COSCO SHIPPING Development Co., Ltd. — Interim / Quarterly Report 2005

Aug 22, 2005

Listed Company Information

Listed Company Information
CSCL<02866> - Results Announcement China Shipping Container Lines Company Limited announced on 22/08/2005: (stock code: 02866 ) Year end date: 31/12/2005 Currency: RMB Auditors' Report: N/A Interim report reviewed by: Both Audit Committee and Auditors (Unaudited ) (Unaudited ) Last Current Corresponding Period Period from 01/01/2005 from 01/01/2004 to 30/06/2005 to 30/06/2004 Note ('000 ) ('000 ) (Restated) Turnover : 13,495,759 9,894,306 Profit/(Loss) from Operations : 2,760,941 2,203,921 Finance cost : (216,218) (268,971) Share of Profit/(Loss) of Associates : 2,481 3,015 Share of Profit/(Loss) of Jointly Controlled Entities : N/A N/A Profit/(Loss) after Tax & MI : 2,144,010 1,524,186 % Change over Last Period : +40.67 % EPS/(LPS)-Basic (in dollars) : 0.36 0.38 -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : 2,144,010 1,524,186 Interim Dividend : NIL NIL per Share (Specify if with other : N/A N/A options) B/C Dates for Interim Dividend : N/A Payable Date : N/A B/C Dates for (-) General Meeting : N/A Other Distribution for : N/A Current Period B/C Dates for Other Distribution : N/A Remarks: 1. ACCOUNTING POLICIES The accounting policies and methods of computation used in the preparation of this condensed consolidated financial information are consistent with those used in the annual financial statements for the year ended 31 December 2004 except that the Group has changed certain of its accounting policies following its adoption of new/revised Hong Kong Financial Reporting Standards and Hong Kong Accounting Standards ("new HKFRS") which are effective for accounting periods commencing on or after 1 January 2005. Following the adoption of the new HKFRS, certain comparative figures in the interim financial information have been restated or reclassified to conform with the current presentation in the adoption of the new policy. Major effects of adopting new HKFRS are set out as follows: HKAS 16 Property, plant and equipment (i) Vessel repairs and surveys The adoption of HKAS 16 has resulted in a change in the accounting policy relating to the vessel repairs and surveys. Upon acquisition of a vessel, the components of the vessel which are required to be replaced at the next dry-docking are identified and these costs are depreciated over the period to the next estimated dry-docking date. Costs incurred on the subsequent dry-docking of vessels are capitalised and depreciated over the period to the next estimated dry-docking date. When significant dry-docking costs are incurred prior to the expiry of the depreciation period, the remaining costs of the previous dry-docking are written off immediately. In previous years, the components of the vessel which are required to be replaced at the next dry-docking are not separately identified and are depreciated over the estimated useful life of the vessel and dry-docking costs for vessels are charged to the profit and loss account as incurred. This accounting policy has been changed to conform with HKAS 16 and the change has been applied retrospectively. The effect of the changes is summarised below: As at 30 June 2005 31 December 2004 RMB'000 RMB'000 Decrease in opening retained earnings 15,874 7,087 Decrease in fixed assets 20,842 23,693 Decrease in deferred tax liabilities 6,878 7,819 For the year ended For the six months ended 31 December 2004 30 June 2005 30 June 2004 RMB'000 RMB'000 RMB'000 Increase/(decrease) in operating costs 13,115 (2,851) 551 Increase/(decrease) in taxation (4,328) 941 (182) (ii) Residual values of the assets The residual values of assets and their useful lives are reviewed and adjusted if appropriate, at each balance sheet date. During the period, the residual values of fixed assets were reassessed, and accordingly, depreciation charge of fixed assets for the six months ended 30 June 2005 has been calculated based on the revised estimated residual values. This represented a change in accounting estimate and the depreciation charge for the period has been reduced by RMB 51 million. 2. Earnings per share Basic earnings per share is based on the profit attributable to equity holders of the Company of RMB 2,144,010,000 and 6,030,000,000 shares in issue during the period (For six months ended 30 June 2004: profit attributable to equity holders of the Company of RMB 1,524,186,000 and weighted average number of shares of 4,001,456,593). Diluted earnings per share has not been presented as the Company has no potential dilutive ordinary shares during the period. 3. Dividend The directors do not recommend the payment of the interim dividend for the six months ended 30 June 2005.