China International Marine Containers
(Group) Co., Ltd.
中國國際海運集裝箱 (集團) 股份有限公司
31 December 2006
ABCDIndependent Auditor’s Report to the Shareholders ofChina International Marine Containers (Group) Co., Ltd.
(Established in the People’s Republic of China with limited liability)We have audited the accompanying consolidated financial statements of China International MarineContainers (Group) Co., Ltd. (the “Company”) and its subsidiaries (the “Group”) set out on pages 2 to
consolidated
consolidated
statement,
consolidated
consolidated
significant
accounting
otherexplanatory notes.Directors’ responsibility for the financial statementsThe directors are responsible for the preparation and fair presentation of these consolidated financial
statements
accordance
International
Standards.
responsibilityincludes designing, implementing and maintaining internal control relevant to the preparation and fairpresentation of consolidated financial statements that are free from material misstatements, whetherd selecting and applying appropriate and making accountingestimates that are reasonable in the circumstances.Auditor’s responsibilityOur responsibility is to express an opinion on these consolidated financial statements based on our
accordance
engagement, and for no other purpose.
We do not assume responsibility towards or accept liability toany other person for the contents of this report.
accordance
International
standardsrequire that we comply with relevant ethical requirements and plan and perform the audit to obtainreasonable assurance whether the consolidated financial statements are free of material misstatement.An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the consolidated financial statements.
The procedures selected depend on our judgement, includingthe assessment of the risks of material misstatement of the consolidated financial statements, whether
due to fraud or error.
In making those risk assessments, we consider internal control relevant to theentity’s preparation and fair presentation of the consolidated financial statements in order to designaudit procedures that are appropriate in the circumstances, but not for the purpose of expressing an
effectiveness
control. An
evaluating
theappropriateness of accounting principles used and the reasonableness of accounting estimates made
directors,
evaluating
presentation
consolidated
financialstatements.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.OpinionIn our opinion, the consolidated financial statements give a true and fair view of the financial positionof the Group as at 31 December 2006, and of its financial performance and its cash flows for the yearthen ended in accordance with International Financial Reporting Standards.Certified Public AccountantsHong Kong, China
China International Marine Containers (Group) Co., Ltd.
Consolidated financial statements
for the year ended 31 December 2006
Consolidated balance sheet
at 31 December 2006
(Expressed in Renminbi)
Non-current assets
Property, plant and equipment
Lease prepayments - non-current portion
Construction in progress
Timber concession rights
Intangible assets
Interest in associates
Interest in jointly controlled entity
Finance lease receivable
Prepayment for investments
Deferred tax assets
Other financial assets
--------------------
--------------------Current assets
Lease prepayments - current portion
Trading securities
Inventories
Trade and other receivables
Cash and cash equivalents
14,469,040
11,108,089
--------------------
--------------------Current liabilities
Trade and other payables
Bank loans
Current taxation
Provisions
--------------------
--------------------
Net current assets
--------------------
--------------------
Total assets less current liabilities
14,061,951
10,946,622
--------------------
--------------------Non-current liabilities
Bank loans
Deferred tax liabilities
--------------------
--------------------
NET ASSETS
13,170,615
10,510,972
============
============
The notes on pages 10 to 72 form part of these consolidated financial statements.
China International Marine Containers (Group) Co.,Ltd.
Consolidated financial statements
for the year ended 31 December 2006
Consolidated balance sheetat 31 December 2006 (continued)
(Expressed in Renminbi)
CAPITAL AND RESERVES
Share capital
10,085,152
Total equity attributable to equity
holders of the Company
12,303,815
Minority interests
TOTAL EQUITY
13,170,615
10,510,972
===========
===========Approved and authorised for issue by the board of directors on
) Directors
)The notes on pages 10 to 72 form part of these consolidated financial statements.
China International Marine Containers (Group) Co.,Ltd.
Consolidated financial statements
for the year ended 31 December 2006
Consolidated income statementfor the year ended 31 December 2006
(Expressed in Renminbi)
33,199,629
30,938,522
Cost of sales
(28,528,419)
(26,242,983)
Gross profit
Other income
Distribution costs
Administrative expenses
(1,102,529)
(1,013,964)
Other operating expenses
Profit from operations
Finance income and expense
Share of profits less losses of associates
Profit before taxation
Income tax
Profit for the year
===========
===========Attributable to:
Equity holders of the Company
Minority interests
Profit for the year
===========
===========Dividends payable to equity holders of
the Company attributable to the year:
Final dividend proposed after the
balance sheet date
===========
===========Earnings per share (RMB Yuan)
===========
===========The notes on pages 10 to 72 form part of these consolidated financial statements.
China International Marine Containers (Group) Co., Ltd.
Consolidated financial statements
for the year ended 31 December 2006
Consolidated statement of changes in equity
for the year ended 31 December 2006
(Expressed in Renminbi)
Attributable to equity holders of the Company
revaluation
Fair value
welfare fund
(note 33(a))
(note 33(b))
(note 33(c))
(note 33(d))
At 1 January 2005
Capitalisation of share premium
(1,008,484)
-Dividends approved in respect of the
previous year (note 10(b))
Dividends paid to minority interests
(81,391)Exchange difference on translation of
financial statements of foreign operations
Profit for the year
Acquisition of additional interests in existing
subsidiaries
Capital injection
Acquisition of new subsidiaries
Repayment of advances to minority interests
Advances to minority interests
Transfer from retained profits
At 31 December 2005
10,510,972
The notes on pages 10 to 72 form part of these consolidated financial statements.
China International Marine Containers (Group) Co., Ltd.
Consolidated financial statements
for the year ended 31 December 2006
Consolidated statement of changes in equity
for the year ended 31 December 2006 (continued)
(Expressed in Renminbi)
Attributable to equity holders of the Company
revaluation
Fair value
(note 33(a))
(note 33(b))
(note 33(c))
(note 33(d))
At 1 January 2006
10,510,972
Transfer from statutory public welfare
Capitalisation of share premium
-Dividends approved in respect of the
previous year (note 10(b))
Transfer from retained profits
Dividends paid to minority interests
(64,053)Exchange difference on translation of
financial statements of foreign operations
(339,882)Available-for-sale securities:
-changes in fair value, net of deferred tax
-reversal of impairment loss
Profit for the year
Acquisition of additional interests in
existing subsidiaries
Capital injection
Acquisition of new subsidiaries
Disposal of partial interest in subsidiary
Repayment of advances to minority
At 31 December 2006
12,303,815
13,170,615
The notes on pages 10 to 72 form part of these consolidated financial statements.
China International Marine Containers (Group) Co., Ltd.
Consolidated financial statements
for the year ended 31 December 2006
Consolidated cash flow statement
for the year ended 31 December 2006
(Expressed in Renminbi)
Operating activities
Profit before taxation
Adjustments for:
Depreciation
Impairment losses of prepayment for
investments
Impairment losses of positive goodwill
Amortisation of other intangible assets
Amortisation of timber concession rights
Gains on recognition of negative goodwill
Net losses on sale of property, plant and
Bank interest income
Finance costs
Net gains on disposal of partial interests
in subsidiaries
Net realised and unrealised gains on
trading securities
Dividend income from investments in
equity securities
Share of profits less losses of associates
Operating profit before changes in
working capital
Increase in lease prepayments
Decrease in long-term receivables
(Increase)/decrease in trade and other receivables
(3,128,520)
(Increase)/decrease in inventories
(1,340,151)
Increase/(decrease) in trade and other payables
Increase in provisions
Cash generated from operations
Net cash generated from operating
activities
--------------------
--------------------
The notes on pages 10 to 72 form part of these consolidated financial statements.
China International Marine Containers (Group) Co., Ltd.
Consolidated financial statements
for the year ended 31 December 2006
Consolidated statement of cash flowsfor year ended 31 December 2006 (continued)
(Expressed in Renminbi)
Investing activities
Interest received
Payment for the purchase of property, plant
and equipment
Payment for the purchase of intangible assets
Payment for construction in progress
Payment for purchase of equity securities
Prepayment for investments
Payment for acquisition of associates
(45,021)Payment for acquisition of minority
shareholdings
Loan to an associate
Repayment of loan to an associate
-Net cash acquired / (paid) arising from
acquisition of subsidiaries
(6,470)Net proceeds from / (net payment for)
investments in trading securities
(263,750)Dividend received from investments in equity
securities
Dividend received from an associate
Dividend received from trading securities
-Proceeds from sales of property, plant and
Proceeds from dissolution of interest in an
Proceeds from sale of partial interest in
subsidiaries
Repayment of advances by minority interests
Advances to minority interests
Net cash used in investing activities
(1,280,784)
(1,565,195)
--------------------
--------------------The notes on pages 10 to 72 form part of these consolidated financial statements.
China International Marine Containers (Group) Co., Ltd.
Consolidated financial statements
for the year ended 31 December 2006
Consolidated statement of cash flowsfor the year ended 31 December 2006 (continued)
(Expressed in Renminbi)
Financing activities
Interest paid
Other borrowing costs paid
Proceeds from new bank loans
11,841,263
Repayment of bank loans
(9,444,526)
(13,399,538)
Capital injection from minority interests
Dividends paid to equity shareholders of the
Dividends paid to minority interests
Net cash used in financing activities
(2,258,335)
--------------------
--------------------Net (decrease)/increase in cash and cash
equivalents
Cash and cash equivalents at 1 January
Effect of foreign exchange rate changes
Cash and cash equivalents at 31 December
===========
===========The notes on pages 10 to 72 form part of these consolidated financial statements.
China International Marine Containers (Group) Co., Ltd.
Consolidated financial statements
for the year ended 31 December 2006
Notes to the consolidated financial statements
Background
International
Containers
“Company”)
company established in the People’s Republic of China (the “PRC”) with limited liability.
consolidated
statements
December 2006 comprise the Company, its subsidiaries (together referred to as the “Group”),
and the Group’s interest in associates and jointly controlled entity.
The Group is principally engaged in the design, manufacturing, marketing and maintenance
containers,
equipment,
development,
logging and trading businesses.
Basis of preparation
Statement of compliance
The consolidated financial statements have been prepared in accordance with International
(“IFRSs”)
collective
applicable
individual
International
Standards,
International
Accounting
(“IASs”)
interpretations
International
Accounting
(“IASB”).
statements
Accounting Rules and Regulations.
A reconciliation of the Group’s profit and total equity
attributable
shareholders
Accounting Rules and Regulations is presented on Appendix I.
The IASB has issued a number of new and revised IFRSs that are effective for accounting
periods beginning on or after 1 January 2006.
With effect from 1 January 2006, in order to
amendments
guarantees
contracts,
Group has changed its accounting policy for financial guarantees issued.
Further details of
the new policy were set out in note 3(q)(i).
The new accounting policy has not resulted in
consequential adjustments to the financial statements for the year ended 31 December 2006
and the years before.
Other than the above, the adoption of these new and revised IFRSs did
not result in significant changes to the Group’s accounting policies applied in these financial
statements for the periods presented.
The Group has not applied any new standard or interpretation that is not yet effective for the
current accounting period (see note 41).
The financial statements were approved by the Board of Directors on 15 March 2007.
Basis of measurement
The measurement basis used in the preparation of the financial statements is the historical
cost basis except for certain property, plant and equipment (see note 3(e)), available-for-sale
securities
securities
derivative
instruments
accounting
policies set out below.
China International Marine Containers (Group) Co., Ltd.
Consolidated financial statements
for the year ended 31 December 2006
Basis of preparation (continued)
Functional and presentation currency
consolidated
statements
(“RMB”),
different from the Company’s functional currency of US dollar, so as to be consistent with
information
presented in RMB has been rounded to the nearest thousand.
Use of estimates and judgements
preparation
statements
conformity
management
judgements,
assumptions
application
reported amounts of assets, liabilities, income
and expenses.
The estimates and associated
assumptions are based on historical experience and various other factors that are believed to
reasonable
circumstances,
judgements about carrying values of assets and liabilities that are not readily apparent from
other sources.
Actual results may differ from these estimates.
The 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.
Judgements made by the management in the application of IFRSs that have significant effect
consolidated
statements
significant
adjustment are discussed in note 40.
Significant accounting policies
The accounting policies set out below have been applied consistently to all periods presented
consolidated
statements,
consistently
comparative
reclassified
presentation.
classification of bank interest income, dividend income from investments in equity securities,
and realised and unrealised gains/(losses) on trading securities from “other revenue and net
income” to “financial income and expense” as well as that of foreign currency gains/(losses)
expenses”
“financial
appropriately
benefits/(losses)
Comparative
reclassified
consistency,
RMB95,281,000
RMB57,664,000
reclassified
income”, and “other operating expenses” respectively to “financial income and expense”.
Basis of consolidation
Subsidiaries and minority interests
Subsidiaries
controlled
power, directly or indirectly, to govern the financial and operating policies of an entity so as
activities.
presently are exercisable or convertible are taken into account.
The financial statements of
China International Marine Containers (Group) Co., Ltd.
Consolidated financial statements
for the year ended 31 December 2006
Significant accounting policies (continued)
Basis of consolidation (continued)
Subsidiaries (continued)
subsidiaries are included in the consolidated financial statements from the date that control
commences until the date that control ceases.
Intra-group
transactions
unrealised
intra-group
transactions are eliminated in full 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.
Minority interests at the balance sheet date, being the portion of the net assets of subsidiaries
attributable
indirectly through subsidiaries, are presented in the consolidated balance sheet within equity
separately
attributable
shareholders of the Company.
Minority interests in the results of the Group are presented on
the face of the consolidated income statement as an allocation of the total profit or loss for
the year between minority interests and the equity shareholders of the Company.
applicable
minority’s
subsidiary, the excess, and any further losses applicable to the minority, are charged against
the Group’s interest except to the extent that the minority has a binding obligation to, and is
additional
investment
subsidiary
subsequently
reports profits, the Group’s interest is allocated all such profits until the minority's share of
losses previously absorbed by the Group has been recovered.
Associates and jointly controlled entities
Associates are those entities in which the Group has significant influence, but not control or
management,
participation
policy decisions.
Jointly controlled entities are those entities which operate under a contractual arrangement
between the Group and other parties, where the contractual arrangement establishes that the
Group and one or more of the other parties share joint control over the economic activity of
the entities.
Associates
controlled
consolidated
statements under the equity method and are initially recorded at cost and adjusted thereafter
acquisition
associates’
controlled
entities’
classified
classified
consolidated
post-acquisition,
associates
jointly controlled entities for the year, including any impairment loss on goodwill relating to
the investments in associates and jointly controlled entities recognised for the year (see notes
3(b) and 3(i)(ii)).
China International Marine Containers (Group) Co., Ltd.
Consolidated financial statements
for the year ended 31 December 2006
Significant accounting policies (continued)
Basis of consolidation (continued)
Associates and jointly controlled entities (continued)
associates
controlled entities, the Group’s interest is reduced to nil and recognition of further losses is
discontinued except to the extent that the Group has incurred legal or constructive obligations
associates
controlled
purpose, the Group’s interest in the associates or the jointly controlled entities is the carrying
investment
interests that in substance form part of the Group’s net investment in the associates or the
jointly controlled entities.
Unrealised profits and losses resulting from transactions between the Group and its associates
and the jointly controlled entities are eliminated to the extent of the Group’s interest in the
associate or the jointly controlled entities, except where unrealised losses provide evidence of
impairment
transferred,
recognised
immediately
profit or loss.
Goodwill represents the excess of the cost of a business combination or an investment in an
associate over the Group’s interest in the net fair value of the acquiree’s identifiable assets,
liabilities and contingent liabilities.
Where the Group increases its interest in a subsidiary, its incremental interest gives rise to
additional goodwill in the subsidiary. The goodwill is determined as the difference between
the consideration given and the interest acquired in the subsidiary’s net assets and contingent
liabilities at their carrying values on the Group’s consolidated balance sheet. No fair value
exercise is performed because IFRS 3 allows a step-up to fair values only at the date control
is gained. Where the Group decreases its interest in a subsidiary without losing control, any
recognised
consolidated
income statement.
Goodwill is stated at cost less accumulated impairment losses.
Goodwill is allocated to cash-
generating units and is tested annually for impairment as well as when there are indications
of impairment (see note 3(i)(ii)).
In respect of associates or jointly controlled entities, the
associate or jointly controlled entity.
Any excess of the Group’s interest in the net fair value of the acquiree’s identifiable assets,
liabilities and contingent liabilities over the cost of a business combination or an investment
in an associate or a jointly controlled entity is recognised immediately in profit or loss.
On disposal of a cash generating unit or an associate a jointly controlled entity during the
attributable
calculation
profit or loss on disposal.
China International Marine Containers (Group) Co., Ltd.
Consolidated financial statements
for the year ended 31 December 2006
Significant accounting policies (continued)
Other investments in equity securities
investments
securities,
investments
subsidiaries, associates and jointly controlled entities are as follows:
Investments
securities
transaction
unless fair value can be more reliable estimated using valuation techniques whose variables
observable
attributable
transaction
except where indicated otherwise below.
These investments are subsequently accounted for
as follows, depending on their classification:
Investments
securities
classified
remeasured,
resultant gain or loss being recognised in profit or loss.
Other investments in securities are classified as available-for-sale securities and are initially
recognised at fair value plus transaction costs.
At each balance sheet date the fair value is
remeasured,
recognised
impairment losses (see note 3(i)(i)) and, in the case of monetary items such as debt securities,
foreign exchange gains and losses which are recognised directly in profit or loss.
When these
investments
derecognised
cumulative
previously recognised directly in equity is recognised in profit or loss.
Investments in equity securities that do not have a quoted market price in an active market
and whose fair value cannot be reliably measured are recognised in the balance sheet at cost
less impairment losses (see note 3(i)(i)).
Investments are recognised / derecognised on the date the Group commits to purchase / sell
the investments or they expire.
Derivative financial instruments
Derivative financial instruments are recognised initially at fair value.
At each balance sheet
date the fair value is remeasured.
The gain or loss on remeasurement to fair value is charged
immediately
derivatives
accounting or hedge the net investment in a foreign operation, in which case recognition of
any resultant gain or loss depends on the nature of the item being hedged.
Property, plant and equipment
Recognition and measurement
recognised
accumulated
depreciation
impairment
remeasured
revaluation
subsequent
accumulated
depreciation and subsequent accumulated impairment losses.
Cost includes expenditures that are directly attributable to the acquisition of the assets.
cost of self-constructed items of property, plant and equipment includes the cost of materials,
direct labour, the initial estimate, where relevant, of the costs of dismantling and removing
the items and restoring the site on which they are located, and an appropriate proportion of
production overheads and borrowing costs (see note 3(t)).
China International Marine Containers (Group) Co., Ltd.
Consolidated financial statements
for the year ended 31 December 2006
Significant accounting policies (continued)
Property, plant and equipment (continued)
Recognition and measurement (continued)
Revaluations are performed with sufficient regularity to ensure that the carrying amount of
these assets does not differ materially from that which would be determined using fair values
at the balance sheet date.
revaluation
properties,
with in reserves.
The only exceptions are as follows:
when a deficit arises on revaluation, it will be charged to profit or loss to the extent that
it exceeds the amount held in the reserve in respect of that same asset immediately prior
when a surplus arises on revaluation, it will be credited to profit or loss to the extent
that a deficit on revaluation in respect of that same asset had previously been charged to
profit or loss.
retirement
determined
difference
carrying amount of the item and are recognised in profit or loss on the date of retirement or
revaluation
transferred
revaluation
retained profits.
Subsequent costs
The cost of replacing part of an item of property, plant and equipment is recognised in the
within the part will flow to the Group and its cost can be measured reliably.
The cost of the
day-to-day
recognised
Depreciation
Depreciation is calculated to write off the cost or valuation of items of property, plant and
equipment,
their estimated useful lives as follows:
Freehold land is not depreciated.
depreciated
term of lease and their estimated useful lives, being no more than 30 years after the date
of completion.
Machinery and equipment
10 - 12 years
Motor vehicles
3 - 8 years
Office furniture and other assets
Where parts of an item of property, plant and equipment have different useful lives, the cost
or valuation of the item is allocated on a reasonable basis between the parts and each part is
depreciated
separately.
reviewed annually.
China International Marine Containers (Group) Co., Ltd.
Consolidated financial statements
for the year ended 31 December 2006
Significant accounting policies (continued)
Construction in progress
Construction
represents
buildings,
construction and pending installation, and is stated at cost less impairment losses (see note
3(i)(ii)).
materials,
capitalised
note 3(t)), and an appropriate proportion of production overheads incurred during the periods
of construction and installation.
Capitalisation of those costs ceases and the construction in
progress is transferred to property, plant and equipment when the asset is substantially ready
for its intended use.
No depreciation is provided in respect of construction in progress.
Intangible assets (other than goodwill)
Expenses incurred for the acquisition of patents, trademarks and technological know-how by
the Group, are stated in the balance sheet at cost less accumulated amortisation (where the
estimated useful life is other than indefinite) and impairment losses (see note 3(i)(ii)).
Timber concession rights represent costs incurred to acquire the rights to extract timber from
forest concession areas for an approved duration and are stated in the balance sheet at cost
less accumulated amortisation and impairment losses (see note 3(i)(ii)).
Cost includes cost of
purchase and expenses exclusively related to the acquisition of timber concession rights.
Amortisation of intangible assets is charged to profit or loss on a straight-line basis over the
assets’ estimated useful lives unless such lives are indefinite.
The following intangible assets
are amortised from the date they are available for use and their estimated useful lives are as
Patents and trademarks
5 - 10 years
Technological know-how
Timber concession rights are amortised over the remaining licence period until the expiry of
the timber licences.
Leased assets
Classification of leases
substantially
ownership are classified as finance lease.
Other leases are operating leases.
Assets leased out under finance leases
Where assets are leased out under finance leases, an amount representing the net investment
in the lease is included in the balance sheet as a receivable.
Finance income implicit in the
produce an approximately constant periodic rate of return on the outstanding net investment
in the leases for each accounting period.
China International Marine Containers (Group) Co., Ltd.
Consolidated financial statements
for the year ended 31 December 2006
Significant accounting policies (continued)
Leased assets (continued)
Operating lease charges
Where the Group has the use of assets held under operating leases, payments made under the
leases are charged to profit or loss in equal instalments over the accounting periods covered
by the lease term, except where an alternative basis is more representative of the pattern of
incentives
recognised
Contingent
rentals are charged to profit or loss in the accounting period in which they are incurred.
The cost of acquiring land held under an operating lease in amortised on a straight-line basis
over the period of the lease term.
Impairment of assets
Impairment of investments in equity securities and other receivables
Investments in equity securities and other current and non-current receivables that are stated
at cost or amortised cost or are classified as available-for-sale securities are reviewed at each
balance sheet date to determine whether there
is objective evidence of impairment.
such evidence exists, any impairment loss is determined and recognised as follows:
securities
receivables
impairment
difference
financial asset and the estimated future cash flows, discounted at the current market rate
discounting
Impairment
receivables
subsequent
amount of the impairment loss decreases.
Impairment losses for equity securities are
not reversed.
For trade and other current receivables and other financial assets carried at amortised
impairment
difference
amount and the present value of estimated future cash flows, discounted at the financial
asset’s original effective interest rate (i.e. the effective interest rate computed at initial
recognition of these assets), where the effect of discounting is material.
If in a subsequent period the amount of an impairment loss decreases and the decrease can be
objectively
impairment
recognised,
impairment loss is reversed through profit or loss.
A reversal of an impairment loss shall not
result in the asset’s carrying amount exceeding that which would have been determined had
no impairment loss been recognised in prior years.
available-for-sale
securities,
cumulative
recognised
directly in equity is removed from equity and is recognised in profit or loss.
The amount
of the cumulative loss that is recognised in profit or loss is the difference between the
acquisition cost (net of any principal repayment and amortisation) and current fair value,
less any impairment loss on that asset previously recognised in profit or loss.
Impairment losses recognised in profit or loss in respect of available-for-sale equity securities
through profit
subsequent
assets is recognised directly in equity.
China International Marine Containers (Group) Co., Ltd.
Consolidated financial statements
for the year ended 31 December 2006
Significant accounting policies (continued)
Impairment of assets (continued)
Impairment of other assets (continued)
information
indications
goodwill, an impairment loss previously recognised no longer exists or may have decreased:
investments in associates and join and
If any such indication exists, the asset’s recoverable amount is estimated.
In addition, for
goodwill, intangible assets that are not yet available for use and intangible assets that have
indefinite useful lives, the recoverable amount is estimated annually whether or not there is
any indication of impairment.
Calculation of recoverable amount
The recoverable amount of an asset is the greater of its net selling price and value in use.
In assessing value in use, the estimated future cash flows are discounted to their present
value using a pre-tax discount rate that reflects current market assessments of time value
asset. Where
independent
recoverable
determined for the smallest group of assets that generates cash inflows independently (i.e.
a cash-generating unit).
Recognition of impairment losses
An impairment loss is recognised in profit
or loss whenever the carrying amount of an
cash-generating
recoverable
Impairment
recognised
cash-generating
cash-generating
group of units) and then, to reduce the carrying amount of the other assets in the unit (or
group of units) on a pro rata basis, except that the carrying value of an asset will not be
reduced below its individual fair value less costs to sell, or value in use, if determinable.
Reversals of impairment losses
In respect of assets other than goodwill, an impairment loss is reversed if there has been a
favourable
recoverable
impairment loss in respect of goodwill is not reversed.
China International Marine Containers (Group) Co., Ltd.
Consolidated financial statements
for the year ended 31 December 2006
Significant accounting policies (continued)
Impairment of assets (continued)
Impairment of other assets (continued)
Reversals of impairment losses (continued)
A reversal of an impairment loss is limited to the asset’s carrying amount that would have
determined
impairment
recognised
impairment
recognised.
Inventories
Products manufacturing
Inventories are carried at the lower of cost and net realisable value.
calculated
conversion
inventories
present location and condition.
Net realisable value is the estimated selling price in the ordinary course of business less the
estimated costs of completion and the estimated costs necessary to make the sale.
inventories
inventories
recognised
expense in the period in which the related revenue is recognised.
The amount of any write-
down of inventories to net realisable value and all losses of inventories are recognised as an
write-down
write-down
inventories
recognised
inventories
recognised as an expense in the period in which the reversal occurs.
Property development
Inventories in respect of property development activities are carried at the lower of cost and
net realisable value.
Cost and net realisable values are determined as follows:
Property under development for sale
The cost of properties under development for sale comprises specifically identified cost,
including acquisition cost of land, aggregate cost of development, materials and supplies,
wages and other direct expenses, an appropriate proportion of overheads and borrowing
capitalised
realisable
represents
price less estimated costs of completion and costs to be incurred in selling the property.
Completed properties for sale
properties
determined
apportionment of the total development costs for that development project, attributable to
properties.
realisable
represents
costs to be incurred in selling the property.
The cost of completed properties held for sale comprises all costs of purchase, costs of
conversion and other costs incurred in bringing the inventories to their present location
and condition.
China International Marine Containers (Group) Co., Ltd.
Consolidated financial statements
for the year ended 31 December 2006
Significant accounting policies (continued)
Trade and other receivables
receivables
recognised
thereafter
impairment
receivables
interest-free
discounting
immaterial.
receivables
impairment
Interest-bearing borrowings
Interest-bearing borrowings are recognised initially at fair value less attributable transaction
Subsequent to initial recognition, interest-bearing borrowings are stated at amortised
cost with any difference between the amount initially recognised and redemption value being
recognised in profit or loss over the period of the borrowings, together with any interest and
fees payable, using the effective interest method.
Trade and other payables
recognised
thereafter
amortised cost unless the effect of discounting would be immaterial, in which case they are
stated at cost.
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks
institutions,
short-term,
investments
convertible
insignificant
acquisition.
overdrafts
management are also included as a component of cash and cash equivalents for the purpose
of the consolidated cash flow statement.
Short term employee benefits and contributions to defined contribution retirement plans
Salaries, annual bonuses, contributions to defined contribution retirement plans and the cost
non-monetary
associated
rendered by employees.
Where payment or settlement is deferred and the effect would be
material, these amounts are stated at their present values.
Income tax
liabilities.
Current tax and movements in deferred tax assets and liabilities are recognised in
profit or loss except to the extent that they relate to items recognised directly in equity, in
which case they are recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates
enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable
in respect of previous years.
China International Marine Containers (Group) Co., Ltd.
Consolidated financial statements
for the year ended 31 December 2006
Significant accounting policies (continued)
Income tax (continued)
liabilities
deductible
taxable temporary
differences
respectively, being the differences between the carrying amounts of assets and liabilities for
financial reporting purposes and their tax bases.
Deferred tax assets also arise from unused
tax losses and unused tax credits.
Apart from certain limited exceptions, all deferred tax liabilities, and all deferred tax assets to
the extent that it is probable that future taxable profits will be available against which the
asset can be utilised, are recognised.
Future taxable profits that may support the recognition
of deferred tax assets arising from deductible temporary differences include those that will
arise from the reversal of existing taxable temporary differences, provided those differences
relate to the same taxation authority and the same taxable entity, and are expected to reverse
either in the same period as the expected reversal of the deductible temporary difference or in
determining
temporary differences support the recognition of deferred tax assets arising from unused tax
losses and credits, that is, those differences are taken into account if they relate to the same
periods, in which the tax loss or credit can be utilised.
No temporary differences are recognised on the initial recognition of goodwill.
In addition,
the following temporary differences are not provided for:
the initial recognition of assets or
liabilities
affect neither
accounting
business combination), and temporary differences relating to investments in subsidiaries to
the extent, in the case of taxable differences, the Group controls the timing of the reversal
and it is probable that the differences will not reverse in the foreseeable future, or in the case
of deductible differences, unless it is probable that they will reverse in the future.
recognised
realisation or settlement of the carrying amount of the assets and liabilities, using tax rates
enacted or substantively enacted at the balance sheet date.
Deferred tax assets and liabilities
are not discounted.
is reviewed
sufficient
available to allow the related tax benefit to be utilised.
Any such reduction is reversed to the
extent that it becomes probable that sufficient taxable profits will be available.
Additional income taxes that arise from the distribution of dividends are recognised when the
liability to pay the related dividends is recognised.
separately from each other and are not offset.
Current tax assets are offset against current tax
liabilities, and deferred tax assets against deferred tax liabilities, if the Group has the legally
enforceable right to set off current tax assets against current tax liabilities and the following
additional conditions are met:
in the case of current tax assets and liabilities, the Group intends either to settle on a net
basis, or to realise the asset and settle the liab or
China International Marine Containers (Group) Co., Ltd.
Consolidated financial statements
for the year ended 31 December 2006
Significant accounting policies (continued)
Income tax (continued)
in the case of deferred tax assets and liabilities, if they relate to income taxes levied by
the same taxation authority on either:
different taxable entities, which, in each future period in which significant amounts of
liabilities
recovered,
liabilities
realise and settle simultaneously.
Financial guarantees issued, provisions and contingent liabilities
Financial guarantees issued
Financial guarantees are contracts that require the issuer (i.e. the guarantor) to make specified
payments to reimburse the beneficiary of the
guarantee (the “holder”) for a loss the holder
accordance
terms of a debt instrument.
guarantee,
transaction
estimated)
recognised
consideration
received or receivable for the
issuance of the guarantee, the consideration is recognised in
accordance with the Group’s policies
applicable
consideration is received or receivable, an immediate expense is recognised in profit or loss
on initial recognition of any deferred income.
The amount of the guarantee initially recognised as deferred income is amortised in profit or
loss over the term of the guarantee as income from financial guarantees issued.
In addition,
provisions
recognised
accordance
probable that the holder of the guarantee will call upon the Group under the guarantee, and
(ii) the amount of that claim on the Group is expected to exceed the amount currently carried
in trade and other payables in respect of that guarantee i.e. the amount initially recognised,
less accumulated amortisation.
Other provisions and contingent liabilities
Provisions are recognised for liabilities of uncertain timing or amount when the Group has a
constructive
obligation
outflow of economic benefits will be required to settle the obligation and a reliable estimate
can be made.
Where the time value of money is material, provisions are stated at the present
value of the expenditure expected to settle the obligation.
Where it is not probable that an outflow of economic benefits will be required, or the amount
cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the
probability of outflow of economic benefits is remote.
Possible obligations, whose existence
will only be confirmed by the occurrence or non-occurrence of one or more future events, are
also disclosed as contingent liabilities unless the probability of outflow of economic benefits
is remote.
China International Marine Containers (Group) Co., Ltd.
Consolidated financial statements
for the year ended 31 December 2006
Significant accounting policies (continued)
Financial guarantees issued, provisions and contingent liabilities (continued)
Other provisions and contingent liabilities (continued)
A provision for warranties is recognised when the underlying products or services are sold.
The provision is based on historical warranty data and a weighting of all possible outcomes
against their associated probabilities.
Revenue recognition
Provided it is probable that the economic benefits will flow to the Group and the revenue and
applicable,
recognised
Sale of goods
Revenue is recognised when the customer has accepted the goods and the related risks and
rewards of ownership.
Revenue is measured at the fair value of the consideration received or
receivable, net of value added tax or other sales taxes, returns and allowances, trade discounts
and volume rebates.
Sale of properties
Revenue from the sale of properties is recognised when the significant risks and rewards of
transferred
instalments
properties
recognition
under forward sales deposits and instalments received.
Interest income
Interest income is recognised as it accrues using the effective interest method.
Dividend income
Dividend income from unlisted investments is recognised when the shareholder’s right to
receive payment is established.
investments
recognised
investment goes ex-dividend.
Finance lease income
Finance lease income is recognised on a basis of a pattern reflecting a constant periodic rate
of return on the lessors’ net investment outstanding in respect of the finance lease.
Repair and maintenance service income
Revenue is recognised when the related service has been rendered to the customer.
China International Marine Containers (Group) Co., Ltd.
Consolidated financial statements
for the year ended 31 December 2006
Significant accounting policies (continued)
Revenue recognition (continued)
Government grants
Government
recognised
reasonable
conditions
attaching to them.
Grants that compensate the Group for expenses incurred are recognised as
revenue in profit or loss on a systematic basis in the same periods in which the expenses are
Grants that compensate the Group for the cost of an asset are deducted in arriving
at the carrying amount of the asset and consequently are recognised in profit or loss over the
useful life of the asset.
Translation of foreign currencies
transactions
translated
transaction
liabilities
denominated
currencies
translated
Exchange gains and losses are recognised in profit or loss.
Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign
currency are translated using the foreign exchange rates ruling at the transaction dates.
monetary assets and liabilities denominated in foreign currencies that are stated at fair value
translated
determined.
operations
translated
approximating
transactions.
sheet items, including goodwill arising on consolidation of foreign operations acquired on or
after 1 January 2005, are translated into Renminbi Yuan at the foreign exchange rates ruling
differences
recognised
consolidation
acquired before 1 January 2005 is translated at the foreign exchange rate that applied at the
date of acquisition of the foreign operation.
operation,
cumulative
differences
recognised in equity which relate to that foreign operation is included in the calculation of
the profit or loss on disposal.
Finance income and expense
Finance income comprises interest income on funds invested, dividend income, realised and
unrealised gains on trading securities and foreign currency gains that are recognised in profit
borrowings,
realised and unrealised losses on trading securities.
capitalised
attributable
acquisition,
construction
production
necessarily takes a substantial period of time to get ready for its intended use or sale.
China International Marine Containers (Group) Co., Ltd.
Consolidated financial statements
for the year ended 31 December 2006
Significant accounting policies (continued)
Finance income and expense (continued)
capitalisation
qualifying
expenditure
activities that are necessary to prepare the asset for its intended use or sale are in progress.
Capitalisation of borrowing costs is suspended or ceases when substantially all the activities
qualifying
interrupted
Related parties
statements,
considered
the party has the ability, directly or indirectly through one or more intermediaries, to control
the Group or exercise significant influence over the Group in making financial and operating
policy decisions, or has joint control over the G
the Group and the party are subje
the party is an associate of the Group or a jointly controlled entity in which the Group is a
the party is a member of key management personnel of the Group or the Group’s parent, or a
close family member of such an individual, or is an entity under the control or significant
control, joint control or significant influence or
post-employment
plan which
Group or of any entity that is a related party of the Group.
Close family members of an individual are those family members who may be expected to
influence, or be influenced by, that individual in their dealings with the entity.
Earnings per share
The Group presents basic and diluted earnings per share (“EPS”) data for its ordinary shares.
Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of
outstanding
determined
attributable
shareholders and the weighted average number of ordinary shares outstanding for the effects
of all dilutive potential ordinary shares.
Segment reporting
A segment is a distinguishable component of the Group that is engaged either in providing
particular
environment
(geographical
rewards that are different from those of other segments.
China International Marine Containers (Group) Co., Ltd.
Consolidated financial statements
for the year ended 31 December 2006
Significant accounting policies (continued)
Segment reporting (continued)
accordance
information
geographical
information as the secondary reporting format for the purposes of these financial statements.
Segment revenue, expenses, results, assets and liabilities include items directly attributable to
a segment as well as those that can be allocated on a reasonable basis to that segment.
example, segment assets may include inventories, trade receivables and property, plant and
equipment.
Segment revenue, expenses, assets, and liabilities are determined before intra-
intra-group
transactions
are eliminated
consolidation
intra-group
transactions
group entities within a single segment.
Inter-segment pricing is based on similar terms as
those available to other external parties.
Segment capital expenditure is the total cost incurred during the period to acquire segment
assets (both tangible and intangible) that are expected to be used for more than one period.
Unallocated
interest-bearing
borrowings, tax balances, corporate and financing expenses.
Acquisitions of subsidiaries and minority interests
Business combinations
shareholding
RMB1,237,000,
activities
contributed net profit of RMB79,000 to the consolidated profit for the year.
shareholding
Container Transportation Service Co., Ltd. (“DCTS”) and Shanghai Dunhua Container Co.,
Ltd. ("SHDC") respectively for RMB62,601,000 in total, satisfied in cash, which was prepaid
activities
contributed
RMB12,612,000 and RMB3,158,000 respectively to the consolidated profit for the year.
shareholding
RMB800,000,
activities of YZTRC are manufacturing and sales of containers and related services.
the year, YZTRC contributed net loss of RMB19,953,000 to the consolidated profit for the
acquisitions
management
consolidated revenue would have been RMB33,383,526,000 and consolidated profit for the
year would have been RMB3,012,650,000.
China International Marine Containers (Group) Co., Ltd.
Consolidated financial statements
for the year ended 31 December 2006
Acquisitions of subsidiaries and minority interests (continued)
Effect of acquisitions
The acquisitions had the following effects on the Group’s assets and liabilities:
Property, plant and equipment
Lease prepayment - non-current portion
Intangible assets
Investment in an associate
Other financial assets
Lease prepayment - current portion
Inventories
Trade and other receivables
Cash and cash equivalents
Trade and other payables
Current taxation
Bank loans
Provisions
Net identifiable assets and liabilities
Minority interests
Goodwill on acquisition
Consideration paid in 2005, satisfied in cash
Consideration paid in current year, satisfied
Cash acquired
Net cash (inflow)/outflow
===========
The management are of the opinion that the above carrying amounts of acquired assets and
liabilities
materially
respective
acquisitions.
Acquisitions of minority interests
On 1 January 2006 and 31 May 2006, the Group acquired additional 28% and 10% interests
(“NTCIMCT”)
RMB31,635,000
RMB11,229,000 respectively, satisfied in cash, increasing its ownership from 62% to 100%.
The carrying amounts of NTCIMCT’s net assets in the consolidated financial statements on
the respective dates of the acquisitions were RMB231,768,000 and RMB316,507,000.
Group recognised a decrease in minority interests of RMB33,920,000 and goodwill of RMB
8,944,000.
China International Marine Containers (Group) Co., Ltd.
Consolidated financial statements
for the year ended 31 December 2006
Acquisitions of subsidiaries and minority interests (continued)
Acquisitions of minority interests (continued)
On 1 January 2006, the Group acquired an additional 14% interest in Nantong CIMC-Smooth
Sail Container Co., Ltd. (“NTCIMC”) for RMB24,628,000, satisfied in cash, increasing its
consolidated financial statements on the date of the acquisition was RMB151,595,000.
recognised
RMB18,341,000
RMB6,286,000.
On 1 January 2006, the Group acquired an additional 14% interest in Nantong CIMC Special
Transportation
Manufacture
(“NTCIMCS”)
RMB16,509,000,
increasing
NTCIMCS’s net assets in the consolidated financial statements on the date of the acquisition
RMB203,303,000.
recognised
a decrease
RMB13,012,000 and goodwill of RMB3,497,000.
additional
interests in Xinhui CIMC Container Flooring Co., Ltd. (“XHCIMCF”) for RMB34,360,000
and RMB5,294,000 respectively, satisfied in cash, increasing its ownership from 82.94% to
XHCIMCF’s
consolidated
statements on the dates of the acquisition was RMB131,923,000 and RMB134,965,000.
recognised
RMB22,633,000
RMB17,021,000.
On 1 January 2006 and 31 July 2006, the Group acquired additional 20% and 10% interests
in Xinhui CIMC Container Co., Ltd. (“XHCIMC”) for RMB44,700,000 and RMB31,382,000
respectively,
increasing
70%. XHCIMC
subsidiary
XHCIMC’s financial and operating policies in accordance with the terms of relevant profit
agreement.
consolidated
financial statements on the respective dates of the acquisitions were RMB350,606,000 and
RMB364,436,000.
recognised
RMB63,776,000 and goodwill of RMB12,306,000.
On 30 April 2006, the Group acquired an additional 30% interest in CIMC Australia Pty Ltd.
(“CIMCAUS”) for RMB21,302,000, satisfied in cash, increasing its ownership from 70% to
Australia’s net
consolidated
statements
acquisition
RMB20,128,000.
recognised
decrease in minority interests of RMB6,048,000 and goodwill of RMB15,254,000.
additional
Huajun Vehicle Co., Ltd. (“HJCIMC”) for RMB78,370,000, satisfied in cash, increasing its
consolidated financial statements on the date of the acquisition was RMB267,511,000.
recognised
RMB64,076,000
RMB14,294,000.
China International Marine Containers (Group) Co., Ltd.
Consolidated financial statements
for the year ended 31 December 2006
Acquisitions of subsidiaries and minority interests (continued)
Acquisitions of minority interests (continued)
additional
Limited (formerly Clive-Smith Cowley Ltd.) (“DFL”) for RMB45,145,000, satisfied in cash,
increasing its ownership from 60% to 100%.
The carrying amount of DFL’s net assets in the
consolidated financial statements on the date of the acquisition was RMB15,644,000.
recognised
RMB5,345,000
RMB39,800,000.
Revenue represents the sales value of goods supplied to customers and income from sales of
The amount of each significant category of revenue recognised during the year is as
Sales of containers
25,747,309
26,541,661
Sales of trailers
Sales of airport support equipment
Gross proceeds from properties sold
33,199,629
30,938,522
===========
===========
Other income
Finance lease income
Tax refunds from capitalisation of subsidiaries’ earnings
Tax refund / incentive received
Consultancy fee
Compensation income
Net losses on sale of property, plant and equipment
Net gains on sale of scrap materials and spare parts
Net repair and maintenance service income of
containers and trailers
Gains on recognition of negative goodwill
Net gains on disposal of partial interests in subsidiaries
Government grant*
===========
===========
* The Group received a cash government grant from the Land Resources Reserve Center of
RMB195,870,000
compensation
expenditure
Shanghai CIMC Far East Container Co., Ltd. during the year ended 31 December 2006.
China International Marine Containers (Group) Co., Ltd.
Consolidated financial statements
for the year ended 31 December 2006
Profit before taxation
Profit before taxation is arrived at after charging / (crediting):
Finance income and expense
Bank interest income
Dividend income from investments in
equity securities
Net realised and unrealised gains on trading securities
--------------------
--------------------
Interest expense on bank loans
Other borrowing costs
Total borrowing costs
Less: borrowing costs capitalised into
construction in progress and property under
development *
--------------------
--------------------
Net foreign exchange loss
--------------------
--------------------
Net financial income and expense
===========
===========
The borrowing costs have been capitalised at a rate of 5.65% per annum (%).
Staff costs#
Salaries, wages and other benefits
Contributions to defined contribution plans
===========
===========
China International Marine Containers (Group) Co., Ltd.
Consolidated financial statements
for the year ended 31 December 2006
Profit before taxation (continued)
Other items
Amortisation#
- land lease prepayment
- other intangible assets
- timber concession rights
Depreciation #
Impairment losses
- positive goodwill
- prepayment for investments
Increase in provisions
Operating lease charges: minimum lease payments
– hire of property#
Share of associates’ taxation
Cost of inventories # (see note 25(b))
28,458,172
26,134,847
===========
===========
inventories
RMB1,885,157,000
RMB1,406,680,000)
depreciation
amortisation expenses
amount is also included in the respective total amounts disclosed separately above or in
note 7(b) for each of these types of expenses.
Income tax in the consolidated income statement
Taxation in the consolidated income statement represents:
Current tax – PRC income tax
Provision for the year
Over-provision in respect of the prior years
------------------
------------------
Current tax – Overseas
Provision for the year
------------------
------------------
Deferred tax
Origination and reversal of temporary differences
------------------
------------------
===========
===========
China International Marine Containers (Group) Co., Ltd.
Consolidated financial statements
for the year ended 31 December 2006
Income tax in the consolidated income statement (continued)
Taxation in the consolidated income statement represents: (continued)
calculated
15%) on the estimated assessable income of the year determined in accordance with relevant
income tax rules and regulations.
The income tax rates applicable to the Company’s principal subsidiaries in the PRC range
from 7.5% to 33%, and some subsidiaries have been granted a tax holiday for not more than
five years.
The income tax rates applicable to the Company’s overseas subsidiaries range from 17.5%
Reconciliation of tax expense and accounting profit at applicable tax rates:
Profit before taxation
===========
===========
Notional tax on profit before taxation, calculated
at the rates applicable to profits in the tax
jurisdictions concerned
Effect of tax incentive
Tax effect of non-deductible expenses
Tax effect of non-taxable income
Tax effect of unused tax losses not recognized
Over-provision in prior years
Actual tax expense
===========
===========
Key management personnel compensation
The key management personnel compensation is as follows:
Short-term employee benefits
Post-employment benefits
===========
===========
Total compensation is included in “staff costs” (see note 7(b)).
China International Marine Containers (Group) Co., Ltd.
Consolidated financial statements
for the year ended 31 December 2006
Dividends payable to equity shareholders of the Company attributable to the year
Final dividend proposed after the balance sheet
date of cash dividend of RMB0.43 per share
(2005: RMB0.38 per share)
===========
===========
Pursuant to a resolution passed at the directors’ meeting on 15 March 2007, a final dividend
RMB954,025,000
RMB766,447,000)
shareholders’
forthcoming
General Meeting.
The final dividend proposed after the balance sheet date has not been recognised as a liability
at the balance sheet date.
shareholders
attributable
financial year, approved and paid during the year
Final dividend in respect of the previous financial
year, approved and paid during the year, of
RMB0.38 per share (2005: RMB0.50 per share)
===========
===========
Earnings per share
Basic earnings per share
calculation
attributable
shareholders
RMB2,834,288,000
RMB2,807,466,000)
2,218,663,000
2,218,663,000
capitalisation
calculated
Issued shares at 1 January
Effect of capitalisation issue (note 32(b))
Weighted average number of shares at 31 December
===========
===========
Diluted earnings per share
December 2005 and 2006.
China International Marine Containers (Group) Co., Ltd.
Consolidated financial statements
for the year ended 31 December 2006
Segment reporting
Segment information is presented in respect of the Group’s business and geographical segments.
Business segment information is chosen as the
primary format because this is more relevant to the Group’s internal financial reporting.
Business segments
The Group comprises the following main business segments:
Containers: the manufacture and sale of marine containers, dry-freight containers, refrigerated containers and special types of containers, and the
logging and sale of timber for containers business.
Trailers: the manufacture and sale of trailers.
Airport ground facilities: the manufacture and sale of airport ground facilities.
Other operations: the construction and development of properties for sale.
Containers
Airport groundfacilities
Other operations
Inter-se gment elimination
Consolidated
Revenue from
external customers
25,747,309
26,541,661
33,199,629
30,938,522
Inter-segment revenue
25,876,103
26,572,039
33,199,629
30,938,522
Segment result
Unallocated
operating income
and expenses
Profit from operations
Finance income
And expense
Share of profits less
losses of associates
Profit after taxation
China International Marine Containers (Group) Co., Ltd.
Consolidated financial statements
for the year ended 31 December 2006
Segment reporting (continued)
Business segments (continued)
Containers
Airport ground facilities
Other operations
Inter-segment elimination
Consolidated
Depreciation and
amortisation for
Impairment losses of
-positive goodwill
-prepayment for
Investments
Segment assets
15,669,002
12,448,305
20,794,831
16,081,950
Interests in associates
Interest in jointly
controlled entity
Unallocated assets
Total assets
23,335,838
17,020,469
Segment liabilities
(6,646,600)
(4,491,316)
(1,425,325)
(8,258,348)
(5,443,125)
Unallocated liabilities
(1,906,875)
(1,066,372)
Total liabilities
(10,165,223)
(6,509,497)
Capital expenditure
incurred during
China International Marine Containers (Group) Co., Ltd.
Consolidated financial statements
for the year ended 30 December 2006
Segment reporting (continued)
Geographical segments
The Group’s business is managed on a worldwide basis, but participates in three principal economic environments.
America and Europe are the
major markets for the containers business.
Asia and America are the major markets for the trailer business.
Asia is the sole market for the
businesses of property development, and manufacturing and sale of airport ground facilities.
In Suriname, the only business is the logging and
sale of timber.
In presenting information on the basis of geographical segments, segment revenue is based on the geographical location of customers.
assets and capital expenditure are based on the geographical location of the assets.
Other regions
Revenue from
external customers
11,905,333
12,306,749
12,002,414
33,199,629
30,938,522
Segment assets
20,151,510
15,388,341
20,794,831
16,081,950
Capital expenditure
incurred during
China International Marine Containers (Group) Co., Ltd.
Consolidated financial statements
for the year ended 31 December 2006
Property, plant and equipment
Cost or valuation:
At 1 January 2005
-through acquisitions of
subsidiaries (note 4)
Transfer from construction
in progress (note 15)
Exchange adjustments
As 31 December 2005
----------------- --------------- ---------------- -----------------
----------------
Representing:
==========
==========
==========
At 1 January 2006
-through acquisitions of
subsidiaries (note 4)
Transfer from construction
in progress (note 15)
Exchange adjustments
At 31 December 2006
----------------- ---------------
---------------- -----------------
----------------
Representing:
==========
==========
==========
China International Marine Containers (Group) Co., Ltd.
Consolidated financial statements
for the year ended 31 December 2006
Property, plant and equipment (continued)
Accumulated depreciation
and impairment losses:
At 1 January 2005
Through acquisitions of
subsidiaries (note 4)
Charge for the year
Reversal of impairment
losses on disposals
Exchange adjustments
At 31 December 2005
----------------- ---------------
---------------- -----------------
----------------
At 1 January 2006
Through acquisitions of
subsidiaries (note 4)
Charge for the year
Exchange adjustments
At 31 December 2006
----------------- ---------------
---------------- -----------------
----------------
Net book value:
At 31 December 2006
==========
==========
==========
At 31 December 2005
==========
==========
==========
The Group’s buildings are mainly located in the PRC.
seven-year period all the assets are revalued at least once.
Based on a revaluation performed
management
carrying value of the revalued property, plant and equipment did not differ materially from
determined
replacement
transactions
China Intern}