochemical
mechanical equipment, tank
container, pressure vessel
RMB 101,606,236.27 70.14% 100.00% Yes
13 Donghwa Container
Transportation
Service Co., Ltd.
(DHCTS)
China
US$ 4,500,000.00 Container cargo devanning,
vanning; canvass for cargo;
allotment and customs
declaration; container
maintenance and
stockpiling; supply of
US$ 3,150,000.00 70.00% 70.00% Yes
14 Yangzhou Tonglee
Reefer Container
Co., Ltd. (TLC)
China
reefer container and special
container; providing
and maintenance service
US$ 34,100,000.00 100.00% 100.00% Yes
15 Qingdao Kooll
Logistics Co., Ltd
(QDHFL)
China
RMB 20,000,000.00 Container warehousing,
stockpiling, devanning,
vanning, load and unload,
cleaning, maintenance;
goods processing
RMB 16,000,000.00 80.00% 80.00% Yes
16 Enric (Bengbu)
Compressor Co., Ltd.
(Enric Bengbu)
Note IV.1(4)
Corporation Anhui,
China
HKD 60,808,385.00 Manufacturing base of NG
compressor and related
products
HKD 42,651,001.24 70.14% 100.00% Yes
17 Shijiazhuang Enric Gas
Equipment Co., Ltd.
(Shijiazhuang Enric)
Corporation Hebei,
China
US$ 7,000,000.00 Manufacturing pressure vessel US$ 4,909,800.00 70.14% 100.00% Yes
140
(CONTINUED)
Name Entity type
Registration
place
Registered capital
Business scope
actual net amount
Company at the
end of the period
Shareholding
percentage
(%)
Voting
rights
(%)
Within
consolidation
scope Currency
Amount of
original
currency Currency
Amount of
original
currency
18 Enric (Langfang)
Energy Equipment
Integration Co., Ltd.
(Langfang Enric)
Note IV.1(4)
Corporation Hebei, China HKD 50,000,000.00 Manufacturing and exploiting
Energy Equipment
integration
HKD 35,070,000.00 70.14% 100.00% Yes
19 Enric (Beijing) Energy
Technology Co., Ltd
(Beijing Enric)
Note IV.1(4)
Corporation Beijing, China HKD 40,000,000.00 Manufacturing and exploiting
Energy Equipment
integration
HKD 28,056,000.00 70.14% 100.00% Yes
20 CIMC Enric (Jingmen)
Energy Equipment
Co., Ltd.
Note IV.1(4)
Corporation Hubei, China HKD 50,000,000.00 Sales of chemical and gas
machineries and
equipments as well as
after sales services;
research and development
of energy conservation
techniques
HKD 36,790,000.00 70.14% 100.00% Yes
21 JingmenHongtu Special
Aircraft manufacturing
Co., Ltd (Jingmen
Hongtu)
Corporation Hubei, China RMB 20,000,000.00 Development and sales of
flight vehicle manufacturing
techniques, design,
production and sales of
specialized motor vehicles,
tanks and pressure vessel
RMB 11,222,000.00 56.11% 80.00% Yes
22 Ningguo CIMC Wood
Co., Ltd. (NGCIMCW)
Corporation Anhui China US$ 1,300,000.00 Production and sales of
self-produced veneers,
flooring, decorative board
and wood and bamboo
related products; acquisition
of wood and bamboo for
production
US$ 780,000.00 60.00% 60.00% Yes
23 Yantai CMIC Raffles
offshore Ltd (YCRO)
China
RMB 1,042,690,000.00 Construction of dock;
Designation, production of
ship; production of
equipment of pressure and
offshore oil platform
RMB 1,020,689,241.00 97.89% 97.89% Yes
Interim Report 2013
141
(CONTINUED)
Name Entity type
Registration
place
Registered capital
Business scope
actual net amount
Company at the
end of the period
Shareholding
percentage
(%)
Voting
rights
(%)
Within
consolidation
scope Currency
Amount of
original
currency Currency
Amount of
original
currency
24 Yantai CIMC Raffles ship
Co., Ltd (YCRS)
China
RMB 125,980,000.00 Construction of ship as well as
component; Sales of
container and offshore oil
platform, channel and steel
production
RMB 105,155,506.00 83.47% 83.47% Yes
25 Haiyang CIMC Raffles
offshore Ltd. (HCRO)
China
RMB 200,000,000.00 Construction of dock;
Designation, production of
ship; production of
equipment of pressure and
offshore oil platform
RMB 195,780,000.00 97.89% 97.89% Yes
26 Longkou CIMC Raffles
offshore engineering
Co., Ltd (LCRO)
China
RMB 290,000,000.00 Construction of offshore
project and supplement
RMB 283,881,000.00 97.89% 97.89% Yes
27 Shandong Master Special
Vehicle Manufacturing
Co., Ltd (SDMV)
China
RMB 22,000,000.00 Manufacture and sales of
mixing truck, special vehicle
and components and parts
RMB 13,200,000.00 60.00% 75.00% Yes
28 Xinfa Airport Equipment
Ltd. (Xinfa Airport)
China
RMB 10,000,000.00 Manufacture and sales of
airport shuttle buses
RMB 7,000,000.00 49.00% 70.00% Yes
29 Yangjiang East Furi
Real Estate Co., Ltd
(YJFR)
China
RMB 36,000,000.00 Real estate development
and operation planning
and consulting, sale of
construction materials and
inner house decoration
RMB 19,440,000.00 54.00% 54.00% Yes
30 Nanjing Yangzi
Petrochemical
Design & Engineering
Co., Ltd. (YPDI)
Corporation Jiangsu
China
RMB 30,000,000.00 Project relating to
petrochemical industry
RMB 21,042,000.00 70.14% 100.00% Yes
142
(CONTINUED)
Name Entity type
Registration
place
Registered capital
Business scope
actual net amount
Company at the
end of the period
Shareholding
percentage
(%)
Voting
rights
(%)
Within
consolidation
scope Currency
Amount of
original
currency Currency
Amount of
original
currency
31 Zhenhua Logistics
Group Co., Ltd.
(Zhenhua Group)
Corporation Tianjin
China
US$ 51,956,000.00 Tianjin Port container
and grocery distribution
transportation, container
repair, processing
US$ 38,967,000.00 75.00% 75.00% Yes
32 Tianjin Port CIMC
Zhenhua Logistics
Co., Ltd. (Tianjin
Gang Zhenhua)
Corporation Tianjin
China
RMB 100,000,000.00 Container storage
management storage,
removable box etc.
RMB 61,500,000.00 61.50% 70.00% Yes
33 Zhenhua International
Shipping Agency
(Qingdao) Co., Ltd.
(Qingdao Shipping)
Corporation Qingdao
China
RMB 10,000,000.00 The international ship
agency business
RMB 7,500,000.00 75.00% 100.00% Yes
34 Zhenhua (Tianjin)
Logistics Co., Ltd.
(Zhenhua Tianjin)
Corporation Tianjin
China
RMB 10,000,000.00 Special transport general
cargo, cargo (containers)
RMB 7,500,000.00 75.00% 100.00% Yes
35 Tianjin Zhenhua
Haijing Logistics
Co. Ltd.
(Zhenhua Haijing)
Corporation Tianjin
China
RMB 145,000,000.00 The construction of storage
facilities, storage yard
Container transfer station
operation
RMB 65,250,000.00 45.00% 60.00% Yes
36 Tianjin Zhenhua
International
Logistics Limited
(Zhenhua International
Logistics)
Corporation Tianjin
China
US$ 17,000,000.00 The non vessel shipping,
warehousing Transit
US$ 12,750,000.00 75.00% 100.00% Yes
Interim Report 2013
143
(CONTINUED)
Name Entity type
Registration
place
Registered capital
Business scope
actual net amount
Company at the
end of the period
Shareholding
percentage
(%)
Voting
rights
(%)
Within
consolidation
scope Currency
Amount of
original
currency Currency
Amount of
original
currency
37 Tianjin Zhenhua
shipping Agency
Co. Ltd.
(Tianjin Shipping)
Corporation Tianjin
China
agency business
RMB 7,500,000.00 75.00% 100.00% Yes
38 Shanghai Zhenhua
shipping Agency
Co. Ltd.
(Shanghai Shipping)
Corporation Shanghai
China
agency business
RMB 7,500,000.00 75.00% 100.00% Yes
39 Shandong Zhenhua
Logistics Co., Ltd.
(Shandong Zhenhua)
China
US$ 9,150,000.00 General cargo, dangerous
goods transport Special
transport of goods
US$ 6,862,500.00 75.00% 100.00% Yes
144
(CONTINUED)
(ii) Overseas subsidiaries
Name
Registration
place
Registered capital
Business scope
investment of the
Company at the end
of the period
Shareholding
percentage
(%)
Voting
rights
(%)
Within
consolidation
scope Currency
Amount of
original
currency Currency
Amount of
original
currency
40 CIMC Rolling Stock Australia
Pty Ltd. (CIMC Aus)
Australia AUD 50,000.00 Sales of vehicles AUD 50,000.00 100.00% 100.00% Yes
41 Enric Energy Equipment
Holdings Limited (Enric)
Note IV.1(4)(i)
Cayman Islands HKD 120,000,000.00 Investment holding HKD 84,168,000.00 70.14% 70.14% Yes
42 Burg Industries B.V. Holland EUR 3,403,351.62 Investment holding EUR 3,403,351.62 100.00% 100.00% Yes
43 Holvrieka Holding B.V. Holland EUR 12,000,000.00 Investment holding EUR 8,416,800.00 70.14% 100.00% Yes
44 Holvriekaldo B.V. Holland EUR 136,200.00 Sales of tank equipment EUR 95,530.68 70.14% 100.00% Yes
45 Holvrieka Nirota B.V. Holland EUR 680,670.32 Production, assembly and
sale of tank equipment
EUR 701,400.00 70.14% 100.00% Yes
46 Noordkoel B.V. Holland EUR 500,000.00 Sales of tank equipment EUR 350,700.00 70.14% 100.00% Yes
47 Beheermaatschappij Burg B.V. Holland EUR 453,780.22 Investment holding EUR 453,780.22 100.00% 100.00% Yes
48 Burg Carrosserie B.V. Holland EUR 90,756.04 Production of road
transport vehicle
EUR 90,756.04 100.00% 100.00% Yes
49 Exploitatiemaatschappij
Intraprogres B.V.
Holland EUR 79,411.54 Trade, financing and leasing of
road transport vehicle
EUR 79,411.54 100.00% 100.00% Yes
50 Hobur Twente B.V. Holland EUR 226,890.11 Production and sale of oil
and components and parts
EUR 226,890.11 100.00% 100.00% Yes
51 Burg Service B.V. Holland EUR 250,000.00 Assembly and repair of road
transport vehicle and tank
equipment
EUR 250,000.00 100.00% 100.00% Yes
52 LAG Trailers N.V. Belgium BEF 30,000,000.00 Manufacturing trailer BEF 30,000,000.00 100.00% 100.00% Yes
53 Holvrieka N.V. Belgium BEF 40,000,000.00 Manufacturing tank equipment BEF 28,056,000.00 70.14% 100.00% Yes
54 Immoburg N.V. Belgium BEF 10,000,000.00 Manufacturing road
transport vehicle
BEF 10,000,000.00 100.00% 100.00% Yes
55 Holvrieka Danmark A/S Denmark DKr 1,000,000.00 Manufacturing tank equipment DKr 735,800.00 70.14% 100.00% Yes
56 Direct Chassis LLC (DCEC) USA US$ 10,000,000.00 Manufacturing and sales of
special vehicles
US$ 6,000,000.00 100.00% 100.00% Yes
57 CIMCTGE Gasinvestments
SA (TGESA)
Luxemburg EUR 50,000.00 Investment holding EUR 30,000.00 60.00% 60.00% Yes
Interim Report 2013
145
(CONTINUED)
(ii) Overseas subsidiaries (Continued)
Name
Registration
place
Registered capital
Business scope
investment of the
Company at the end
of the period
Shareholding
percentage
(%)
Voting
rights
(%)
Within
consolidation
scope Currency
Amount of
original
currency Currency
Amount of
original
currency
58 TGE Gas Engineering GmbH
(TGE Gas)
Germany EUR 1,000,000.00 Provide EP+CS(Design, Purchase
and Construction Supervision)
or other technical project
services in LNG, LPG and
storage and disposal of other
EUR 600,000.00 60.00% 100.00% Yes
59 CIMC Raffles Offshore
(Singapore) Limited (Raffles)
Singapore US$ 624,541,970.96 Production of various ship for
offshore oil and gas, including
jack-up drilling platforms, semi-
submersible drilling Platforms,
FPSOs, FSOs
US$ 624,541,970.96 100.00% 100.00% Yes
60 CIMC Raffles Investments Limited Hong Kong
China
HKD 2.00 Investment holding HKD 2.00 100.00% 100.00% Yes
61 CIMC Raffles Leasing Pte Ltd. Singapore SGD 2.00 Leasing of marine ship SGD 2.00 100.00% 100.00% Yes
62 Caspian Driller Pte. Ltd. Singapore US$ 30,000,000.00 Leasing of marine ship US$ 30,000,000.00 100.00% 100.00% Yes
63 Technodyne International Limited
(Technodyne)
UK GBP 1.00 Research and development of
Energy equipment
GBP 0.60 60% 60% Yes
64 GadidaeAB. Sweden SEK 1,000.00 Investment holding SEK 1,000.00 100.00% 100.00% Yes
65 Perfect Victor Investments Limited
(Perfect Victor)
Hong Kong
China
US$ 1.00 Investment holding US$ 1.00 100.00% 100.00% Yes
66 Ziemann International GmbH
(Ziemann Group)
Germany EUR 16,000,000.00 Design, production and sales EUR 11,222,400.00 70.14% 100.00% Yes
67 Zhenhua Logistics (Hong Kong)
Limited company (Zhenhua
(Hong Kong))
Hong Kong
China
US$ 6,000,000.00 The international ship
agency business
US$ 4,500,000.00 75.00% 100.00% Yes
146
(CONTINUED)
(4) Subsidiaries with inconsistent shareholding percentage and voting rights
(i) Enric
As at 30 June 2013, the Company held 190,703,000 number of ordinary shares in Enric through its wholly
owned subsidiary-Charm Wise, and 1,131,632,645 number of ordinary shares in Enric through its wholly
owned subsidiary-CIMC Hong Kong. Therefore, both the Companys shareholding percentage and voting
right in Enric were 70.14%.
(ii) Except for the subsidiary mentioned above in (i), the Companys voting rights in its indirect-owned
subsidiaries which are held by the Companys non-wholly owned subsidiaries were presented according to
the voting rights in its subsidiaries.
2. There are no entities set up for special purpose or operating entities controlled
through entrusted operation and lease.
3. Changes in the scope of consolidation for the consolidated financial statements
Newly purchased (see Note IV.6) and established subsidiaries during the period changed the scope of the
consolidated financial statements.
4. Subsidiaries newly included in and excluded from the scope of consolidation for
the current period
(1) Subsidiaries newly included in the scope of consolidation included Zhenhua Group, Tianjin Zhenhua which
are acquired through combinations not under common control and other 54 subsidiaries.
(2) There was no significant subsidiary, special purpose entity or operating entity that having control through
being entrusted to manage or leasing that excluded from the scope of consolidation for the current period.
5. There was no acquisition through combination under common control for the
current period (from January to June 2012: Nil).
Interim Report 2013
147
(CONTINUED)
6. The Groups acquisition through combination not under common control for the
current period
On 6 March, 2013, the Group entered into an equity interests acquisition contract with Zhenhua Logistic Group
Co., Ltd (Zhenhua Group)s shareholder to acquire a total of 36.78% equity interests of Zhenhua Group for the
consideration of approximately RMB408,666,000. Before the transaction, the Group already hold 38.22% equity
interests of Zhenhua Group. After the transaction, the Group increased its equity interest in Zhenhua to 75% and
Zhenhua Group becomes the Groups subsidiary from 1 April 2013.
The principal activities of Zhenhua Group are logistics and transportation business. Its headquarter are located in
Tianjin.
Before acquiring Zhenhua Group, the Group already hold 36% equity interests of Tianjin Zhenhua. As Zhenhua
Group hold 34% equity interests of Tianjin Zhenhua, after the above mentioned transaction, the Group directly
and indirectly hold 61.5% equity interests of Tianjin Zhenhua and Tianjin Zhenhua became the Groups subsidiary.
7. There is no loss of control of subsidiaries by disposal of equity interest for the
current period.
8. There is no reverse acquisition of the Group for the current period.
9. There is no consolidation by merger of the Group for the current period.
10. Significant acquisition of minority interests for the current period
On 8 February 2013, CIMC OFFSHORE, a wholly-owned subsidiary of the Group acquired the remaining interests
of 11.42% equity interests of CIMC Raffles for the consideration of US$0.55 per share. After the transaction, CIMC
Raffles became a wholly-owned subsidiary of CIMC OFFSHORE.
The difference between the additional share of identified net assets adjusted and the consideration paid was
recognised to capital surplus.
11. Significant disposal of subsidiarys equity interests without loss of control for
current period
In the period, CIMC Vehicle, the Companys 80% owned subsidiary, disposed of 75,055,792 Enrics ordinary shares
at the price of HKD8.37 per share, representing approximately 3.19% equity interests, and received total proceeds
of HKD628,216,979 (equivalent to RMB500,406,235). The difference between the proceeds from disposal and the
share of the subsidiarys identifiable net assets was amounted to approximately RMB288,761,000, which was
recognized in capital surplus.
148
(CONTINUED)
12. Exchange rates applied to financial statement items of foreign operations:
Average exchange rate Benchmark exchange rate
From
January to
June 2013
From
January to
June 2012
30 June
2013
31 December
2012
US$ 6.2267 6.3052 6.1787 6.2854
EUR 8.1433 8.1633 8.0536 8.3195
HKD 0.8021 0.8126 0.7966 0.8108
JPY 0.0643 0.0788 0.0626 0.0730
The shareholders equity items other than undistributed profits, income and expense items, and the cash flows
items are translated at the spot exchange rates on the dates of the transactions.
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149
V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. Cash at bank and on hand
30 June 2013 31 December 2012
Original
currency
000
Exchange
rate
RMB000
Original
currency
000
Exchange
rate
RMB000
Cash on hand:
RMB 3,106 1.0000 3,106 RMB 1,119 1.0000 1,119
US$ 16 6.1787 101 US$ 21 6.2854 134
HKD 8 0.7966 6 HKD 17 0.8108 14
JPY 176 0.0626 11 JPY 753 0.0730 55
EUR 19 8.0536 152 EUR 29 8.3195 240
GBP 2 9.4213 17 GBP 10.1626
Others Others 18
Subtotal 3,393 1,580
Deposits with banks:
RMB 1,564,135 1.0000 1,564,135 RMB 1,777,496 1.0000 1,777,496
US$ 154,361 6.1787 953,750 US$ 282,272 6.2854 1,774,192
HKD 382,271 0.7966 304,517 HKD 82,389 0.8108 66,801
JPY 499,649 0.0626 31,278 JPY 530,164 0.0730 38,702
AUD 23,400 5.7061 133,522 AUD 17,779 6.5359 116,200
EUR 44,353 8.0536 357,200 EUR 65,527 8.3195 545,150
GBP 1,269 9.4213 11,953 GBP 10.1626
THB 368,684 0.1991 73,405 THB 0.2055
Others 4,395 Others 74,079
Subtotal 3,434,155 4,392,620
Other cash balances:
RMB 264,678 1.0000 264,678 RMB 599,864 1.0000 599,864
US$ 516 6.1787 3,188 US$ 36,180 6.2854 227,402
HKD 0.7966 HKD 90 0.8108 73
Subtotal 267,866 827,339
Total 3,705,414 5,221,539
As at 30 June 2013, restricted cash at bank and on hand of the Group amounted to RMB472,088,000
(31 December 2012: RMB824,027,000). Refer to Note V.22 for details.
As at 30 June 2013, Finance Company, the subsidiary of the Group, had deposit with the Peoples Bank of China
totalling of RMB333,241,000 (31 December 2012: RMB559,009,000). Finance Company is a finance institution
authorised by the Peoples Bank of China.
150
V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
2. Financial assets held for trading
(1) Classification of financial assets held for trading
Category Note
30 June
2013
31 December
2012
Current portion
1. Investments in equity instrument held for trading
listed companies (3) 128,150 389,557
2. Derivative financial assets
Forward contract (4) 25,133 12,684
3. Hedging instrument 7,287 2,851
Subtotal 160,570 405,092
Non-current portion
1. Derivative financial assets Forward contract (4) 420
Subtotal 420
Total 160,990 405,092
(2) As at 30 June 2013, there is no material restriction on sales or realisation of the investment
in financial assets held for trading.
(3) The equity instruments held for trading are securities listed on the Hong Kong Stock
Exchange, the Shenzhen Stock Exchange, the Shanghai Stock Exchange and the Singapore
Exchange Limited, of which the fair value is determined at the closing price on the last
trading day of the period of the above stock exchanges.
(4) Derivative financial assets held for trading
As at 30 June 2013, the Group had certain open forward contracts (mainly unsettled forward contracts)
denominated in U.S. dollars. The nominal value of these contracts amounted to approximately US$653 million. The
Group had other unsettled forward contracts of Japanese Yuan, Euro and Australian Dollar. The nominal value of
these amounted to JPY 2,235 million, EUR 16.74 million and AUD 5 million respectively. Pursuant to these forward
contracts, the Group is required to buy/sell foreign currencies, such as US$, Euro, Japanese Yuan, and etc. of
contracted nominal value at agreed rates in exchange of RMB at the contract settlement dates. These forwards
contracts will be settled on a net basis by comparing the market rates at the settlement dates and the agreed
rates. The settlement dates of the aforesaid forwards contracts range from 3 July 2013 to 23 December 2014.
Interim Report 2013
151
3. Notes receivable
(1) Classification of Notes receivable
Category
30 June
2013
31 December
2012
Bank acceptance notes 1,167,075 776,309
Commercial acceptance notes 79,092 1,800
Total 1,246,167 778,109
All of the above bills receivable are due within one year.
No amount due from shareholders who hold 5% or more of the voting rights of the Company is included in the
above balance of bills receivable.
(2) As at 30 June 2013, the Group had pledged notes receivable totalling RMB188,758,000
(31 December 2012: Nil). The five largest amounts of pledged notes receivable are:
Issuer Issuance date Maturity date Amount Remarks
Zhanjiang Henglian
Automobile Trade
Co., Ltd.
29 March 2013 29 September 2013 11,000 Bank acceptance notes
Qianan Jiujiang Wire
Co., Ltd.
5 February 2013 4 August 2013 10,000 Bank acceptance notes
Qianan Jiujiang Wire
Co., Ltd.
5 February 2013 4 August 2013 10,000 Bank acceptance notes
Shaanxi Automobile
Holding Group Co., Ltd
26 April 2013 26 October 2013 10,000 Bank acceptance notes
Aksu Zhongrun
Automobile Co., Ltd
27 April 2013 27 October 2013 10,000 Bank acceptance notes
Total 51,000
(3) As at 30 June 2013, there were no amount transferred to accounts receivable from
acceptance bills due to failure of performance by the issuers (31 December 2012: Nil).
(4) At 30 June 2013, the five largest amounts of outstanding notes receivable endorsed by the
Group are:
Issuer Issuance date Maturity date Amount Remarks
Pangda Automobile
Trade Group Co., Ltd.
28 May 2013 27 November 2013 10,000 Bank acceptance notes
Pangda Automobile
Pangda Automobile Trade
Group Co., Ltd.
Pangda Automobile
Pangda Automobile
Total 50,000
152
4. Accounts receivable
(1) Accounts receivables are analysed by customer categories as follows:
Category
30 June
2013
31 December
2012
Containers group 3,769,367 2,711,559
Trailers group 2,468,424 1,827,664
Energy, chemistry and equipment group 2,706,461 2,215,151
Offshore business group 2,561,504 1,022,797
Airport facilities group 322,325 413,934
Others 1,284,444 416,849
Subtotal 13,112,525 8,607,954
Less: provision for bad debts (386,969) (369,921)
Total 12,725,556 8,238,033
(2) The ageing of accounts receivable is analysed as follows:
Category
30 June
2013
31 December
2012
Within 1 year (inclusive) 11,068,104 7,524,749
1 to 2 years (inclusive) 923,189 814,730
Over 3 years 147,342 106,352
Subtotal 13,112,525 8,607,954
Total 12,725,556 8,238,033
Interim Report 2013
153
4. Accounts receivable (Continued)
(3) Accounts receivables are analysed by categories as follows:
Ending balance Provision for bad debts Ending balance Provision for bad debts
Category Note Amount
% of total
balance Amount
Ratio
(%) Amount
% of total
balance Amount
Ratio
(%)
With amounts that are individually significant and that
the related provision for bad debts is provided on
the individual basis (4) 1,124,123 8.57% 143,132 12.73% 1,431,696 16.63% 169,086 11.81%
With amounts that are not individually significant and that
the related provision for bad debts is provided on
the individual basis (5) 189,153 1.44% 44,997 23.79% 45,659 0.53% 16,089 35.24%
That the related provision for bad debts is provided on
the grouping basis*
Containers group (6) 3,761,832 28.69% 1,302 0.03% 2,435,399 28.30% 1,319 0.05%
Trailers group (6) 2,082,236 15.88% 84,183 4.04% 1,689,304 19.62% 94,664 5.60%
Energy, chemistry and equipment group (6) 2,693,737 20.54% 68,696 2.55% 2,087,691 24.25% 61,903 2.97%
Offshore business group (6) 1,682,305 12.83% 126,296 1.47% 10 0.01%
Airport facilities group (6) 322,325 2.46% 29,946 9.29% 386,219 4.49% 22,377 5.79%
Others (6) 1,256,814 9.58% 14,713 1.17% 405,690 4.71% 4,473 1.10%
Group subtotal 11,799,249 89.98% 198,840 1.69% 7,130,599 82.84% 184,746 2.59%
Total 13,112,525 100.00% 386,969 2.95% 8,607,954 100.00% 369,921 4.30%
Note*: This category includes accounts receivable individually tested but not impaired
As at 30 June 2013, the Group did not hold any collateral for accounts receivable that were made impairment
aforesaid.
154
(3) Accounts receivables are analysed by categories as follows (Continued):
Individually significant items represent accounts receivable with an individual amount over RMB10,000,000
(inclusive) or the book value of which account for 5% or more of the total accounts receivable in individual
financial statements included in the consolidated financial statement.
Accounts receivable denominated in original currencies are as follows:
Currency
Original
currency
000
Exchange
rate Amount
RMB000 Currency
Original
currency
000
Exchange
rate Amount
RMB000
RMB 5,492,967 1.0000 5,492,967 RMB 3,230,211 1.0000 3,230,211
US$ 1,099,833 6.1787 6,795,536 US$ 697,967 6.2854 4,386,969
HKD 60,023 0.7966 47,814 HKD 21,384 0.8108 17,339
JPY 951,821 0.0626 59,584 JPY 520,829 0.0730 38,046
AUD 31,583 5.7061 180,213 AUD 25,099 8.3195 208,809
EUR 55,191 8.0536 444,486 EUR 103,649 6.5359 677,446
Total 13,112,525 8,607,954
(4) As at 30 June 2013, accounts receivable with amounts that are individually significant and
that the related provision for bad debts is provided on the individual basis are analysed as
follows:
Category
Ending
balance
Provision
for bad and
doubtful
debts Ratio Reason
Trailers group 221,297 14,467 6.54% Provision is made based on
the estimated recoverable
amount according to
assessment of credit
risk and historical data
Energy, chemistry and
equipment group 12,724 12,724 100.00%
Offshore business group 879,199 105,038 11.95%
Others 10,903 10,903 100.00%
Total 1,124,123 143,132 12.73%
Interim Report 2013
155
(5) As at 30 June 2013, accounts receivable with amounts that are not individually significant
but that the related provision for bad debts is provided on the individual basis are analysed
as follows:
Category
Ending
balance
Provision
for bad and
doubtful
debts Ratio Reason
Containers group 7,535 2,352 31.21% Provision is made based on
the estimated recoverable
amount according to
assessment of credit
risk and historical data
Trailers group 164,891 39,902 24.20%
Others 16,727 2,743 16.40%
Total 189,153 44,997 23.79%
(6) Accounts receivable that the related provision for bad debts is provided on grouping basis
using the ageing analysis method are analysed as follows:
Ending balance Provision
for bad
debts
Ending balance Provision
for bad
debts Currency Amount
% of total
balance Amount
% of total
balance
Within 1 year 10,875,335 82.94% 57,662 6,719,921 78.08% 86,718
1 to 2 years 710,703 5.42% 35,828 261,199 3.03% 18,576
2 to 3 years 153,373 1.17% 48,164 98,503 1.14% 29,011
Over 3 years 59,838 0.46% 57,186 50,976 0.59% 50,441
Total 11,799,249 89.98% 198,840 7,130,599 82.84% 184,746
The ageing is counted starting from the date the account receivable is recognised.
(7) The recovery of provision in current period
There were no accounts receivable that the related provision for bad debts had been provided in full amount or
in large proportion in previous years but are collected or reversed in full amount or in large proportion in current
period (from January to June 2012: Nil).
(8) Accounts receivable that are written off in current period
There were no material accounts receivable that are written off in current period (from January to June 2012: Nil).
156
(9) As at 30 June 2013, the five largest accounts receivable are analysed as follows:
Company name
Relationship
with the
Company Amount Ageing
% of total
balance
1. Hapag-Lloyd Container Line None 759,502 Within 1 year 5.79%
2. Goodpack Ltd None 546,556 Within 1 year 4.17%
3. Soratu Drilling LLC None 522,346 2 to 3 years 3.98%
4. Compagnie Maritime dAffretement None 513,048 Within 1 year 3.91%
5. Sea Containers Ltd. None 485,467 1 to 2 years 3.70%
Total 2,826,919 21.56%
The total amount of the Groups five largest accounts receivable at 31 December 2012 was RMB2,015,627,000,
accounting for 23.41% of the total accounts receivable.
(10) Accounts receivable from shareholders holding 5% or more of the voting rights of the
Company are analysed as follows:
As at 30 June 2013, no amount due from shareholders holding 5% or more of the voting rights of the Company is
included in the above balance of accounts receivable (31 December 2012: Nil).
(11) Accounts receivable from related parties are analysed as follows:
As at 30 June 2013, the Groups accounts receivable due from related parties amount to RMB271,959,000
(31 December 2012: RMB218,419,000), accounting for 2.07% of the total accounts receivable (31 December 2012:
2.54%).
Company name Relationship with the Company Amount
% of total
balance
Shaanxi Heavy Duty Automobile
Co., Ltd
Minority shareholders
of subsidiaries 158,340 1.21%
Sumitomo Corp. Minority shareholders of subsidiaries 32,695 0.25%
Florens Maritime Limited Subsidiaries of significant shareholders 31,144 0.24%
Florens Container Corp. SA Subsidiaries of significant shareholders 18,289 0.14%
Others 31,491 0.24%
Total 271,959 2.07%
Interim Report 2013
157
(12) Accounts receivable derecognized due to transfer of financial assets are analysed as
follows:
Accounts receivable with a carrying amount of RMB691,581,000 (31 December 2012: RMB412,241,000) are
derecognised due to transfer of financial assets in current period, with no losses occurred (31 December 2012:
Nil). The accounts receivable are transferred to financial institutions without recourse.
(13) Amount of assets and liabilities recognised due to the continuing involvement of securitised
accounts receivable
There were no securitised accounts receivable during the period (31 December 2012: Nil).
As at 30 June 2013, restricted accounts receivable equals to RMB98,241,000 (31 December 2012: Nil). Refer to
Note V.22.
5. Other receivables
(1) Other receivables are analysed by categories as follows:
Category
30 June
2013
31 December
2012
Receivables arising from financing to related parties 630,275 638,940
Loans 450,459 504,369
Drawback tax receivable 751,781 280,829
Deposit 72,061 138,289
Prepayment for land and equipment 87,652 109,776
Receivables from transfer of equity investment 70,650 70,650
Others 807,945 512,520
Subtotal 2,870,823 2,255,373
Total 2,729,163 2,114,435
(2) The ageing of other receivables is analysed as follows:
Ageing
30 June
2013
31 December
2012
Over 3 years 532,519 630,174
Subtotal 2,870,823 2,255,373
Total 2,729,163 2,114,435
The ageing is counted starting from the date the other receivable is recognized.
158
5. Other receivables (Continued)
Category Note Amount
% of total
balance Amount
Ratio
(%) Amount
% of total
balance Amount
Ratio
(%)
Other receivables with
amount that are
individually significant (4) 1,400,958 48.80% 70,931 5.06% 1,368,956 60.70% 71,145 5.20%
amount that are not
individually significant (5) 1,469,865 51.20% 70,729 4.81% 886,417 39.30% 69,793 7.87%
Total 2,870,823 100% 141,660 4.93% 2,255,373 100% 140,938 6.25%
The Group did not hold any collateral for other receivables that were made impairment aforesaid.
Individually significant items represent other receivables with an individual amount over RMB10,000,000
(inclusive) or the book value of which account for 5% or more of the total other receivables in individual financial
statements included in the consolidated financial statement.
(4) As at 30 June 2013, other receivables with amounts that are individually significant and
follows:
Category Amount
Provision for
bad debts
Provision
rate Reasons
Amounts due from associates 553,230 Note 1
Receivables arising from transfer of
equity investment 70,650 Note 1
Receivables arising from purchase of
land use right 67,652 Note 1
Receivables arising from financing to
third parties 426,570 12,357 2.90% Note 1
Others 282,856 58,574 20.71% Note 1
Total 1,400,958 70,931 5.06%
Note 1: The provision for bad debts is individually assessed based on the recoverability.
(5) As at 30 June 2013, other receivables with amounts that are not individually significant but
follows:
The Group assessed impairment of other receivables with amounts that are not individually significant and made
provision of impairment of RMB70,729,000 as at 30 June 2013.
Interim Report 2013
159
(6) The recovery of provision in current period
There were no other receivables that the related provision for bad debts had been provided in full amount or in
large proportions in previous years but are collected or reversed in full amount or in large proportions in current
period (from January to June 2012: Nil).
(7) Other receivables that are written off in current period
There was no material other receivables that are written off in current period (from January to June 2012: Nil).
(8) As at 30 June 2013, the five largest other receivables are analysed as follows:
Company name
Relationship
with the
Company Amount Ageing
% of total
balance
1. Schahin Holding S.A
None 408,570 1 to 3 years 14.23%
2. Marine Subsea & Consafe Ltd
Associate 282,627 1 to 3 and
over 3 years
9.84%
3. C&C Trucks Co., Ltd
Associate 170,000 1 to 3 years 5.92%
4. Shanghai Fengyang Real Estate
Associate 100,603 1 to 3 and
over 3 years
3.50%
5. China Merchants Property
Subsidiaries
of significant
shareholders
70,650 Over 3 years 2.46%
Total
1,032,450 35.96%
The Groups five largest other receivables as at 31 December 2012 amounted to RMB1,122,435,000, accounting
for 49.77% of the total other receivables.
(i) Raffles entered into loan agreements with Schahin Holding S.A and its other 6 related parties (Schahin),
whereby the total amount borrowed by Schahin is US$66,126,000 (equivalent to RMB408,570,000) as at 30
June 2013. The repayment is expected to be settled in cash. As a result, the amount was recorded as other
receivables. The Group has made provision of RMB12,571,000 for the amount above as at 30 June 2013.
(ii) Raffles completed its acquisition of Gadidae AB (formerly known as Consafe MSV AB) on 31 January 2011.
Since December 2007, Gadidae AB had been making loans to its associate, Marine Subsea & Consafe
(MSC), which amounted to US$35,625,000 (equivalent to RMB220,124,000) as at 30 June 2013. Raffles
recognised interest income according to loan agreement and recorded expenses paid on behalf of MSC
with total amount of US$10,116,000 (equivalent to approximately RMB62,503,000) from 2007 to 31 January
2011.
(9) Other receivables from shareholders holding more than 5% (including 5%) of the voting
rights of the Company are analysed as follows:
As at 30 June 2013, no amount due from shareholders holding 5% or more of the voting rights of the Company is
included in the above balance of other receivables.
160
(10) As at 30 June 2013, other receivables from related parties are analysed as follows:
Company name Relationship with the Group Amount
% of total
balance
Marine Subsea & Consafe Ltd. Associate 282,627 9.84%
C&C Trucks Co., Ltd Associate 170,000 5.92%
Shanghai Fengyang Real Estate
Associate 100,603 3.50%
China Merchants Property
Subsidiaries of significant shareholders 70,650 2.46%
Others 6,395 0.22%
Total 630,275 21.95%
The Groups other receivables due from related parties as at 31 December 2012 amounted to RMB713,624,000,
accounting for 31.64% of total other receivables.
(11) Other receivables denominated in original currencies are as follows:
Original
currency
Exchange
rate RMB
Original
currency
Exchange
rate RMB
RMB 1,945,698 1.0000 1,945,698 RMB 1,639,933 1.0000 1,639,933
US$ 114,931 6.1787 710,123 US$ 64,078 6.2854 402,752
HKD 31,142 0.7966 24,808 HKD 49,403 0.8108 40,057
EUR 20,225 8.0536 162,881 EUR 14,933 8.3195 124,236
Total 2,870,823 Total 2,255,373
Interim Report 2013
161
6. Advance to suppliers
(1) Advance to suppliers are analysed by categories as follows:
Item
30 June
2013
31 December
2012
Raw material (including equipments for ship under construction) 2,375,446 1,153,826
Cost of ship under construction 166,068 134,775
Others 161,264 107,283
Subtotal 2,702,778 1,395,884
Total 2,520,119 1,213,042
(2) The ageing of advance to suppliers is analysed below:
Amount
% of total
balance Amount
% of total
balance
Within 1 year (inclusive) 1,995,371 73.83% 954,528 68.38%
1 to 2 years (inclusive) 244,757 9.06% 239,605 17.17%
2 to 3 years (inclusive) 287,250 10.63% 21,228 1.52%
Over 3 years 175,400 6.49% 180,523 12.93%
Subtotal 2,702,778 100.00% 1,395,884 100.00%
Less: provision for bad debts (182,659) 6.76% (182,842) 13.10%
Total 2,520,119 93.24% 1,213,042 86.90%
The ageing is counted starting from the date of recognition of advance to suppliers.
Advance to suppliers aged over 1 year included steel purchase prepayment made to a supplier in total of
RMB91,336,000 in 2008. The supplier has not delivered the steels within due date for its own reasons. As at 30
June 2013, the Group had made full bad debts provision of RMB87,640,000 (31 December 2012: RMB87,640,000)
for unsettled balances.
Other than the advance to suppliers mentioned above, the remaining advance to suppliers aged over 1 year
mainly represented equipment purchase advance to suppliers for offshore engineering projects. The advance to
suppliers are not settled because the construction period of the offshore engineering project usually last more
than 1 year.
162
6. Advance to suppliers (Continued)
(3) As at 30 June 2013, the five largest advances to suppliers are analysed as follows:
Company Name
Relationship
with the company Amount
% of total
balance
Date of
making
advance
Reason for
being unsettled
1. National oilwell Varco Norway AS None 453,212 16.77% 2013 Project prepayments
2. Friede & Goldman Marketing BV None 168,432 6.23% 2013 Projects not yet completed
within due date
3. AKER MH AS None 165,732 6.13% 2013 Projects not yet completed
within due date
4. NOV-BLM SAS None 139,880 5.18% 2013 Projects not yet completed
within due date
5. THRUSTMASTER OF TEXAS, INC None 130,808 4.84% 2013 Projects not yet completed
within due date
Total 1,058,064 39.15%
(4) Advance to shareholders holding more than 5% (including 5%) of the voting rights of the
Company are analysed as follows:
As at 30 June 2013, no amount advance to shareholders holding 5% or more of the voting rights of the Company
is included in the above balance of advance to suppliers (31 December 2012: Nil).
(5) Advance to related parties are analysed as follows:
Company Name
Relationship
with
the Group Amount
% of total
balance
Provision
for bad
debts Amount
% of total
balance
Provision
for bad
debts
Xiamen CIMC
Haitou Container
Service Co., Ltd
Associate
1,585 0.06% 351 0.03%
Shaanxi Heavy Duty
Car Co., Ltd
Minority
shareholders
of subsidiary 129 0.00% 134 0.01%
C&C Trucks Co., Ltd Associate 3,717 0.14%
Total 5,431 0.20% 485 0.04%
Interim Report 2013
163
6. Advance to suppliers (Continued)
(6) Advance to suppliers denominated in original currencies is as follows:
Original
currency
Exchange
rate RMB
Original
currency
Exchange
rate RMB
RMB 1,036,663 1.0000 1,036,663 RMB 579,645 1.0000 579,645
US$ 249,093 6.1787 1,539,071 US$ 118,729 6.2854 746,253
EUR 12,297 8.0536 99,039 EUR 5,634 8.3195 46,872
GBP 2,040 9.4213 19,223 GBP 2,021 10.1626 20,536
HKD 1,318 0.7966 1,050 HKD 2,684 0.8108 2,176
AUD 1,331 5.7061 7,596 AUD 62 6.5359 402
THB 683 0.1991 136
Total 2,702,778 Total 1,395,884
7. Inventories
(1) Inventories are summarised by categories as follows:
Category
Ending
balance
Provision for
decline in
the value of
inventories
Carrying
amount
Ending
balance
Provision for
decline in
the value of
inventories
Carrying
amount
Raw materials 4,285,587 (148,585) 4,137,002 4,260,175 (146,690) 4,113,485
Work in progress 2,209,732 (12,340) 2,197,392 2,094,286 (12,369) 2,081,917
Finished goods 2,833,177 (67,797) 2,765,380 3,540,952 (70,542) 3,470,410
Consignment stocks 220,826 (592) 220,234 203,874 (592) 203,282
Spare parts 69,676 69,676 70,811 70,811
Low-valued consumables 74,307 74,307 44,353 44,353
Materials in transit 35,160 35,160 63,803 63,803
Completed properties
held for sale 165,254 165,254 139,254 139,254
Properties under
development 2,070,879 2,070,879 1,838,319 1,838,319
Ship under construction 5,682,864 (146,175) 5,536,689 5,914,418 (148,698) 5,765,720
Offshore engineering
equipment 244,445 244,445 243,372 243,372
Total 17,891,907 (375,489) 17,516,418 18,413,617 (378,891) 18,034,726
As at 30 June 2013, the Groups closing balances of inventories included capitalised borrowing cost amounting to
RMB575,467,000 (31 December 2012: RMB427,156,000). The interest rate per annum at which the borrowing costs
were capitalised was 4.41% (31 December 2012: 5.58%).
As at 30 June 2013, the Group had no inventories with restricted ownership (31 December 2012: Nil).
164
(2) Inventories movement for the year are as follows:
Category
Beginning
balance
Increase in
current period
Decrease in
current period
Ending
balance
Raw materials 4,260,175 25,162,968 (25,137,556) 4,285,587
Work in progress 2,094,286 24,800,008 (24,684,562) 2,209,732
Finished goods 3,540,952 20,720,135 (21,427,910) 2,833,177
Consignment stocks 203,874 1,566,601 (1,549,649) 220,826
Spare parts 70,811 189,399 (190,534) 69,676
Low-valued consumables 44,353 163,492 (133,538) 74,307
Materials in transit 63,803 190,513 (219,156) 35,160
Completed properties held for sale 139,254 76,475 (50,475) 165,254
Properties under development 1,838,319 252,252 (19,692) 2,070,879
Ship under construction 5,914,418 577,917 (809,471) 5,682,864
Offshore engineering equipment 243,372 12,835 (11,762) 244,445
Total 18,413,617 73,712,595 (74,234,305) 17,891,907
(3) Provision for decline in the value of inventories are as follows:
Category
Beginning
balance
Increase in
current
period
Decrease in current period
Difference on
translation of
foreign
currency
financial
statements
Ending
balance Reversal Write-off
Raw materials 146,690 3,363 (436) (1,013) (19) 148,585
Work in progress 12,369 1,288 (984) (333) 12,340
Finished goods 70,542 (642) (2,080) (23) 67,797
Consignment stocks 592 592
Ship under construction 148,698 (2,523) 146,175
Total 378,891 4,651 (2,062) (3,426) (2,565) 375,489
(a) The provision for decline in value of the Groups inventories during the period was recognised mainly for
certain products with price dropped and the slow-moving or waste materials.
Interim Report 2013
165
(3) Provision for decline in the value of inventories are as follows (Continued):
(b) Written back of provision for decline in value of the Groups inventories during the period is as follows:
Category Basis for provision
Reasons for
reversal/written off
% of total
balance
Raw materials Carrying amount is lower than
the net realisable value
Increase in net realisable value
resulted from using or selling
of inventories
0.01%
Work in progress Carrying amount is lower than
of inventories
0.04%
Finished goods Carrying amount is lower than
of inventories
0.02%
Consignment stocks Carrying amount is lower than
of inventories
8. Current portion of non-current assets within one year

Item
30 June
2013
31 December
2012
Finance leases 1,643,918 1,631,762
Less: unrealised financing income (277,052) (282,772)
Sales of goods by instalments 321,803 345,354
Others 3,176 3,049
Subtotal 1,691,845 1,697,393
Less: Provision for impairment (72,413) (61,061)
Total 1,619,432 1,636,332
9. Other current assets/liabilities
(1) Other current assets
Item
30 June
2013
31 December
2012
Tax deductible/withheld 743,430 690,087
Others 6,330 384
Total 749,760 690,471
166
9. Other current assets/liabilities (Continued)
(2) Other current liabilities
Item
30 June
2013
31 December
2012
Commercial paper 2,448,805
Total 2,448,805
CIMC Hong Kong, a wholly own subsidiary of the Company, issued commercial paper in the United States. The
program size was authorized to a maximum outstanding at any time of US$600,000,000. The program maturities
were up to three years and each note was authorized to a maximum maturity up to 270 days from date of issue.
The issuer can rollover the issue within the maturities. The Letter of Credit to support the Notes was issued by
Bank of China, New York Branch. Merrill Lynch, Pierce, Fenner & Smith Incorporated (MLPFS), a subsidiary of
Bank of America Corporation was the programs depositary, issuing and paying agent, and dealer.
10. Available-for-sale financial assets
Item
30 June
2013
31 December
2012
Available-for-sale equity instruments 575,913 609,751
Including: market value of listed securities 575,913 609,751
(1) During the period, available-for-sale financial assets held by the Group and the Company included shares of China Merchants Bank, China Merchants
Securities Co., Ltd and Otto Energy Limited with a carrying value of RMB133,702,000, RMB436,576,000 and US$912,000 (RMB5,635,000) respectively.
11. Long-term receivables
Item
30 June
2013
31 December
2012
Finance Leases 3,256,482 3,111,214
Less: Unrealised finance income (500,648) (529,883)
Net finance Leases 2,755,834 2,581,331
Sales of goods by instalment 45,569 30,296
Others 42,134 45,745
Subtotal 2,843,537 2,657,372
Total 2,738,621 2,540,574
Interim Report 2013
167
11. Long-term receivables (Continued)
The total future minimum lease receipts under finance leases after the balance sheet date, which are based on
contractual undiscounted cash flows (including interest payments computed using contractual rates or, if floating,
based on rates current at the balance sheet date), are receivable as follows:
Minimum lease receipts
30 June
2013
31 December
2012
1 to 2 years (inclusive) 1,123,402 1,014,213
over 3 years 1,516,505 1,532,788
Less: Unrealised finance income (777,700) (812,655)
Total 4,122,700 3,930,321
No long-term receivables which was derecognised due to transferring of financial assets in current period (31
December 2012: RMB1,502,989,000 was derecognised due to transferring of financial assets, with a gain of
RMB251,453,000).
(1) Long-term equity investments are analysed by categories as follows:
Item
30 June
2013
31 December
2012
Joint ventures, unlisted 41,261 39,354
Associates
listed companies 242,957 247,619
unlisted companies 791,361 1,237,173
Other long-term equity investments, unlisted 392,683 392,683
Subtotal 1,468,262 1,916,829
Total 1,465,195 1,913,762
The listed associates are Pteris Global Ltd listed on Singapore Exchange Limited, and TSC Offshore Group Limited
(TSC) listed on the Hong Kong Stock Exchange.
The fair value of the listed associates mentioned above is as follows:
30 June
2013
31 December
2012
TSC Offshore Group Limited 193,535 170,115
Pteris Global Ltd 49,184 46,672
Total 242,719 216,787
168
(2) An analysis of long-term equity investments movement of the period is as follows:
Investee
Investment
cost
31 December
2012
Current period movement
30 June
2013
share
holding (%)
Voting
rights (%)
Explanation
of disparity
between
percentages
of share
holding and
voting rights
Provision for
impairment
Impairment
provided
in current
period
Dividend
receivable/
received of
the period
Increase/
Decrease in
investment
Share of net
profit using
the equity
method
Cash
dividend
declared
Difference on
translation of
foreign
currency
financial
statements
Equity method
Joint ventures
Ruiji Logistic (Wuhu) Co., Ltd 9,884 10,512 (97) 10,415 50.00% 50.00% N/A
South CIMC Logistic Co., Ltd. 15,000 22,321 2,612 24,933 50.00% 50.00% N/A
Supercool (Shanghai)
Refrigeration Equipment
Co. Ltd (SCSCRC) 8,002 6,521 (608) 5,913 50.00% 50.00% N/A
Subtotal 32,886 39,354 1,907 41,261
Equity method Associates
Pteris Global Ltd 84,501 78,782 (1,488) 77,294 14.99% 14.99% N/A
KYH Steel Holding Ltd 27,625 126,778 2,272 (372) 128,678 31.83% 31.83% N/A
Tianjin Port CIMC Zhenhua
Logistic Co., Ltd 21,403 43,809 (43,913) 104 36.00% 36.00% N/A
Dalian Jinong Logistic Co., Ltd 16,844 39,156 900 (392) 39,664 30.00% 30.00% N/A
Xiamen CIMC Haitou
Container Service Co., Ltd 11,479 15,285 2,162 17,447 45.00% 45.00% N/A
Tianjin Zhenhua Logistic
Group Co., Ltd 302,144 483,059 (402,643) 4,176 (84,592) 38.22% 38.22% N/A
Ningbo Beilun Donghua
Container Service Co., Ltd 3,579 3,164 3,164 21.00% 21.00% N/A
New Atlantic Timber (HK)
Limited 2,916 2,779 (4) 2,775 20.00% 20.00% N/A
Shanghai Fengyang Real
Estate Development
Co., Ltd 12,000 143,560 3,432 146,992 40.00% 40.00% N/A
TRS Transportkoeling 12,030 13,464 13,464 32.00% 32.00% N/A
Eurotank Oy 6,946 8,988 (476) 8,512 40.00% 40.00% N/A
Xiamen Haitou Logistics
Co., Ltd 6,153 5,622 (167) (102) 5,353 49.00% 49.00% N/A
C&C TRUCKS Co.,LTD 540,000 326,517 (83,778) 242,739 45.00% 45.00% N/A
TSC Offshore Group Limited 167,591 168,837 (3,174) 165,663 14.60% 14.60% N/A
Xiamen Hongji Container
Development Co., Ltd. 4,900 8,545 3,223 11,768 49.00% 49.00% N/A
Senju (Jiangmen) Science
& Technology Materials
Co., Ltd. 6,072 6,809 112 6,921 30.00% 30.00% N/A
Shanghai Shenyi Enterprise
Development Co., Ltd 9,947 9,636 (175) 9,461 25.00% 25.00% N/A
Shanghai 3L Zhenhua
Logistics Co., Ltd 24,557 61,029 165 61,194 51.00% 51.00% N/A
KLine Zhenhua Logistics
(Tianjin) Co., Ltd 14,063 17,831 166 17,997 51.00% 51.00% N/A
NYK Zhenhua Logistics
(Tianjin) Co., Ltd 33,771 73,253 389 73,642 51.00% 51.00% N/A
Shanghai CK Logistics
Co., Ltd 1,557 1,611 (23) 1,588 30.00% 30.00% N/A
MSC 2 2 2 40.00% 40.00% N/A 2
Subtotal 1,310,080 1,484,792 (292,832) (66,867) (84,592) (6,183) 1,034,318 2
Interim Report 2013
169
(2) An analysis of long-term equity investments movement of the period is as follows (Continued):
Investee
Investment
cost
31 December
2012
Current period movement
30 June
2013
share
holding (%)
Voting
rights (%)
Explanation
of disparity
between
percentages
of share
holding and
voting rights
Provision for
impairment
Impairment
provided
in current
period
Dividend
receivable/
received of
the period
Increase/
Decrease in
investment
Share of net
profit using
the equity
method
Cash
dividend
declared
Difference on
translation of
foreign
currency
financial
statements
Costing method Other
long term equity
investments
BOCM Schroder Stolt Fund
Management 8,125 8,125 8,125 5.00% 5.00% N/A
Donghua Container 270 270 270 5.00% 5.00% N/A
China Railway United
Logistics 380,780 380,780 380,780 10.00% 10.00% N/A
Guangdong Samsung 1,365 1,365 1,365 0.09% 0.09% N/A 1,365
Beihai Yinjian 1,700 1,700 1,700 1.01% 1.01% N/A 1,700
Wuhai Vehicle Magazine
Co., Ltd 383 383 383 14.00% 14.00% N/A
Jinmen General Aviation
Company Limited 60 60 60 39.00% 39.00% N/A
Subtotal 392,683 392,683 392,683 3,065
Total 1,735,649 1,916,829 (292,832) (64,960) (84,592) (6,183) 1,468,262 3,067
As at 30 June 2013, except for Marine Subsea & Consafe, there is no need for the Group to made provision
for long-term equity investments in joint ventures and associates based on the provision testing result that
compared the estimated recoverable amount and book value of long-term equity investments in joint ventures
and associates.
Mr. Yu Yuquan, the Groups secretary of the Board, was assigned as non-executive director of TSC Offshore Group
Limited on 15 March 2011. Therefore, the Group had significant influence over TSC Offshore Group Limited and
investment in TSC Offshore Group Limited is measured for using the equity method.
Mr. Yu Yuquan, the Groups secretary of the Board, was assigned as non-executive director of Pteris Global Ltd on
24 September 2012. Therefore, the Group had significant influence over Pteris Global Ltd and investment in Pteris
Global Ltd is measured using the equity method.
The Groups stake in Jinmen General Aviation Company Limited is higher than 20%, however, the Group has not
appointed any director or key management in Jinmen General Aviation Company Limited or influence its financial
or operational activity through other method. Therefore, the Group consider it dont have significant influence
over Jinmen General Aviation Company Limited and investment in Jinmen General Aviation Company Limited is
measured using the cost method.
170
(3) Information for major joint ventures and associates is as follows:
Investee
Total
assets at
period end
Total
liabilities at
period end
Net
assets at
period end
Revenue for
the period
Net profit/
(loss) for
the period
1. Joint ventures
Ruiji Logistic (Wuhu) Co., Ltd 47,055 25,548 21,507 34,600 (193)
South CIMC Logistic Co., Ltd. 88,881 38,120 50,761 36,430 5,225
SCSCRC 14,458 2,507 11,951 4,408 (1,216)
2. Associates
KYH Steel Holding Ltd 1,076,338 688,547 387,791 868,627 5,726
Dalian Jinong Logistic Co., Ltd 261,920 145,981 115,939 33,513 3,000
Xiamen CIMC Haitou Container
Service Co., Ltd 58,521 19,092 39,429 30,337 4,804
Shanghai Fengyang Real Estate
Development Co., Ltd 1,236,253 849,452 386,801 25,000 8,580
Xiamen Haitou Logistics Co., Ltd 11,703 570 11,133 5,748 (342)
C&C TRUCKS Co., Ltd 3,219,072 2,668,596 550,476 664,129 (186,199)
Xiamen Hongji Container
Development Co., Ltd. 544,389 526,696 17,693 88,135 6,446
Senju (Jiangmen) Science &
Technology Materials Co., Ltd. 38,560 15,492 23,068 30,960 374
(4) There is no restriction on the ability of the invested enterprises to transfer funds to the
Group.
(5) Provision for impairment of long-term equity investments
31 December
2012
Increase in
current period
Decrease in
current period
30 June
2013
Other long-term equity investments 3,067 3,067
Interim Report 2013
171
13. Investment properties
Item Buildings
Land
use rights Total
Cost
Beginning balance 115,950 94,817 210,767
Additions due to business combination 64,932 48,855 113,787
Transferred in current period 19,529 19,529
Additions in current period 7,932 22 7,954
Disposal in current period (191) (191)
Ending balance 208,152 143,694 351,846
Accumulated depreciation/amortisation
Additions due to business combination 20,811 6,488 27,299
Transferred in current period 8,435 8,435
Depreciation/amortisation charged in current period 3,155 972 4,127
Decrease in current period (91) (91)
Ending balance 45,041 21,828 66,869
Carrying amount
At the end of the period 163,111 121,866 284,977
At the beginning of the year 103,219 80,449 183,668
In the current period, RMB4,127,000 of depreciation and amortisation is charged for the investment properties.
There was no provision for impairment for investment properties in the period.
The land use rights by locations and the approved land use periods are analysed as follows:
30 June
2013
31 December
2012
Outside Hong Kong
10 to 50 years 121,866 80,449
In the period, the investment properties generated RMB16,368,000 (from January to June 2012: RMB13,372,000) of
lease income, and incurred RMB3,913,000 (from January to June 2012: RMB3,321,000) of direct expenditures.
172
14. Fixed assets
(1) Fixed assets
Item Buildings
Machinery
and
equipment
Office &
other
equipment
Motor
vehicles
Offshore
engineering
special
equipment Dock & Port Total
Cost
Beginning balance 6,723,469 7,090,364 832,257 834,213 596,717 1,258,130 17,335,150
Additions due to business
combination 696,140 137,817 40,753 80,793 955,503
Additions in current period 44,910 160,116 68,085 10,543 982 1,154 285,790
Transfer from construction
in progress 101,780 187,666 17,839 11,192 1,126 31,376 350,979
Decrease in current period (40,598) (164,273) (16,381) (34,711) (1,478) (22,414) (279,855)
Exchange differences arising
from translating foreign
operations (33,177) (15,572) (4,062) (1,498) (10,135) (21,436) (85,880)
Ending balance 7,492,524 7,396,118 938,491 900,532 587,212 1,246,810 18,561,687
Accumulated depreciation
Beginning balance 1,554,112 2,754,731 497,377 307,646 105,591 118,228 5,337,685
combination 165,658 73,206 32,054 71,637 342,555
Depreciation charged in
current period 112,466 253,792 38,853 24,527 8,550 14,060 452,248
Decrease in current period (9,362) (64,307) (9,716) (30,010) (59) (3,916) (117,370)
operations (7,753) (12,498) (2,190) (1,126) (1,858) (2,085) (27,510)
Ending balance 1,815,121 3,004,924 556,378 372,674 112,224 126,287 5,987,608
Provision for impairment
Beginning balance 322,629 65,551 526 12 388,718
Impairment provided in
current period 19 19
Written off on disposal (1,808) (1,808)
operations (6,844) (115) (6,959)
Ending balance 315,785 63,647 526 12 379,970
Carrying amount
At the end of the period 5,361,618 4,327,547 381,587 527,846 474,988 1,120,523 12,194,109
At the beginning of the year 4,846,728 4,270,082 334,354 526,555 491,126 1,139,902 11,608,747
Interim Report 2013
173
(1) Fixed assets (Continued)
As at 30 June 2013, restricted fixed assets of the Group amounted to RMB612,468,000. Refer to Note V.22 for
details.
In the period, depreciation charged to fixed assets amounts to RMB452,248,000 (from January to June 2012:
RMB411,872,000), of which RMB329,290,000 (from January to June 2012: RMB323,587,000) has been charged in
cost of sales, RMB20,642,000 (from January to June 2012: RMB4,123,000) in selling and distribution expenses, and
RMB102,316,000 (from January to June 2012: RMB84,162,000) in general and administrative expenses.
(2) As at 30 June 2013, the Group had no temporarily idle fixed assets.
(3) Fixed assets held under finance leases:
Item Cost
Accumulated
depreciation
Carrying
amount Cost
Accumulated
depreciation
Carrying
amount
Machinery & equipment 44,846 (14,559) 30,287 39,411 (10,257) 29,154
(4) Fixed assets leased out under operating leases
Item
Carrying
amount
Buildings 5,250
Machinery & equipment 27,880
Offshore engineering special equipment 31,017
Total 64,147
174
(5) Held-for-sale fixed assets at year end
As at 30 June 2013, there were no held-for-sale fixed assets (31 December 2012: Nil).
(6) Fixed assets with pending certificates of ownership
Item
Carrying
amount
RMB000
Reasons for not yet obtaining
certificates of title
Estimated date that
certificate of title will
be obtained
Factory 901,826 Put to use, certificate being in
the progress
By the end of 2013
Workshop 159,128 Incomplete procedure, certificate
being in the progress
By the end of 2013
Office building 187,583 Put to use, certificate being in
the progress
By the end of 2013
Warehouse 60,936 Lack of reporting materials, under
preparation
By the end of 2013
Dormitory and Canteen 90,930 Put to use, certificate being in
the progress
By the end of 2013
Others 55,157 Certificate being in the progress By the end of 2013
Total 1,455,560
Interim Report 2013
175
15. Construction in progress
(1) Construction in progress
Item
Ending
balance
Provision for
impairment
Carrying
amount
Ending
balance
Provision for
impairment
Carrying
amount
Nantong CIMC special Transportation
Equipment Third Workshop Project 1,003 1,003 822 822
Dalian Heavy Logistics Production
Line equipment 10,819 10,819 19,762 19,762
XHCIMCS Production Line and Power
Facilities Reconstruction Project 3,641 3,641 2,494 2,494
Eastern logistic 3rd Phase Project 28,410 28,410 25,599 25,599
Raffles Dredging Offshore Project 7,339 7,339
Raffles sea route project 45,303 45,303
Raffles Jack-up Drilling Platform 1,190,176 1,190,176 1,175,418 1,175,418
Raffles Painting workshop 18,251 18,251 18,251 18,251
Raffles Terry Project 118,486 118,486 96,989 96,989
Raffles Fitted Production Line Project 43,778 43,778
Raffles Spudleg Workshop 2,091 2,091
MEA 1st stage R&D Project 286,992 286,992 236,705 236,705
TAS New Plant Project 78,072 78,072 42,425 42,425
TCCIMC new factory project 257,792 257,792 114,961 114,961
DLL special production line 21,711 21,711 17,485 17,485
Yangshan Logistic Diluent recovery
project 15,436 15,436 15,622 15,622
Yangshan Logistic staff dormitory 41,999 41,999
Qingdao Reefer Container &
Cold Chain High-tech Industrial Park 25,671 25,671
Nantong Tank 2nd Wharf Warehouse
Project 21,824 21,824
Tianjin CIMC 48 m/min plate automatic
production line 15,618 15,618 15,274 15,274
Tianjin CIMC automatic processing
workshop project 15,719 15,719 12,712 12,712
TCCIMC LFYD-00 continuous roof
forming production line 11,760 11,760 11,760 11,760
Dalian Railway steel equipment
warehouse 10,296 10,296
Ningbo CIMC No 4 costing line 10,019 10,019
Shandong Vehicle Zhangqiu project 2,928 (1,876) 1,052 2,928 (1,876) 1,052
Others 472,926 472,926 399,705 399,705
Total 2,685,103 (1,876) 2,683,227 2,281,869 (1,876) 2,279,993
176
15. Construction in progress (Continued)
(1) Construction in progress (Continued)
As at 30 June 2013, the carrying amounts of construction in progress included capitalised borrowing cost of
RMB104,079,000 (31 December 2012: RMB78,991,000). The interest rate adopted for determining capitalised at
borrowing cost for the current period was 4.80 % (2012: 5.04%).
construction in progress of the Group amounting to RMB1,184,650,000 (31 December 2012: RMB1,184,650,000)
are with restrictions in ownership. Please refer to Note V.22 for details.
Interim Report 2013
177
V
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178
15. Construction in progress (Continued)
(3) Provision for impairment of construction in progress
As at 30 June 2013, the Group made RMB1,876,000 of provision for impairment for construction in progress (31
December 2012: RMB1,876,000).
16. Intangible assets
(1) Intangible assets by categories
Item
Land
use rights
Technical
know-how
and trade
marks
Timber
concession
rights
Customer
relationships
Customer
contracts
Maritime
use rights
Franchise
rights Total
Cost
Beginning balance 3,144,793 1,017,986 226,678 105,504 135,035 80,123 4,710,119
combination 247,899 4,872 122,400 37,700 412,871
Increase in current period 2,433 3,921 6,354
operations (3,406) 356 (3,979) (2,598) (3,007) (1,360) (13,994)
Ending balance 3,391,719 1,027,012 222,699 225,306 132,028 78,763 37,700 5,115,227
Accumulated depreciation
Beginning balance 382,054 630,141 99,800 78,279 81,742 12,121 1,284,137
combination 36,848 808 37,656
Amortisation charged for the
period 42,601 23,219 2,596 6,352 503 2,030 77,301
operations (419) 674 (1,770) (1,809) (2,093) (221) (5,638)
Ending balance 461,084 654,812 100,626 82,822 80,152 13,930 1,393,426
Provision for impairment
Charge for the period
Written off on disposal
operations (1,755) (887) (2,642)
Ending balance 98,213 51,377 149,590
Carrying amounts
At the end of the period 2,930,635 372,200 23,860 142,484 499 64,833 37,700 3,572,211
At the beginning of the year 2,762,739 387,845 26,910 27,225 1,029 68,002 3,273,750
In the period, amortisation expenses of intangible assets amount to RMB77,301,000 (from January to June 2012:
RMB123,162,000 in total, of which RMB77,301,000 (from January to June 2012: RMB123,162,000) is recognised in
profit or loss for the current period.
Interim Report 2013
179
16. Intangible assets (Continued)
(2) Land use rights by locations and approved land use periods are analysed as follows:
30 June
2013
31 December
2012
Outside Hong Kong
10 to 50 years 2,930,635 2,762,739
(3) As at 30 June 2013, the Groups intangible assets with pending certificates of ownership as
follows:
Item
Carrying
amount
Reasons for not yet obtaining
certificates of title
Estimated date that
certificate of title will
be obtained
Nantong Tank Land (2008)
No.0301018
70,713 Certificate being in the progress By the end of 2013
Tianda Baoan land 60,230 Certificate being in the progress By the end of 2013
Qingdao CIMC phase II land 55,817 Certificate being in the progress By the end of 2013
Nantong Tank Land (2009)
No.0301030
51,214 Application for certificate renewal
will only be entertained when the
investment amount reaches a
preset level
By the end of 2014
Wuhu Vehicle Phase III land 9,486 Certificate being in the progress By the end of 2013
Raffles Yantai Zhifu land 8,103 Sufficient approvals have not been
obtained for lands acquired
through auction in 2012 and the
Group is under negotiation with
the relevant government
authorities
By the end of 2014
Qingdao CIMC Reefer land 2,383 Certificate being in the progress By the end of 2013
Total 257,946
(4) As at 30 June 2013, the Groups intangible assets with restriction in ownership amounted to
RMB13,967,000 (31 December 2012: Nil).
(5) As at 30 June 2013, there were no i ntangi bl e assets wi th i ndefi ni te useful l i ves
(31 December 2012: Nil).
180
17. Goodwill
Name of investee
or goodwill items Note
Beginning
balance
Increase
in current
period
Decrease
in current
period
Exchange
differences
arising
from
translating
foreign
operations
Ending
balance
Enric (1) 572,701 572,701
TGE SA (2) 178,811 (3,843) 174,968
Technodyne International 27,430 27,430
Gadidae AB 12,254 12,254
YPDI 86,558 86,558
Others 413,240
(1,569)
411,671
Zhenhua logistic 22,126 22,126
Total 1,290,994 22,126 (5,412) 1,307,708
Less: provision for impairment
Gadidae AB 12,254 12,254
Others 11,578 11,578
Subtotal 23,832 23,832
Total 1,267,162 22,126 (5,412) 1,283,876
(1) The Group paid RMB1,094,076,000 as acquisition cost for acquiring 41.55% equity interest
in Enric in 2007. The excess of acquisition cost over the Groups interest in the fair value of
Enrics identifiable assets and liabilities was recognised as goodwill attributable to Enric. As
at 30 June 2013, goodwill attributable to Enric amounted to RMB572,701,000 (31 December
2012: RMB572,701,000).
(2) The Group paid RMB243,096,000 as acquisition cost for the 60% equity interests in TGE SA
in 2008. The excess of acquisition cost over the Groups interest in the fair value of TGE SAs
identifiable assets and liabilities was recognised as goodwill attributable to TGE SA. As at
30 June 2013, goodwill attributable to TGE SA amounted to RMB174,968,000 (31 December
2012: RMB178, 811,000).
(3) Impairment test for asset group including goodwill
The goodwill allocated to the asset groups and groups of asset groups are summarised by operating segments as
follows:
Item
30 June
2013
31 December
2012
Container asset group 127,524 127,524
Trailers asset group 77,752 77,752
Energy & chemistry asset group 922,276 926,119
Asset groups with insignificant allocation percentage of goodwill group 156,324 135,767
Total 1,283,876 1,267,162
Interim Report 2013
181
18. Long-term prepaid expenses
Item
Beginning
balance
Additions in
current
period
Amortisation
in current
period
Exchange
differences
arising from
translating
foreign
operations
Ending
balance
Yard facilities expenses 12,560 3,246 (675) 15,131
Rental 3,528 2,045 (1,605) 3,968
Project insurance 3,301 23,187 (2,296) 24,192
Improvements to fixed
assets held under
operating leases 2,583 1,777 (913) 3,447
Water and electricity
capacity enlargement
expenses 1,086 (49) 1,037
Others 24,889 43,273 (20,760) (2) 47,400
Subtotal 47,947 73,528 (26,298) (2) 95,175
Less: provision for
impairment
Total 47,947 73,528 (26,298) (2) 95,175
19. Deferred tax assets/deferred tax liabilities
(1) The offsetting balances of deferred tax assets and liabilities offset and corresponding
deductible or taxable temporary differences
Item 30 June 2013 31 December 2012
Deductible/
(taxable)
temporary
difference
Deferred tax
assets/
(liabilities)
Deductible/
(taxable)
temporary
difference
Deferred
tax assets/
(liabilities)
Deferred tax assets:
Provisions for impairment 647,045 142,350 700,105 154,652
Provisions 494,325 99,365 694,234 142,764
Employee benefits payable 1,329,583 319,100 1,409,704 332,487
Accrued expenses 328,473 82,059 283,662 61,695
Deductible losses 705,199 137,107 473,485 105,516
Movement for fair value of financial
assets held for trading/hedging
instruments 43,874 9,413 109,688 27,407
Others 233,546 56,051 119,897 28,584
Subtotal 3,782,045 845,445 3,790,775 853,105
Offsetting amount (573,108) (137,546) (542,826) (135,308)
Offsetted balances 3,208,937 707,899 3,247,949 717,797
182
19. Deferred tax assets/deferred tax liabilities (Continued)
deductible or taxable temporary differences (Continued)
Item 30 June 2013 31 December 2012
Deductible/
(taxable)
temporary
difference
Deferred tax
assets/
(liabilities)
Deductible/
(taxable)
temporary
difference
Deferred tax
assets/
(liabilities)
Deferred tax liabilities:
assets held for trading/hedging
instruments (23,683) (4,686) (24,104) (5,500)
Available-for-sale financial assets (509,946) (122,243) (541,024) (130,138)
Movement for fair value of hedging
financial instrument (10,320) (1,548) (5,885) (883)
Revaluation gain through combination (928,121) (229,579) (745,851) (185,228)
Estimated dividend income earned for
non-resident foreign enterprises (5,181,578) (427,274) (4,810,979) (405,726)
Others (365,600) (87,744) (201,698) (58,227)
Subtotal (7,019,248) (873,074) (6,329,541) (785,702)
Offsetting amount 573,108 137,546 542,826 135,308
Offsetted balances (6,446,140) (735,528) (5,786,715) (650,394)
(2) Unrecognised deferred tax assets
Item
30 June
2013
31 December
2012
Deductible losses 781,368 714,548
Impairment losses of timber concession rights 22,119 22,119
Others 66,658 66,658
Total 870,145 803,325
Interim Report 2013
183
19. Deferred tax assets/deferred tax liabilities (Continued)
(3) Deductible losses that are not recognised as deferred tax assets will expire in the following
years
Year
30 June
2013
31 December
2012 Remark
2013 94,253 102,868
2014 261,989 270,604
2015 450,425 459,040
2016 1,952,974 1,961,589
Over 5 years 2,134,362 2,051,057 Note 1
Total 4,894,003 4,845,158
Note 1: By the end of 31 December 2012 and 30 June 2013, unrecognised deferred tax assets aged over 5 years (inclusive) arising from deductible tax losses
resulted from foreign subsidiaries operating losses. Deductible tax losses generated from Hong Kong, the United States of America, the United Kingdom
of Great Britain and Australia can be offset with future profit indefinitely; deductible tax losses generated from the Netherlands can be offset in the
subsequent nine years.
Rather than that, the Group had no unrecognised deferred tax liabilities.
20. Other non-current assets
Item
30 June
2013
31 December
2012
Prepayment for construction 49,735 61,881
Prepayment for buildings 41,999 41,999
Prepayment for machinery 32,030 39,853
Prepayment for land use right 48,105 38,785
Prepayment for equity 17,420 17,420
Others 1,121 3,102
Total 190,410 203,040
184
21. Provision for asset impairment
Beginning
Increase in
current
Decrease in
current period
Foreign
exchange
rate
difference Ending
balance period Reversal Write-off effect balance
Provision for bad debts
Including: provision for bad
debts of accounts receivables 369,921 58,903 (27,486) (16,516) 2,147 386,969
Provision for bad debts of
other receivables 140,938 28,807 (27,512) (562) (11) 141,660
advances to suppliers 182,842 (132) (51) 182,659
current portion
of non-current assets 61,061 11,532 (180) 72,413
long-term receivables 116,798 (11,882) 104,916
Provision for decline in value of
inventories 378,891 4,651 (2,062) (3,426) (2,565) 375,489
Provision for impairment of
long-term equity investment 3,067 3,067
fixed assets 388,718 19 (1,808) (6,959) 379,970
construction in progress 1,876 1,876
intangible assets 152,232 (2,642) 149,590
goodwill 23,832 23,832
Total 1,820,176 103,912 (69,074) (22,492) (10,081) 1,822,441
Please refer to the respective notes of the assets for reasons of the provisions.
Interim Report 2013
185
22. Restricted assets
As at 30 June 2013, assets with restrictions in their ownership are as follows:
Item Note
Beginning
balance
Increase in
current
period
Decrease in
current
period
Exchange
differences
arising
from
translating
foreign
operations
Ending
balance
Assets guaranteed
Cash at bank and on hand V.1 824,027 367,642 (718,525) (1,056) 472,088
Accounts notes V.3 188,758 188,758
Accounts receivable V.4 98,241 98,241
Inventories V.7
Fixed assets V.14 10,897 602,550 (979) 612,468
Construction in progress V.15 1,184,650 1,184,650
Intangible assets V.16 13,967 13,967
Total 2,019,574 1,271,158 (718,525) (2,035) 2,570,172
The above fixed assets and intangible assets were secured for bank loans. Refer to Note V.23, Note V.34 and
Note V.35 for short-term and long-term secured loans analysis. The restricted cash at bank and on hand were
guarantee deposit and deposit with the Peoples Bank of China by Finance Company.
186
23. Short-term borrowings
(1) Classification of short-term borrowings
Item Note
30 June
2013
31 December
2012
Guaranteed (a)
RMB 111,844 495,156
US$ 882,243 2,541,196
HKD 71,690 117,583
EUR 1,876 213,180
Subtotal 1,067,653 3,367,115
Secured (b)
US$ 595,068 608,602
Subtotal 595,068 608,602
Pledged (c)
RMB 188,758
US$ 98,241
Subtotal 286,999
Unsecured
RMB 56,000 249,801
US$ 5,122,006 1,116,460
ERU 403,826 90,466
GBP 5,870
JPY 6,261
AUD 2,853 93
Subtotal 5,590,946 1,462,690
Total 7,540,666 5,438,407
(a) As at 30 June 2013, guarantee borrowings of the Group included bank loans amounting to RMB497,950,000
guaranteed by the Company for its subsidiaries, RMB183,534,000 guaranteed by Enric for its subsidiaries
and RMB386,169,000 guaranteed by Raffles for its subsidiaries.
(b) As at 30 June 2013, Raffles, the subsidiary of the Company, used YCROs construction contract of H195
drilling platform project, lease contract of H195 drilling platform project signed with Dragon Oil, operation
agreement of H195 drilling platform project signed with Momentum Engineering, its stake in Caspian
Driller Pte Ltd and guarantee slip from China Export&Credit Insurance Corporation (effective from the 6th
withdrawal) as mortgage to borrow loan from China Development Bank amounting to US$96,310,000.
(c) As at 30 June 2013, YZRYL, the subsidiary of the company used its account receivables as pledge to borrow
loan amounting to RMB98,241,000; CIMC Finance Company used its bank acceptance notes to borrow loan
amounting to 188,758,000.
Interim Report 2013
187
23. Short-term borrowings (Continued)
(1) Classification of short-term borrowings (Continued)
(d) As at 30 June 2013, no amount due to shareholders who hold 5% or more of the voting rights of the
Company or due to related parties is included in the above balance of short-term borrowings.
(e) As at 30 June 2013, the weighted average interest rate of short-term borrowings is 3.92% annually (31
December 2012: 3.89%).
(2) Short-term borrowings that are due but not repaid
As at 30 June 2013, the Group had no past due and un-repaid short-term borrowings.
24. Financial liabilities held for trading
Item Note
30 June
2013
31 December
2012
Current
Derivative financial liabilities
foreign future contracts V.2(4) 8,498 3,869
swap contract for interest rate (i) 1,142 8,987
Subtotal 9,640 12,856
Non-current
foreign future contracts V.2(4) 73 298
swap contract for interest rate (i) 34,161 81,944
Subtotal 34,234 82,242
Total 43,874 95,098
(i) As at 30 June 2013, the Company had 2 unsettled interest rate swap contracts denominated in U.S. dollars.
The nominal value of these contracts amounted to US$130,000,000. The maturity dates of these interest
rate swap contracts range from 31 December 2013 to 29 December 2018. As at 30 June 2013, the company
recognised on the foresaid contracts in their fair values of RMB35,303,000 as financial liabilities held for
trading. Transaction costs on realisation have not been considered when calculating the fair values.
188
25. Notes payable
Item
30 June
2013
31 December
2012
Bank acceptance notes 671,261 778,922
Trade acceptance notes 172,277 210,788
Total 843,538 989,710
The above notes payable are due within one year.
26. Accounts payable
(1) The Groups accounts payable is as follows:
Item
30 June
2013
31 December
2012
Accounts payable for raw material procurement 8,174,932 7,059,420
The ageing of accounts payable is analysed as follows:
Ageing
30 June
2013
31 December
2012
Within 1 year 8,030,324 6,714,327
1 to 2 years 72,296 220,521
2 to 3 years 30,942 51,445
Over 3 years 41,370 73,127
Total 8,174,932 7,059,420
As at 30 June 2013, accounts payable over 1 year with a carrying amount of RMB144,608,000 (31 December
2012: RMB345,093,000) are mainly payables related to offshore engineering business. The payable are not settled
because the construction period of the offshore engineering project usually last more than 1 year.
Interim Report 2013
189
26. Accounts payable (Continued)
(1) The Groups accounts payable is as follows: (Continued)
Accounts payable denominated in foreign currencies are as follows:
Currency
Original
currency
Exchange
rate RMB
Original
currency
Exchange
rate RMB
000 000 000 000
RMB 6,488,269 1.0000 6,488,269 5,871,059 1.0000 5,871,059
US$ 168,149 6.1787 1,038,945 123,291 6.2854 774,925
HKD 31,082 0.7966 24,760 1,681 0.8108 1,363
JPY 13,131 0.0626 822 61,095 0.0730 4,463
EUR 43,173 8.0536 347,702 25,258 8.3195 210,134
AUD 6,756 5.7061 38,548 13,352 6.5359 87,265
GBP 15,839 9.4213 149,222 10.1626
Others 86,664 110,211
Total 8,174,932 7,059,420
(2) The ending balance of accounts payable to shareholders holding more than 5% (including
5%) of the voting rights of the Company or accounts payable to related parties are as
follows:
Percentage Percentage
Company name
Relationship
with the Group Amount
of total
balance (%) Amount
of total
balance (%)
TSC Offshore
Group Limited
Associate
85,050 1.20%
C & C Trucks Associate 1,247 0.02% 12,682 0.18%
Ruiji Logistics
(Wuhu) Co., Ltd
Joint Venture
8,600 0.11%
Shanxi Heavy Duty
Automobile Co., Ltd
Minority shareholders
of subsidiaries 2,700 0.03%
Others 1,513 0.02% 20,024 0.28%
Total 14,060 0.18% 117,756 1.66%
190
27. Advances from customers
(1) The Groups advances from customers
Item
30 June
2013
31 December
2012
Advances for goods 1,026,062 1,905,725
Advances for construction 728,614 211,174
Advances for property 633,501 380,573
Others 147,387 225,010
Total 2,535,564 2,722,482
As at 30 June 2013, no amount due to shareholders who hold 5% or more of the voting rights of the Company is
included in the balance of advances from customers (As at 31 December 2012: Nil).
Advances from customers denominated in original currencies are as follows:
Currency
Original
currency
Exchange
rate RMB
Original
currency
Exchange
rate RMB
000 000 000 000
RMB 2,134,777 1.0000 2,134,777 1,595,505 1.0000 1,595,505
US$ 43,957 6.1787 271,597 116,344 6.2854 731,262
EUR 5,883 8.0536 47,377 3,536 8.3195 29,416
HKD 25,178 0.7966 20,057 35,226 0.8108 28,562
AUD 1,869 5.7061 10,665 47,326 6.5359 309,323
Others 51,091 28,414
Total 2,535,564 2,722,482
As at 30 June 2013, there was no significant advances from customers aged over one year.
Interim Report 2013
191
28. Employee benefits payable
Item
Beginning
balance
Increase
in current
period
Decrease
in current
period
Exchange
differences
arising from
translating
foreign
operations
Ending
balance
Wages and salaries, bonuses,
allowances and subsidies 1,347,771 1,813,917 (1,875,693) (2,267) 1,283,728
Senior management bonus 407,812 (2,997) 404,815
Termination benefits 6,548 1,458 (1,637) 6,369
Cash-settled share-based
payments 492 492
Housing funds 5,030 43,599 (39,974) (3) 8,652
Labor union funds and
employee education funds 56,614 10,320 (11,378) (5) 55,551
Staff welfare and others 195,296 395,631 (441,401) (570) 148,956
Total 2,019,563 2,264,925 (2,373,080) (2,845) 1,908,563
Please refer to Note VII for cash-settled shared-based payments.
As at 30 June 2013, no defaulted payables are included in the balance of employee benefits payable.
Salaries, bonus and allowances payables represent salaries accrued for current month and bonus accrued for
subsidiaries in accordance with the result of annual performance and the performance assessment plan of the
Group. According to the requirement of the performance assessment plan, annual accrued bonus would be paid
over three years based on the percentage determined by the management; therefore, there was a balance of
such accrued bonus at the end of the period.
Senior management bonus is determined on the assessment of certain key performance index. The above bonus
is proposed by Chief Executive Officer of the Group and the payment is subject to review and approval by board
chairman and vice board chairman of the Group. The balance of senior management bonus payable was unpaid
balance accrued in prior years.
192
29. Taxes payable
Item
30 June
2013
31 December
2012
Value-added-tax payable 47,080 50,891
Business tax payable 19,033 17,236
Enterprise income tax payable 222,175 515,363
Withholding individual income tax 15,654 14,519
City maintenance and construction tax payable 20,015 52,892
Educational surcharge payable 11,829 42,204
Others 4,845 54,425
Total 340,631 747,530
30. Interest payable
Item
30 June
2013
31 December
2012
Interest of long-term borrowings with periodic payments of
interest and return of principal at maturity 6,806 10,501
Interest of short-term borrowings 30,289 9,570
Interest of corporate debentures 31,188 176,670
Others 706 6,547
Total 68,989 203,288
31. Dividends payable
Item
30 June
2013
31 December
2012
Minority shareholders of subsidiaries 169,766 38,747
Public shareholders 612,351
Total 782,117 38,747
Interim Report 2013
193
32. Other payables
(1) The Groups other payables
Item Note
30 June
2013
31 December
2012
Advance received 1,514,754 969,977
Transportation expenses 927,021 734,772
Accruals 867,187 612,202
Advance received for shipbuilding (4) 415,827 423,004
Current account with subsidiarys minority 232,373 350,125
Quality guarantees 291,417 319,940
Equipment or land use rights 148,608 195,375
Professional and training fees 3,693 67,198
Housing maintenance fees 6,559 21,590
Royalties 18,364 20,355
Insurances 16,972 16,504
Others 773,588 561,555
Total 5,216,363 4,292,597
Other payables denominated in original currencies are as follows:
Currency
Original
currency
Exchange
rate RMB
Original
currency
Exchange
rate RMB
000 000 000 000
RMB 2,934,511 1.0000 2,934,511 1,984,086 1.0000 1,984,086
US$ 297,981 6.1787 1,841,137 266,970 6.2854 1,678,011
HKD 14,841 0.7966 11,822 107,342 0.8108 87,033
JPY 38,259 0.0626 2,395 2,931 0.0730 214
EUR 39,878 8.0536 321,162 58,147 8.3195 483,750
AUD 8,309 5.7061 47,413 5,116 6.5359 33,441
Others 57,923 26,062
Total 5,216,363 4,292,597
194
32. Other payables (Continued)
(2) As at 30 June 2013, no amount due to shareholders who hold 5% or more of the voting
rights of the Company is included in the balance of other payables. Other payables to
related parties are as follows:
Company name Relationship with the Group
30 June
2013
31 December
2012
Marine Subsea & Consafe Associate 415,827 423,004
Shunde Furi Real Estate Investment
Co., Ltd
Minority shareholder of subsidiary 144,237 253,513
Gasfin Investment S.A Minority shareholder of subsidiary 42,844 45,660
Shunde Binuo Sunshine Real Estate
Co., Ltd
Minority shareholder of subsidiary 43,850 43,850
TSC Offshore Group Limited Associate 20,083 13,384
Shanghai Fengyang Property
Associate 26,390
Others 1,442 10,919
Total 694,673 790,330
(3) Significant other payables aged over one year are as follows:
Significant other payables aged over one year represented quality guarantee, vehicle mortgage guarantee and
various deposits.
(4) Raffles and GadidaeAB entered into a shipbuilding contract, which was terminated
afterwards, for the construction and sale of a submersible drilling rig from Raffles to
GadidaeAB in 2007. Subsequently GadidaeAB and MSC entered into a contract which
GadidaeAB would sell this vessel to MSC. GadidaeAB received US$67,300,000 (equivalent to
RMB415,827,000) progress billing from MSC in 2007.
Interim Report 2013
195
33. Provisions
Item Note
Beginning
balance
Addition due
to business
combination
Increase in
current period
Payment in
current period
Reversal in
current period
Difference on
translation of
foreign
currency
financial
statements Ending balance
Product warranties (1) 661,612 85,925 (22,122) (80,144) (59) 645,212
Guarantees for third parties (2) 4,219 4,219
Others (3) 87,661 7,413 19,247 (1,801) (8,317) (5,471) 98,732
Total 753,492 7,413 105,172 (23,923) (88,461) (5,530) 748,163
(1) The Group provides after-sales repair warranty to the customers, ranging from two to seven years for
containers, one year for trailers, one to seven years for tank equipments, one to two years for airport
ground facilities and one year for offshore business after delivery of vessels. The Group will provide repair
and maintenance services in accordance with sales contracts during the warranty period in the event of
any non-accidental breakdown or quality problems. The balance of Provisions Warranties for product
quality represents the Groups estimated obligation for such warranties of products sold out during the
period and in the previous fiscal years.
(2) The amount represents the possible loss for a bank guarantee letter issued by the Companys subsidiary
TAS.
(3) HI provide guarantees in respect of banking facilities granted to customers who drew down loans under
banking facilities to settle outstanding payables arising from purchase of trailers from the Group. HI would
provide provision for the possible loss considering the credit quality.
34. Current portion of non-current liabilities
(1) The analysis of the Groups current portion of non-current liabilities by categories is as
follows:
Item Note
30 June
2013
31 December
2012
Current portion of long-term borrowings (2)
Unsecured 2,537,124 1,257,100
Subtotal 2,537,124 1,257,100
Current portion of long-term payables (3) 1,517 4,840
Total 2,538,641 1,261,940
There were no overdue borrowings with extended maturity included in current portion of long-term borrowings.
196
34. Current portion of non-current liabilities (Continued)
(2) Current portion of long-term borrowings:
(a) Current portion of long-term borrowings denominated in original currencies are as follows:
Original
currency
Exchange
rate RMB
Original
currency
Exchange
rate RMB
000 000 000 000
Bank borrowings
RMB 1,930,000 1.0000 1,930,000 1.0000
US$ 98,261 6.1787 607,124 200,000 6.2855 1,257,100
Total 2,537,124 1,257,100
(b) As at 30 June 2013, the five largest current portion of long-term borrowings:
Lender Starting date Ending date Currency Interest rate (%)
Original
currency RMB
Original
currency RMB
1.China Development Bank 2011/01/20 2014/01/07 RMB 4.20% 500,000 500,000
4.Hongkong and Shanghai
Banking Corporation
Limited
2012/06/18 2014/06/18 US$ 3-month
libor+315BP
58,000 358,365
5.China Development Bank 2007/12/12 2013/12/12 US$ 6-month libor+90BP 40,000 247,148 40,000 251,414
Total 2,005,513 251,414
(3) Current portion of long-term payables
As at 30 June 2013, current portion of long-term payables included deferred income due within one year of
RMB1,517,000.
As at 31 December 2012, current portion of long-term payables included net financial leasing payable of
RMB4,731,000, which is total amount of RMB4,886,000 minus unrecognised financing expenses of RMB155,000
and payables to compensate employee occupation disease of RMB109,000.
The Group had no financial leasing guaranteed by independent third parties.
Interim Report 2013
197
35. Long-term borrowings
(1) The Groups long-term loans
Item Note
30 June
2013
31 December
2012
Bank borrowings
Unsecured 4,273,648 4,596,695
Guaranteed (a) 120,483 2,497,470
Pledged (b) 602,550 547,620
Total 4,996,681 7,641,785
Long-term borrowings denominated in original currencies are as follows:
Interest rate
Original
currency
Exchange
rate RMB Interest rate
Original
currency
Exchange
rate RMB
000 000 000 000
RMB 4.20% ~ 4.92% 1,746,760 1.0000 1,746,760 4.76% for the 1st quarter and will be
reviewed every quarter to PBOCs
Benchmark Rate +10%
3,520,454 1.0000 3,520,454
US$ 1-month LIBOR+190BP ~ 3-month
LIBOR+230BP
450,933 6.1787 2,786,177 1-month LIBOR+190BP ~ 3-month
LIBOR+315BP
587,100 6.2855 3,681,507
HKD 3-month LIBOR+230BP 539,991 0.7966 430,157 HIBO+2.2% ~ 3-month LIBOR+230BP 584,604 0.8108 438,647
AUD 8.63% 180 6.5359 1,177
CAD 1-month CAD LIBOR+2.3% 5,725 5.8669 33,587
Total 4,996,681 7,641,785
(a) As at 30 June 2013, the Groups long-term guarantee borrowings included bank borrowings RMB120,483,000
guaranteed by Enric for its subsidiaries.
(b) As at 30 June 2013, the Groups long-term pledged borrowings were borrowed by CIMC USA Leasing
amounted to RMB602,550,000, which was pledged by trailers bought by CIMC USA Leasing and guaranteed
by CIMC Hong Kong.
(c) As at 30 June 2013, the weighted average interest rate of long-term borrowings is 3.32% annually (31
December 2012: 3.24%).
198
35. Long-term borrowings (Continued)
(2) As at 30 June 2013, the five largest long-term borrowings:
Starting date Ending date Currency Rate (%)
Original
currency RMB
Original
currency RMB
000 000 000 000
1. Syndicated loan 2012/03/13 2015/03/23 US$ 1-month LIBOR+190BP 225,100 1,390,825 225,100 1,414,834
2. Syndicated loan 2012/01/04 2015/03/23 US$ 3-month LIBOR+230BP 100,000 617,870 100,000 628,536
3. Syndicated loan 2011/12/29 2015/03/23 HKD 3-month LIBOR+230BP 390,000 310,674 390,000 316,212
4. The Export-Import
Bank of China 2011/07/25 2014/07/18 RMB 4.92% 300,000 300,000 300,000 300,000
5. Th e Export-Import
Bank of China 2011/08/10 2014/08/10 RMB 4.92% 300,000 300,000 300,000 300,000
Total 2,919,369 2,959,582
As at 30 June 2013, there were no overdue long-term borrowings of which the durations are extended.
36. Debentures payable
Item
Beginning
balance
Increase in
current period
Decrease in
current period
Ending
Balance
Mid-term notes 5,990,833 1,292 5,992,125
Convertible bonds 471,402 (8,000) 463,402
Total 6,462,235 1,292 (8,000) 6,455,527
Interim Report 2013
199
36. Debentures payable (Continued)
(1) Related information is as follows:
Debenture name Per value Issuance date Maturity
Issuance
amount
Balance of
interest
payable
at the
beginning
of the period
Interest
accrued in
current
period
Balance of
interest
payable
at the
end of the
period
Exchange
differences
arising
from
translating
foreign
operations
Ending
balance
Medium-term notes 11CIMC MTN1 4,000,000 23 May 2011 5 years 4,000,000 (9,167) 1,292 (7,875) 3,992,125
Medium-term notes 12CIMC MTN2 2,000,000 24 May 2012 3 years 2,000,000 2,000,000
Convertible bonds 471,402 10 December 2012 3 years 471,402 (8,000) 463,402
Total 6,455,527
The Company issued medium-term notes (MTN) on 20 May 2011 with a ceiling of RMB6 billion to institutional
investors in the national inter-bank bond market. The first tranche of MTN with a total amount of RMB4 billion,
a term of five years from 23 May 2011 to 22 May 2016, par value of RMB100 per note and fixed interest rate of
5.23% per annum was successfully issued publicly. Interest is to be paid on 23rd May each year in the arrears
until redemption and par value is to be paid on 23 May 2016. The notes are unsecured and targets institutional
investors in the national inter-bank market.
The Company issued the second tranche of MTN on 22 May 2012 with a total amount of RMB2 billion, a term of
three years from 24 May 2012 to 23 May 2015, par value of RMB100 per note and fixed interest rate of 4.43% per
annum. Interest is to be paid on 24th May each year in the arrears until redemption and par value is to be paid
on 24 May 2015. The notes are unsecured and targets institutional investors in the national inter-bank market.
China Merchants Bank Co., Ltd. is the lead underwriter. Book building and centralised placing were adopted for
this issue. The MTN recorded as debenture was subsequently measured at amortized cost using the effective
interest.
NSR, a subsidiary of the financial leasing, issued three-year convertible bonds to third party investor on 10
December, 2012. The par value and the amount was US$75,000,000 with fixed interest rate of 5%. If NSRs
offshore drilling platform project have completed and found the eligible leasee, the CB would directly converted
to the Category B shares of NSR. In addition, during the life of the CB, the bond holder has the rights to convert
the CB to Category B shares of NSR. At the CB maturity date, if the holder have chosen not convert, the NSR
should buy-back all the CB and ensure the redemption price could enable the holder obtain 15% internal rate of
return.
According to the agreement, when the CB have converted to Category B shares of NSR, NSR should buy-back
25%, 25% and 50% of the Category B shares at the end of 3, 4, and 5 years after the issuance of CB, respectively.
The redemption price would depend on the offshore drilling platforms lease or sales price, but should make sure
the original CB holder obtain not less than 15% internal rate of return.
200
37. Long-term payables
Item
30 June
2013
31 December
2012
Financial Leasing payable 39,295 23,056
Payable to minority shareholders 120,789 120,789
Others 2,801 1,258
Total 162,885 145,103
(1) As at 30 June 2013, the three largest long-term payables
Lender Expiration date
Initial
amount
Interest
rate (%)
Interest
accrued
Ending
balance Conditions
Minority shareholder
of subsidiaries
120,789 120,789
Bank of America From 20 December 2011
to 20 September 2018 17,354 3.1272% 17,354
Bank of America From 4 November 2011
to 4 September 2018 16,230 3.1508% 16,230
Total 154,373
As at 30 June 2013, balance of the long-term payables of the Group included balance amounting to
RMB33,584,000 (31 December 2012: RMB23,056,000) denominated in US$.
(2) Details of payable for finance leases
The Group had no financial leasing guaranteed by third party in the period.
As at 30 June 2013, no amount due to the shareholders who hold 5% or more of the voting rights of the Company
or due to related parties is included in the above balance of long-term payables.
Interim Report 2013
201
38. Payables for specific projects
Item
Beginning
balance
Increase
in current
period
Decrease
in current
period
Effect
foreign
exchange
rate changes
Ending
balance
Project funds 4,802 (4,267) 535
Total 4,802 (4,267) 535
39. Other non-current liabilities
Item Note
30 June
2013
31 December
2012
Deferred income (1) 374,366 348,630
(1) Deferred income
30 June
2013
31 December
2012
Government grants related to assets
Tianda industrial base project 30,000 30,000
Enric relocation compensation 143,338 143,715
Enric new factory government grants 94,026 94,273
TCCIMC land compensation 23,240 23,523
MEA Special funds to support industrial innovation 8,816 9,199
Shandong R&D fund 6,242 7,871
Zhenhua Group construction compensation 9,313
Others 6,734 7,843
Government grants related to income
Enric major technology application fund 5,984 6,000
Others 46,673 26,206
Total 374,366 348,630
202
40. Share capital
Amounts: 000
31 December
2012
Decrease in
current period
Change of
shares subject
to selling
restriction
30 June
2013
Shares subject to trading
restrictions
Held by domestic natural person 371 371
Shares not subject to trading
restrictions
RMB-denominated ordinary shares 1,231,544 1,231,544
Foreign shares listed overseas 1,430,481 1,430,481
Total 2,662,396 2,662,396
Amounts: 000
31 December
2011
Decrease in
current period
Change of
shares subject
to selling
restriction
31 December
2012
Shares subject to trading
restriction
Held by domestic natural person 373 (2) 371
Shares not subject to trading
restriction
RMB-denominated ordinary shares 1,231,544 1,231,544
Foreign shares listed domestically 1,430,479 (1,430,479)
Foreign shares listed overseas 1,430,479 2 1,430,481
Total 2,662,396 2,662,396
The par value of the aforesaid shares was RMB1.00 per share.
Interim Report 2013
203
41. Capital surplus
Item
31 December
2012
Increase in
current period
Decrease in
current period
30 June
2013
Share premiums 201,222 201,222
Other capital surplus:
Property revaluation reserve 43,754 43,754
Exchange reserve on foreign
currency capital 692 692
Donated non-cash assets reserve 257 257
Changes in fair value of available-
for-sale financial assets 541,024 (31,078) 509,946
Effective portion of changes in fair
value of cash flow hedges 5,885 4,435 10,320
Deferred tax effect (131,021) 7,230 (123,791)
Equity settled share-based payment 312,377 43,945 356,322
Capital contribution resulted from
share option exercised in
subsidiary 1,880 (5,816) (3,936)
Capital surplus due to minority
shareholders contribution 101,376 101,376
Decrease in minority interests
resulted from disposal of
subsidiary (no loss the controlling
rights on the subsidiary) 178,916 288,761 467,677
Capital surplus due to corporate
restructuring (42,696) (42,696)
Capital surplus due to acquiring
minority shareholders equity 78,457 (89,997) (11,540)
shareholders contributor (58,964) (58,964)
Effect of functional currency
change (406,795) (406,795)
Others 104,118 104,118
Total 930,482 344,371 (126,891) 1,147,962
204
41. Capital surplus (Continued)
31 December
2011
Increase in
current period
Decrease in
current period
31 December
2012
Share premium 201,222 201,222
Change in fair value of
available-for-sale financial assets 503,276 37,748 541,024
Effective portion of changes in fair value
of cash flow hedges 12,784 (6,899) 5,885
Deferred tax effect (122,756) (8,265) (131,021)
Capital contribution resulted from
share option exercised in subsidiary 1,880 1,880
shareholders contribution 79,024 22,352 101,376
Decrease in minority interests
resulted from disposal of subsidiary
(not loss the controlling rights
on the subsidiary) 178,916 178,916
Capital surplus due to corporate
restructuring (42,696) (42,696)
Capital surplus due to acquiring
minority shareholders equity 247,114 (168,657) 78,457
shareholders contributor (58,964) (58,964)
Effect of functional currency change (406,795) (406,795)
Others 102,699 1,630 (211) 104,118
Total 799,261 357,949 (226,728) 930,482
Interim Report 2013
205
42. Surplus reserve
Item
31 December
2012
Increase in
current period
Decrease in
current period
30 June
2013
Statutory surplus reserve 1,269,744 1,269,744
Discretionary surplus reserve 1,790,092 1,790,092
Total 3,059,836 3,059,836
31 December
2011
Increase in
current period
Decrease in
current period
31 December
2012
Statutory surplus reserve 1,163,068 106,676 1,269,744
Discretionary surplus reserve 1,790,092 1,790,092
Total 2,953,160 106,676 3,059,836
In accordance with the Company Law and the Companys Articles of Association, the Company should
appropriate 10% of net profit for the year to the statutory surplus reserve, and the Company can cease
appropriation when the statutory surplus reserve accumulated to more than 50% of the registered capital. The
statutory surplus reserve can be used to make up for the loss or increase the paid in capital after approval from
the appropriate authorities.
The Company appropriates for the discretionary surplus reserve after the shareholders meeting approves the
proposal from the Board of Directors. The discretionary surplus reserve can be used to make up for the loss or
increase the paid in capital after approval from the appropriate authorities.
43. Undistributed profits
Item Note
30 June
2013
31 December
2012
Undistributed profits at the beginning of the year 13,392,795 12,785,092
Add: net profit attributable to the shareholders of the Parent for
the current period 551,972 1,939,081
Less: appropriation for surplus reserve (106,676)
Less: ordinary share dividend payable (1) (612,351) (1,224,702)
Undistributed profits at the end of the period 13,332,416 13,392,795
(1) Dividends of ordinary shares declared during the period
In accordance with the resolution approved at the general meeting of the Company dated 28 June 2013, the
Company distributed cash dividend at the amount of RMB0.23 per share (2012: RMB0.46 per share) (inclusive of
tax) to the ordinary shareholders on 15 August 2013, amounting to RMB612,351,000 (2012: RMB1,224,702,000)
calculated by issued shares.
206
44. Revenue and cost of sales
(1)
Item
From
1 January to
30 June 2013
From
1 January to
30 June 2012
Revenue from principal operations 28,142,560 26,487,354
Revenue from other operations 442,598 877,092
Total 28,585,158 27,364,446
Cost of sales from principal operations 23,952,601 22,394,778
Cost of sales from other operations 207,815 618,819
Total 24,160,416 23,013,597
There was no individual construction contract whose revenue amounted to more than 10% of the total operating
income.
(2) Revenue and cost of sales from main operations by industries and by products
From 1 January to 30 June 2013 From 1 January to 30 June 2012

Industry
Revenue from
main operations
Cost of sales
from main
operations
Revenue from
main operations
Cost of sales
from main
operations
Containers 12,072,717 10,510,091 13,405,500 11,347,348
Trailers 6,434,276 5,619,462 6,520,928 5,735,906
Energy and chemistry equipment 5,292,815 4,138,521 4,199,283 3,380,956
Offshore business 1,519,799 1,499,539 1,243,014 1,099,649
Logistics 656,648 573,834 751,349 653,931
Airport facilities 213,931 144,260 62,974 45,264
Others 1,952,374 1,466,894 304,306 131,724
Total 28,142,560 23,952,601 26,487,354 22,394,778
(3) Revenue and cost of sales from main operations by locations

Regions
Revenue from
main operations
Cost of sales
from main
operations
Revenue from
main operations
Cost of sales
from main
operations
P.R China 25,227,220 22,015,325 23,602,225 20,524,003
America 1,183,883 924,313 1,145,678 845,598
Europe 789,529 697,754 738,130 649,638
Asia 64,481 54,446 57,601 8,887
Others 877,447 260,763 943,720 366,652
Total 28,142,560 23,952,601 26,487,354 22,394,778
The revenue and cost of sales from main operations by locations is determined on the location at which the
services were provided or the goods were delivered.
Interim Report 2013
207
44. Revenue and cost of sales (Continued)
(4) Revenue and cost of sales from other operations

Revenue from
other operations
Cost of sales
from other
operations
Revenue from
other operations
Cost of sales
from other
operations
Rendering of services 226,089 111,531 583,916 456,748
Sale of raw materials 216,509 96,284 293,176 162,071
Total 442,598 207,815 877,092 618,819
(5) Revenue from the five largest customers of the Group in the period
Customer Revenue
Percentage of
total revenue
TAL International Container Corporation 1,222,493 4.28%
NYK Line, Inc 936,899 3.28%
Hapag-Lloyd Container Line 928,996 3.25%
Hong Kong Poly Property Group Co., Ltd 820,350 2.87%
Triton Container International Ltd. 749,097 2.62%
Total 4,657,835 16.29%
For the period ended 30 June 2012, revenue from the five largest customers of the Group with an amount of
RMB7,095,677,000, accounted for 25.92% of the total revenue of the Group.
45. Taxes and surcharges
Item
From 1 January
to 30 June 2013
From 1 January
to 30 June 2012 Taxation basis and rates
Business tax 46,415 49,165 3%-5% of revenue
City maintenance and construction tax 49,149 46,439 7% of VAT and business tax paid
Educational surcharge 36,296 35,027 3%-5% of VAT and business tax paid
Land appreciation tax 10,284 12,446 Appreciation amount in transferring
property and applicable tax rate
Others 4,997 19,274
Total 147,141 162,351
208
46. Selling and distribution expenses
Item
From
1 January to
30 June 2013
From
1 January to
30 June 2012
Transportation and distribution charges 366,585 361,064
External sales commission 27,816 21,791
Employ Benefit 189,040 84,616
Warranty 43,852 84,221
Others 293,882 312,064
Total 921,175 863,756
47. General and administrative expenses
Item
From
1 January to
30 June 2013
From
1 January to
30 June 2012
Low-value consumables and materials consumed 41,132 28,375
Rental 30,837 29,252
Depreciation 80,231 81,373
Employ Benefit 669,369 522,934
Taxes and surcharges 77,636 61,934
Agency fee 78,386 45,404
Technology development costs 126,942 95,105
Amortisation 101,142 96,842
Performance Bonus and president bonus 76,184 100,000
Office expenditure, entertainment fee and others 432,358 594,490
Total 1,714,217 1,655,709
Interim Report 2013
209
48. Financial expenses-net
Item
From
1 January to
30 June 2013
From
1 January to
30 June 2012
Interest expenses 450,228 530,173
Including: Bank borrowings 290,365 415,053
Finance leasing 34,819
Debentures payable 109,249 104,600
Other liabilities 15,795 10,520
Less: borrowing costs capitalised (173,399) (204,032)
Interest income from bank deposits and amounts receivables (52,347) (101,313)
Exchange (gains)/losses 171,408 (11,768)
Others 58,936 23,379
Total 454,826 236,439
Interest expenses are analysed by the repayment terms of bank and other borrowings as follows:
From 1 January to
30 June 2013
From 1 January to
30 June 2012
Bank
borrowings
Other
borrowings
Bank
borrowings
Other
borrowings
Wholly repayable within five years 290,365 415,053
49. Profit/(losses) from changes in fair value
Item
From
1 January to
30 June 2013
From
1 January to
30 June 2012
Financial assets held for trading
Changes in fair value during the period
1. Profit from changes in fair value of equity instrument
held for trading (37,577) 3,353
2. Profit/(losses) from changes in fair value of derivative financial
instrument 15,131 (22,473)
Profit for derecognized financial assets held for trading (16,996) 3,268
Sub-total (39,442) (15,852)
Financial liabilities held for trading
1. Profit from changes in fair value of derivative financial instrument 49,183 918
Total 9,741 (14,934)
210
50. Investment income
(1) Investment income by categories
Item
From
1 January to
30 June 2013
From
1 January to
30 June 2012
Income from disposal of financial assets held for trading 16,996 (3,268)
Income earned during the holding period of available-for-sale
financial assets 7,261 4,841
Income from long-term equity investments under cost method 5,000
Income/(losses) from long-term equity investments under equity method (64,960) (10,095)
Income/(losses) from disposal of long-term equity investment (4,414)
Total (45,117) (3,522)
Investment gains from listed investments and investment losses from non-listed investments in the period ended
30 June 2013 amount to RMB24,257,000 and RMB69,374,000 respectively (For the period ended 30 June 2012:
RMB1,573,000 and RMB5,095,000 respectively).
(2) In investment income from long-term equity investment under cost method, investees that
contributed investment income for 5% or more of the Groups total profit, or the top five
investees that contributed most to the Groups investment income are set out as follows:
Investee
From
1 January to
30 June 2013
From
1 January to
30 June 2012
Reason for current period
fluctuation
BOCM Schroder Stolt Fund
Management
5,000 Cash dividend wasnt distributed
during the period
Total 5,000
Interim Report 2013
211
50. Investment (losses)/income (CONTINUED)
(3) In investment income from long-term equity investment under equity method, investees
that contributed investment income for more than 5% of the Groups total profit, or the top
five investees that contributed most investment income to the Groups total profit are set
out as follows:
Investee
From
1 January to
30 June 2013
From
1 January to
30 June 2012
Reason for current period
fluctuation
Zhenhua Group 4,176 7,217 Changes in profit and loss of the
investee
Shanghai Fengyang 3,432 4,296 Changes in profit and loss of the
investee
Xiamen Hongji 3,223 1,240 Changes in profit and loss of the
investee
Guangxi North Logistic 2,612 2,191 Changes in profit and loss of the
investee
KYH 2,272 3,534 Changes in profit and loss of the
investee
Total 15,715 18,478
There was no significant restriction on the remittance of investment income to the investor.
51. Asset impairment losses
Item
From
1 January to
30 June 2013
From
1 January to
30 June 2012
Accounts receivables 31,417 3,896
Advance to suppliers (132) 22
Other receivables 1,295 529
Inventories 2,589 (63,218)
Current portion of non-current assets 11,532
Long-term receivables (11,882) 21,273
Fixed assets 19 12,512
Total 34,838 (24,986)
212
52. Non-operating income
(1) Non-operating income by categories is as follows:
Item Note
From
1 January to
30 June 2013
From
1 January to
30 June 2012
Gains on disposal of fixed assets 6,066 11,056
Gains on disposal of intangible assets 14 15
Compensation income 2,120 21,608
Penalty income 6,304 835
Government grants (2) 36,011 36,027
Amounts no longer payable 1,040 45
Others 1,205 7,445
Total 52,760 77,031
(2) Details of government grants
Item
From
1 January to
30 June 2013
From
1 January to
30 June 2012
Financial subsidies 35,695 36,027
Tax refund 129
Others 187
Total 36,011 36,027
53. Non-operating expenses
Item
From
1 January to
30 June 2013
From
1 January to
30 June 2012
Losses on disposal of fixed assets 4,425 3,134
Losses on disposal of intangible assets 24 3,232
Donations 1,356 2,527
Penalty expenses 665 1,370
Compensation expenses 551 691
Others 2,862 12,150
Total 9,883 23,104
Interim Report 2013
213
54. Income tax expenses
Item
From
1 January to
30 June 2013
From
1 January to
30 June 2012
Current income tax calculated based on tax law and related regulations 352,204 406,187
Change in deferred income tax 92,613 79,186
Total 444,817 485,373
Reconciliation between income tax expenses and accounting profits is as follows:
Item
From
1 January to
30 June 2013
From
1 January to
30 June 2012
Total profit 1,160,046 1,493,051
Income tax expenses calculated at applicable tax rates 379,479 476,135
Effect of tax incentive (136,072) (94,800)
Expenses not deductible for tax purposes 124,729 8,706
Income not subject to tax (106,925) (30,611)
Utilisation of previously unrecognised tax losses (9,476) (27,147)
Tax effect of unrecognised tax losses 76,296 45,016
Deductible temporary differences for which no
deferred tax asset was recognised 74,456 48,754
Effect of tax rate change on deferred tax 3,490 10,766
Tax refund for income tax annual filling (1,735) (261)
Income tax accruals for profit of foreign holding
companies in current period 40,575 48,815
Income tax expenses 444,817 485,373
214
55. Calculation of basic earnings per share and diluted earnings per share
(1) Basic earnings per share
Basic earnings per share is calculated by dividing consolidated net profit attributable to ordinary shareholders of
the Company by the weighted average number of ordinary shares outstanding:
From
1 January to
30 June 2013
From
1 January to
30 June 2012
Consolidated net profit attributable to ordinary shareholders
of the Company (RMB thousand) 551,972 933,710
Weighted average number of ordinary shares outstanding (000) 2,662,396 2,662,396
Basic earnings per share (RMB per share) 0.2073 0.3507
(2) Diluted earnings per share
Diluted earnings per share is calculated by dividing adjusted net profit attributable to ordinary shareholders of
the Company by the adjusted weighted average number of ordinary shares outstanding:
Note
From
1 January to
30 June 2013
From
1 January to
30 June 2012
Consolidated net profit attributable to ordinary shareholders
of the Company (diluted) (RMB thousand) 551,972 933,710
Weighted average number of ordinary shares outstanding
(diluted) (000) 2,666,450 2,671,583
Diluted earnings per share (RMB per share) 0.2070 0.3495
Note: The subsidiaries share option program is not material to the Companys diluted earning per share.
Calculation of weighted average number of ordinary shares outstanding (diluted):
30 June 2013 30 June 2012
Issued ordinary shares at 1 January (000) 2,662,396 2,662,396
Effect of share options (000) 4,054 9,187
Weighted average number of ordinary shares at 30 June (000) 2,666,450 2,671,583
The Board of the Company was authorised to grant 60,000,000 share options (2.25% of the total
2,662,396,051 shares issued by the Company) to the senior management and other staff. According to the
share options plan in Note VII.2, the exercisable share options during the period were 13,500,000 shares.
Please refer to Note VII for the details of share options.
Interim Report 2013
215
56. Other comprehensive income
Item
From
1 January to
30 June 2013
From
1 January to
30 June 2012
1. Gains/(losses) arising from available-for -sale financial assets (31,078) 49,079
Less: income tax relating to available-for-sale financial assets (7,769) 12,270
Sub-total (23,309) 36,809
2. Gains/(losses) on cash flow hedges financial instrument 4,435 (9,665)
Less: income tax relating to cash flow hedges financial instrument 539 (1,450)
Sub-total 3,896 (8,215)
3. Exchange differences arising from translating foreign operations (45,841) 6,685
Total (65,254) 35,279
57. Notes to the consolidated cash flow statement
(1) Cash received relating to other operating activities
Item
From
1 January to
30 June 2013
From
1 January to
30 June 2012
Cash received from government grants related to assets 11,084 15,000
Cash received from government grants related to income 24,927 21,027
Cash received from penalty income 6,304 835
Cash received from compensation income 2,120 1,052
Others 212,328 114,814
Total 256,763 152,728
(2) Cash paid relating to other operating activities
Item
From
1 January to
30 June 2013
From
1 January to
30 June 2012
Cash paid for transportation and distribution expenses 336,585 361,064
Cash paid for rental, insurance and other selling and distribution expenses 119,621 153,100
Cash paid for technical development costs 126,942 95,105
Cash paid for warranty 23,852 30,599
Cash paid for external sales commission 27,816 117,330
Cash paid for entertainment fee 61,527 28,120
Cash paid for travelling, office expenditure and other expenses in
ordinary operation
102,793 183,339
Total 799,136 968,657
216
57. Notes to the consolidated cash flow statement (Continued)
(3) Cash received relating to other investing activities
Item
From
1 January to
30 June 2013
From
1 January to
30 June 2012
Cash received from bank financial services 73,000
(4) Cash paid relating to other investing activities
Item
From
1 January to
30 June 2013
From
1 January to
30 June 2012
Cash paid for bank financial services 73,000
(5) Cash received relating to other financing activities
Item
From
1 January to
30 June 2013
From
1 January to
30 June 2012
Cash received from disposal of subsidiarys equity 570,599
(6) Cash paid relating to other financing activities
Item
From
1 January to
30 June 2013
From
1 January to
30 June 2012
Cash paid for medium-term notes expenses 12,000 14,460
Cash paid for acquiring minority interests 393,258
Total 405,258 14,460
Interim Report 2013
217
58. Information to cash flow statement
(1) Supplementary information to the consolidated cash flow statement
(a) Reconciliation from net profit to cash flows from operating activities:
Item
From
1 January to
30 June 2013
From
1 January to
30 June 2012
Net profit 715,229 1,007,678
Add: Provisions for assets impairment 34,838 (24,986)
Depreciation of fixed assets 452,248 411,871
Amortisation of intangible assets 77,301 123,162
Amortisation of investment properties and long-term
prepaid expenses
30,425 14,308
Losses/(gains) on disposal of fixed assets, intangible
assets and other long-term assets
(1,631) (4,705)
Losses/(Gains) on changes in fair value (9,741) 14,934
Financial expense 224,482 326,141
Investment losses/(income) 45,117 3,522
Share-based payment expenses 45,304 59,306
Change in deferred tax assets and liabilities 92,613 79,186
Decrease/(increase) in inventories 518,308 (1,281,358)
Decrease/(increase) in operating receivables (6,433,618) (2,299,297)
Increase/(decrease) in operating payables 1,188,289 (536,455)
Exchange differences arising from translating foreign operations (723) (350)
Net cash inflow/(outflow) from operating activities (3,021,559) (2,107,043)
The Group did not have significant investing and financing activities that do not involve cash receipts and
payments in the period.
(b) Net (decrease)/increase in cash and cash equivalents:
Item
From
1 January to
30 June 2013
From
1 January to
30 June 2012
Closing balance of cash and cash equivalents 3,233,326 3,904,437
Less: Opening balance of cash and cash equivalents 4,397,512 6,563,253
Net increase/(decrease) of cash and cash equivalents (1,164,186) (2,658,816)
218
58. Information to cash flow statement (Continued)
(2) Cash and cash equivalents
Item
30 June
2013
31 December
2012
Including: Cash 3,393 1,593
Bank deposits available on demand 2,970,573 3,768,828
Other monetary fund available on demand 259,360 134,016
2. Closing balance of cash and cash equivalents 3,233,326 3,904,437
Note: Aforesaid Cash at bank and on hand excluded restricted cash and short-term investment.
Interim Report 2013
219
VI. RELATED PARTIES AND RELATED PARTY TRANSACTIONS
1. The Company does not have immediate holding company.
2. For the information on the subsidiaries of the Company, refer to Note IV.1.
3. For the information about the joint ventures and associates of the Company, refer
to Note V.12(3).
4. Information of other related parties
Organisation name Relationship with the Group
Code of
organisation
Florens Container Services Ltd. Subsidiary of significant shareholder N/A
Florens Container Corporation S.A. Subsidiary of significant shareholder N/A
Florens Maritime Limited Subsidiary of significant shareholder N/A
Shenzhen China Merchants Real Estate Co., Ltd Subsidiary of significant shareholder 61884513-6
Shenzhen CIMC Skyspace Real Estate Development Minority shareholder of subsidiary 71526714-7
Gasfin Investment S.A Minority shareholder of subsidiary N/A
WHRJI Minority shareholder of subsidiary 78858986-8
COSCO Container Industries Limited Significant shareholder N/A
China Merdant International Ltd. Significant shareholder N/A
Qingdao Global International Airline Services Ltd. Minority shareholder of subsidiary 74722427-2
SXHDA Minority shareholder of subsidiary 74127207-0
Sumitomo Minority shareholder of subsidiary N/A
ShundeFuri Real Estate Investment Co., Ltd Minority shareholder of subsidiary 66332839-X
ShundeBinuo Sunshine Real Estate Co., Ltd Minority shareholder of subsidiary 77309806-2
Yangjiang East Property management Co., Ltd Minority shareholder of subsidiary 67308571-5
Note: Significant shareholders represent shareholders holding 5% or more of the Companys shares.
220
VI. RELATED PARTIES AND RELATED PARTY TRANSACTIONS (CONTINUED)
5. Related party transactions
The following transactions with related parties were conducted under normal commercial terms or relevant
agreements and followed the approval procedure of normal non-related party transactions.
(1) Purchase of goods/receiving of services
The Group
From 1 January to
30 June 2013
From 1 January to
30 June 2012

Name
Name of the
transaction Amount
Percentage
of the total
amount
of similar
transactions
(%) Amount
Percentage
of the total
amount
of similar
transactions
(%)
Other related parties Purchase of goods 130,476 0.54% 10,804 0.05%
Other related parties Receiving of services 4,780 0.02% 2,914 0.32%
The Company
Receiving of services of the Company refer to VI.5 (5).
(2) Sale of goods/rendering of services
The Group
From 1 January to
30 June 2013
From 1 January to
30 June 2012

Name
Name of the
transaction Amount
Percentage
of the total
amount
of similar
transactions
(%) Amount
Percentage
of the total
amount
of similar
transactions
(%)
Other related parties Sale of goods 1,029,673 3.60% 607,078 2.96%
Interim Report 2013
221
5. Related party transactions (Continued)
(3) Leases
The Group as a lessor:
Name of lessor Name of lessee
Category of
the leased
asset Starting date Ending date
Basis for pricing
lease income
Lease income
recognised
for the
current period
CIMC Vehicle
(Jiangmen) Co. Ltd
Senju (Jiangmen)
Technology
Material Co. Ltd
Plant, land
facilities and
equipment
3 September 2010 31 August 2013 Lease contract 2,240
(4) Financing
The Group
Name Amount Starting date Ending date Note
Financing received
Gasfin 42,844 19 September 2008 Not fixed repayment date Shareholder loans
Financing provided
Shanghai Fengyang 100,603 25 December 2007 Not fixed repayment date Shareholder loans
Xinyang Woods 3,883 20 June 2006 Not fixed repayment date Shareholder loans
MSC 282,627 1 December 2007 Not fixed repayment date Shareholder loans
The Company
Name Amount Starting date Ending date Note
Financing provided
Shanghai Fengyang 100,603 25 December 2007 Not fixed repayment date Shareholder loans
222
(5) Other related party transactions
(i) The Company adopted a new share options scheme since 28 September 2010 (see Note VII). Details of
share options granted to key management personnel are as follows:
Name Position
Number of granted
share options
(in 000)
Mai Boliang President, Chairman 3,800
Zhao Qingsheng Vice Chairman 1,500
Li Ruiting Vice Chairman 1,300
Wu Fapei Vice Chairman 1,000
Li Yinhui Vice Chairman 1,000
Yu Ya Vice Chairman 1,000
Liu Xuebin Vice Chairman 1,500
Jin Jianlong General Manager of Finance Department 1,000
ZengBeihua General Manager of Treasury Department 1,000
Yu Yuqun Secretary of the Board 1,000
Total 14,100
Some key management personnel were not only granted the above share options of the Company but also
were granted share options of Enric, the subsidiary of the Company. Details are as follows:
Name Position
Number of granted
share options
(in 000)
Zhao Qingsheng Vice Chairman 1,450
Wu Fapei Vice Chairman 500
Jin Jianlong General Manager of Finance Department 1,100
Yu Yuqun Secretary of the Board 1,100
Total 4,150
For detailed information for fair value of the granted share options aforesaid, please refer to Note VII.
Interim Report 2013
223
(5) Other related party transactions (Continued)
(ii) Directors and key management personnels emoluments
Directors and key management personnels emoluments for the period ended 30 June 2013 are as follows:
Name Remuneration
Salary and
allowance Pension Bonus
Sign-off
bonus
Termination
Benefits Others Total
Directors
Li Jianhong
Xu Minjie
Wang Hong
Wang Xingru
Mai Boliang 1,099 18 11 1,128
Ding Huiping 60 60
Xu Jingan 60 60
Jin Qingjun 60 60
Pan Chengwei
Li Kejun
Wang Guixun
Sub-total 180 1,099 18 11 1,308
Supervisors
Lv Shijie
Huang Qianru
Feng Wanguang 294 294
Sub-total 294 294
Other key management personnel
Zhao Qingsheng 412 412
Wu Fapei 392 18 300 11 721
Li Yinghui 392 17 300 11 720
Liu Xuebin 449 18 300 11 778
Zhang Baoqing 420 17 1,920 11 2,368
Yu Ya 449 17 300 11 777
Jin Jianlong 332 18 300 11 661
Zeng Beihua 338 300 638
Yu Yuqun 338 18 300 11 667
Sub-total 3,522 123 4,020 77 7,742
Total 180 4,915 141 4,020 88 9,344
The five individuals whose emoluments are the highest are included aforesaid in the period.
224
(ii) Directors and key management personnels emoluments (Continued)
Directors and key management personnels emoluments for the period ended 30 June 2012 are as follows:
Name Remuneration
Salary and
allowance Pension Bonus
Sign-off
bonus
Termination
Benefits Others Total
Directors
Li Jianhong
Xu Minjie
Wang Hong
Wang Xingru
Mai Boliang 947 24 7,983 8,954
Ding Huiping 60 60
Xu Jingan 60 60
Jin Qingjun 60 60
Sub-total 180 947 24 7,983 9,134
Supervisors
Lv Shijie
Huang Qianru
Feng Wanguang 310 1,696 2,006
Sub-total 310 1,696 2,006
Other key management personnel
Zhao Qingsheng 439 24 3,193 3,656
Wu Fapei 291 24 1,260 1,575
Li Yinghui 286 23 910 1,219
Liu Xuebin 421 24 2,350 2,795
Zhang Baoqing 300 23 1,216 1,539
Yu Ya 343 23 1,260 1,626
Jin Jianlong 256 24 760 1,040
Zeng Beihua 262 900 1,162
Yu Yuqun 262 24 1,000 1,286
Sub-total 2,860 189 12,849 15,898
Total 180 4,117 213 22,528 27,038
The five individuals whose emoluments are the highest are included aforesaid in the period ended 30 June
2012.
Interim Report 2013
225
(ii) Directors and key management personnels emoluments (Continued)
Number of individuals
From
1 January to
30 June
2013
From
1 January to
30 June
2012
Emolument bands:
RMB0 1,000,000 21 9
RMB1,000,000 1,500,000 1 4
More than RMB1,500,000 1 7
6. Receivables from and payables to related parties
Details of accounts receivable please refer to Note V.4.
Details of other receivables please refer to Note V.5.
Details of advance to suppliers please refer to Note V.6.
Details of accounts payable please refer to Note V.26.
Details of other payables please refer to Note V.32.
7. Commitments in relation to related parties
As at 30 June 2013, there are no commitments in relation to related parties contracted for but not yet necessary
to be recognised on the balance sheet by the Group.
226
VII. SHARE-BASED PAYMENTS
1. Information about share-based payments
Total equity instruments granted during the period
Total equity instruments exercised during the period
Total equity instruments forfeited during the period
The exercise price of outstanding share options at
the end of the year and residual life of the share
options contracts
1. Equi ty-settl ed share opti ons granted by Enri c
in 2009 and 2011: HKD4 and HKD2.48 per share
respectively, the residual life of contract is 6.33 and
8.32 years respectively;
2. As at 30 June 2013, equity-settled share options
granted by Raffl es al l expi red or forfei ted, no
outstanding equity-settled share options;
3. Equi t y- set t l ed share opt i ons grant ed by t he
Company i n 2010 and 2011: RMB11. 58 and
RMB17.11 per share respectively (after adjustment),
the residual life of contracts is both 7.24 years.
The price of other outstanding equity instruments
at the end of the year and residual life of
relevant contracts
Expenses recognised for the year arising from share-based payments are as follows:
Item
From
1 January to
30 June 2013
From
1 January to
30 June 2012
Equity-settled share-based payment 45,304 59,306
Cash-settled share-based payment
Total 45,304 59,306
Interim Report 2013
227
VII. SHARE-BASED PAYMENTS (CONTINUED)
2. Information on equity-settled share-based payment
(1) Information on equity-settled share-based payment of Enric
Enric, a subsidiary of the Company, carried out a share options plan (the Plan I), which was approved by the
shareholders meeting on 11 November 2009. According to the Plan, the key management personnel and other
employees in Enric were granted share options of Enric at nil consideration to subscribe for shares of Enric. The
options are 50% exercisable after one year from the date of grant and are then 100% exercisable after two years
from the date of grant. Each option gives the holder the right to subscribe for one ordinary share in Enric. The
total number of share options granted was 43,750,000, with the exercise price of HKD4 per share.
Enric carried out another share options plan (the Plan II), which was approved by the shareholders meeting
on 28 October 2011. According to Plan II, the board of directors of the Company was authorised to grant share
options to the key management personnel and other employees of Enric at nil consideration to subscribe for
shares of Enric. The options are 40% exercisable after one year from the date of grant and, 70% exercisable after
two years from the date of grant, and then 100% exercisable after three years from the date of grant. Each option
gives the holder the right to subscribe for one ordinary share in Enric. The total number of share options granted
was 38,200,000, with exercise price of HKD2.48 per share.
Movement of share options of Enric:
30 June
2013
31 December
2012
000 000
Beginning balance 71,546 78,700
Granted in current period
Exercised in current period (6,288) (5,774)
Cancelled in current period (1,280)
Forfeited in current period (1,070) (100)
Ending balance 64,188 71,546
228
2. Information on equity-settled share-based payment (Continued)
(2) Information on equity-settled share-based payment of the Company
A share options scheme (the Scheme) was approved in the shareholders meeting of the Company held on 28
September 2010. According to the Scheme, the board of directors of the Company was authorised to grant share
potions to the key management personnel and other employees to subscribe for shares of the Company. The
effective period of the Scheme is ten years from the first grant date of share options. The options are exercisable
in two periods. The options are 25% exercisable from the first transaction date after 24 months since the grant
date to the last transaction date after 48 months since grant date. The remaining 75% are exercisable from the
first transaction date after 48 months since grant date to the last transaction date of the Scheme. Each option
gives the holder the right to subscribe for one ordinary share in the Company. In addition, the holder must
simultaneously satisfactory all the condition as follows:
(a) The holder should pass the previous years evaluation.
(b) The increase of net profit attributable to ordinary shareholders of the Company after deducting non-
recurring profit or loss should not be lower than the 6% and the average return on net assets after
deducting non-recurring profit or loss should not be lower than 10% for the previous year of the exercise
date.
(c) During the waiting period, the net profit attributable to ordinary shareholders of the Company and the net
profit attributable to ordinary shareholders of the Company after deducting non-recurring profit or loss
should not be lower than the average figures of the three fiscal years before the grant day or negative.
The total number of share options granted was 60,000,000.
Interim Report 2013
229
(2) Information on equity-settled share-based payment of the Company (Continued)
Movement of share options of the Company:
30 June
2013
31 December
2012
000 000
Exercised in current period
Cancelled in current period
Forfeited in current period (320)
(3) Information on equity-settled share-based payment of Raffles
Before Raffles was acquired by the Company, Raffles carried out a share option plan approved by the
shareholders meeting on 21 June 2006. According to the share options plan, the board of directors was
authorised to grant share options to the key management personnel and other employees to subscribe for
shares of Raffles. Each eligible participant purchased the share options at the cost of SGD1. The numbers of
options were 6,355,003 and 1,154,003 granted in 2007 and 2008 respectively by the board of directors, with
the exercise prices of from US$1.64 to US$1.65, from NOK10.50 to NOK26.00, and from US$1.64 to US$1.65. The
longest effective period of the share options plan was ten years from the first grant date of share options. As at
31 December 2012, the aforesaid share options were fully forfeited or cancelled.
(4) Fair value of share options and data input in the valuation model is as follows
Fair value of share option is estimated based on binomial lattice model. Contract term of the share option is used
as the input variable of this model. And the binomial lattice model includes estimation of early execution of the
option.
230
(5) Basis of the best estimate of the number of equity instruments expected to vest is as
follows:
At each balance sheet date during the vesting period, the Company makes the best estimation according to
the latest information of the number of employees who are granted to vest and revises the number of equity
instruments expected to vest. On vesting date, the estimate shall be equal to the number of equity instruments
that ultimately vested.
There was no significant difference of estimation between current period and last year.
As at 30 June 2013, accumulated amount recognised in capital surplus for
equity-settled share-based payments 356,322
Total expenses recognised for equity-settled share-based payments for current period
Including:
attributable to the Company 40,753
attributable to Enric 4,551
attributable to Raffles
The number of options exercised of Enric is 6,288,000 (for the period ended 30 June 2012: Nil).
3. Information on cash-settled share-based payment
According to the approved Share Appreciation Rights Scheme (draft) Revised (Scheme) during the board
meeting of Raffles held on 27 September 2011, a subsidiary of the Group, Raffles adopted Share Appreciation
Rights (SARs) which is to grant the relevant incentive recipients the right to receive incentive amount in cash
from Raffles upon the satisfaction of relevant financial performance of Raffles. Incentive amount is the excess of
fair market price of A share of the Company on a particular date over the exercise price.
The scope of incentive recipients of this scheme: the appointed senior management who is non-Chinese
nationality of Raffles and its subsidiaries or associates as well as person(s) who made special contribution to
the company in the discretion of the board. Accordingly, there are 4 incentive recipients in the scope with total
760,000 SARs granted.
The Scheme is conditional, which sets stipulations for appraisal result of incentive recipients performance,
misconduct activity and financial performance standards of the Group to fulfil.
The SARs are exercisable in 2 installments periods after 2 years from the rights grant date upon the satisfaction
of exercisable conditions:
Interim Report 2013
231
3. Information on cash-settled share-based payment (Continued)
(1) The SARs are up to 25% exercisable from the first transaction date after 24 months since grant date to the
last transaction date after 48 months since grant date.
(2) The remaining SARs up to 75% are exercisable from the first transaction date after 48 months since grant
date to the last transaction date of the Scheme.
Raffles will write off the unexercised SARs after each exercise period expires if the SARs being requested for
exercise by the grantee satisfying exercise conditions is less than the number of effective SARs during each
period.
Raffles will write off unexercised SARs, which was granted but invalid due to un-satisfaction of the exercise
condition during the exercise period, after each period expires.
The amount of accrued liabilities to cash-settled share-based payment amounted to RMB185,000 as at 30 June
2013 and the expenses recognised for cash-settle share-based payment was nil for the period.
The movement of cash-settled share options:
30 June
2013
31 December
2012
Exercised in current period
Cancelled in current period (250,000) (360,000)
Forfeited in current period
VIII. CONTINGENCIES
1. Contingent liabilities
CIMC Raffles (a subsidiary of the Company) and its subsidiaries entered into vessel construction contracts
and vessel leasing contracts with relevant purchasers, which involve terms of compensation for delivery
postponement and termination terms.
While the actual amount of compensation for delivery postponement to be assumed in future is subject to the
date of actual delivery of vessels, the maximum amount of the compensation for delivery postponement from
contracted delivery date to future estimated actual delivery date that CIMC Raffles and its subsidiaries may need
to assume is approximately US$19,820,000 (equivalent to RMB122,462,000).
232
VIII. CONTINGENCIES (CONTINUED)
2. Guarantees provided for external parties
CIMC Vehicle, a subsidiary of the Group, signed contracts with China Construction Bank, Bank of China, China
Merchants Bank and China Everbright Bank, pursuant to which relevant banks provided guarantees in respect
of banking facilities granted to the distributors and customers of CIMC Vehicle and its subsidiaries arising from
purchase of vehicle products. As at 30 June 2013, as approved by the Board of the Company, the aggregate
amount of credit facilities in respect of which CIMC Vehicle and its subsidiaries provided guarantees to the
distributors and customers was RMB471,257,000 (31 December 2012: RMB637,605,000).
Jiangmen Real Estate, a subsidiary of the Group, provided guarantees to purchasers of commodity housing by way
of secured loans. The amount of guarantees was approximately RMB9,820,000 as at 30 June 2013 (31 December
2012: RMB300,000,000).
3. Notes payable issued but not accounted for, outstanding credit issued but undue
and outstanding performance guarantees
The Group does not recognize bills payable or letters of credit issued as deposits. Corresponding inventories,
advance to suppliers and notes payable are recognized at the earlier of the date of delivery of goods and the
maturity date of the bills issued.
As at 30 June 2013, the Group had bills issued but not accounted for and outstanding letters of credit but undue
totalling RMB263,965,000 (31 December 2012: RMB717,454,000).
As at 30 June 2013, CIMC Raffles had outstanding balance of performance guarantees issued by relevant banks
totalling US$560,394,000 (equivalent to RMB3,462,506,000), all of which were issued for vessel purchasers (31
December 2012: RMB3,522,355,000).
As at 30 June 2013, TAS had outstandi ng bal ance of guarantees i ssued by rel evant banks total l i ng
RMB306,381,000, of which balance of performance guarantees, bid guarantees, quality guarantees and
guarantees provided to suppliers was RMB181,522,000, RMB25,230,000, RMB22,225,000 and RMB77,404,000,
respectively (total balance as at 31 December 2012: RMB300,599,000).
4. Significant pending litigations
The semi-submersible oil drilling platforms named SS Pantanal and SS Amazonia built by CIMC Raffles and
its subsidiaries for subsidiaries of Schahin Group in Brazil, were delivered in November 2010 and April 2011,
respectively. CIMC Raffles and its subsidiaries also provided advances for Schahin and its six connected parties
for the construction of drilling platforms. Since Schahin and its other connected parties did not pay the amount in
accordance with relevant contracts, CIMC Raffles and its subsidiaries lodged a law suit and arbitration application
against Schahin and its connected parties in December 2011 and May 2012, respectively, the aggregate amount
of which amounted to approximately US$208 million (equivalent to approximately RMB1.3 billion). As at 30 June
2013, the arbitration in relation to the advances was settled and CIMC Raffles was granted US$69 million. As at
the date of these financial statements, the arbitration regarding construction of drilling platforms and the law
suit regarding guaranteed agreement was still in process, and Schahin and its connected parties have raised a
counterclaim. Based on the current progress of the legal proceedings, the Company was in an optimistic view
regarding the litigation results. In the course of the proceedings, the Company will take positive legal measures to
ensure that shareholders interests are not compromised.
Interim Report 2013
233
IX. COMMITMENTS
1. Significant commitments
(1) Capital commitments
Item
30 June
2013
31 December
2012
Significant fixed assets purchase contracts entered into under
performance or preparation of performance 400,168 406,690
Foreign Investment contracts entered into but not performed or performed
partially 2,000 17,420
Significant contracts entered into for vessels to be manufactured,
for sales or lease 6,679,710 1,804,449
External foreign investment approved by the Board 35,017
Total 7,081,878 2,263,576
Capital commitments authorised by the management but are not yet contracted for
30 June
2013
31 December
2012
Buildings, machinery and equipment 468
Intangible assets 34,549
35,017
The Groups share of the joint ventures own commitments for capital expenditure as at the balance sheet date
are as follows:
30 June
2013
31 December
2012
Buildings, machinery and equipment 265 280
(2) Operating lease commitments
The future minimum lease payments due and payable after 30 June under the signed irrevocable operating lease
contracts in relation to property and fixed assets are summarised as follows:
Item
30 June
2013
31 December
2012
Within 1 year (inclusive) 60,786 73,628
Over 1 year but within 2 years (inclusive) 50,941 58,491
Over 2 years but within 3 years (inclusive) 41,964 52,967
Over 3 years 82,989 127,181
Total 236,680 312,267
Operating lease recognized as expenses for the period ended 30 June 2013 is RMB44,069,000 (For the period
ended 30 June 2012: RMB46,267,000).
234
IX. COMMITMENTS (CONTINUED)
2. Information on equity-settled share-based payment
(1) Fulfilment of commitments for the previous period
The Group has fulfilled the capital and operating lease commitments as at 30 June 2013.
X. EVENTS AFTER THE BALANCE SHEET DATE
1. Acquisition of subsidiaries
On 29 July 2013, China International Marine Containers (Hong Kong) Limited (CIMC Hong Kong), a wholly-owned
subsidiary of the Company, signed a sale and purchase agreement with Pteris Global Limited (Pteris). CIMC
Hong Kong intends to inject its entire equity interests in Techman (Hong Kong) Limited (Techman (HK)) into
Pteris, and as consideration, Pteris will issue new shares to CIMC Hong Kong (or its nominee) (Transaction).
Techman (HK) (which will hold 70% equity interests in Shenzhen CIMC-Tianda Airport Support Ltd. (CIMC-Tianda)
upon completion of the CIMC-Tianda restructuring) is a limited company incorporated in Hong Kong. CIMC Hong
Kong has reached an agreement in respect of the acquisition of the entire equity interests in Techman (HK)
(Techman (HK) Acquisition). Upon completion of the Techman (HK) Acquisition, Techman (HK) will become a
wholly-owned subsidiary of CIMC Hong Kong.
According to the agreement, CIMC Hong Kong will transfer all the equity interests of Techman (HK) to Pteris
while Pteris will issue new shares to the Company with a consideration of SGD0.13 per share. The transaction
is amounting to SGD96,303,000 (equivalent to approximately RMB486,331,000, subject to certain adjustment
mechanisms). Upon settlement, the equity interests of CIMC Hong Kong in Pteris are expected to increase
from approximately 14.99% at present to 63.88% (up to approximately 65.80%, subject to certain adjustment
mechanisms). As a result, after completion of the Transaction, Pteris will become a subsidiary of the Company
through CIMC Hong Kong, and CIMC-Tianda will become a subsidiary of Pteris, and thus CIMC-Tianda will
continue to be a subsidiary of the Company. The Company will disclose the performance of the transaction in the
regular reports in the future.
Interim Report 2013
235
X. EVENTS AFTER THE BALANCE SHEET DATE (CONTINUED)
2. Significant financial leasing and vessel construction contract after the balance
sheet date
(1) On 3 July 2013, CIMC FL (HK) signed a container vessel construction contract with DSIC for the construction
of seven 8,800 TEU container vessels. The total contract price for the vessel construction contract
amounted to approximately RMB3,675 million in equivalent. On 3 July 2013, CIMC FL (HK) signed a container
vessel finance lease contract for a term of 204 months with a subsidiary of MSC. According to the above
shipbuilding contract and the charter agreement, CIMC FL (HK) will first purchase the abovementioned
seven vessels from DSIC and then lease the seven vessels to the subsidiary (as lessee) of MSC. The
Company will disclose the performance of the contracts in the future.
(2) On 24 July 2013, CIMC FL (HK) signed a container vessel construction contract with NTS for the construction
of five 8,800 TEU container vessels. The total contract price for the vessel construction contract amounted
to US$425 million (equivalent to approximately RMB2,622 million). On 24 July 2013, CIMC FL (HK) signed a
container vessel finance lease contract (charter agreement) for a term of 204 months with a subsidiary
of MSC. According to the above shipbuilding contract and the charter agreement, CIMC FL (HK) will first
purchase the abovementioned five vessels from NTS and then lease the five vessels to the subsidiary (as
lessee) of MSC. The Company will disclose the performance of the contracts in the future.
236
XI. OTHER SIGNIFICANT MATTERS
1. Leases
Please refer to Notes V.11 and V.37 for reference of the Groups receivables and payables related to finance lease.
2. Segment reporting
In accordance with the Groups internal organisation structure, management requirement and internal reporting
process, eight reportable segments are identified by the Group including containers, trailers, energy, chemistry
and food equipment, offshore business, airport facilities, logistic services and appliance manufacture, railway
trucks manufactory and property development. Each reportable segment is an independent business segment
providing different products and services. Independent management is applied to individual business segment
as different technical and market strategy are adopted. The Group reviews the financial information of individual
segment regularly to determine resources allocation and performance assessment.
(1) Information on segment profits, losses, assets and liabilities
In order to assess the segment performance and resources allocation, the Groups management review assets,
liabilities, revenue, expenses and operating results of each segment regularly. The preparation basis of such
information is detailed as follows:
Segment assets include tangible assets, intangible assets, other long-term assets and accounts receivable, etc,
but exclude deferred income tax assets and other un-allocated headquarters assets. Segment liabilities include
payables, bank loans, provision, special payables and other liabilities of each segment, while deferred tax
liabilities are excluded.
Segment profit represents revenue (including external operating income and inter-segment operating income),
offsetting segment expenses, depreciation and amortisation, impairment losses attributable to each segment
assets, interest expenses and income attributable to bank deposits and bank borrowings of individual segment.
Transactions conducted among segments are under normal non-related party transaction commercial terms.
Interim Report 2013
237
XI. OTHER SIGNIFICANT MATTERS (CONTINUED)
(1) Information on Segment profits, losses, assets and liabilities (Continued)
Information to be disclosed on each of the Groups reportable segment (including managements periodically
reviewed information and disclosure required by accounting standard) that the Group uses in measuring
segments profit/(losses), assets and liabilities is set out as follows:
Energy
chemistry Elimination
and food Offshore Airport between Unallocated
Item Containers Trailers equipment business facilities Others segments items Total
From
January to
June 2013
From
January to
June 2013
From
January to
June 2013
From
January to
June 2013
From
January to
June 2013
From
January to
June 2013
From
January to
June 2013
From
January to
June 2013
From
January to
June 2013
External operating income 12,298,263 6,604,388 5,299,219 1,519,799 225,451 2,638,038 28,585,158
Inter segment operating income 16,665 68,961 266,324 187,597 (539,547)
Income/(losses) from investment in
joint ventures and associates 307 112 17,042 (307) (82,114) (64,960)
Impairment loss of assets for the period (3,424) 26,987 4,226 973 288 5,788 34,838
Depreciation and amortisation expenses 154,838 117,350 120,453 66,132 2,265 98,936 559,974
Interest income from bank deposits 9,445 10,013 5,004 282 189 19,070 8,344 52,347
Interest expenses 3,500 27,511 16,006 94,675 8,077 300,459 450,228
Total profit/(losses) 605,291 445,122 499,772 (198,258) (16,279) 561,731 (498,835) (238,498) 1,160,046
Income tax expenses 195,065 54,958 108,145 (2,785) (1,590) 59,489 31,535 444,817
Net profit/(losses) 410,226 390,164 391,627 (195,473) (14,689) 502,242 (498,835) (270,033) 715,229
Total assets 16,397,963 9,394,319 9,726,821 14,040,969 880,782 16,818,348 (24,420,004) 25,931,122 68,770,320
Total liabilities 10,078,263 7,079,918 6,524,317 16,903,531 554,125 9,971,002 (16,362,677) 11,167,889 45,916,368
Other significant non-cash items:
Other non-cash expenditures/(income)
other than depreciation and
amortization expense 125,347 33,250 13,364 13,870 5,588 19,144 5,424 215,987
Long-term equity investment of joint
ventures and associates 2,775 38,740 77,294 349,800 606,970 1,075,579
Additions of non-current assets other
than long-term equity investment 314,127 219,107 186,188 191,960 38,614 98,561 1,048,557
238
(1) Information on segment profits, losses, assets and liabilities (Continued)
Energy,
chemistry Elimination
and food Offshore Airport between Unallocated
Item Containers Trailers equipment business facilities Others segments items Total
From
January to
June 2012
From
January to
June 2012
From
January to
June 2012
From
January to
June 2012
From
January to
June 2012
From
January to
June 2012
From
January to
June 2012
From
January to
June 2012
From
January to
June 2012
External operating income 13,648,461 6,735,820 4,370,317 1,244,783 68,923 1,296,142 27,364,446
Inter segment operating income 22,830 85,474 150,632 138,723 (397,659)
Income/(losses) from investment in
joint ventures and associates 10,062 (36,855) 8,985 4,179 3,534 (10,095)
Impairment loss of assets for the period (75,072) 10,791 6,428 17,526 (6,143) 21,484 (24,986)
Depreciation and amortisation expenses 179,715 137,698 116,620 88,697 3,229 23,382 549,341
Interest income from bank deposits 38,175 3,882 9,034 205 493 48,776 748 101,313
Interest expenses 8,634 30,021 15,098 55,183 51 27,368 189,786 326,141
Total profit/(losses) 1,089,766 112,640 343,752 (144,799) (30,727) 47,170 75,249 1,493,051
Income tax expenses 289,690 26,614 87,056 2,312 1,450 57,690 20,561 485,373
Net profit/(losses) 800,076 86,026 256,696 (147,111) (32,177) (10,520) 54,688 1,007,678
Total assets 13,673,547 11,105,480 9,647,435 14,883,323 719,107 11,440,923 3,761,932 65,231,747
Total liabilities 4,528,372 4,684,291 3,724,885 11,189,659 467,921 9,255,590 10,639,112 44,489,830
Other significant non-cash items:
Other non-cash expenditures/(income)
other than depreciation and
amortization expense (35,796) 12,860 9,255 18,529 15,100 1,255 13,500 34,703
Long-term equity investment of joint
ventures and associates 594,425 445,670 211,689 169,270 130,859 1,551,913
Additions of non-current assets other
than a long-term equity investment 450,187 121,817 222,124 285,064 6,760 74,412 1,248,847 2,409,211
Interim Report 2013
239
(2) Geographic information
The following table sets out information about the geographical information of the Groups revenue from external
customers and the Groups non-current assets (excluding financial assets and deferred tax assets, same for the
below). The geographical locations of customers are based on the location at which the services were provided
or the goods were delivered. The geographical locations of the specified non-current assets are based on the
physical location of the assets (for fixed assets), or the location of the business to which they are allocated (for
intangible assets and goodwill), or the location of operations of the associates and joint ventures.
Geographic information by recipients
Revenue from external
customers Total non-current assets
Item
From
1 January to
30 June 2013
From
1 January to
30 June 2012
30 June
2013
31 December
2012
China 13,646,979 12,525,779 20,356,327 18,099,106
Asia (exclusive of China) 3,413,649 2,414,136 46,411 47,508
America 5,399,426 5,432,811 337,939 313,853
Europe 5,238,156 5,909,950 968,198 1,018,737
Others 886,948 1,081,770 60,725 49,731
Total 28,585,158 27,364,446 21,769,600 19,528,935
3. Risk analysis, sensitivity analysis, and fair values of financial instruments
The Group has exposure to the following risks from its use of financial instruments in the normal course of the
Groups operations, which mainly include:
Credit risk
Liquidity risk
Interest rate risk
Foreign exchange risk
This note presents information about the Groups exposure to each of the above risks and their sources, the
Groups objectives, policies and processes for measuring and managing risks and etc.
The Group aims to seek the appropriate balance between the risks and benefits from its use of financial
instruments and to mitigate the adverse effects that the risks of financial instruments have on the Groups
financial performance. Based on such objectives, the Groups risk management policies are established to identify
and analyses the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and
adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market
conditions and the Groups activities. The internal audit department of the Group undertakes both regular and ad-
hoc reviews of risk management controls and procedures.
240
3. Risk analysis, sensitivity analysis, and fair values of financial instruments (Continued)
(1) Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by
failing to discharge an obligation. The Groups credit risk is primarily attributable to cash at bank, receivables,
and derivative financial instruments entered into for hedging purposes and etc. Exposure to these credit risks are
monitored by management on an ongoing basis.
The cash at bank of the Group is mainly held with well-known financial institutions. Management does not
foresee any significant credit risks from these deposits and does not expect that these financial institutions may
default and cause losses to the Group.
In respect of receivables, the management of the Group has established a credit policy under which individual
credit evaluations are performed on all customers to determine the credit limit and terms applicable to the
customers. These evaluations focus on the financial position and external ratings of the customers and their bank
credit records (where available) and previous payment records. Receivables are due within from 30 to 90 days
from the date of billing. Normally, the Group does not obtain collateral from customers. However, the Group has
established strict rules on transfer of titles and may request the customers to pay deposits or make advance
prepayments according to the credit position of customers.
Most of the Groups customers have been transacting with the Group for many years, and losses have occurred
infrequently. In order to monitor the credit risk of the Group, customers overdue amounts are grouped and
analyzed according to the ageing, maturity date and number of days overdue. The Group has made the provision
for the significant overdue receivables as at 30 June 2013.
The Group provides funds to the associates and joint ventures according to indicators such as the asset status of
such associates and joint ventures and the profit forecast of development projects and continues to monitor the
project progress and operations to ensure the recoverability of the funds.
The receivables of the Group, neither past due nor impaired, are mainly due to a wide range of customers for
whom have no recent history of default.
The Groups exposure to credit risk is influenced mainly by the individual characteristics and industries of each
customer rather than country or area in which the customers operate. Due to the market concentration in the
global shipping and related service sectors, significant concentrations of credit risk arise primarily when the
Group has significant exposure to individual customers. As at the balance sheet date, the Group had a certain
concentration of credit risk, as 20.56% (2012: 20.05%) of the total accounts receivable and other receivables were
due from the five largest customers of the Group.
Investments are normally made only in liquid securities quoted on a recognised stock exchange, except where
entered into for long-term strategic purposes, and the credit rating of counterparties should be higher or equal to
that of the Group. Transactions involving derivative financial instruments are made with counterparties of sound
credit standing and with whom the Group has a signed netting ISDA agreement (International Swap Derivative
Association). Given their high credit standing, management does not expect any investment counterparty to fail
to meet its obligations.
The maximum exposure to credit risk is represented by the carrying amount of each financial asset, including
derivative financial instruments, in the balance sheet. Except for the financial guarantees given by the Group as
set out in Note VIII, the Group does not provide any other guarantees which would expose the Group to credit
risk. The maximum exposure to credit risk in respect of these financial guarantees at the balance sheet date is
disclosed in Note VIII.
Interim Report 2013
241
(2) Liquidity risk
Liquidity risk is the risk that an enterprise may encounter deficiency of funds in meeting obligations associated
with financial liabilities. The Company is responsible for the cash management, including short term investment
of cash surpluses and the raising of loans to cover expected cash demands, for individual subsidiaries subject
to approval by the Companys board when the borrowings exceed certain predetermined levels of authority.
The Groups policy is to regularly monitor its liquidity requirements and its compliance with lending covenants,
to ensure that it maintains sufficient reserves of cash, readily realisable marketable securities and adequate
committed lines of funding from major financial institutions to meet its liquidity requirements in the short and
longer term.
The following tables show the remaining contractual maturities at the balance sheet date of the Groups financial
assets and financial liabilities, which are based on contractual undiscounted cash flows (including interest
payments computed using contractual rates or if floating, based on prevailing interest rates at 30 June) and the
earliest date the Group can be required to pay:
30 June 2013
Contractual undiscounted cash flow
Within
1 year or
on demand
1 to
2 years
2 to
5 years
over
5 years Total
Balance
sheet
carrying
amount
Financial assets
Monetary assets 3,705,414 3,705,414 3,705,414
Accounts receivable and
other receivables 15,454,719 15,454,719 15,454,719
assets due within 1 year 1,619,432 1,619,432 1,619,432
Long-term receivables 484,250 1,151,435 643,752 1,612,889 3,892,326 2,738,621
Sub-total 21,263,815 1,151,435 643,752 1,612,889 24,671,891 23,518,186
Financial liabilities
Short-term borrowings 7,540,666 7,540,666 7,540,666
Debentures payable 311,715 311,715 6,938,745 7,562,175 6,455,527
Accounts payable and
other payables 13,391,295 13,391,295 13,391,295
liabilities due within 1 year 2,538,641 2,538,641 2,538,641
Long-term borrowings 1,268,562 1,511,383 4,008,958 163,821 6,952,724 4,996,681
Long-term payables 25,143 154,147 179,290 162,885
Sub-total 25,050,879 1,823,098 10,972,846 317,968 38,164,791 35,085,695
Net total (3,787,064) (671,663) (10,329,094) 1,294,921 (13,492,900) (11,567,509)
242
(2) Liquidity risk (Continued)
31 December 2012
Contractual undiscounted cash flow
Within
1 year or
on demand
1 to
2 years
2 to
5 years
Over
5 years Total
Balance
sheet
carrying
amount
Financial assets
Monetary assets 5,221,539 5,221,539 5,221,539
Accounts receivable and
other receivables 10,352,468 10,352,468 10,352,468
assets due within 1 year 1,636,332 1,636,332 1,636,332
Long-term receivables 343,833 1,034,424 1,366,884 812,274 3,557,415 2,540,574
Sub-total 17,554,172 1,034,424 1,366,884 812,274 20,767,754 19,750,913
Short-term borrowings 5,438,407 5,438,407 5,438,407
Debentures payable 321,370 321,370 7,320,592 7,963,332 6,462,235
Accounts payable and
other payables 11,352,017 11,352,017 11,352,017
liabilities due within 1 year 1,261,940 1,261,940 1,261,940
Long-term borrowings 2,457,709 4,511,907 1,835,149 197,743 9,002,508 7,641,785
Long-term payables 4,886 4,886 18,926 143,142 171,840 145,103
Sub-total 20,836,329 4,838,163 9,174,667 340,885 35,190,044 32,301,487
Net total (3,282,157) (3,803,739) (7,807,783) 471,389 (14,422,290) (12,550,574)
Bank and other borrowings are analysed by repayment terms as follows:
Bank
borrowings
Other
borrowings
Bank
borrowings
Other
borrowings
Borrowing with last repayment date
repayable within five years 14,941,109 13,789,671
Interim Report 2013
243
(3) Interest rate risk
Interest-bearing financial instruments at variable rates and at fixed rates expose the Group to cash flow interest
rate risk and fair value interest risk, respectively. The Group adopts an interest rate policy of ensuring that interest
rate risk is under control. The Group has entered into interest rate swap contracts which were denominated in
borrowings currency. In light of its interest policy, the Group has achieved an appropriate mix of fixed and floating
rate exposure consistent with the Groups policy.
(a) As at 30 June 2013, the Group held the following interest-bearing financial instruments:
Interest rate
(%) Amount
Interest rate
(%) Amount
Fixed rates interest-bearing
financial instruments
Financial assets
Long-term receivables 2.58%-17.53% 2,738,621 2.58%-17.53% 2,540,574
Current portion of non-Current assets
due within 1 year 2.58%-17.53% 1,616,256 2.58%-17.53% 1,636,332
Short-term borrowings 0.97%-6.60% 1,593,618 0.94%-7.02% 3,929,032
Debenture payable 4.43%-5.23% 6,455,527 4.43%-5.23% 6,462,235
Long-term borrowings 4.20%-4.92% 1,746,761 3.00%-8.63% 11,548
Total (5,441,029) (6,225,909)
Interest rate
(%) Amount
Interest rate
(%) Amount
Floating rates interest-bearing
financial instruments
Financial assets
Monetary assets 0.35%-3.75% 3,705,414 0.35%-3.75% 5,221,539
Current portion of long-term
borrowings due within 1 year Note V. 34 2,537,124 Note V. 34 1,257,100
Long-term borrowings Note V. 35 3,249,920 Note V. 35 7,630,237
Short-term borrowings 3-month
LIBOR+90BP-
PBOCs
Benchmark
rate +10%
5,947,048 3-month
LIBOR+1.8%-
PBOCs
Benchmark
rate +10%
1,509,375
Long-term payables Note V. 37 162,885 Note V. 37 23,056
Current portion of long-term payables
due within 1 year Note V. 34 1,517 Note V. 34 4,731
Total (8,193,080) (5,202,960)
244
(3) Interest rate risk (Continued)
(b) Sensitivity analysis
As at 30 June 2013, it is estimated that a general increase/decrease of 25 basis points (31 December
2012: 75 basis points) in interest rates, with all other variables held constant, would increase/decrease the
Groups net profit by RMB15,362,000 and equity by RMB15,362,000 (31 December 2012: RMB9,756,000 and
RMB9,756,000).
The sensitivity analysis above indicates the instantaneous change in the net profit and equity that would
arise assuming that the change in interest rate had occurred at the balance sheet date and had been
applied to re-measure those financial instruments held by the Group which expose the Group to fair value
interest rate risk at the balance sheet date. In respect of the exposure to cash flow interest rate risk arising
from floating rate non-derivative instruments held by the Group at the balance sheet date, the impact on
the net profit and equity is estimated as an annualised impact on interest expense or income of such a
change in interest rates. The analysis was performed on the same basis for the previous year.
(4) Foreign exchange risk
The major currency received by the Group is US$ and the major currency paid out is RMB. In order to avoid the
risks resulting from the fluctuation of the exchange rate of RMB, in respect of accounts receivable and payables
denominated in foreign currencies, the Group ensures that its net exposure is kept to an acceptable level by
buying or selling foreign currencies at spot rates when necessary to address short-term imbalances.
(a) Besides the exposure to currency risk arising from financial assets and financial liabilities disclosed in Note
V.2 and V.24, the Groups exposure as at 30 June to currency risk arising from recognised assets or liabilities
denominated in foreign currencies is follows. For presentation purposes, the amounts of the exposure
are shown in RMB, translated using the spot rate at the balance sheet date. Differences resulting from the
translation of the financial statements denominated in foreign currency are excluded.
US$ EUR HKD JPY US$ EUR HKD JPY
Cash at bank and on hand 957,039 357,352 304,523 31,289 2,001,728 545,391 66,888 38,757
Receivables 7,505,659 607,367 72,622 59,584 4,789,721 801,682 57,396 38,046
Short-term borrowings (6,697,558) (405,702) (71,690) (4,266,258) (303,646) (117,583)
Long-term receivables 1,549,933 8,303 1,108,073 8,728
Long-term borrowings (2,786,177) (430,157) (3,681,507) (438,647)
Long-term payables (33,584) (23,056)
Payables (2,880,082) (668,864) (36,582) (3,217) (2,452,936) (693,884) (88,396) (4,677)
Provisions (531,563) (12,992) (416,856) (13,708) (275)
liabilities (607,124) (1,257,100)
Gross balance sheet exposure (3,523,457) (114,536) (161,284) 87,656 (4,198,191) 344,563 (520,617) 72,126
Interim Report 2013
245
(4) Foreign exchange risk (Continued)
(b) The following are the exchange rates for RMB against foreign currencies applied by the Group and the
Company:
Average exchange rate Benchmark exchange rate
From
1 January to
30 June
2013
From
1 January to
30 June
2012
30 June
2013
31 December
2012
US$ 6.2267 6.3052 6.1787 6.2854
EUR 8.1433 8.1633 8.0536 8.3195
HKD 0.8021 0.8126 0.7966 0.8108
JPY 0.0643 0.0788 0.0626 0.0730
(c) Sensitivity analysis
Assuming all other risk variables remained constant, 1.00%, 2.54%, 0.85% and 10.00% strengthening of the
RMB against the US$, EUR, HK dollar and Japanese Yen respectively at 30 June 2013 (1.00%, 2.54%, 0.85%
and 10.00% strengthening of the RMB against the US$, EUR, HK dollar, and Japanese Yen respectively at
31 December 2012) would have increased (decreased) equity and net profit by the amount shown below;
whose effect is in RMB and translated using the spot rate at the balance sheet date.
Equity Net profit
30 June 2013
US$ 26,426 26,426
EUR 2,182 2,182
HKD 1,028 1,028
JPY (6,574) (6,574)
Total 23,062 23,062
31 December 2012
US$ 31,486 31,486
EUR (6,564) (6,564)
HKD 3,319 3,319
JPY (5,409) (5,409)
Total 22,832 22,832
1.00%, 2.54%, 0.85% and 10.00% weakening of the RMB against US$, EUR, HK dollar and Japanese Yen
respectively at 30 June (1.00%, 2.54%, 0.85% and 10.00% weakening of the RMB against the US$, EUR, HK
dollar, and Japanese Yen respectively at 31 December 2012) would have had the equal but opposite effect
on the amounts shown above, on the basis that all other variables remain constant.
246
(4) Foreign exchange risk (Continued)
(c) Sensitivity analysis (Continued)
The sensitivity analysis above assumes that the change in foreign exchange rates had been applied to re-
measure those financial instruments held by the Group which expose the Group to foreign currency risk
at the balance sheet date, the analysis excludes differences that would result from the translation of the
financial statements denominated in foreign currency. The analysis is performed on the same basis for the
previous year.
The above sensitive analysis does not include exposure to currency risk arising from foreign future
contracts, Japanese Yen exchange option and swap contact for interest rate disclosed in Notes V.2 and
V.24 about financial assets and financial liabilities, but the change in exchange rate may have effect on
shareholders equity and net profit.
(5) Other price risks
Other price risks are stock price risk. As at 30 June 2013 the Group held 41,978,000 tradable shares of China
Merchants Securities, 11,526,000 tradable shares of China Merchants Bank and 1,000,000 tradable shares of
Minsheng Bank.
As at 30 June 2013, it is estimated that a general increase/decrease of composite index of Shanghai A-share
5% (31 December 2012: 5%), with all other variables held constant, would increase/decrease the Groups
shareholders equity by RMB21,707,000 (31 December 2012: RMB37,472,000).
The sensitivity analysis above arise assuming that the change in composite index of Shanghai A-share occurred
at the balance sheet date is reasonable and had been applied to re-measure those investments in securities
held by the Group. The sensitivity analysis is also based on another assumption, namely, the fair value of the
investments in securities held by the Group is relevant to composite index of stock market, and available-for-
sales securities investment has same risk factor as trading securities investment, and all other variables held
constant. 5% change in composite index of Shanghai A-share is a reasonable expectation of the Group for the
period from the balance date to the next balance sheet date.
Interim Report 2013
247
(6) Fair value
(a) Financial instruments measured at fair value
The following table presents the carrying value of financial instruments measured at fair value as at 30 June
2013 across the three levels of the fair value hierarchy. The level in the fair value hierarchy within which the
fair value measurement is categorised in its entirety is determined on the basis of the lowest level input
that is significant to the fair value measurement in its entirety. The levels are defined as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability,
either directly (i.e. as prices) or indirectly (i.e. derived from prices);
Level 3: Inputs for the asset or liability that are not based on observable market data (i.e., unobservable
inputs).
As at 30 June 2013
Assets Note Level 1 Level 2 Level 3 Total
Investments in equity instrument held
for trading V.2 128,150 128,150
Derivative financial assets V.2 25,553 25,553
Hedging instrument V.2 7,287 7,287
Sub-total 128,150 32,840 160,990
Total 704,063 32,840 736,903
Amounts: RMB000
Liabilities Note Level 1 Level 2 Level 3 Total
Derivative financial liabilities V.24 (43,874) (43,874)
Total (43,874) (43,874)
248
(6) Fair value (Continued)
(a) Financial instruments measured at fair value (Continued)
As at 31 December 2012
Assets Note Level 1 Level 2 Level 3 Total
Investments in equity instrument
held for trading V.2 389,557 389,557
Derivative financial assets V.2 12,684 12,684
Hedging instrument V.2 2,851 2,851
Sub-total 389,557 15,535 405,092
Total 999,308 15,535 1,014,843
Liabilities Note Level 1 Level 2 Level 3 Total
Derivative financial liabilities V.24 (95,098) (95,098)
Total (95,098) (95,098)
During the period ended 30 June 2013, there were no significant transfers between instruments in Level 1
and Level 2.
During the period ended 30 June 2013, there were no changes in valuation technique of fair value.
(b) Fair value of other financial instruments (financial instruments not measured at fair value)
All financial instruments are carried at amounts not materially different from their fair values as at 30 June
2013.
Interim Report 2013
249
(7) Estimation and assumption of fair values
The following summarises the major methods and assumptions used in estimating the fair values of financial
assets and liabilities held for trading, available-for-sale financial assets, and items set out in Note XI.3(6) that
measured at fair value on the balance sheet date.
(a) Equity investments
Fair value is based on quoted market prices at the balance sheet date for financial assets and liabilities
held for trading (excluding derivatives), and available-for-sale financial assets if there is an active market.
(b) Receivables
The fair value is estimated as the present value of the future cash flows, discounted at the market interest
rates at the balance sheet date.
(c) Borrowings, debentures payable, long-term payables and other non-derivatives financial liabilities
The fair value is estimated as the present value of future cash flows, discounted at the market rate of
interest at the balance sheet date.
(d) Derivatives
The fair value of forward exchange contracts is either based on their listed market prices or by discounting
the contractual forward price and deducting the current spot rate. The fair value of interest rate swaps
is based on broker quotes. The quotes are tested for reasonableness by discounting estimated future
cash flows based on the terms and maturity of each contract and using market interest rates for a similar
interest rate instrument at the measurement date.
(e) Financial guarantees
The fair value of financial guarantees issued is determined by reference to fees charged in an arms length
transaction for similar services, when such information is obtainable, or is otherwise estimated by reference
to interest rate differentials, by comparing the actual rates charged by lenders when the guarantee is made
available with the estimated rates that the lenders would have charged, had the guarantees not been
available, where reliable estimates of such information can be made.
250
(7) Estimation and assumption of fair values (Continued)
(f) Interest rates used for determining fair value
The interest rates used to discount estimated cash flows are based on same term loans rates announced
by Peoples Bank of China at the balance sheet date plus an adequate credit spread and are as follows:
30 June
2013
31 December
2012
Borrowings 1.95%-6.10% 1.75%-5.99%
Receivables 5.50%-6.65% 5.60%-6.55%
4. Assets and liabilities measured at fair value
Item
Beginning
balance
Gains or
losses arising
from changes
in fair value in
current period
Cumulative
amount of
changes in
fair value
recognised
directly
in equity
Impairment
losses in
current period
Ending
balance
Financial assets
1. Financial assets at fair value
through profit or loss (excluding
derivative financial assets) 389,557 (54,573) 128,150
2. Derivative financial instrument 12,684 15,131 25,553
3. Hedging Instrument 2,851 10,320 7,287
4. Available-for-sale financial assets 609,751 509,946 575,913
Subtotal 1,014,843 (39,442) 520,266 736,903
Financial liabilities (95,098) 49,183 (43,874)
Interim Report 2013
251
5. Financial assets and liabilities in foreign currencies
Item
Beginning
balance
Gains or
losses arising
from changes
in fair value
in current
period
Cumulative
amount of
changes in
fair value
recognised
directly
in equity
Impairment
losses in
current
period
Ending
balance
Financial assets
1. Financial assets at fair value
through profit or loss (excluding
derivative financial assets) 211,702 (38,774) 119,167
2. Derivative financial instrument 12,684 15,131 25,553
3. Hedging Instrument 2,851 10,320 7,287
4. Loans and receivables 7,926,223 2,771 11,769,034
5. Available-for-sale financial assets 8,396 4,003 5,635
Sub-total of financial assets 8,161,856 (23,643) 14,323 2,771 11,926,676
Financial liabilities (14,813,884) 49,183 (15,487,869)
Notes: (1) Derivative financial instrument in foreign currency includes foreign currency future contract.
(2) Borrowings and receivables in foreign currency includes accounts receivable, other receivables, advance to suppliers and long-term receivables
denominated in foreign currencies.
(3) Financial liabilities include foreign currency borrowings, accounts payable, other payables, advances from customers, long-term payables,
interest rate swap contracts and stock option contracts.
252
XII. NOTES TO THE HOLDING COMPANYS FINANCIAL STATEMENTS
Amount in
original
currency
Exchange
rate
Amount
in RMB
Amount in
original
currency
Exchange
rate
Amount
in RMB
000 000 000 000
Bank deposits:
RMB 82,453 1.0000 82,453 424,020 1.0000 424,020
US$ 2,037 6.1787 12,583 1,242 6.2854 7,810
HKD 10 0.7966 8 10 0.8108 8
JPY 12,504 0.0626 783 12,504 0.0730 913
EUR 35 8.0536 284 35 8.3195 293
Sub-total 96,111 433,044
Other cash balances:
RMB 158,416 1.0000 158,416 11,972 1.0000 11,972
US$ 381 6.1787 2,355 377 6.2854 2,371
Sub-total 160,771 14,343
Total 256,882 447,387
As at 30 June 2013, restricted cash at bank and on hand of the Company amounted to RMB2,458,000 (31
December 2012: RMB2,474,000).
2. Financial assets held for trading
(1) Classification of financial assets held for trading
30 June
2013
31 December
2012
Investments in equity instrument held for trading
Listed companies 8,570 177,450
8,570 177,450
Including: market value of the listed investments 8,570 177,450
The equity instruments held for trading are securities listed on the Shenzhen Stock Exchange and the Shanghai
Stock Exchange, of which the fair value is determined at the closing price on the last trading day of year of the
above stock exchanges.
(2) As at the Reporting Period, there is no restriction on sale of the financial assets held for
trading.
Interim Report 2013
253
XII. NOTES TO THE HOLDING COMPANYS FINANCIAL STATEMENTS (CONTINUED)
3. Dividends receivable
30 June
2013
31 December
2012
CIMC Hong Kong 3,059,001 3,108,609
SCIMC 592,706 592,706
TJCIMC 119,525
TJCIMCLE 27,669
DLL 26,860
SZSCIMCL 2,968
HI 216,836
SHYSLE 110,628
Finance Company 37,932
Total 3,828,729 4,066,711
4. Other receivables
30 June
2013
31 December
2012
Amounts due from associates 10,952,582 10,862,091
Deposits 184 184
Others 135,520 2,601
Subtotal 11,088,286 10,864,876
Total 11,083,513 10,860,103
(2) The ageing of other receivables is analysed as follows:
Ageing
30 June
2013
31 December
2012
Within 1 year (Inclusive) 10,997,335 10,693,925
1 to 2 years (Inclusive) 20,000 20,000
2 to 3 years (Inclusive) 2,000 2,000
Over 3 years 68,951 148,951
Subtotal 11,088,286 10,864,876
Total 11,083,513 10,860,103
The ageing is counted starting from the date the other receivable is recognized.
254
Note Ending balance Provision for bad debts Ending balance Provision for bad debts
Amount
% of total
balance Amount
% of total
balance Amount
% of total
balance Amount
% of total
balance
amounts that are
individually significant (4) 10,942,173 98.68% 10,698,979 98.47%
amounts that are not
individually significant (5) 146,113 1.32% 4,773 3.27% 165,897 1.53% 4,773 2.88%
Total 11,088,286 100.00% 4,773 0.04% 10,864,876 100.00% 4,773 0.04%
There were no collaterals that the Company held for other receivables that were made impairment aforesaid.
Individually significant items represent other receivables with an individual amount of RMB10,000,000 (inclusive)
or more or the book value of which account for 5% (inclusive) or more of the total other receivables.
(4) As at the end of Reporting Period, other receivables with amounts that are individually
significant and that the related provision for bad debts is provided on the individual basis
As at the end of Reporting Period, the Company has no other receivables with amounts that are individually
significant and that the related provision for bad debts is provided on the individual basis (31 December 2012:
Nil).
(5) As at the end of Reporting Period, other receivables with amounts that are not individually
significant but that the related provision for bad debts is provided on the individual basis
As at the end of Reporting Period, the Company has no other receivables with amounts that are not individually
significant but that the related provision for bad debts is provided on the individual basis (31 December 2012: Nil).
Interim Report 2013
255
(6) Other receivables that the related provision for bad debts is provided on grouping basis
using the ageing analysis method are analysed as follows:
Amount
% of total
balance Amount
% of total
balance Amount
% of total
balance Amount
% of total
balance
Within 1 year 141,340 1.27% 161,124 1.48%
1 to 2 years
2 to 3 years 2,000 0.02% 2,000 100% 2,000 0.02% 2,000 100%
3 to 4 years 2,773 0.03% 2,773 100% 2,773 0.03% 2,773 100%
4 to 5 years
Over 5 years
Total 146,113 1.32% 4,773 3.27% 165,897 1.53% 4,773 2.88%
(7) The recovery of provision in current reporting period
There were no other receivables that the related provision for bad debts had been provided in full amount or in
large proportion in previous years but are collected or reversed in full amount or in large proportion in current
reporting period (31 December 2012: Nil).
(8) Other receivables that are written off in current reporting period
There were no material other receivables that are written off in current reporting period (31 December 2012: Nil).
(9) The five largest other receivables are analysed as follows:
Relationship
with the
Company Amount Aging
% of total
balance
Total amounts due from subsidiaries Subsidiary 10,952,582 Within 1 year 98.78%
Shanghai Fengyang Associates 100,603 Within 1 year
and over
3 years
0.91%
Yantai Hi-tech Industrial Park Finance
Bureau
Nil 20,000 1 to 2 years 0.17%
The Dongguan Municipal Land
Trading Center
Nil 9,000 Within 1 year 0.08%
Xietong Ltd. Nil 2,000 2 to 3 years 0.02%
Total 11,084,185 99.96%
The Companys five largest other receivables as at 31 December 2012 amounted to RMB10,859,695,000,
accounting for 99.94% of the total other receivables.
256
(10) Other receivables from shareholders holding 5% (inclusive) or more of the voting rights of
the Company are analysed as follows:
As at the end of current reporting period, no amount due from shareholders holding 5% (inclusive) or more of the
voting rights of the Company is included in the above balance of other receivables.
(11) Other receivables from related parties
Relationship
with the Company Amount
% of total
balance
Associates Associates 100,603 0.91%
Subsidiaries Subsidiaries 10,952,582 98.78%
Total 11,053,185 99.68%
(12) Other receivables derecognized due to transfer of financial assets
As at the end of current reporting period, there were no other receivables derecognized due to transfer of
financial assets of the Company (31 December 2012: Nil).
(13) Amount of assets and liabilities recognised due to the continuing involvement of securitised
other receivables
As at the end of current reporting period, there were no securitised other receivables (31 December 2012: Nil).
5. Available-for-sale financial assets
30 June
2013
31 December
2012
Available-for-sale equity instruments 570,278 6 01,356
For detailed analysis for the Companys available-for-sale financial assets, refer to Note V.10.
Interim Report 2013
257
(1) Long-term equity investments are analysed by categories as follows:
30 June
2013
31 December
2012
Subsidiaries
Unlisted companies 6,012,389 5,896,195
Joint ventures, unlisted 5,913 6,521
Associates, unlisted 456,222 540,000
Other long-term equity investments, unlisted 391,970 391,970
Sub-total 6,866,494 6,834,686
Total 6,863,429 6,831,621
There is no restriction on sale of the long-term equity investments held by the Company.
Investee
Investment
cost
Balance
at 31
December
2012
Current
period
movement
Balance
at 30
June
2013
Share
holding
(%)
Voting
rights
(%)
Explanation
of disparity
between
percentages
of share
holding and
voting rights
Provision
for
impairment
Impairment
provided in
the current
period
Cash
dividend
declared
Cost method Investment
in subsidiaries
SCIMC 82,042 82,042 82,042 100.00% 100.00%
SCIMCEL 82,042 82,042 82,042 100.00% 100.00%
XHCIMC 36,500 36,500 36,500 100.00% 100.00%
SHFE 114,249 114,249 114,249 100.00% 100.00%
SHYSLE 78,955 78,955 78,955 100.00% 100.00%
TJCIMC 77,703 77,703 77,703 100.00% 100.00%
TJCIMCN 239,960 239,960 239,960 100.00% 100.00% 119,525
QDCC 60,225 60,225 60,225 100.00% 100.00%
DLCIMC 48,764 48,764 48,764 100.00% 100.00%
NBCIMC 24,711 24,711 24,711 100.00% 100.00%
SBWI 66,558 66,558 66,558 94.75% 100.00%
TCCIMC 131,654 131,654 131,654 100.00% 100.00%
ZZCIMC 100,597 100,597 100,597 100.00% 100.00%
CQVL 39,499 39,499 39,499 100.00% 100.00%
SCRC 200,892 200,892 200,892 92.00% 100.00%
QDCRC 54,225 54,225 54,225 100.00% 100.00%
TCRC 311,792 311,792 311,792 100.00% 100.00%
258
(Continued)
Investee
Investment
cost
Balance
at 31
December
2012
Current
period
movement
Balance
at 30
June
2013
Share
holding
(%)
Voting
rights
(%)
Explanation
of disparity
between
percentages
of share
holding and
voting rights
Provision
for
impairment
Impairment
provided in
the current
period
Cash
dividend
declared
XHCIMCS 82,026 82,026 82,026 100.00% 100.00%
QDCSR 12,743 12,743 12,743 100.00% 100.00%
TLC 126,689 81,548 45,141 126,689 100.00% 100.00%
SZW 3,472 3,472 3,472 100.00% 100.00%
CIMCWD 108,544 108,544 108,544 100.00% 100.00%
Container holding 1,000,000 1,000,000 1,000,000 100.00% 100.00%
HI 606,912 606,912 606,912 80.00% 80.00%
QDSV 26,914 26,914 26,914 80.00% 100.00%
CIMC Vehicle Finance
and leasing C 422,363 422,363 422,363 100.00% 100.00%
CIMC USA lnc. 171,740 171,740 171,740 100.00% 100.00%
Cooperatie CIMC U.A 205,022 205,022 205,022 99.00% 99.00%
DLZH 182,136 111,083 71,053 182,136 100.00% 100.00%
TJCIMCLE 39,127 39,127 39,127 100.00% 100.00% 27,669
DLL 46,284 46,284 46,284 100.00% 100.00% 26,860
SZ SCIMCL 71,715 71,715 71,715 100.00% 100.00% 2,968
Tianjin Kangde Logistics
Equipment 3,629 3,629 3,629 100.00% 100.00%
DLCIMCS 69,806 69,806 69,806 100.00% 100.00%
CIMCSD 162,686 162,686 162,686 100.00% 100.00%
MEA 111,703 111,703 111,703 100.00% 100.00%
SHGYTY 40,000 40,000 40,000 100.00% 100.00%
CIMC Hong Kong 1,690 1,690 1,690 100.00% 100.00%
CIMC Tech 13,726 13,726 13,726 100.00% 100.00%
CIMC Management and
Training (Shenzhen) 48,102 48,102 48,102 100.00% 100.00%
Finance Company 482,592 482,592 482,592 100.00% 100.00%
SZ investment 72,400 72,400 72,400 100.00% 100.00%
CIMCI 60,000 60,000 60,000 100.00% 100.00%
SZSKYC 90,000 90,000 90,000 100.00% 100.00%
Sub-total 6,012,389 5,896,195 116,194 6,012,389 177,022
Interim Report 2013
259
(Continued)
Investee
Investment
cost
Balance
at 31
December
2012
Current
period
movement
Balance
at 30
June
2013
Share
holding
(%)
Voting
rights
(%)
Explanation
of disparity
between
percentages
of share
holding and
voting rights
Provision
for
impairment
Impairment
provided in
the current
period
Cash
dividend
declared
Equity method
Joint Ventures
SCSCRC 9,000 6,521 (608) 5,913 50% 50%
Sub-total 9,000 6,521 (608) 5,913
Equity method Associates
C&C Trucks 540,000 540,000 (83,778) 456,222 45% 45%
Sub-total 540,000 540,000 (83,778) 456,222
Costing method
Other long-term equity
investment
China Railway United
Logistics 380,780 380,780 380,780 10.00% 10.00%
Beihai Yinjian 1,700 1,700 1,700 1.01% 1.01% (1,700)
Guangdong Samsung 1,365 1,365 1,365 0.09% 0.09% (1,365)
BOCM Schroder
Stolt Fund
Management 8,125 8,125 8,125 5.00% 5.00%
Sub-total 391,970 391,970 391,970 (3,065)
Total 6,953,359 6,834,686 31,808 6,866,494 (3,065) 177,022
Information for the Companys subsidiaries please refer to Note IV.
(3) Provision for impairment of long-term equity investments
31 December 2012
Increase
during
the period
Decrease
during
the period 30 June 2013
Other long-term equity investments 3,065 3,065
260
7. Short-term borrowings
30 June
2013
31 December
2012
Unsecured
RMB 465,703
US$ 339,828
Total 339,828 465,703
8. Financial liabilities held for trading
30 June
2013
31 December
2012
Current portion
Swap contact for interest rate 1,142 8,987
Sub-total 1,142 8,987
Non-current portion
Swap contact for interest rate 34,161 81,944
Subtotal 34,161 81,944
Total 35,303 90,931
9. Employee benefits payable
Beginning
balance
Increase
during
the period
Decrease
during
the period
Ending
balance
Wages and salaries, bonuses,
allowances and subsidies 250,000 107,448 (47,448) 310,000
Senior management bonus 407,812 (2,997) 404,815
Staff welfare and others 74 9,974 (9,759) 289
Total 657,886 117,422 (60,204) 715,104
10. Taxes payable
30 June
2013
31 December
2012
Enterprise income tax payable 1,867 33,144
Withholding individual income tax 1,916 2,466
Business tax payable 4,061 6,752
Others 495 1,131
Total 8,339 43,493
Interim Report 2013
261
11. Interest payable
30 June
2013
31 December
2012
Interest of long-term borrowings with periodic payments
of interest and return of principal at maturity 6,806 10,500
Interest of short-term borrowings 521
Interest of corporate debentures 31,188 176,670
Total 37,994 187,691
12. Dividends payable
30 June
2013
31 December
2012
Public shareholders 612,351
Total 612,351
13. Other payables
(1) The analysis of the Companys other payables is as follows:
30 June
2013
31 December
2012
Amounts due to subsidiaries 4,341,921 3,470,041
Quality guarantees 687 687
Advance received 30,000 30,000
Professional and training fees 37,877 56,866
Accruals 7,265
Others 8,477 10,088
Total 4,418,962 3,574,947
Other payables denominated in original currencies are as follows:
Type of currency
Amount
in original
currency
Exchange
rate
Amount
in RMB
Amount
in original
currency
Exchange
rate
Amount
in RMB
000 000 000 000
RMB 4,414,262 1.0000 4,414,262 3,570,165 1.0000 3,570,165
US$ 753 6.1787 4,651 753 6.2854 4,732
HKD 61 0.7966 49 61 0.8108 50
Total 4,418,962 3,574,947
262
13. Other payables (Continued)
(2) As at 30 June 2013, no amount due to shareholders who hold 5% (inclusive) or more of the
voting rights of the Company is included in the balance of other payables.
Other payables to related parties:
Company name
Relationship
with the company
30 June
2013
31 December
2012
Subsidiaries Subsidiaries 4,341,921 3,470,041
(3) Significant other payables aged over one year
Significant other payables aged over one year represented quality guarantee, vehicle mortgage guarantee and
various deposits.
14. Current portion of non-current liabilities
(1) The analysis of the Companys current portion of non-current liabilities by categories is as
follows:
30 June
2013
31 December
2012
Current portion of long-term borrowings
Unsecured 2,535,513 1,257,100
(2) Current portion of long-term borrowings denominated in original currencies are as follows:
Interest rate
Amount in
original
currency
Exchange
rate
Amount
in RMB Interest rate
Amount in
original
currency
Exchange
rate
Amount
in RMB
000 000 000 000
Bank borrowings
RMB 4.2%~5.95% 1,930,000 1.0000 1,930,000 1.0000
US$ Three months
libor+315BP
~six months
LIBOR+90BP
98,000 6.1787 605,513 LIBOR+90BP&
LIBOR US$+1.85%
200,000 6.2855 1,257,100
Total 2,535,513 1,257,100
There were no overdue long-term borrowings of which the durations are extended (As at 31 December 2012: Nil).
Interim Report 2013
263
14. Current portion of non-current liabilities (Continued)
(2) Current portion of long-term borrowings denominated in foreign currencies are as follows (Continued):
(a) As at 30 June 2013, the analysis of the Companys current portion of non-current liabilities is as follows:
Lender Starting date Ending date Currency Interest rate
Amount
in foreign
currency
Amount
in RMB
Amount in
foreign
currency
Amount
in RMB
(%) 000 000 000 000
1. Hongkong and
Shanghai Banking
Corporation
18-Jun-2012 18-Jun-2014 US$ Three months
libor+315BP
58,000 358,365
2. China Development
Bank
12-Dec-2007 12-Dec-2013 US$ Six months
libor+90BP
40,000 247,148 40,000 251,420
3. Export Import Bank
of China
20-Jan-2011 7-Jan-2014 RMB 4.200% 500,000 500,000
of China
1-Feb-2011 1-Feb-2014 RMB 4.200% 500,000 500,000
of China
15-Jun-2011 15-Jun-2014 RMB 4.200% 400,000 400,000
Total 2,005,513 251,420
(b) As at 30 June 2013, there were no overdue long-term borrowings of which the durations are extended (As
at 31 December 2012: Nil).
15. Long-term borrowings
(1) The analysis of the Companys long-term loans is as follows:
30 June
2013
31 December
2012
Bank borrowings
Unsecured 1,737,000 3,875,845
As at 30 June 2013, the Company has no long-term borrowings not wholly repayable within five years.
264
15. Long-term borrowings (Continued)
(2) Long-term borrowings denominated in original currencies are as follows:
Interest rate
Amount in
original
currency
Exchange
rate
Amount
in RMB Interest rate
Amount
in original
currency
Exchange
rate
Amount
in RMB
000 000 000 000
Bank borrowings
RMB 4.20%~4.92% 1,737,000 1.0000 1,737,000 4.20%~5.95% 3,505,000 1.0000 3,505,000
US$ 6.1787 Three months
LIBOR+315BP
59,000 6.2855 370,845
Total 1,737,000 3,875,845
(3) As at 30 June 2013, the five largest long-term borrowings:
Lender Starting date Ending date Currency
Interest
rate
Amount
in foreign
currency
Amount
in RMB
Amount in
foreign
currency
Amount
in RMB
(%) 000 000 000 000
Export Import Bank of China 25-Jul-2011 18-Jul-2014 RMB 4.920% 300,000 300,000 300,000 300,000
Export Import Bank of China 10-Aug-2011 10-Aug-2014 RMB 4.920% 300,000 300,000 300,000 300,000
Export Import Bank of China 28-Nov-2011 28-Nov-2014 RMB 4.920% 200,000 200,000
Export Import Bank of China 28-Jun-2012 28-Jun-2015 RMB 4.920% 192,000 192,000
Export Import Bank of China 24-May-2012 24-May-2015 RMB 4.920% 141,000 141,000
Total 1,133,000 600,000
As at 30 June 2013, there were no overdue long-term borrowings of which the durations are extended (As at 31
December 2012: Nil).
Interim Report 2013
265
16. Debentures payable
Beginning
balance
Increase
during
the period
Decrease
during
the period
Ending
balance
Medium-term notes 5,990,833 1,292 5,992,125
(a) Related information is as follows:
Debenture name Par value
Issuance
date Maturity
Issuance
amount
Balance of
interest
payable at
the beginning
of the year
Interest
accrued
during the
period
Interest
paid
during the
period
Balance of
interest
payable at
the end of
the period
Balance at
the end of
the period
Medium Term Notes
11 CIMC MTN1 4,000,000 May/23/2011 5 years 4,000,000 (9,167) 1,292 (7,875) 3,992,125
Medium Term Notes
-12 CIMC MTN1 2,000,000 May/24/2012 3 years 2,000,000 2,000,000
Total 6,000,000 (9,167) 1,292 (7,875) 5,992,125
For detailed analysis for the Companys debentures payable, refer to Note V.36.
266
17. Deferred tax assets/deferred tax liabilities
deductible or taxable temporary differences
Deductible or
(Taxable)
temporary
differences
Deferred tax
assets/
(liabilities)
Deductible or
(Taxable)
temporary
differences
Deferred tax
assets/
(liabilities)
Deferred tax assets:
Employee benefits payable 715,104 178,776 657,886 164,472
assets held for trading/derivative
financial instruments 37,173 9,293 90,931 22,733
Subtotal 752,277 188,069 748,817 187,205
Offsetting amount (505,943) (121,968) (550,957) (133,222)
Offset balance 246,334 66,101 197,860 53,983
Deferred tax liabilities:
Evaluation of financial
assets held for trading/derivative
financial instruments (13,936) (3,485)
Movement for fair value of
available-for-sale financial assets
charged to equity (505,943) (121,968) (537,021) (129,737)
Sub-total (505,943) (121,968) (550,957) (133,222)
Offsetting amount 505,943 121,968 550,957 133,222
Offsetted balance
During the current Reporting Period, the Company had no unrecognised deferred tax assets.
Interim Report 2013
267
18. Capital surplus
Beginning
balance
Increase
during
the period
Decrease
during
the period
Ending
balance
Share premiums 212,656 212,656
Change in fair value of
available-for-sale financial assets 537,021 (31,078) 505,943
Deferred tax effect (129,737) 7,769 (121,968)
Others (568,492) (568,492)
Total 334,259 48,522 (31,078) 351,703
19. Revenue and cost of sales
(1)
From
January to
June 2013
From
January to
June 2012
Revenue from other operations 119,187 233
Cost of sales from other operations 17
(2) Revenue and cost of sales from other operations
From January to
June 2013
From January to
June 2012
Revenue
from other
operations
Cost of sales
from other
operations
Revenue
from other
operations
Cost of sales
from other
operations
Commission 118,999
Others 188 233 17
Total 119,187 233 17
268
20. Profit/(losses) from changes in fair value
From
January to
June 2013
From
January to
June 2012
1. Including: Gains/losses from changes in fair value of trading
equity instrument (29,894) (14,442)
2. Including: Gains/losses from changes in fair value of derivative
financial instrument 841
Profit/(losses) for derecognized financial assets held for trading 14,087 5,451
Subtotal (15,807) (8,150)
Changes in fair value during the period 55,628 11,608
1. Including: Profit/(losses) from changes in fair value of derivative
financial instrument 55,628 11,608
Total 39,821 3,458
21. Investment income
(1) Investment income by categories
From
January to
June 2013
From
January to
June 2012
Income from long-term equity investment under cost method 177,022 365,188
(Loss)/income from long-term equity investment under equity method (84,386)
Income earned during the holding period of available-for-sale
financial assets 7,261 4,841
(Loss)/income from disposal of financial assets held for trading (14,087) (5,451)
Total 85,810 364,578
At 30 June 2013, investment losses from listed investments and investment income from non-listed investments
amount to RMB6,826,000 and RMB92,636,000 respectively (same period in 2012: investment loss RMB610,000 and
investment income RMB365,188,000 respectively).
Interim Report 2013
269
21. Investment income (Continued)
(2) In investment income from long-term equity investment under cost method, investees that
contributed investment income for 5% or more of the Companys total profit, or less than 5%
but were the top five investees that contributed most to the Companys investment income
are set out as follows:
Investee
From
January to
June 2013
From
January to
June 2012 Reason for current year fluctuation
TJCIMCN 119,525 Dividend distributed during the period
TJCIMCLE 27,669 Dividend distributed during the period
DLL 26,860 Dividend distributed during the period
SZSCIMCL 2,968 Dividend distributed during the period
Total 177,022
There was no significant restriction on the remittance of investment income to the investor.
(3) In investment income from long-term equity investment under equity method, investment
income from investee is set out as follows:
Investee
From
January to
June 2013
From
January to
June 2012 Reason for current year fluctuation
SCSCRC (608) Loss occurred during the period is
more than the same period of last year
C&C Trucks (83,778) Loss occurred during the period is
more than the same period of last year
Total (84,386)
270
22. Non-operating income
(1) Non-operating income by categories:
From
1 January to
30 June 2013
From
1 January to
30 June 2012
Gains on disposal of fixed assets 4 1,319
Government grants 100 629
Others 561 134
Total 665 2,082
(2) Details of government grants
From
1 January to
30 June 2013
From
1 January to
30 June 2012
Financial subsidies 100 629
23. Income tax expenses
From
1 January to
30 June 2013
From
1 January to
30 June 2012
Current income tax calculated based on tax law and related regulations
Deferred income tax (4,349) (21,606)
Total (4,349) (21,606)
Reconciliation between income tax expenses and accounting profits is as follows:
From
1 January to
30 June 2013
From
1 January to
30 June 2012
Total profit (66,980) (26,323)
Income tax expenses calculated at applicable rates (16,745) (6,581)
Expenses not deductible for tax purposes 20,269
Income not subject to tax (46,071) 91,257
Tax effect of tax loss for which no deferred tax asset was recognised 38,198 (106,282)
Income tax expenses (4,349) (21,606)
24. Other comprehensive income
From
1 January to
30 June 2013
From
1 January to
30 June 2012
1. Gain/(loss) from available-for-sale financial assets (31,078) 49,079
Less: income tax relating to available-for-sale financial assets (7,769) 12,270
Total (23,309) 36,809
Interim Report 2013
271
25. Notes to the cash flow statement
(1) Supplementary information to the consolidated cash flow statement:
(a) Reconciliation from net profit to cash flows from operating activities:
From
1 January to
30 June 2013
From
1 January to
30 June 2012
Net profit (62,631) (4,717)
Add: Depreciation of fixed assets 9,543 4,761
Amortisation of intangible assets 141 135
Amortisation of long-term prepaid expenses 1,081 615
(Gains)/losses on disposal of fixed assets, intangible assets 63 (1,319)
(Gains)/losses on change in fair value (39,821) (3,458)
Financial expense 278,717 234,141
Investment income (85,810) (364,578)
Share-based payment expenses 40,753 53,518
Change in deferred tax assets and deferred tax liabilities (12,118) (21,606)
Increase in operating receivables (3,944,349) (3,411,085)
Increase in operating payables 4,485,023 2,537,447
Net cash flows from operating activities 670,592 (976,146)
(b) Net increase in cash and cash equivalents:
From
1 January to
30 June 2013
From
1 January to
30 June 2012
Cash and cash equivalents at the end of the period 254,424 1,023,845
Less: cash and cash equivalents at the beginning of the year 444,913 427,874
Net increase/(decrease) in cash and cash equivalents (190,489) 595,971
(2) Cash and cash equivalents
From
1 January to
30 June 2013
From
1 January to
30 June 2012
I. Cash
Including: Cash at bank that can be readily drawn on demand 96,111 1,011,582
Other monetary fund that can be readily drawn on demand 158,313 12,263
II. Cash and cash equivalents at the end of the period 254,424 1,023,845
272
XIII. NET CURRENT ASSETS
The Group
30 June
2013
31 December
2012
Current assets 42,978,287 38,346,189
Less: current liabilities 33,156,612 25,540,032
Net current assets 9,821,675 12,806,157
The Company
30 June
2013
31 December
2012
Current assets 15,177,694 15,551,651
Net current assets 6,508,461 9,355,844
XIV. TOTAL ASSETS LESS CURRENT LIABILITIES
The Group
30 June
2013
31 December
2012
Total assets 68,770,320 62,992,380
Total assets less current liabilities 35,613,708 37,452,348
The Company
30 June
2013
31 December
2012
Total assets 22,834,813 23,204,261
Total assets less current liabilities 14,165,580 17,008,454
Interim Report 2013
273
SUPPLEMENTARY INFORMATION ON THE INTERIM FINANCIAL REPORT (UNAUDITED)
1. STATEMENT OF NON-RECURRING PROFIT OR LOSS FOR THE FIRST SIX
MONTHS OF 2013
Unit: RMB thousand
Item Amount
Gains from disposal of non-current assets (2,783)
Government grants recognised in profit or loss for the current period 36,011
(except those closely related to the operation of the enterprise, for a fixed quota or for
a fixed amount in accordance with national unified standards)
Except for the effective hedging activities related to the Companys ordinary activities,
profit or loss arising from changes in fair value of financial assets and financial liabilities
held for trading, and investment income from disposal of financial assets and
financial liabilities held for trading and available-for-sale financial assets 32,496
Gains from debt restructuring (20)
Other non-operating income/expenses other than the above items 5,255
Payment received from non-financial enterprises for using funds and recognised
in profit or loss for the current period 3,121
Effect of income tax (25,556)
Effect of minority interests (after tax) (9,764)
Total 38,760
Note: Aforesaid non-recurring profit or loss was presented at amount before taxation.
Basis for preparation of statement of non-recurring profit or loss
Under the requirements in Explanatory Announcement No. 1 on Information Disclosure by Companies Offering
Securities to the Public Non-recurring Profit or Loss [2008] from CSRC, non-recurring profit or loss refer to those
arises from transactions and events that are not directly relevant to ordinary activities, or that are relevant to
ordinary activities, but are extraordinary and not expected to recur frequently that would have an influence on
users of financial statements making economic decisions on the financial performance and profitability of an
enterprise.
274
2. RETURN ON NET ASSETS AND EARNINGS PER SHARE
In accordance with Interpretive Pronouncement on the Preparation of Information Disclosures of Companies
Issuing Public Shares No. 9 Earnings Per Share and Return on Net Assets (Revised 2010) and relevant
requirements of accounting standard, the calculation of earnings per share and return on net assets of the
Company is listed as follows:
Unit: RMB
Net profit during the Reporting Period
Weighted average
return on net
assets (%)
Earnings per share
Basic earnings
per share
Diluted earnings
per share
Net profit attributable to ordinary
shareholders of the Company 2.78% 0.2073 0.2070
Net profit attributable to ordinary
shareholders of the Company after
deducting non-recurring profit or loss 2.59% 0.1928 0.1925
3. EXPLANATIONS OF IRREGULAR FLUCTUATIONS AND RELATED REASONS ON
MAJOR ITEMS OF THE FINANCIAL STATEMENTS
Unit: RMB thousand
Assets Notes
30 June
2013
31 December
2012
Changes in
amount and percentage
Amount %
Cash at bank and on hand (1) 3,705,414 5,221,539 (1,516,125) (29)%
Financial assets held for
trading-current portion (2) 160,570 405,092 (244,522) (60)%
Notes receivable (3) 1,246,167 778,109 468,058 60%
Accounts receivable (4) 12,725,556 8,238,033 4,487,523 54%
Advance to suppliers (5) 2,520,119 1,213,042 1,307,077 108%
Investment properties (6) 284,977 183,668 101,309 55%
Long-term prepaid expenses (7) 95,175 47,947 47,228 99%
(1) Cash at bank and on hand: mainly due to the centralised management of fund by the Group.
(2) Financial assets held for trading-current portion: due to changes in the investment costs and fair values of equity instruments held for trading in the
period.
(3) Notes receivable: mainly due to the increase in sales settled by bills in the period.
(4) Accounts receivable: mainly due to the fact that the period was a peak season for production and sales.
(5) Advance to suppliers: mainly due to the increase in procurement of raw materials in the period.
(6) Investment properties: mainly due to the acquisition of Zhenhua Group in the period.
(7) Long-term prepaid expenses: mainly due to the increase in insurance premium for finance lease items in the period.
Interim Report 2013
275
3. EXPLANATIONS OF IRREGULAR FLUCTUATIONS AND RELATED REASONS ON
MAJOR ITEMS OF THE FINANCIAL STATEMENTS (CONTINUED)
Unit: RMB thousand
Liabilities Notes
30 June
2013
31 December
2012
Changes in
Amount %
Short-term borrowings (1) 7,540,666 5,438,407 2,102,259 39%
Taxes payable (2) 340,631 747,530 (406,899) (54)%
Interest payable (3) 68,989 203,288 (134,299) (66)%
Dividends payable (4) 782,117 38,747 743,370 1,919%
Non-current liabilities due
within one year (5) 2,538,641 1,261,940 1,276,701 101%
Other current liabilities (6) 2,448,805 2,448,805
Financial liabilities held for
trading non-current portion (7) 34,234 82,242 (48,008) (58)%
Long-term borrowings (8) 4,996,681 7,641,785 (2,645,104) (35)%
(1) Short-term borrowings: mainly due to financing arrangements arising from an increase in the scale of production and sales in the period.
(2) Taxes payable: mainly due to the filing and settlement of enterprise income tax in the period.
(3) Interest payable: mainly due to the settlement of interest of debentures payable in the period.
(4) Dividends payable: mainly due to the dividends for ordinary shares declared but unpaid in the period.
(5) Non-current liabilities due within one year: mainly due to the long-term borrowings due within one year that were transferred in.
(6) Other current liabilities: mainly due to the issuance of commercial papers by the Group in the period.
(7) Financial liabilities held for trading non-current portion: mainly due to changes in the fair values of derivative financial instruments in the period.
(8) Long-term borrowings: mainly due to the long-term borrowings that were due in the period and transferred to the current portion of non-current
liabilities.
Unit: RMB thousand
Profit and loss Notes
30 June
2013
30 June
2012
Changes in
Amount %
Financial expenses (1) 454,826 236,439 218,387 92%
Asset impairment losses (2) 34,838 (24,986) 59,824 239%
Profit/(losses) from changes
in fair value (3) 9,741 (14,934) 24,675 165%
Investment gains/(losses) (4) (45,117) (3,522) (41,595) (1,181)%
Profit/(loss) attributable to
minority interest (5) 163,257 73,968 89,289 121%
(1) Financial expenses: mainly due to the increase in exchange loss resulting from the changes of foreign exchange rates in the period.
(2) Asset impairment losses: mainly due to the reversal of the provision for impairment of inventories in the same period last year.
(3) Profit/(losses) from changes in fair value: mainly due to changes in fair values of equity instruments held for trading and derivative financial instruments
in the period.
(4) Investment gains/(losses): mainly due to the decrease in investment income under the equity method of the Group in the period.
(5) Profit/(loss) attributable to minority interest: due to the increase in profitability of subsidiaries with minority interests in the period.
276
X. DOCUMENTS AVAILABLE FOR INSPECTION
1. The original copies of the interim report of the Company for 2013 signed by the Companys legal representative.
2. The original copies of the unaudited Financial Report of the Company for the six months ended 30 June 2013
prepared under CASBE duly signed and under the seal of the Companys legal representative, the person-in-
charge of accounting affairs, and accounting person-in-charge (General Manager of Financial Management
Department).
3. The original copies of all the documents and announcements of the Company published in the newspapers
stipulated by the CSRC during the Reporting Period.
4. The copies of the English and Chinese versions of the 2013 interim report of the Company published on the
website of the Hong Kong Stock Exchange.
Li Jianhong
Chairman of the Board
6 September 2013
CIMC R&D Center, No.2 Gangwan Avenue, Shekou,
Nanshan District, Shenzhen, Guangdong, P.R.C
Tel: 86-755-26691130
Fax: 86-755-26692707
www.cimc.com
Driving new value Moving the world

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China International Marine Containers (Group) Co., Ltd.

8. Current portion of non-current assets within one year

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