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中集集团(000039)公告正文

中 集B:2012年半年度报告(英文版)

公告日期 2012-08-25
股票简称:中集集团 股票代码:000039
                                                                                         Semi-Annual Report 2012 of CIMC
            CHINA INTERNATIONAL MARINE CONTAINERS (GROUP) CO., LTD.
                      (Incorporated in the People’s Republic of China)
                                 SEMI-ANNUAL REPORT 2012
                                             I. Important NotesThe Board of Directors, the Board of Supervisors, directors, supervisors and senior executives of ChinaInternational Marine Containers (Group) Co., Ltd. (hereinafter referred to as “the Company”) hereby undertakethat the information and data contained in this report are free from false records, misleading statements orsignificant omissions, and we shall assume individual and joint liabilities for the authentication, accuracy andintegrity of the contents of this report.All directors attended the board session for reviewing this report.The financial report for the first half of 2012 has not been audited by a CPAs firm.Mr. Li Jianhong, Principal of the Company, Mr. Jin Jianlong, Person-in-charge of the accounting work andPerson-in-charge of the accounting organ (Principal of accounting), hereby declare that the financial reportenclosed in this semi-annual report is true and complete.English Translation for Reference Only. Should there be any discrepancy between the two versions, the Chineseversion shall prevail.
                                            II. Company Profile(I)Basic information
    A-share code                  000039                              B-share code                 200039
    A-share abbreviation          ZJJT                                B-share abbreviation         ZJB
    Stock exchange listed with    Shenzhen Stock ExchangeLegal Chinese name of the
                              中国国际海运集装箱(集团)股份有限公司CompanyAbbr. of the legal Chinese
                              中集集团name of the CompanyLegal English name of the
                              CHINA INTERNATIONAL MARINE CONTAINERS (GROUP) CO., LTDCompanyAbbr. of the legal English
                              CIMCname of the CompanyLegal representative of the
                              Li JianhongCompany
                              R&D Center of CIMC, No. 2 Gangwan Avenue, Shekou, Nanshan District, Shenzhen, GuangdongRegistered address
                              Province, P.R.CPostal code for the registered
                               518067address
                               R&D Center of CIMC, No. 2 Gangwan Avenue, Shekou, Nanshan District, Shenzhen, GuangdongOffice address
                               Province, P.R.CPostal code for the office
                               518067addressInternet website of the
                               http://www.cimc.comCompany
    Email address                  shareholder@cimc.com
                                                                                                Semi-Annual Report 2012 of CIMC(II)For contact
                                                          Company Secretary                    Securities Affairs Representative
    Name                                           Yu Yuqun                            Wang Xinjiu
                                               R&D Center of CIMC, No. 2 Gangwan R&D Center of CIMC, No. 2 Gangwan
    Contact address                                Avenue, Shekou, Nanshan District, Avenue, Shekou, Nanshan District,
                                               Shenzhen, Guangdong Province, P.R.C Shenzhen, Guangdong Province, P.R.C
    Tel.                                           (86)755-2669 1130                 (86)755-2680 2706
    Fax                                            (86)755-2682 6579                        (86)755-2681 3950
    E-mail                                         shareholder@cimc.com                       shareholder@cimc.com(III)About information disclosure and where the semi-annual report is placedNewspapers designated by the Company for China Securities Journal, Securities Times, Shanghai Securities News and Hongkong
    information disclosure                   Ta Kung PaoInternet website designated by CSRC for
                                                http://www.cninfo.com.cndisclosing the semi-annual report
    Where the semi-annual report is placed          Company Secretary Office and Financial Management Dept.
                              III. Financial and Business Highlights(I)Major accounting data and financial indexesAny retrospective adjustment in previous financial statements?□ Yes √ No □ InapplicableMajor accounting data
          Major accounting data                Reporting period (Jan.-Jun.)   Same period of last year      Increase/decrease (%)
    Gross operating revenues (RMB’000)                          27,364,446.00                36,478,098.00                     -24.98%
    Operating profit (RMB’000)                                   1,439,124.00                 3,729,782.00                     -61.42%
    Total profit (RMB’000)                                       1,493,051.00                 3,817,519.00                     -60.89%Net profit attributable to shareholders of
                                                                933,710.00                 2,807,629.00                     -66.74%the Company (RMB’000)Net profit attributable to shareholders of
    the Company after deducting non-recurring                       906,470.00                 2,798,284.00                     -67.61%gains and losses (RMB’000)Net cash flow from operating activities
                                                             -2,107,043.00                -4,161,444.00                     -49.37%(RMB’000)
                                                   As at the end of this
                                                                               As at the end of last year   Increase/decrease (%)
                                                    reporting period
    Total assets (RMB’000)                                      65,231,747.00                64,361,714.00                       1.35%Owners’ equity attributable to shareholders
                                                             18,415,496.00                18,633,154.00                       -1.17%of the Company (RMB’000)
    Share capital (share)                                     2,662,396,051.00             2,662,396,051.00                             0%Major financial indexes
          Major financial indexes              Reporting period (Jan.-Jun.)   Same period of last year      Increase/decrease (%)
    Basic EPS (RMB Yuan/share)                                           0.3507                      1.0545                     -66.74%
    Diluted EPS (RMB Yuan/share)                                         0.3495                      1.0545                     -66.86%Basic EPS after deducting non-recurring
                                                                     0.3405                        1.051                      -67.6%gains and losses (RMB Yuan/share)
    Fully diluted ROE(%)                                               5.07%                      15.07%                         -10%
                                                                                                   Semi-Annual Report 2012 of CIMC
    Weighted average ROE(%)                                            4.93%                         16.19%                        -11.26%Fully diluted ROE after deducting
                                                                     4.92%                         15.02%                         -10.1%non-recurring gains and losses(%)Weighted average ROE after deducting
                                                                     4.79%                         16.14%                        -11.35%non-recurring gains and losses(%)Net cash flow per share from operating
                                                                   -0.7914                          -1.563                       -49.37%activities (RMB Yuan/share)
                                                  As at the end of this
                                                                                 As at the end of last year      Increase/decrease (%)
                                                   reporting periodNet assets per share attributable to
    shareholders of the Company (RMB                                    6.9169                          6.9986                        -1.17%Yuan/share)
    Liability/asset ratio(%)                                           68.2%                         66.42%                          1.78%(II)Accounting data differences under the domestic and overseas accounting standards1. Net profit and net asset differences between financial reports disclosed according to the international andChinese accounting standards respectively√ Applicable □ Inapplicable
                                                                                                                           Unit: RMB’000
                                   Net profit attributable to shareholders of listed     Owners’ equity attributable to shareholders of
                                                       company                                          listed company
                                                                                         As at the end of this     As at the beginning of
                                    Reporting period        Same period of last year
                                                                                          reporting period          this reporting periodAs per Chinese accounting
                                               933,710.00                 2,807,629.00           18,415,496.00             18,633,154.00standardsItems and amounts adjusted in accordance with international accounting standards:
    Other                                              557.00                    2,745.00                 -4,771.00                 -5,328.00As per international
                                               934,267.00                 2,810,374.00           18,410,725.00             18,627,826.00accounting standards2. Net profit and net asset differences between financial reports disclosed according to the overseas andChinese accounting standards respectively□ Applicable √ Inapplicable3. Notes to accounting data differences under the domestic and overseas accounting standardsMainly amortization of the revaluation surplus of fixed assets and intangible assets in previous years(III)Items of non-recurring gains and losses√Applicable □Inapplicable
                                              Items                                                      Jan.-Jun. 2012 (RMB’000)
    Gains and losses on disposal of non-current assets                                                                                4,705.00Government grants recognized in the current year, except for those acquired in the ordinary
    course of business or granted at certain quotas or amounts according to the country’s unified                                  36,027.00standardsCapital occupation fees received from non-financial enterprises that are included in current
                                                                                                                                  4,878.00gains and lossesGains and losses on fair value changes of transactional financial assets and liabilities, andinvestment gains on disposal of transactional financial assets and liabilities and
                                                                                                                               -24,854.00available-for-sale financial assets, except for the effective hedging business related to theCompany’s normal operation
                                                                                                      Semi-Annual Report 2012 of CIMC
    Other non-operating incomes and expenses besides the items above                                                                  13,195.00
    Minority interests effects                                                                                                        -2,570.00
    Income tax effects                                                                                                                -4,141.00
    Total                                                                                                                             27,240.00
    IV. Changes in Share Capital and Particulars about Shareholders(I)Changes in share capital1. Statement of changes of shares√Applicable □Inapplicable
                                         Before the change                 Increase/decrease (+, -)                After the change
                                                                               Capitaliz
                                                                   Issuan
                                                                               ation of
                                                        Proportion ce of Bonus                 Subtot                             Proportio
                                        Number                                   public Others                    Number
                                                           (%)      new shares                   al                                 n (%)
                                                                                reserve
                                                                   shares
                                                                                  fundI. Shares subject to trading
                                          372,826.00       0.01%    0.00    0.00      0.00    0.00      0.00        372,826.00        0.01%moratorium
    1. State-owned shares                            0.00         0%    0.00    0.00      0.00    0.00      0.00               0.00         0%2. State-owned legal person
                                                 0.00         0%    0.00    0.00      0.00    0.00      0.00               0.00         0%shares
    3. Other domestic shares                         0.00         0%    0.00    0.00      0.00    0.00      0.00               0.00         0%Including: Shares held by
    domestic      non-state-owned                    0.00         0%    0.00    0.00      0.00    0.00      0.00               0.00         0%legal persons
      Shares      held          by
                                                 0.00         0%    0.00    0.00      0.00    0.00      0.00               0.00         0%domestic individuals4. Shares held by overseas
                                                 0.00         0%    0.00    0.00      0.00    0.00      0.00               0.00         0%shareholdersIncluding: Shares held by
                                                 0.00         0%    0.00    0.00      0.00    0.00      0.00               0.00         0%overseas legal persons
       Shares      held by
                                                 0.00         0%    0.00    0.00      0.00    0.00      0.00               0.00         0%overseas individuals5. Shares held by senior
                                          372,826.00       0.01%    0.00    0.00      0.00    0.00      0.00        372,826.00        0.01%management staffII. Shares not subject to
                          2,662,023,225.00                99.99%    0.00    0.00      0.00    0.00      0.00   2,662,023,225.00     99.99%trading moratorium
    1.     Ordinary          shares
                                     1,231,544,516.00     46.26%    0.00    0.00      0.00    0.00      0.00   1,231,544,516.00     46.26%denominated in RMB2. Domestically listed foreign
                               1,430,478,709.00           53.73%    0.00    0.00      0.00    0.00      0.00   1,430,478,709.00     53.73%shares3. Overseas listed foreign
                                                 0.00         0%    0.00    0.00      0.00    0.00      0.00               0.00         0%shares
    4. Others                                        0.00         0%    0.00    0.00      0.00    0.00      0.00               0.00         0%
    III. Total shares                    2,662,396,051.00        100%   0.00    0.00      0.00    0.00      0.00   2,662,396,051.00       100%2. Changes of shares subject to trading moratorium□ Applicable √ Inapplicable(II)Issuance and listing of securities
                                                                                               Semi-Annual Report 2012 of CIMC1. Securities issues in the previous three years□Applicable √Inapplicable2. Changes of the Company’s share number and structure, as well as the corresponding changes in itsasset-liability structure□Applicable √Inapplicable3. Existing employee shares□Applicable √Inapplicable(III)Shareholders and actual controller1. Total number of shareholders at the end of the reporting periodThe Company had 193,998.00 shareholders in total at the end of the reporting period, including 158,887 shareholders in A shares,and 35,111 shareholders in B shares.2. Shareholding of the top ten shareholders
                                Particulars about shares held by the top ten shareholders
                                                                                 Number of              Pledged or frozen shares
                                                                                 shares held
    Name of shareholder (full  Nature of        Shareholding Total shares held
                                                                                  subject to           Status of       Number of
          name)            shareholder      percentage (%) at the period-end
                                                                                   trading              shares          shares
                                                                                moratorium
    CHINA       MERCHANTS Foreign
    (CIMC)     INVESTMENT corporation                  25.54% 679,927,917.00                  0.00                     -               -LIMITED
    COSCO CONTAINER               Foreign
                                                         16.23%        432,171,843.00         0.00                 -               -
    INDUSTRIES LIMITED            corporation
    COSCO CONTAINER               Foreign
                                                           5.57%       148,320,037.00         0.00                 -               -
    INDUSTRIES LIMITED            corporation
    CMBLSA RE FTIF                Foreign
    TEMPLETON ASIAN               corporation                  3.42%        91,120,810.00         0.00                 -               -GRW FD GTI 5496
    LONG HONOUR         Foreign
                                                           0.95%        25,322,106.00         0.00                 -               -INVESTMENTS LIMITED corporation
    GUOTAI JUNAN       Foreign
    SECURITIES(HONGKON corporation                             0.91%        24,329,264.00         0.00                 -               -G) LIMITEDNEW CHINA LIFEINSURANCE CO.,
    LTD–DIVIDEND         Domestic               non
    DISTRIBUTION–INDIVID state-owned                           0.9%        23,916,943.00         0.00                 -               -
    UAL                   corporationDIVIDEND-018L-FH002SHENCHINA CONSTRUCTION
                   DomesticBANK-CHINA
                   non-state-owned                          0.7%        18,769,117.00         0.00                 -               -ADVANTAGE GROWTH
                   corporationSTOCK FUND
    BANK   OF   CHINA–E
    FUND      SHENZHEN Domestic
    STOCK EXCHANGE 100 non-state-owned                         0.55%        14,734,716.00         0.00                 -               -
    EXCHANGE    TRADED corporationFUNDTEMPLETON EMERGING Foreign
    MARKETS INVESTMENT corporation                             0.48%        12,801,432.00         0.00                 -               -TRUST
    BBH A/C VANGUARD              Foreign
    EMERGING MARKETS              corporation                  0.44%        11,839,498.00         0.00                 -               -STOCK INDEX FUNDParticulars about shares held by the top ten shareholders holding shares not subject to trading moratorium
                                                                                             Semi-Annual Report 2012 of CIMC√Applicable □Inapplicable
                                                  Number of shares held                  Type and number of shares
                                                  not subject to trading
               Name of shareholder
                                                   moratorium at the              Type                      Number
                                                       period-endCHINA MERCHANTS (CIMC) INVESTMENT
                                                         679,927,917.00 B-share                                  679,927,917.00LIMITED
    COSCO CONTAINER INDUSTRIES LIMITED                       432,171,843.00 A-share                                  432,171,843.00
    COSCO CONTAINER INDUSTRIES LIMITED                       148,320,037.00 B-share                                  148,320,037.00CMBLSA RE FTIF TEMPLETON ASIAN GRW
                                                          91,120,810.00 B-share                                      91,120,810.00FD GTI 5496
    LONG HONOUR INVESTMENTS LIMITED                           25,322,106.00 B-share                                      25,322,106.00GUOTAI JUNAN SECURITIES(HONGKONG)
                                                          24,329,264.00 B-share                                      24,329,264.00LIMITEDNEW CHINA LIFE INSURANCE CO.,LTD–DIVIDEND
                                                          23,916,943.00 A-share                                      23,916,943.00DISTRIBUTION–INDIVIDUALDIVIDEND-018L-FH002 SHENCHINA CONSTRUCTION BANK-CHINA
                                                          18,769,117.00 A-share                                      18,769,117.00ADVANTAGE GROWTH STOCK FUNDBANK OF CHINA–E FUND SHENZHEN
    STOCK   EXCHANGE  100 EXCHANGE                            14,734,716.00 A-share                                      14,734,716.00TRADED FUNDTEMPLETON EMERGING MARKETS
                                                          12,801,432.00 B-share                                      12,801,432.00INVESTMENT TRUSTBBH A/C VANGUARD EMERGING MARKETS
                                                          11,839,498.00 B-share                                      11,839,498.00STOCK INDEX FUNDExplanation on associated relationship among the top ten shareholders or/and acting-in-concert:Note 1: Association relationship and acting-in-concert person relation exist between COSCO Container Industries Limited and LongHonour Investments Limited, where COSCO Container Industries Limited is subordinate wholly-owned subsidiary of COSCOPacific Limited under COSCO Group; Long Honour Investments Limited is subordinate wholly-owned subsidiary of COSCO HongKong (hereinafter refer to as “COSCO Hong Kong”)under COSCO Group; These two and other shareholders are notacting-in-concert person specified in “Regulatory Provisions on Disclosure of Information on Shareholding Change of Shareholdersfor Listed Companies”.Note 2: The Company is not aware of whether association relationship exists between other shareholders and whether they areacting-in-concert person as specified in “Regulatory Provisions on Disclosure of Information on Shareholding Change ofShareholders for Listed Companies”.3. Controlling shareholder and actual controller(1)Change of the controlling shareholder and actual controller□Applicable √Inapplicable(2)Particulars about the controlling shareholder and actual controllerThe Company has no shareholder (controlling shareholder) with a shareholding over 30%.Is there a new actual controller?□ Yes √ No □ InapplicableParticulars:(1) China Merchants (CIMC) Investment Limited is the wholly-owned subsidiary of China Merchants Holdings (International)Limited. China Merchants Group Limited holds 55.14% equity of China Merchants Holdings (International) Limited. ChinaMerchants (CIMC) Investment Limited holds 25.54% equity of CIMC. Therefore China Merchants (CIMC) Holdings Limitedactually holds 25.54% equity of CIMC.(2) As a liability limited company incorporated in British Virgin Islands, COSCO Container Industries Limited is a wholly-ownedsubsidiary under COSCO Pacific Limited. COSCO Pacific Investment Holdings Limited holds 42.71% equity of COSCO PacificLimited. COSCO Pacific Investment Holdings Limited is a subordinate wholly-owned subsidiary under China COSCO HoldingsLimited and COSCO Group holds 52.80% equity of China COSCO Holdings Limited. COSCO Container Industries Limited held21.80% equity of CIMC through COSCO Containers Industries Limited; Long Honour Investments Limited is a subordinatewholly-owned subsidiary under COSCO Hong Kong and holds 0.95% equity of CIMC.
                                                                                        Semi-Annual Report 2012 of CIMC(3) Property and controlling relation between actual controller and CIMC(4)The actual controller controls the Company via trust or other ways of asset management.□Applicable √Inapplicable4. Other corporate shareholders with a shareholding over 10%√Applicable □Inapplicable
                                                                                                       Registere
                                                                                                        d capital
                                           Legal         Incorporated     Main operating business or
    Name of corporate shareholder                                                                        (RMB Currency
                                       representative        date          management activities
                                                                                                          Ten
                                                                                                       thousand)
                                  Huang Qianru,China Merchants (CIMC) Investment
                                  Zhang Rizhong,        17 Jan. 1995    Investment and holding               1    HKDLimited
                                  Lin Wuliu
                                     Chen Keng, Zhang
    COSCO Container Industries Limited                    26 Apr. 2004      Investment and holding           0.0001   USD
                                     Jie, Xu Jian(IV)Convertible corporate bonds□Applicable √Inapplicable
                   V. Directors, Supervisors and Senior Management
                                                                                                                                                                                           Semi-Annual Report 2012 of CIMC(I)Shareholding changes of directors, supervisors and senior management
                                                                                                                                                                                                                           Receives
                                                                                                                                                                            Including:
                                                                                                      Number of            Number of       Number of      Number of                         Number of                      payment
                                                                                                                                                                            Number of                       Reason
                                                                                                     share held at share added             share sold     share held at                    share options                   from the
                                                    Beginning date of       Ending date of office                                                                           restricted                         of
    Name        Office title Gender Age                                                                      the           during the      during the         the                             granted in                  shareholder
                                                      office term                  term                                                                                       shares                       moveme
                                                                                                     period-begin            period          period       period-end                       the reporting                 unit or other
                                                                                                                                                                              granted                          nt
                                                                                                       (share)           (share)       (share)       (share)                           period                         related
                                                                                                                                                                            (share)
                                                                                                                                                                                                                         organizations
              Director and
    Mai Boliang                     Male         53    01 Apr. 2010             01 Apr. 2013               494,702.00                  0.00            0.00    494,702.00       371,026.00 3,800,000.00 -                    No
              president
              Vice
    Liu Xuebin                      Male         53    01 Apr. 2010             01 Apr. 2013                     2,400.00              0.00            0.00       2,400.00         1,600.00 1,500,000.00 -                   No
              president
    合计              --            --       --             --                       --                                                                                                                        --               --Equity incentives granted to directors, supervisors and senior management during the reporting period√Applicable □Inapplicable
                                                          Number of           Exercisable        Number of                                                   Number of          Number of
                                          Number of                                                                                        Number of                                              Granting price         Number of
                                                         share options         number of        share options          Exercise price                        restricted          restricted
                                         share options                                                                                    share options                                           of the restricted       restricted
    Name            Office title                        granted in the share options in exercised in the                 (RMB                             shares held at     shares granted
                                          held at the                                                                                      held at the                                             shares (RMB          shares held at
                                                           reporting         the reporting       reporting              Yuan/share)                              the          in the reporting
                                         period-begin                                                                                      period-end                                               Yuan/share)         the period-end
                                                            period              period              period                                                  period-begin          period
                 Director and
    Mai Boliang                               3,800,000.00               0.00                0.00                0.00               11.58      3,800,000.00                0.00                0.00                     -                0.00
                 presidentZhao
                 Vice president           1,500,000.00               0.00                0.00                0.00               11.58      1,500,000.00                0.00                0.00                     -                0.00Qingsheng
    Liu Xuebin       Vice president           1,500,000.00               0.00                0.00                0.00               11.58      1,500,000.00                0.00                0.00                     -                0.00
                                                                                                         Semi-Annual Report 2012 of CIMC
    Wu Fapei       Vice president    1,000,000.00   0.00   0.00   0.00        11.58    1,000,000.00   0.00   0.00            -         0.00
    Li Yinhui      Vice president    1,000,000.00   0.00   0.00   0.00        11.58    1,000,000.00   0.00   0.00            -         0.00
    Yu Ya          Vice president    1,000,000.00   0.00   0.00   0.00        11.58    1,000,000.00   0.00   0.00            -         0.00
    Zhang Baoqing Vice president     1,000,000.00   0.00   0.00   0.00        11.58    1,000,000.00   0.00   0.00            -         0.00
               Company
    Yu Yuqun                         1,000,000.00   0.00   0.00   0.00        11.58    1,000,000.00   0.00   0.00            -         0.00
               Secretary
               GM of the
               Financial
    Jin Jianlong                     1,000,000.00   0.00   0.00   0.00        11.58    1,000,000.00   0.00   0.00            -         0.00
               Management
               Dept.
               GM of the
               Capital
    Zeng Beihua                      1,000,000.00   0.00   0.00   0.00        11.58    1,000,000.00   0.00   0.00            -         0.00
               Management
               Dept.
    Total                  --       13,800,000.00   0.00   0.00   0.00   --           13,800,000.00   0.00   0.00     --
                                                                                                       Semi-Annual Report 2012 of CIMC(II)Post-holding particularsPost-holding in shareholders units√Applicable □InapplicableName ofthe person
    holding                                                                                                                Receives payment
                                                           Position in the     Beginning date of       Ending date of
    any post in        Name of the shareholder unit                                                                       from the shareholder
                                                          shareholder unit        office term           office term
    any                                                                                                                        unit?shareholde
    r unit
                                                         Directing
              China Merchants Group Limited                                   23 Aug. 2010         -                    Yes
                                                         PresidentLi
                                                         Executive
    Jianhong      China Merchants Holdings (International)
                                                         Director and Vice 14 Oct. 2012            -                    No
              Limited
                                                         Chairman
                                                         Vice GM and
              COSCO                                                           17 Feb. 2011         -                    Yes
    Sun                                                      Party member
    Jiakang                                                  Executive
              China COSCO Holdings Co., Ltd.                                  17 May 2011          -                    No
                                                         Director
                                                         Vice GM and
              COSCO                                                           17 Feb. 2011         -                    Yes
                                                         Party memberXu Minjie
                                                         Executive
              China COSCO Holdings Co., Ltd.                                  17 May 2011          -                    No
                                                         Director
                                                         Vice ChairmanWang
              COSCO Pacific Limited                      and Managing         11 Jul. 2011         -                    YesXingru
                                                         Director
                                                         GM of the
                                                         Enterprise           1 Feb. 2011          -
              China Merchants Group Limited                                                                             Yes
                                                         Planning Dept.Wang
    Hong                                                     Chief Economist      1 Feb. 2012          -
              China Merchants Holdings (International)
                                                         Director             1 May 2005           -                    No
              Limited
    Lu Shijie COSCO Pacific Limited                          CFO                  14 Jan. 2008         -                    Yes
    Huang         China Merchants Holdings (International)
                                                         Vice GM              01Nov. 2004          -                    Yes
    Qianru        LimitedPost-holding in other units√Applicable □InapplicableName ofthe person
                                                          Position in other    Beginning date of       Ending date of    Receives payment
    holding               Name of other unit
                                                                unit              office term           office term       from other unit?any post inother units
                                                                                              Semi-Annual Report 2012 of CIMC
    Li          China Merchants Energy Shipping
                                                      Chairman             01 Nov.2010    -               No
    Jianhong    Co., Ltd.
            COSCO Container Lines Company
                                                      Chairman             9 Jan. 2012    -               No
            LimitedXu Minjie
            COSCO Logistics Co., Ltd                  Chairman             9 Jan. 2012    -               No
            COSCO Korea Co., Ltd.                     Chairman             17 Jan. 2012   -               No
            COSCO Pacific Investment Holdings
                                                      Director             12 Aug. 2011   -               No
            Limited
            COSCO H.K. Investment Co., Ltd            Director             12 Aug. 2011   -               No
            Concurrent positions in 34Wang
            subordinates of COSCO Pacific             Director/Chairman 11 Jul. 2011      -               NoXingru
            Limited
            Concurrent positions in 8 joint control
                                                      Director/Chairman
            entities and affiliated companies                              11 Jul. 2011   -               No
                                                      /Vice Chairman
            under COSCO Pacific Limited
            China Merchants Energy Shipping
                                                      Director             11 Apr. 2011   -               No
    Wang        Co., Ltd
    Hong        China Merchants Property
                                                      Director             14 Oct. 2011   -               No
            Development Co., Ltd.
            Beijing Jiaotong University               Professor and
                                                      doctor tutor of
                                                      School of
                                                      Economics and
                                                      Director of
    Ding                                                  Chinese
                                                                           01 Jun. 2007   -               Yes
    Huiping                                               Enterprise
                                                      Competitive
                                                      Power Research
                                                      Center in Beijing
                                                      Jiaotong
                                                      University
            King & Wood Law Firm                      Senior partner       01 Jul. 2002   -               Yes
            Invesco Great Wall Fund                   Independent
                                                                           01 Jun. 2003   -               Yes
            Management Company Limited                Director
    Jin         Gemdale (Group) Co., Ltd.                 Independent
                                                                           01 Oct. 2010   -               Yes
    Qingjun                                               Director
            Shenzhen Arbitration Committee            Arbitrator           01 Oct. 2009   -               Yes
            China International Economic and
                                                      Arbitrator           01 Jul. 2007   -               Yes
            Trade Arbitration Commission
                                                                                                  Semi-Annual Report 2012 of CIMC
              Shenzhen Jing’an Culture              Chairman
    Xu Jing’an                                                             16 Apr. 1998          -                  Yes
              Communication Co., Ltd.
              Antwerp Gateway NV                                        08 Sep. 2008          -                  No
                                                     Director
              Suez Canal Container Terminal S.A.E.                      10 Oct. 2011          -                  No
              COSCO Ports (Antwerp) NV                                  10 Jun. 2010          -                  No
              COSCO Ports (Greece) S.à r.l.                            17 Dec. 2008          -                  No
              COSCO Ports (Panama) Limited                              15 May. 2008          -                  No
              COSCO Ports (Services) Limited                            01 Feb. 2009          -                  NoLu Shijie
              COSCO Ports Services (Guangzhou)
                                                     Director/Chairman 12 Feb. 2009           -                  No
              Limited
              Florens Container Holdings Limited                        19 Dec. 2011          -                  No
              Piraeus Container Terminal S.A.                           10 Nov. 2008          -                  No
              Xiamen Ocean Gate Container
                                                                        16 Dec. 2008          -                  No
              Terminal Co., Ltd.(III)Remuneration for directors, supervisors and senior managementDecision-making
    procedure for the            As stipulated in the Articles of Association, the remuneration for directors and supervisors isremuneration of directors, determined by shareholders meetings and that for senior management is determined by the Board of
    supervisors and senior       Directors. In the reporting period, CIMC senior management get paid in CIMC or subsidiaries.management
                             CIMC has established a complete remuneration system and incentive mechanism. First, we implement
                             annual-salary system for directors, supervisors and senior management who work for and get paid from
                             CIMC. Secondly, CIMC board of directors formulates “CIMC Leading Group Measurement andBasis for determining the
                             Management Regulations” at the beginning of each year to implement performance measurement forremuneration of directors,
                             relevant personnel and determine performance-based incentive amount at the end of each year.supervisors and senior
                             Shareholders’ meeting authorizes the Board of Directors to determine the remuneration of chairman andmanagement
                             President Mai Boliang in compliance with “CIMC Leading Group Measurement and Management
                             Regulations” and president formulates proposals for performance-based bonus for other senior
                             management subject to approval by Remuneration Council under the Board of Directors.
                             Of the 8 directors, Mr. Mai Boliang holds the position as president and gets paid in CIMC and CIMC
                             paid no remuneration to any other directors in the reporting period. Based on approval by theActual payment of the
                             shareholders meeting and board of directors, independent directors Ding Huiping, Jin Qingjun and Xuremuneration of directors,
                             Jing’an received RMB 120,000 as subsidy for independent directors in reporting period, while CIMCsupervisors and senior
                             paid no remuneration to any other independent directors in the reporting period. As staff supervisor, Mr.management
                             Feng Wanguang gets paid in CIMC and no remuneration was paid to other supervisors in the reporting
                             period. Senior executives get paid by the Company on a monthly basis.
                                                                                                Semi-Annual Report 2012 of CIMC(IV)Change of directors, supervisors and senior management
    Name              Position          Way of change       Date of change                       Reason for change
                                                                            Due to his personal career plan, he resigned as director
    Sun Jiakang Vice Chairman             Resignation       2 Feb. 2012
                                                                            and vice chairman of the Company.
                                                                            The Board of Directors nominated him at the re-election
    Xu Minjie    Vice Chairman            Re-election       6 Mar. 2012         and the relevant proposal was reviewed and approved at a
                                                                            special general meeting.(V)Employees
    Number of on-job employees                                                                                                     64,323Number of retired employees for whom the Company shall bear
                                                                                                                                  124expenses
                                                           Function structure
                            Type of function                                              Number of personnel
    Management                                                                                                                     314.00
    Production                                                                                                                   40,421.00
    Sale                                                                                                                          2,231.00
    Technical                                                                                                                     2,373.00
    Financial                                                                                                                      913.00
    Administration                                                                                                               18,071.00
                                                           Level of education
                        Level of education                                                Number of personnel
    Doctors                                                                                                                         25.00
    Masters                                                                                                                        715.00
    Bachelors                                                                                                                     6,799.00
    Junior college graduates                                                                                                      7,240.00
    High school graduates and below                                                                                              49,544.00
                                   VI. Report of the Board of Directors(I)Discussion and analysis by the managementAnalysis to operating results and financial data:
                                                                                                                    Unit: RMB’000
                     Item                              Jan.-Jun. 2012             Jan.-Jun. 2011             Increase/decrease ratio
                                                                                                                       (%)
    Operating revenues                                             27,364,446                   36,478,098                        -24.98%
                                                                                   Semi-Annual Report 2012 of CIMC
    Operating profit                                      1,439,124                  3,729,782                  -61.42%
    Net profit attributable to shareholders of             933,710                   2,807,629                  -66.74%the Company
    Net cash flows from operating activities             -2,107,043                 -4,161,444                  -49.37%
    Net increase in cash and cash equivalents            -2,658,816                  1,306,970                 -303.43%For the first half of the year, the Company achieved operating revenues of RMB 27,364,446,000, down 24.98%over the same period of last year; and net profit attributable to shareholders of the Company of RMB 933,710,000,down 66.74% from a year earlier. This is mainly because the first quarter in a year was usually a slack season forcontainer demand and the first quarter of 2012 saw a demand weaker than normal years; the relatively peak seasonfor demand kicked off in the second quarter, but the business figures for the same period of last year were higherthan normal, so a considerable year-on-year drop was caused in the business performance.When compared with the same period of last year, in the first half of 2012, the Group’s container production scalewas smaller, with accounts receivable and expense on raw material procurement decreasing accordingly, as wellas decreased operating capital. However, when compared with the end of 2011, the operating capital utilizationrate increased while net cash flows from operating activities decreased. Affected by rising capital expenses, theliability ratio of the Company increased over the end of 2011. As at 30 Jun. 2012, the overall liability ratio of theCompany stood at 68.20%, with the liability/equity ratio being 214.48%.Discussion and analysis of significant events——Macro-economy, prosperity degree of the industry, as well as its influenceIn the first half year, the global economy remained weak, main economy entities grew lower than expected; theeuro-zone’s debt crisis continuously extended, financial risk raised, demands kept dropping down, and thepressure of global economy recovery further increased. There’s still much uncertainty faced by the economy.According to the World Economic Outlook issued by IMF in Jul. 2012, it’s anticipated that global economygrowth rate in 2012 would be 3.5%, the growth rate of advanced economies would be 1.4% growth, and thegrowth rate of emerging and developing economies would decrease to 5.6%. In the first half year, domesticeconomy growth slowed down, with YoY growth of GDP in Jan-Jun recording 7.8%. The export volume of Chinaincreased by 9.2% YoY, representing large expansion of trade deficit. Cargo throughput of ports in national scaleor larger scale increased by 7.2% YoY. In line with custom statistics, in the first half year of 2012, anaccumulation of 1.27 million containers were exported from China, representing a YoY decrease of 26.5%.Dragged down by euro-zone debt crisis and influenced by the downturn of shipping industry, shipping creditsqueezed, revenue of main shipping companies decreased, and their operating cost increased. The way ofcontainer demands from main shipping companies were still in rental. Main customers purchasing containers weremainly companies renting containers, which took 70% proportion of the total demand volume of purchase orders.In 2012 to 2013, a great number of shipping capacity were still input, resulting in a remaining status where supplyexceeded demand. In consideration of absorbing surplus capacity, saving fuel cost, and reducing carbon emission,shipping companies still kept low-speed policy. In the first half year, the container rate of shipping industryreached low level, leading to low possibility of continuous low container rate in future. In Jul. 2012, CLARKSON,a Britain institution analyzing trends of shipbuilding and ocean shipping updated its forecast, anticipating that thegrowth rate of container trade for this year would decrease to 5.9% as affected by the sustainable euro-zone debtcrisis and the recovery slowdown of main economies in the world, and that the global trade volume of containers
                                                                                  Semi-Annual Report 2012 of CIMCin this year would reach 160 million TEU.In this year, the overall capacity of the industry increased much, and the competition landscape in containerindustry remained stable. Capacity of dry van containers and refrigeration containers increased by differentdegrees, and capacity of special containers kept stable. In the first half year, affected by the weakness of overallindustrial demand, the factor of Spring Festival, as well as the structural shortage in domestic labor market, mainmanufacturers could only realize partial double-class production, the capacity utilization rate of standard dry vancontainers recorded obvious YoY decrease, the capacity utilization rate of refrigeration containers glided down,and the capacity utilization rate of special containers was relatively stable. In the first half year, productionvolume of containers of the total industry reached about 1.42 million TEU, of which the production volume ofstandard dry van containers was about 1.21 million TEU, the production volume of registered containers wasabout 70 thousand units, and the production volume of special containers was 38 thousand units.In the first half year of 2012, Chinese economy growth continued to decelerate, industrial production decreased,and the growth infrastructure construction and property investment slowed down, leading to continuousdecreasing trend in market demand for special vehicles in China as in 2011. Thereinto, the demand for logisticspecial vehicles dropped by around 20%, and the demand for engineering special vehicles dropped by 40%.Facing the severe market trend, enterprises in the industry successively chose volume over profit, bringing aboutmore competitive industrial competitions. The oversea market kept overall restorative growth trend, and the northAmericas market particularly achieved strong recovery.In the first half year, the demand in global ocean engineering market kept high prosperity. According toincomplete statistics, in the first half year, orders in global ocean engineering market reached USD 28 billion,taking 55% proportion of the total trade volume for the whole last year. New oil service companies acted actively.In view of order structure, orders for drilling platforms decreased, and orders for production platforms obviouslyincreased. In the first half year, 27 drilling platforms, which accounted for 30% of the total volume of last year,were traded; 12 units of production platforms were newly built and refitted, exceeding the whole volume of lastyear and recording record-high; and the market of ocean engineering ships kept at the normal level of recent years,with 150 ships traded, maintaining the same as compared with same period of last year. In the first half year, asinvestors held excessively pessimistic expectation for the prospect of market demand, the price of crude oil, thewind vane for development of ocean oil and gas, fell largely. However, at present, the international oil price stillkeeps at a high level of USD 100, showing that the development of deep-sea oil and gas will still be highly active.In the second half year, although some uncertainty in politics and economy will exist, the external environment ofocean engineering industry will keep stable. The international oil price is expected to remain high, which will giveremaining high enthusiasm for petroleum companies to invest the upstream industry of oil and gas. After the oilleakage in the Gulf of Mexico, the regulatory and standard requirements for deep-sea exploration of countries likethe USA and Brazil becomes more and more strict. Current drilling equipment may not meet the new standards,and as a result, the update speed of old equipment in the world will further accelerate.——Changes in industry policies, laws and regulation of the Government and the influence thereofIn Jul. 212, the Ministry of Industry and Information Technology issued the Notice on Establishing ExitMechanism in Vehicle Industry, which firstly established the exit mechanism for behindhand enterprises inChinese vehicle industry, and would remit the loose, chaotic, and inferior competition landscape in the industry ofspecial vehicles.The government has planned to raise the consumption proportion of natural gas to primary energy from 4% at
                                                                                   Semi-Annual Report 2012 of CIMCpresent to 9% in 2015 and 15% in 2020. The growth prospect in energy field, especially natural gas field, is clear.As planned by National Development and Reform Committee, by 2015, China will have basically builttransportation network of national natural gas pipelines with diversified resources, flexible control, and stablesupply, effectively ensuring the huge future demand for natural gas in China in terms of delivery link.In the first half year, significant middle-to-long term policies in national ocean engineering industry weresuccessively promulgated, creating a fine policy environment for healthy development of Chinese oceanengineering industry and business of ocean engineering equipment of the Group. In Feb. 2012, the nationalMiddle-to-long Term Development Plan for Manufacture of Ocean Engineering Equipment (planning period is2011~2020) was issued. The Plan put forward development targets – the first, the industry scale shall be amongthe world’s largest, with annual sales revenue achieving over RMB 200 billion and market share of developmentequipment of ocean oil and gas in the world reaching 20% in 2015. The Development Plan for High-endEquipment Manufacture in the Twelfth Five-year Period issued in May clearly defined the focus of oceanengineering equipment in the twelfth five-year period is the breakthrough in key technologies of 3,000-meterdeep-water equipment. The CIMC ocean engineering not only equips with the construction capability for3,000-meter water-depth semi-submersible drilling platforms, but also has regarded deep-water semi-submersibleplatforms as one of the key developing and strategic directions of the Company. In Jul, the State Council officiallypromulgated the Development Plan for National Strategic Emerging Industries in the Twelfth Five-year Period,and clearly described the path for future development of the industry of ocean engineering equipment – in 2015,the capability of independently designing and establishing deep-water ocean engineering equipment and thesupporting capacity for key equipment shall be preliminarily possessed, and the products shall own internationalcompetitiveness. In 2020, the capability of independently designing and establishing deep-water oceanengineering equipment and the supporting capacity for key equipment shall be comprehensively possessed.Whether the Company’s actual business performance is 20% lower or higher than any earning forecast or businessplan for the reporting period which has been publicly disclosed earlier:□ Yes √ No □ InapplicableAnalysis for operating status and business performance of the Company’s main businessesIn the reporting period, the operating status of the Group’s main businesses is summarized as below:The Company and its subsidiaries (jointly referred to as “the Group” hereinafter) is mainly engaged inmanufacture and services in relation of modern traffic transportation equipment, energy, chemical, liquid foodequipment and ocean engineering equipment. In particular, these equipments are mainly involved in design,manufacture and service for dry van containers meeting international standards, refrigeration containers, regionalspecial containers, tank containers, container wood floor, road tank transportation vehicles, gas equipment andstatic storage tank, road transportation vehicles, jack up drilling platforms, semi-submersible drilling platforms,special ships, and airport equipment. Other than the above, the Group is also engaged in manufacture and serviceof logistic equipment, manufacture of freight train, real estate development, financing and leasing, etc. At present,the production and sales volume of standard dry van containers, refrigeration containers, and tank containers ofthe Group keeps ranking No.1 in the world. The Group is also the largest manufacturer of road transportationvehicles in China, and one of the major enterprises manufacturing ocean engineering equipment in China.
                                                                                  Semi-Annual Report 2012 of CIMCProducts contributing over 10% operating revenue or operating profit of the Group are containers, roadtransportation vehicles, as well as equipment of energy, chemical, and liquid food.——Container businessBesides container manufacture, the Group engages in container service, including service like stockpiling,maintenance, refurbishment, and new service like old-for-new trade and retrofitting of old containers. In the firsthalf year, sales volume of normal dry van containers of the Group accumulated to 557.8 thousand TEU,representing a YoY decrease of 42.92%. Sales volume of refrigeration containers accumulated to 81.5 thousandTEU, representing a YoY decrease of 7.91%. Sales volume of special containers (excluding tank containers andpallet containers) accumulated to 33 thousand units, representing a YoY decrease of 22.54%. In the first half year,container business achieved operating revenue of RMB 13,671,291,000, representing a YoY decrease of 37.65%.Net profit reached RMB 800,076,000, representing a YoY decrease of 72.57%.In the first half year, the demand in container market in the first quarter shows weakness, and obviously rose againin the second quarter, entering the relative peak season. The price gradually rose as the demand entered into thepeak season, and the price of dry van containers in the second quarter started to bottom out, approaching USD2,600/standard container in the end of Jun. Due to the low price of steels, the expansion of production scale, aswell as its price appreciation, the gross profit of containers rose rapidly.In the first half year, in terms of container business, the Company implemented strategy upgrade, transformedtraditional production craft process, improved automation level, lowered down labor intensity, adhered to theconcept of “safety, green, intelligence, and lightweight”, focused on promoting new environment-friendlytechnologies, such as water paint and bamboo floor, realized energy-saving and emission reduction; and continuedto propel forms like lean production and ONE management with the purpose of improving production efficiency.On the other hand, the Group positively enlarged new businesses, and put efforts on developing modulararchitecture.Respecting to product development in modular architecture, the Group realized the transformation from overseasdesign to independent design, developed many core technologies, gained totally independent intellectual property,and gradually established its unique competitiveness. As for modular architecture business, the Group will dependon its globalized operation system to combine the brands, design, marketing resources in mainstream markets inEurope and America with the advantages of Chinese manufacturing, and rely on the operating mode of “integrateddesign, factory manufacture, and field installation” to show the concepts of new environment protection andrepresent the new trends of industry development. The developing space would be large. The business of modulararchitecture could synchronically develop with other businesses of the Group, and has become a key part instrategic business combinations of the Group.——Business of road transportation vehiclesIn terms of business of road transportation vehicles, the Company has established 29 production bases extendingfrom North Americas, Europe, Australia, and Southeast Asia to central China, east China, south China, northChina, northwest China, and northeast China, and founded a marketing system covering 530 distributors and 4Sstores, as well as over 580 service stations. The Group now possesses annual capacity scale exceeding 230thousand units of all kinds of vehicles, and has ranked No.1 in production and sales volume since 2006.In the first half year, as affected by the slowdown of growth in domestic economy, vehicle business of the Groupdescended largely in product sales and operating revenue. In the first half year, sales volume of road
                                                                                   Semi-Annual Report 2012 of CIMCtransportation vehicles accumulated to 53.5 thousand units (sets), decreasing 39.68% YoY; the sales revenuereached RMB 6,821,294,000, decreasing 29.62% YoY; and the net profit reached RMB 86,026,000, decreasing75.03% YoY.Despite the severe trends of decreasing market demand and more competitive industrial competitions, the Groupmaintained its No.1 market position in China. Thereinto, the market share of main products, including flat-bedtrucks, bulk lorries, self-discharging wagons, powder tank vehicles, refrigeration vehicles, liquid tank vehicles,topped the list in the industry. The oversea market kept overall restorative growth trend, and the north Americasmarket particularly achieved strong recovery. As for vehicle business of the Group, the market share of skeletonvehicle products kept No.1 in the market of Americas, and the production and sales volume of refrigerationvehicles in the market of Americas exceeded 1,000 units.In the first half year, in terms of vehicle business of the Group, the Group kept concentrating on resourceintegration, improved asset operation efficiency and profitability of the Company; continued to advanceconstruction of marketing network, enriched distribution channels; expanded capacity of refrigeration vehicles inJi’nan and Qingdao in Shandong province; steadily progressed investment on and construction of the vehiclelogistic park, established markets of commercial vehicles in cities which are logistics centers, such as Chengdu,Xi’an, Shanghai, and Shenzhen; and reinforced investment on new products, including snow removal trucks andcleaning tankers. The Group has finished the development, manufacture, and preparation for product launch in themarket of the 3rd-generation semi-trailers, which represents the technology development direction of specialvehicles in the world, and is scheduled to be shown in the auto show in Hanover, Germany in Sept. The3rdgeneration semi-trailers will also be launched in China and Europe.It is expected that the overall operating environment of the enterprise in the second half year of 2012 would besimilar with that in the first half year. Domestic infrastructure construction and real estates, the two core upstreamindustries, will maintain stable growth and continue to pull the demand for special vehicles. In overseas market,especially in traditional market of Europe and America, the restorative growth trend will maintain. In emergingmarkets, such as Southeast Asia, the Middle East, Africa, and South America, the growth trend will keep havinghigh prosperity. In the background of ease economy growth, it is expected that the price of bulk materials, forexample, steel, will fluctuate around low level, which will be good for the Group to keep low purchase cost.In the first half year, domestic economy growth further slowed down, and the domestic market of heavy trucksencountered downturn. Business of heavy trucks of C&C Trucks Co., Ltd., of which 45% equity is held by theCompany, also faced great pressure. In the first half year, the sales revenue exceeded RMB 300 million, but theCompany still faced losses. However, the Company adjusted operation strategies in time, and still made someprogress. The Company adjusted market positioning of products, lowering down product weight and pulling upvehicle sales by developing middle-to-large weight products and lightweight products. The Company positivelytook advantage of resources from shareholders, aimed at big clients in the industry to actively promote LNGheavy truck, the strategic product, put efforts on cutting down cost of purchase and production, expandedhigh-quality clients, and enhanced the product brand value. In the second half year, the Company will strive todevelop LNG heavy trucks, and launch a series of competitive products of middle-to-large weight trucks.——Business of equipment of energy, chemical, and liquid food, as well as the serviceIn spite of the sustainable weakness of American and European economy, domestic demands for storage andtransportation equipment and engineering for natural gas, low-temperature equipment, and tank containers werestrong, mainly due to the downstream demand in energy field, especially the rapid growth in supply of gas
                                                                                   Semi-Annual Report 2012 of CIMCresources of natural gas and its consumption. In 2012, business of equipment of energy, chemical, and liquid foodkept favorable growth trend. In the first half year, operating revenue achieved RMB 4,520,949,000, representing aYoY increase of 21.14%. Net profit reached RMB 256,696,000, increasing by 3.73% YoY. Thereinto, thebusiness of energy (natural gas) equipment reached operating revenue of RMB 2,435,595, increasing by21.05%YoY. The business of chemical equipment achieved operating revenue of RMB 1,550,368, rising by 14.32% YoY.The business of liquid food equipment achieved operating revenue of RMB534,987, growing by 47.08% YoY.Among them, caused by changes in product structure and sales structure, the gross margin in business of energyequipment dropped; and benefited from scale effect brought by the uptrend of sales volume, the gross margin inchemical equipment business achieved obvious growth. The gross margin in business of liquid food equipmentremained stable.In the first half year, in order to enhance the strength of service and R&D of project engineering, in Jan. 2012,CIMC Enric Holdings Limited acquired Nanjing Anza Petrochemical Design & Engineering Co., Ltd., furtherrealizing the overall planning and coordination in aspects of project engineering service, integration solution plans,and product design and R&D, and boosting business expansion for upstream clients. In terms of energy equipment,the Company strengthened R&D force in LNG refueling stations and LNG ship storage tanks, and successfullydeveloped brand-new manufacturing technologies of winding bottles and low-temperature gas cylinders, which allattracted much market attention. In terms of chemical equipment business, the Company focused on developmentof special tank containers and lightweight tank containers. Besides, the Company had close and strategiccooperation with external research institutes and steel manufacturers.In order to meet the continuing growth in supply of natural gas and demand for corresponding applicationequipment, in the first half year, CIMC Enric Holdings Limited further expanded the capacity of energyequipment, and has been establishing the production line of lightweight winding bottles in Shijiazhuang,expanding LNG production equipment in Zhangjiagang, and enhancing production capability of LPG in Jingmen.In the second half year, new plants and production lines in Shijiazhuang, Langfang and Bengbu in Aihua provincewill be gradually put into operation.While seizing the opportunity of rapid growth in domestic market, CIMC Enric Holdings Limited expandedoverseas market, focusing on developing emerging markets, such as Southeast Asia, Central Asia, and SouthAmerica, so as to enlarge overseas commercial chances and increase income resources.In the reporting period, CIMC Enric Holdings Limited continuously executed projects of cost control and leanmanagement. As internal resources were more effectively distributed and shared among all operating units, theoperation efficiency and quality were advanced. In aspect of supply chain, centralized and synchronized purchasestrategies were adopted, and the purchase cost was cut down by optimization of product design and productionprocedures.Looking into the second half year and future, in spite of much uncertainty in global economy, the Company stillwill still be optimistic about the prospect of business of energy and chemical. In future, the Company will putmore force on expanding project engineering business, especially on developing low-temperature storage tanks,gas refueling station projects, projects of middle-to-small size liquidation, petrifaction storage of gas, and gasdisposal, chemical spheres, as well as nuclear special containers.——Business of ocean engineeringAs one of the world-leading manufacturers of ocean engineering equipment, the Group has been alwaysparticipating in global competitions in the market of international ocean engineering. Main products of the
                                                                                  Semi-Annual Report 2012 of CIMCCompany include jack up drilling platforms, semi-submersible drilling platforms, and auxiliary ships in oceanengineering. The Group has established integrated establishment base and business system of R&D and designcenters – YCRO is the base for establishment, general assembling, debugging, and delivery of semi-submersibledrilling platforms, LCRO is the production and establishment base for jack up platforms, and HCRO is themodular establishment base. As branded by the National Bureau of Energy, the Group also has the NationalEnergy Marine Petroleum Drill Platform R&D (Experiment) Center, including CIMC Ocean EngineeringResearch Institute Co., Ltd. in Yantai and CIMC Shipping and Ocean Engineering Design Research Institute inShanghai. At present, the establishment capability of ocean engineering business bases in the Group is 3 jacks updrilling platforms and 3 semi-submersible drilling platforms per year, which is planned to be upgrade to 6 jack upplatforms and 4 semi-submersible platforms per year in 2015.In the first half year, the sales revenue reached RMB 1.245 billion, increasing largely by 440.93% as comparedwith RMB 230 million in the same period of last year. Losses reached RMB 147 million, decreasing largely by74.75% YoY. Main reason for large increase of operating revenue and decrease of losses: the Company realizedsales of SUPREME DRILLER, the self-built jack up platform, and finished the delivery of COSL PROMOTER,the deep-water semi-submersible drilling platform.In the first half year of 2012, delivery of main products of the Group recorded favorable progress. In Apr. 2012,COSL PROMOTER, the 3rd deep-water semi-submersible drilling platform built for the European drillingcompany of China Oilfield Services Limited was smoothly delivered. In Mar. 2012, SUPREME DRILLER, thejack up drilling platform of CIMC Raffles was delivered.Regarding the expansion of new orders, Raffles now has orders in hand of over USD 1.68 billion, which cover 2semi-submersible drilling platforms, 3 Super M2 jack up platforms, 2 JU2000E jack up platforms, and 2semi-submersible transportation ships. Besides, there’re also some intentional orders. In Feb. 2012, CIMC Rafflesgot the turn-key contract from Norway North Sea Rigs As Company for establishing North Dragon, thedeep-water semi-submersible drilling platform, marking the recognition for semi-submersible products of CIMCRaffles from the North Sea, a mainstream international market, the capability improvement of turn-key projects,as well as the realization of mass production. In future, the Group shall continue to participate in competitions inoverseas regional markets and strive for new orders in domestic market by short delivery term, favorable paymentterms, financing support, and low construction cost.In respect of R&D and design of platforms, the Group has owned the proprietary intellectual property rights fordetail design and establishment of legs of jack up drilling platform. In future, the Group will follow up R&Dtrends of new products in home and abroad, accelerate the learning for design concepts and methods, and developnew products, such as semi-submersible drilling platforms in the North Sea and polar seas, and 400-feet jack upplatforms. The Group will also conduct research on deep-water semi-submersible drilling platforms suitable forthe state of the South China Sea, such as super-deep-water double-rig semi-submersible platforms andmiddle-depth water semi-submersible drilling platforms, so as to meet the demand of national strategicdevelopment.——Business of airport equipmentIn the first half year of 2012, Tianda Airport Support Co., Ltd., of which 70% equity is held by the Company,achieved sales revenue of RMB 68.92 million, decreasing by 51% as compared with RMB 141 million in thesame period of last year. Losses reached RMB 32.18 million, increasing by RMB 20.02 million as compared withRMB 12.16 million in the same period of last year. In the first half year of 2012, 20 boarding bridges were sold,
                                                                                   Semi-Annual Report 2012 of CIMCand 117 boarding bridges were actually produced. Main reason for revenue decrease and losses: on-siteinstallation and delivery were not finished after production of mass products, and revenue that could be confirmedwas low.In the first half of 2012, business of airport equipment, including boarding bridges, in global aviation industrygradually recovered from recession. The market demand showed uptrend in stability. It’s anticipated that therecovery trend in aviation industry would remain for a period. CIMC Tianda still possessed absolute dominantposition in the market of boarding bridges in domestic market. In view of international market, the maincompetitors would still be German and American enterprises. In the first half year, major orders of boardingbridges were from overseas markets. Many orders in domestic market were acquired in aspects of airport luggagesystem, civil logistics storage, solid carports, and boarding bridges for ships.Looking into the second half year, the overseas aviation industry will keep recovering, and the domestic aviationindustry will continue to grow. The automation upgrade of Chinese manufacturing will boost the high-speedgrowth in business of automated logistics equipment. Other than the market of boarding bridges for airports,CIMC Tianda will continue to enlarge businesses including solid carports and airport ferry pushes. It is expectedthat the sales revenue and net profit of CIMC Tianda in 2012 will achieve growth to certain degree.——Other businessesBusiness of logistics equipment and service: The Group devotes itself to providing special logistics equipmentand comprehensive logistics solution plans for clients in different industries. Logistics equipment products of theGroup mainly include pallet containers applicable in fields of autos, logistics, food, chemical, and agriculture, IBC(Intermediate Bulk Container) applicable in chemical and food, and special logistics equipment, such asequipment for logistics of wind-power products and automobile logistics of commercial vehicles.In the first half year of 2012, the sales volume reached 410 thousand units/sets, down by 7% YoY. Operatingrevenue reached RMB 760 million, down by 3.51% YoY. The gross margin slightly decreased.As the average logistics cost in China is high, accounting for around 18% of the total GDP, which is almost 2times larger than the level of Europe and America, highly effective logistics system, logistic equipment, andsolution plans are emergently needed. With the support of government policies, the industry of logisticsequipment and service in China is stepping into the fast growing period, providing large development space. In2012, the State Council conducted pilot project of changing business tax for transportation industry and somemodern service industries to value-added tax, and extended it to 10 cities and provinces. In Jun. 2012, the countryissued the Implementation Opinion on Encouraging and Guiding Private Investment to Enter into Logistics Field,encouraging and guiding private investment to enter into key logistics field and the infrastructure field. In Aug2011, the State Council announced the opinion on deepening transformation of circulation system andaccelerating the development of circulating industry.Business of real estate development: In the first half year of 2012, the country kept its force of regulation andcontrol in real estate market, and the synergistic effect is still maintaining. It is expected that there won’t besubstantial change in macro regulation and control by the country in real estate industry, and the market pressurewill be large. In the first half year, the Group’s projects in Jiangmen, Yangzou, Zhenjiang, Yangjiang andShenzhen will progress as scheduled. In the first half year, the operating revenue reached RMB 222.31 million,and the net profit reached RMB 6.8 million.Business of railway equipment manufacture: Dalian CIMC Railway Equipment Co., Ltd., the Group’s
                                                                                         Semi-Annual Report 2012 of CIMCsubordinate company, dedicates to expansion of railway equipment business. In the first half year, the operatingrevenue reached RMB 130,364,000, representing large YoY increase.1. Main business lines and their operating results(1)Main business lines classified by industries and products
                                                                                                                Unit: RMB’000
                                                                          Increase/decrease                    Increase/decrease
                                                                                            Increase/decrease
                                                                             of operating                        of gross profit
                                                                                             of operating cost
                       Operating                        Gross profit rate       revenue                          rate compared
    Industries/products                   Operating cost                                         compared with
                        revenue                               (%)           compared with                        with the same
                                                                                             the same period
                                                                           the same period                      period last year
                                                                                               last year (%)
                                                                             last year (%)                             (%)Industries
    Containers             13,671,291.00    11,669,137.00             17.16%           -37.65%           -31.17%             -5.52%Road transport
                        6,821,294.00     5,886,186.00             15.89%           -29.62%           -29.14%               1.6%vehiclesEquipments for
    energy, chemicals       4,520,949.00     3,692,108.00             22.45%           21.14%             19.47%              5.26%and liquefied foodOffshore
                        1,244,783.00     1,100,858.00             13.07%          440.93%              87.1%           168.75%engineering
    Airport equipment         68,923.00         48,026.00             43.51%           -51.14%           -49.27%            10.62%
    Other                   1,434,865.00       876,305.00             63.74%             6.25%           -11.61%            37.15%
    Combined offset          -397,659.00      -259,023.00
    Total                  27,364,446.00    23,013,597.00             18.91%           -24.98%           -21.99%             -0.22%Products
    Containers             13,671,291.00    11,669,137.00             17.16%           -37.65%           -31.17%             -5.52%Road transport
                        6,821,294.00     5,886,186.00             15.89%           -29.62%           -29.14%               1.6%vehiclesEquipments for
    energy, chemicals       4,520,949.00     3,692,108.00             22.45%           21.14%             19.47%              5.26%and liquefied foodOffshore
                        1,244,783.00     1,100,858.00             13.07%          440.93%              87.1%           168.75%engineering
    Airport equipment         68,923.00         48,026.00             43.51%           -51.14%           -49.27%            10.62%
    Other                   1,434,865.00       876,305.00             63.74%             6.25%           -11.61%            37.15%
    Combined offset          -397,659.00      -259,023.00
    Total                  27,364,446.00    23,013,597.00             18.91%           -24.98%           -21.99%             -0.22%
                                                                                                Semi-Annual Report 2012 of CIMC(2)Main business lines classified by regions
                                                                                                                         Unit: RMB’000
                                                                                           Increase/decrease compared with the same
                   Region                               Operating revenue
                                                                                                      period last year (%)
    China                                                                     12,525,779.00                                         12.67%
    Asia                                                                        2,414,136.00                                         -35.7%
    America                                                                     5,432,811.00                                        -46.39%
    Europe                                                                      5,909,950.00                                        -44.65%
    Other                                                                       1,081,770.00                                        36.24%
    Total                                                                     27,364,446.00                                         -24.98%(3)Reasons for significant changes in main business and its structure□Applicable √Inapplicable(4)Reasons for significant changes in profitability of main business (gross profit rate) compared with thatin the last year√Applicable □Inapplicable
    Statement of major changes:                                                                                     Unit: RMB’000
                                 30 Jun. 2012/ 31 Dec. 2011/      Rate of
                                                                                              Reasons for change
                                 Jan.-Jun. 2012 Jan.-Jun. 2011    change
    Transactional financial assets                                                  Investment cost and fair value of short-term
                                       378,440        186,134         103.32% stock investments changed and fair value of
                                                                                derivative financial instruments changed.
    Bonds payable                                                                   The issue of 2-billion medium-term notes in the
                                     5,989,610      3,988,438          50.17%
                                                                                reporting period
    Dividend payable                                                                Dividends for public shareholders that had been
                                       297,409        116,253         155.83% declared but were not yet paid in the reporting
                                                                                period
    Operating revenues                                                              The results of the container business for the
                                                                                reporting period were poorer than normal years
                                    27,364,446     36,478,098         -24.98%
                                                                                and those of the same period of last year were
                                                                                better than normal.
    Operating costs                                                                 The results of the container business for the
                                                                                reporting period were poorer than normal years
                                    23,013,597     29,499,900         -21.99%
                                                                                and those of the same period of last year were
                                                                                better than normal.
    Gains/(Losses) on fair value                                                    Fair value changes of short-term stock
                                       -14,934        -88,256         -83.08%
    changes                                                                         investments and derivative financial
                                                                                                  Semi-Annual Report 2012 of CIMC
                                                                                  instruments
    Income tax expense                                                                Profit before tax for the reporting period
                                       485,373        1,024,118         -52.61%
                                                                                  decreased.
    Net cash paid to acquire                                                          Cash paid to acquire some equity interests
                                       718,944           49,936      1,339.73%
    subsidiaries                                                                      of the subsidiary—CIMC OFFSHORE(5)Analysis on reasons of significant changes in profit breakdown compared with the last year□Applicable √Inapplicable(6)Business nature, main products/services, net profit and other particulars about subsidiaries whichmade a contribution over 10% to the Company’s net profit for the reporting period□Applicable √InapplicableNote: If the investment gain from a stock-participating subsidiary has a 10%-or-higher influence on the net profit of the Company,please introduce the business nature, main products/services, net profit and other particulars about the subsidiary.(7) Problems and difficulties encountered in operationThe continuous European debt crisis and the recovery slowdown of global main economies have affectedinternational trade and the container shipping industry. The growth slowdown of the global container trade volumewill affect the container demand growth within a certain period. Therefore, the Group will continue to make use ofits resource and cooperation advantages, promote lean management, enhance cost control and promote R&D andtransformation of the production and operation mode. Meanwhile, it will better its predictions regarding marketchanges and improve its ability to deal with matters regarding the operating strategy and production management.Recent years have seen a short supply of labor force and rising labor cost in coastal cities of China. Landresources are decreasing and the government and the public have stricter requirements regarding energyconsumption and environmental protection, which builds up pressure for enterprises’ operation and earning. Insuch a circumstance, the Group raises the salaries for workers at the production line, improves their workingconditions and keeps pushing forward and improving investment and construction of the new-typed automaticproduction line so as to increase the production efficiency and reduce its reliance on the labor force and landresources.The offshore engineering equipment industry is a high-risk industry featuring high input and a long cycle and ithas high requirements for building facilities and experience, as well as capital and R&D strength. As offshoreengineering is included as one of the “strategic emerging industries” and receives policy support from thegovernment, more traditional ship builders or ventures will go to the offshore engineering equipment industry,causing fierce competition.Considering the aforesaid circumstance, the Group quickly accumulates building and managerial experiencethrough quite a few successful deliveries of drilling platforms, improves the basic management capability andenhances cost control, which helps the Group improve its management efficiency and win recognition of clients athome and abroad. Meanwhile, it accelerates the process for it to take hold of advanced R&D, design and building
                                                                                                      Semi-Annual Report 2012 of CIMCtechnologies through technological cooperation and R&D team building, improves the ability to design andinnovate on its own and carries out the product focusing strategy so as to form ability of mass building andincrease its competitiveness.2. Internal control rules in relation to fair value measurement√Applicable □InapplicableItems related to fair value measurement:
                                                                                                                               Unit: RMB’000
                                                                Gains/losses on     Accumulative fair      Impairment
                                                               fair value changes    value changes        provisions for
                    Item                     Opening amount                                                                    Closing amount
                                                                in the reporting      recorded into       the reporting
                                                                    period               equity              periodFinancial assets
    Including:     1.       Financial   assetsmeasured at fair value whose changes
                                                  176,383.00          -15,852.00                                                   378,355.00are recorded into current gains andlosses
    Of which: derivative financial assets              32,691.00          -22,473.00                                                     8,463.00
    2. Available-for-sale financial assets            571,954.00                              552,355.00                               621,216.00
    3. Hedging instruments                              9,751.00                                 3,119.00                      -            85.00
    Subtotal of financial assets                      758,088.00          -15,852.00          555,474.00                               999,656.00
    Financial liabilities                            -105,943.00              918.00                                                  -105,025.00Investing propertyProduction biological assetsOthers
    Total                                             652,145.00          -14,934.00          555,474.00                               894,631.00Where the value estimation technique was adopted to determine fair value for the same or similar items within the two years, is thereany significant difference between the value estimation results? If yes, please state in detail.□ Yes √ No □ Inapplicable3. Foreign-currency financial assets and liabilities held√Applicable □Inapplicable
                                                                                                                               Unit: RMB’000
                Item                     Opening amount Gains/losses on Accumulative fair              Impairment          Closing amount
                                                                                              Semi-Annual Report 2012 of CIMC
                                                           fair value      value changes     provisions for the
                                                        changes in the     recorded into     reporting period
                                                        reporting period      equityFinancial assetsIncluding: 1. Financial assetsmeasured at fair value whose
                                          176,383.00          -6,861.00                                              182,362.00changes are recorded into currentgains and lossesOf which: derivative financial
                                           32,691.00         -22,473.00                                                8,463.00assets
    2. Loans and receivables                7,910,913.00                                                -20,998.00    12,483,193.00
    3.   Available-for-sale    financial
                                            7,799.00                               -687.00                             7,982.00assets4. Held-to-maturity investments
    5. Hedging instruments                      9,751.00                              3,119.00                                85.00
    Subtotal of financial assets            8,104,846.00          -6,861.00           2,432.00          -20,998.00    12,673,622.00
    Financial liabilities                  -13,495,209.00            918.00                                           -18,086,364.00(II)Investments1. General utilization of the raised funds□Applicable √Inapplicable2. Projects promised to be invested with raised funds□Applicable √Inapplicable
                                                                                                 Semi-Annual Report 2012 of CIMC3. Change of projects invested with raised funds□Applicable √Inapplicable4. Significant projects invested with non-raised funds□Applicable √Inapplicable(III)Revision of the Board of Directors’ business plan for the second half of the year□Applicable √Inapplicable(IV)Business performance estimate for Jan.-Sept. 2012Warnings of estimated possible losses or major changes of the accumulative net profit achieved during the period from the beginningof the year to the end of the next reporting period compared with the same period of last year, as well as the reasons□Applicable √Inapplicable(V)Explanation of the Board of Directors on “Non-standard Auditing Report” issued by theCPA firm for the reporting period□Applicable √Inapplicable(VI)Explanation of the Board of Directors on changes and solutions of the issues involved inthe “Non-standard Auditing Report” issued by the CPA firm for last year□Applicable √Inapplicable(VII)State the discussion results of the Board of Directors on the reasons and influence ofthe Company’s accounting policy and estimate alterations or significant accounting errorcorrection□Applicable √Inapplicable(VIII)Formulation and execution of the Company’s cash dividend policyIn order to fulfill the social responsibilities as a public company and build a good “blue-chip” image in the capitalmarket, try to become a world-class enterprise and enhance the confidence of investors and shareholders in thefuture development of the Company, according to the CSRC Notice on Further Implementing Matters Related toCash Dividend Distribution of Listed Companies and the CSRC Shenzhen Bureau Notice on StrictlyImplementing the CSRC Notice on Further Implementing Matters Related to Cash Dividend Distribution of ListedCompanies (Shen-Zheng-Ju-Gong-Si-Zi [2012] No. 43), the proposal regarding revising articles in relation to theprofit distribution policy in the Company’s Articles of Association was reviewed and approved at the 12th Session
                                                                                   Semi-Annual Report 2012 of CIMCof the 6th Board of Directors for 2012. More specific rules were given regarding the profit distribution principle,the specific policy for profit distribution, the review and approval procedure, the alteration of the profitdistribution policy, the principle for using the retained profit, etc.. The amendment proposal was reviewed andapproved at the 2nd Special Shareholders’ General Meeting for 2012 on 17 Aug. 2012.The cash dividend policy of the Company is formulated and executed according to its Articles of Association andthe relevant resolution of the general meeting, with specific and explicit dividend standards and a completedecision-making procedure. Independent directors faithfully fulfill their duties and play their role as they should.Minority shareholders have their chance to fully express their opinions and requirements and their legal rights andinterests are fully safeguarded.The Company will actively carry out a consistent and stable dividend distribution policy. In dividend distribution,the Company will attach importance to giving investors rational investment returns and at the same time keep inmind its sustainable development. In the future, the Company will try to distribute profit in cash more often.In the reporting period, according to its Articles of Association, the Company carried out its 2011 annual equitydistribution plan, i.e. to, based on the total 2,662,396,051 shares of the Company as at the end of 2011, distribute acash dividend of RMB 4.60 (tax included) for every 10 shares, with the distributed dividends totaling RMB1,224,702,183.46. Up until the end of the reporting period, the Company had completed all the distribution work.(IX)Pre-plan for profit distribution or turning capital reserve into share capital□Applicable √Inapplicable(X)The accumulative retained profit as at the end of 2011 is a positive number but theCompany has not put forward a cash dividend pre-plan.□Applicable √Inapplicable(XI)Other matters that need to be disclosed( XII ) The Company’s liabilities, credit changes and future cash arrangements fordebt-clearing (Only listed companies with convertible corporate bonds are required to fill thetable below.)□Applicable √Inapplicable
                                       VII. Significant Events(I)Corporate governanceDuring the reporting period, in strict compliance with applicable regulations of the government, as well asregulations and documents newly promulgated by CSRC, CSRC Shenzhen Bureau and Shenzhen Stock Exchange,the Company continued to improve its governance and keep it running in compliance with relevant rules.During the reporting period, according to the CSRC Notice on Further Implementing Matters Related to Cash
                                                                                    Semi-Annual Report 2012 of CIMCDividend Distribution of Listed Companies and the CSRC Shenzhen Bureau Notice on Strictly Implementing theCSRC Notice on Further Implementing Matters Related to Cash Dividend Distribution of Listed Companies(Shen-Zheng-Ju-Gong-Si-Zi [2012] No. 43), the Company revised its Articles of Association and formulated theReturn for Shareholder Planning, so as to ensure a consistent and stable profit distribution policy, truly protectlegal rights and interests of minority shareholders while taking into account the sustainable development andpromote the long-term and rational investment ideology among investors.In the first half of 2012, the Company continued to implement internal control regulations. With over 80% of theinternal control system building finished last year, the Company will try to cover all business entities with theinternal control system within 2012.According to the requirements of CSRC Shenzhen Bureau and taking into account its strategic upgrading need,the Company has put forward four internal control major tasks regarding the internal control talent developmentsystem, the internal control brochures formulated for different tiers, the internal control goal-achieving project andthe IT application of KRI. It will also explore the possibility to integrate the internal control audit system into thestrategic control system.As one of the 22 pilot companies for the implementation of the Basic Norms for Internal Control of ListedCompanies (the Internal Control Norms) promulgated by CSRC in 2011 and the mating guidelines, the Companyhas followed the Internal Control Norms and formulated the Management Rules for Raised Funds, the InformationInsider Registration and Management Rules and the Management Rules for Related-party Transactions.The Company and its two majority shareholders—China Merchants Holdings (International) Limited and COSCOPacific Limited and their related parties are completely independent in terms of business, personnel, assets,institution and finance, which fully ensures the independent operation of the Company.During the reporting period, the Company operated normatively in all aspects. And it will continue to strictlyfollow the Company, the Securities Law and other applicable laws and regulations, with internal controlimprovement as the key, enhance governance improvement and promote normative operation so as to achievesustainable development.(II)Execution of the plans for profit distribution, turning capital reserve into share capitalor new share issuance which had been made in the previous period and were carried out inthe reporting period√Applicable □InapplicableThe 2011 Annual Dividend Distribution Plan was approved at the 2011 Annual Shareholders’ General Meeting on25 May 2012, i.e. to distribute a cash dividend of RMB 4.60 (tax included) for every 10 shares based on theexisting total 2,662,396,051 shares of the Company. Up until the end of the reporting period, the Company hadcompleted all the distribution work. Please find the dividend distribution implementation announcement on ChinaSecurities Journal, Shanghai Securities News, Securities Times and Ta Kung Pao (HK) on 14 Jun. 2012.
                                                                                                                                                                           Semi-Annual Report 2012 of CIMC(III) Significant lawsuits and arbitrations√Applicable □Inapplicable
                                                                                                                     Amount
                                          Joint          Type of                                                   involved in
                                                                            Basic information about the                             Lawsuit/Arbitration                                             Execution of the
      Suitor         Respondent       responsibility   lawsuit/arbit                                                     the                                     Judgment and influence
                                                                                 lawsuit/arbitration                                      progress                                                     judgment
                                         bearer           ration                                                   lawsuit/arbit
                                                                                                                      ration
                                                                       The deep-water semi-submersible oil                                                According to the current lawsuit and
                                                                       drilling platforms SS Pantanal and SS                                              arbitration progress, the Company
                                                                       Amazonia built by CIMC Raffles and                          CIMC Raffles and its holds an optimistic towards theCIMC Raffles
                                                                       its subordinate subsidiaries for the                        subordinate            lawsuit and arbitration. In the lawsuitOffshore
                   Baerfield                                           subsidiaries of the Brazil-based            US$     0.208 subsidiaries suited at   and arbitration process, the Company(Singapore)
                   Drilling LLC&     Schahin           Lawsuit/        Schahin Holdings SA were delivered billion                  the end of 2011        will proactively take legal measures to
    Limited; and                                                                                                                                                                                        Pending
                   Soratu Drilling   Holdings SA       Arbitration     in Nov. 2010 and Apr. 2011                  (about RMB Schahin Holdings SA protect shareholders’ interests. But theYantai CIMC
                   LLC                                                 respectively. CIMC Raffles and its          1.3 billion)    and its 6 related      case is still pending and thus thereRaffles Offshore
                                                                       subordinate subsidiaries also provided                      parties in New York    exists some uncertainty. The lawsuitLtd
                                                                       loans for Schahin Holdings SA and its                       and London.            and arbitration results may have some
                                                                       6 related parties to build these drilling                                          influence on the Company’s profit for
                                                                       platforms.                                                                         2012 or subsequent periods.Significant lawsuits and arbitrations in relation to the Company after the disclosure of the last annual report involved US$ 143 million.Significant lawsuits and arbitrations that had been included in the last annual report but were then pending involved US$ 65 million.The projected liabilities due to lawsuits and arbitrations were RMB 0.00.
                                                                                                     Semi-Annual Report 2012 of CIMC(IV) Bankruptcy or reorganization events□Applicable √Inapplicable(V) Holding equity of other listed companies and joint financial enterprises1. Securities investment√Applicable □Inapplicable
                                                                                                                Proportion in
                                                                     Initial      Number of       Closing         the total      Gain/loss in
    Serial      Variety of           Code of           Abbr. of       investment shares held at      carrying        closing        the reporting
    No.          securities       securities        securities      amount           the          amount         securities         period
                                                                   (RMB’000)     period-end    (RMB’000)       investment      (RMB’000)
                                                                                                                amount (%)
    1          Stock              600030             ZXZQ                71,816.00      5,480,000      70,054.00         18.94%         -1,762.00
    2          Stock              600383             JDJT                54,786.00      8,217,659      53,250.00           14.4%        -1,536.00
    3          Stock              000858             WLY                 23,100.00        650,000      21,294.00           5.76%        -1,806.00
    4          Stock              000157             ZLZK                54,441.00      5,124,130      51,395.00         13.89%         -3,046.00
    5          Stock              200625             CAB                 14,847.00      5,000,000      12,595.00           3.41%        -2,252.00
    6          Stock              200581             SWFB                49,737.00      3,000,000      40,203.00         10.87%         -6,970.00
                                                 Sino-trans
    7          Stock              00368                                  20,184.00      2,996,500       4,421.00              1.2%        -195.00
                                                 Shipping H
    8          Stock              G05.SI             GoodPack           101,307.00     13,500,000     116,297.00         31.44%         25,229.00
    Other securities investments held at the period-end                     606.00        --              383.00              0.1%      -1,041.00
    Gain/loss on selling securities in the reporting period                --             --             --              --             -3,268.00
    Total                                                               390,824.00        --          369,892.00 100%                    3,353.002. Holding equity of other listed companies√Applicable □Inapplicable
                                                                                                 Change of
                                                   Proportion in
                                       Initial                      Closing      Gain/loss in     owners’
                                                        the
                                    investment                      carrying     the reporting equity during Accounting
    Stock code      Stock abbr.                     company’s                                                                   Stock source
                                      amount                        amount         period       the reporting       title
                                                    total equity
                                   (RMB’000)                      (RMB’000)    (RMB’000)        period
                                                        (%)
                                                                                                (RMB’000)
    600036             ZSYH                25,461.00          0.53%     125,864.00       4,841.00      -8,212.00 Available-for Corporate
                                                                                          Semi-Annual Report 2012 of CIMC
                                                                                                     -sale           shares
                                                                                                     financial
                                                                                                     assets
                                                                                                     Available-for
                                                                                                     -sale           Corporate
    600999         ZSZQ               57,518.00               0.9%   487,370.00              45,021.00
                                                                                                     financial       shares
                                                                                                     assets
                                                                                                     Available-for
                                                                                                                     Purchased in
                                                                                                     -sale
    OEL            Otto Energy        13,480.00           1.19%        7,982.00                                          the secondary
                                                                                                     financial
                                                                                                                     market
                                                                                                     assets
    Total                             96,459.00          --          621,216.00   4,841.00   36,809.00            --          --3. Holding equity of non-listed financial enterprises□Applicable √InapplicableNotes to holding equity of non-listed financial enterprises4. Trading stocks of other listed companies□Applicable √InapplicableNotes to trading stocks of other listed companies:(VI) Assets transaction events1. Purchase of assets□Applicable √InapplicableNotes to purchase of assets:2. Sale of assets□Applicable √InapplicableNotes to sale of assets:3. Exchange of assets□Applicable √InapplicableNotes to exchange of assets:
                                                                                                  Semi-Annual Report 2012 of CIMC4. Business combination□Applicable √Inapplicable5. Progress of these events after the publication of the assets reorganization report or public notices on thepurchases or sales of assets, as well as the influences of these events on the operation results and financialstatus of the Company in this reporting period□Applicable √Inapplicable(VII) Explanation on shareholding increase scheme during the reporting period proposed orimplemented by the principal shareholders and act-in-concert persons□Applicable √Inapplicable(VIII) Implementation situation and influence of equity incentive plan of the Company√Applicable □Inapplicable
                                                      54 million stock options were first granted to 181 senior executives and core
    Incentive receivers in the reporting period           technical personnel of the Company and 6 million stock options were reserved for
                                                      48 core technical personnel and middle management personnel.Total equities granted in the reporting period
                                                                                                                                  0.00(share)Total equities exercised in the reporting period
                                                                                                                                  0.00(share)Total equates that expired in the reporting period
                                                                                                                                  0.00(share)
    Cumulative    equities   granted   but    not   yet
    exercised by the end of the reporting period                                                                            60,000,000.00(share)Cumulative equities granted and exercised by
                                                                                                                                  0.00the end of the reporting period (share)
                                                      On 25 May 2012, the 2011 annual dividend distribution plan was reviewed and
                                                      approved at the 2011 Annual Shareholders’ General Meeting, i.e. to, based on theAdjustments to the granting and exercise prices existing total 2,662,396,051 shares of the Company, distribute a cash dividend ofin the reporting period and the prices after RMB 4.60 (tax included) for every 10 shares. After the implementation of the
    adjustments                                           2011 annual dividend distribution plan, the A-share option exercise price was
                                                      adjusted accordingly according to the following formula: P=P0-V (P0= the
                                                      exercise price before the adjustment; V= the dividend amount for every share; P=
                                                                                                 Semi-Annual Report 2012 of CIMC
                                                   the exercise price after the adjustment). According to the formula, the A-share
                                                   option exercise price after the adjustment is as follows: the exercise price for the
                                                   first stage of share options = RMB 12.04 – RMB 0.46= RMB 11.58; the exercise
                                                   for the reserved share options = RMB 17.57 – RMB 0.46 =RMB 17.11.
                       Equities received and exercised by directors, supervisors and senior management staff
                                                                                                             Equities not yet exercised
                                                    Equities received in the     Equities exercised in the
        Name                   Office title                                                                   in the reporting period
                                                    reporting period (share)     reporting period (share)
                                                                                                                      (share)
    Mai Boliang           Director and president                              0.00                        0.00                3,800,000.00
    Zhao Qingsheng        Vice president                                      0.00                        0.00                1,500,000.00
    Liu Xuebin            Vice president                                      0.00                        0.00                1,500,000.00
    Wu Fapei              Vice president                                      0.00                        0.00                1,000,000.00
    Li Yinhui             Vice president                                      0.00                        0.00                1,000,000.00
    Yu Ya                 Vice president                                      0.00                        0.00                1,000,000.00
    Zhang Baoqing         Vice president                                      0.00                        0.00                1,000,000.00
    Yu Yuqun              Company Secretary                                   0.00                        0.00                1,000,000.00
                      GM of the Financial
    Jin Jianlong                                                              0.00                        0.00                1,000,000.00
                      Department
                      GM of the Capital
    Zeng Beihua                                                               0.00                        0.00                1,000,000.00
                      ManagementShare capital changes due to the exercise of the
                                                   N/Aincentive receivers
                                                   The fair value of share options was estimated adopting the binomial lattice model.
                                                   The contract period for the share options was used as the input variable for thisFair value measurement of equity tools
                                                   model. And this model also included estimation regarding exercising the options
                                                   at an earlier date.Model, parameters and selection criteria adopted
                                                   N/Afor the estimation techniqueAmortization period and result of the fair value
                                                   N/Aof equity toolsEquity incentive implementation and influence of subsidiaries:Implementation of the equity trust plan of CIMC Vehicle Group:1. As reviewed and approved at the general meeting held on 17 Oct. 2007, CIMC Vehicle Group, the Company’swholly-funded subsidiary, carried out an equity trust plan. According to the plan, the Company’s seniormanagement personnel in relation to the vehicle business and the core personnel of CIMC Vehicle Group(“Plan-participating Staff”) have contributed RMB 220.70 million to the subsidiary and thus hold 20% equityinterests of the subsidiary via Shenzhen International Trust and Investment Co., Ltd..2. The plan regarding core personnel of CIMC Vehicle Group holding its shares via the equity trust plan wasimplemented in 2007. At the first stage, 43 million copies of beneficiary rights were granted, accounting for
                                                                                    Semi-Annual Report 2012 of CIMC19.48% of the total beneficiary rights of the trust plan. At the second stage in 2009, 72.25 million copies ofbeneficiary rights were granted, accounting for 32.74% of the total beneficiary rights of the trust plan. At the thirdstage in 2011, 66.075 million copies of beneficiary rights were granted, accounting for 29.94% of the totalbeneficiary rights of the trust plan. Up until 30 Jun. 2012, 213.115 million copies of beneficiary rights weregranted regarding the trust plan, accounting for 96.56% of the total beneficiary rights of the trust plan.(IX) Significant related-party transactions
                                                                                                                                                                       Semi-Annual Report 2012 of CIMC1. Related-party transactions relevant to routine operation√ Applicable □ Inapplicable
                                                               Type of the          Content of the                                                         Transaction                               Proportion in same
                                                                                                               Pricing principle of the related-party                      Transaction amount
          Related party                     Relationship       related-party         related-party                                                             price                              kind of transactions
                                                                                                                            transaction                                        (RMB ’000)
                                                               transaction            transaction                                                          (RMB ’000)                                      (%)
    Other related party                  Other related party Purchase of goods        Purchase of goods Following the audit procedures for ordinary N/A                         10,804.00            0.05%
                                                                                                           non-related party transactions
    Other related party                  Other related party Purchase of goods        Purchase of goods Following the audit procedures for ordinary N/A                         2,914.00             0.32%
                                                                                                           non-related party transactions
    Key management personnel             Key management Payment                    of Payment            of                                                  N/A                25,033.00            -
                                     personnel             remuneration        for remuneration      for
                                                           labor service          labor service
    Other related party                  Other related party Sales of goods           Sales of containers Following the audit procedures for ordinary N/A                       607,078.00           2.96%
                                                                                  or vehicles              non-related party transactions
                                                  Total                                                                          --                             --          645,829.00           N/ARelated-party transactions relevant to routine operation
                                                                  Selling products and providing labor services to related parties             Purchasing products and receiving labor services from related parties
                        Related party                                Transaction amount                     Proportion in same kind of                                                 Proportion in same kind of
                                                                                                                                              Transaction amount (RMB ’000)
                                                                           (RMB ’000)                           transactions (%)                                                           transactions (%)
                      Other related party                       607,078.00                                                            2.96%                            13,718.00                                    N/A
    Total                                                           607,078.00                                                            2.96%                            13,718.00                                    N/AOf which: the total amount of related-party transactions of the Company selling products and providing labor services to the controlling shareholder and itssubsidiaries during the reporting period stood at RMB 0.2. Related-party transactions regarding purchase and sales of assets□Applicable √Inapplicable
                                                                                                                                                   Semi-Annual Report 2012 of CIMC3. Significant related-party transitions with joint investments□Applicable √Inapplicable4. Significant credits and liabilities with related parties√Applicable □InapplicableWas there any non-operating credit or liability with any related party?□ Yes □ No
                                                                         Providing funds to related parties (RMB ’000)                    Gaining funds from related parties (RMB ’000)
                                                                                                                           Interest                                                         Interest
               Related party                Relationship       Opening      Incurred Repaid      Closing      Interest                Opening     Incurred Repaid   Closing     Interest
                                                                                                                          expenditu                                                         expendit
                                                               balance      amount amount         balance     income                  balance     amount   amount   balance     income
                                                                                                                             res                                                              uresNon-operational
                                       Minority shareholder
    Gasfin                                 of subsidiary of the                                                                           38,698.00                     37,330.00
                                       Company
    Shanghai Fengyang                      Associated enterprise                                     172,550.00
                                                               167,672.00
                                       of the Group
    Xinyang Wood                           Associated enterprise                                       3,974.00
                                                                 3,952.00
                                       of the Group
    PGM                                    Minority shareholder                                      118,110.00
                                       of subsidiary of the    122,438.00
                                       Company
    MSC                                    Associated enterprise                                     289,308.00
                                                               288,217.00
                                       of the Group
    Subtotal                                                       582,279.00                        583,942.00                           38,698.00                     37,330.00
                                                                                                                                                            Semi-Annual Report 2012 of CIMCOperationalSubtotal
                                Total                                 582,279.00                         583,942.00                           38,698.00                       37,330.00
                                                                     Shareholders’ operating loans at the same proportion; advance of increased capital investment to subsidiaries at the same proportion;Reason of forming the credits and liabilities with related parties
                                                                     shareholders’ operating loans;Capital occupation during the report period and debt-clearing progress□Applicable √InapplicableThe accountability plan put forward by the Board of Directors when the Company had not completed collecting the capital occupied for non-operating purposes bythe end of the report period□Applicable √Inapplicable
                                                                                        Semi-Annual Report 2012 of CIMC5. Other significant related-party transactions(X) Significant contracts and execution1. The trust, contract and lease whose profits reaching more than 10% (including 10%) of the totalprofits of the Company in the report period(1) Status of trust□Applicable √Inapplicable(2)Particulars about contracting□Applicable √Inapplicable(3)Particulars about leasing□Applicable √Inapplicable2. Guarantees provided by the Company√Applicable □Inapplicable
                                                                                                Unit: RMB Ten Thousand
                       Guarantees provided by the Company for external parties (excluding those for subsidiaries)
                                                                                                                                  Guarante
                                                          Actual
                       Disclosure date                                     Actual                                                  e for a
                                          Amount for occurrence date                      Type of          Period of   Executed
    Guaranteed party       of relevant                                     guarantee                                                 related
                                          guarantee       (date of                       guarantee        guarantee     or not
                       announcement                                       amount                                                  party or
                                                        agreement)
                                                                                                                                       notCustomers of
    subsidiaries of CIMC 23 Mar. 2012            250,000 1 Jan. 2012               65,207 Warranty           1-2 years     No         NoVehicle Group
                                                                       Total actual occurred amountTotal external guarantee line approved
                                                               46,000 of external guarantee during                                 -31,153
    during the reporting period (A1)
                                                                         the reporting period (A2)
    Total external guarantee line that has                                Total actual external guarantee
    been approved at the end of the                           250,000      balance at the end of the                                    65,207
        reporting period (A3)                                              reporting period (A4)
                                          Guarantees provided by the Company for its subsidiaries
                       Disclosure date Amount for         Actual           Actual          Type of         Period of   Executed Guarante
    Guaranteed party
                         of relevant      guarantee occurrence date      guarantee       guarantee        guarantee     or not     e for a
                                                                                             Semi-Annual Report 2012 of CIMC
                           announcement                     (date of           amount                                           related
                                                          agreement)                                                           party or
                                                                                                                                    notSubordinates of
                          23 Mar. 2012        553,394 1 Jan. 2012                  272,005 Warranty         1-2 years   No     NoCIMC
    Total guarantee line approved for the                                     Total actual occurred amount
    subsidiaries during the reporting                                             of guarantee for the
                                                                   4,636                                                        134,337
                  period                                                       subsidiaries during the
                   (B1)                                                          reporting period (B2)
    Total guarantee line that has been                                       Total actual guarantee balance
    approved for the subsidiaries at the                           553,394 for the subsidiaries at the end                         272,005
    end of the reporting period (B3)                                         of the reporting period (B4)Total guarantee amount provided by the Company (total of the above-mentioned two kinds of guarantees)
                                                                           Total actual occurred amountTotal guarantee line approved during
                                                                 50,636       of guarantee during the                           103,184
    the reporting period (A1+B1)
                                                                             reporting period (A2+B2)
    Total guarantee line that has been
                                                                           Total actual guarantee balanceapproved at the end of the reporting
                                                                803,394      at the end of the reporting                        337,212
                  period
                                                                                   period (A4+B4)
                (A3+B3)Proportion of total guarantee amount (A4+B4) to the net assets of
                                                                                                                                18.31%the CompanyOf which:Amount of guarantee for shareholders, actual controller and related
                                                                                                                                          0parties (C)Amount of debt guarantee provided for the guaranteed party whose
                                                                                                                                    15,844asset-liability ratio is not less than 70% directly or indirectly (D)
    Part of the amount of the total guarantee over 50% of net assets (E)                                                                      0
    Total amount of the above three guarantees (C+D+E)                                                                                  15,844Explanation on possible bearing joint responsibility of liquidation If the debtor can not pay off the debt, the guarantor would bear
    due to immature guarantee                                                  joint liabilities for undue guarantees.Explanation on provision of guarantees for external parties in
                                                                           N/Aviolation of the prescribed procedure3. Entrusted financial management□Applicable √Inapplicable
                                                                                   Semi-Annual Report 2012 of CIMC4. Performance of significant contracts relevant to routine operation□Applicable √Inapplicable5. Other significant contracts□Applicable √Inapplicable(XI) Explanation on issuing corporate bonds□Applicable √Inapplicable(XII) Performance of commitments1. Commitments made by the Company or shareholders holding over 5% of the Company’s sharesin the report period, or such commitments carried down into the report period□Applicable √Inapplicable2. The Company’s assets or projects exist profitable prediction and the report period is in suchprediction period, it states the profits from the assets or projects reaching original prediction andrelevant reasons□Applicable √Inapplicable(XIII) Items of other comprehensive income
                                                                                                        Unit: RMB ’000
                                    Items                                   This report period        Same period of last year
    1. Profits/(losses) from available-for-sale financial assets                              49,079.00                 -15,815.00Less: Effects on income tax generating from available-for-sale
                                                                                         12,270.00                    -662.00financial assetsNet amount transferred into profit and loss in the current period thatrecognized into other comprehensive income in prior period
    Subtotal                                                                                 36,809.00                  -15,153.002. Interests in the investee entities’ other comprehensive income as perequity methodLess: Effects on income tax generating from the interests in theinvestee entities’ other comprehensive income as per equity methodNet amount transferred into profit and loss in the current period thatrecognized into other comprehensive income in prior periodSubtotal
    3. Profits/(losses) from cash flow hedging instrument                                    -9,665.00                   9,735.00Less: Effects on income tax generating from cash flow hedging
                                                                                         -1,450.00                   2,542.00instrumentNet amount transferred into profit and loss in the current period thatrecognized into other comprehensive income in prior periodThe adjustment value that is the converted initial recognition amount ofarbitrage project
    Subtotal                                                                                 -8,215.00                   7,193.00
    4. Converted amount of foreign currency financial statements                              6,685.00                  52,664.00Less: Net value of disposal of oversea operations that recognized intocurrent profit and loss
    Subtotal                                                                                  6,685.00                  52,664.00
    5. Other                                                                                                             4,489.00Less: Effects on income tax generating from the others that includedinto other comprehensive incomeNet amount transferred into profit and loss in the current period thatrecognized into other comprehensive income in prior period
    Subtotal                                                                                                             4,489.00
                                                                                     Semi-Annual Report 2012 of CIMC
    Total                                                                                     35,279.00                   49,193.00(XIV)Particulars about researches, visits and interviews received in this reportingperiod
                                                                                                          Main discussion and
    Time of reception    Place of reception     Way of reception         Visitor type        Visitor      materials provided by the
                                                                                                               Company
                                                                                                      The Company’s business
                                                                                                      structure, the current
                                                                                                      situation of the industry
                                                                                      Huatai United
    10 Jan. 2012         The Company           Field research        Institution                          and the Company’s main
                                                                                      Securities
                                                                                                      business, investment
                                                                                                      progress, and outlook for
                                                                                                      development in 2012
                                                                                      Strategy        Summary of economy and
                                                                                      Seminar of      business in 2011 and
    11 Jan. 2012         Shenzhen              Field research        Institution
                                                                                      Industrial      outlook for the financial
                                                                                      Securities      environment in 2012
                                                                                      BNP Hong
                                                                                      Kong
    13 Jan. 2012         Hong Kong             Field research        Institution                       Ditto
                                                                                      Communicatio
                                                                                      n
                                                                                                      The Company’s business
                                                                                                      structure, the current
                                                                                      Zeal Asset      situation of the industry
    9 Feb. 2012          The Company           By phone              Institution          Management      and the Company’s main
                                                                                      Co., Ltd.       business, investment
                                                                                                      progress, and outlook for
                                                                                                      development in 2012
                                                                                      ChinaAMC,
    9 Feb. 2012          The Company           Field research        Institution          Hengtai         Ditto
                                                                                      Securities
    14 Feb. 2012         The Company           Field research        Institution          Chartered Bank Ditto
                                                                                      Guangzhou
    15 Feb. 2012         The Company           Field research        Institution                          Ditto
                                                                                      Securities
                                                                                      Harvest Fund,
                                                                                      Penghua Fund,
                                                                                      Fortune SG
                                                                                      Fund, Wanjia
                                                                                      Asset
                                                                                      Management,
                                                                                      Huashang
                                                                                      Fund,
                                                                                      CITIC-Prodenti
                                                                                      al Fund, CCB
    17 Feb. 2012         The Company           Field research        Institution          Principal Asset Ditto
                                                                                      Management,
                                                                                      Sinolink
                                                                                      Securities,
                                                                                      Dacheng Fund,
                                                                                      Rongtong
                                                                                      Fund, Guosen
                                                                                      Securities, Lion
                                                                                      Fund,
                                                                                      Zhongshan
                                                                                      Securities
                                                                                      China Post
    20 Feb. 2012         The Company           Field research        Institution                          Ditto
                                                                                      Fund
    23 Feb. 2012         The Company           Field research        Institution          Goldman         Ditto
                                                                       Semi-Annual Report 2012 of CIMC
                                                                        Sachs, Fidelity
                                                                        Investments
                                                                        Sumitomo
    28 Feb. 2012   The eastern plant   Field research        Institution    Mitsui Asset Ditto
                                                                        Mgmt (Tokyo)
                                                                        China Southern
    28 Feb. 2012   The Company         Field research        Institution                   Ditto
                                                                        Fund
                                                                                      The Company’s business
                                                                                      structure, the current
                                                                        Ping An       situation of the industry
    6 Mar. 2012    The Company         Field research        Institution    Securities,   and the Company’s main
                                                                        HSBC Jintrust business, investment
                                                                                      progress, and outlook for
                                                                                      development in 2012
                                                                        Cathay
                                                                        Securities
    9 Mar. 2012    The Company         Field research        Institution    Investment        Ditto
                                                                        Trust, Fubon
                                                                        Securities
    23 Mar. 2012   The Company         By phone              Institution    J.P. Morgan       Ditto
    23 Mar. 2012   The Company         Field research        Institution    Harvest Fund      Ditto
                                                                        Jefferies
                                                                        Annual
                                                                                     2011 annual performance
    26 Mar. 2012   Hong Kong           Field research        Institution    Performance
                                                                                     communication
                                                                        Communicatio
                                                                        n
                                                                                       The Company’s business
                                                                                       structure, the current
                                                                                       situation of the industry
                                                                        Allianz Global
    26 Mar. 2012   The eastern plant   Field research        Institution                   and the Company’s main
                                                                        Investors
                                                                                       business, investment
                                                                                       progress, and outlook for
                                                                                       development in 2012
                                                                        UG
                                                                        Investment,
                                                                        Minsheng
                                                                        Royal Fund,
    29 Mar. 2012   The Company         Field research        Institution    China             Ditto
                                                                        Merchants
                                                                        Securities, First
                                                                        State
                                                                        Investments
    30 Mar. 2012   The Company         Field research        Institution    Dacheng Fund Ditto
                                                                        Brown
    6 Apr. 2012    The Company         Field research        Institution                      Ditto
                                                                        Advisory
                                                                        Ivy Asset
                                                                        Management,
    12 Apr. 2012   The Company         Field research        Institution                      Ditto
                                                                        Heqi Asset
                                                                        Management
                                                                        Guosen
    13 Apr. 2012   The eastern plant   Field research        Institution                     Ditto
                                                                        Securities, etc.
                                                                                       Performance and business
                                                                        Shenyin &
                                                                                       for the first quarter,
    25 Apr. 2012   The Company         By phone              Institution    Wanguo and its
                                                                                       outlook and
                                                                        clients
                                                                                       communication
                                                                        Clients of
                                                                        CICC, GIC and
    27 Apr. 2012   The Company         Field research        Institution                  Ditto
                                                                        Morgan
                                                                        Stanley
    8 May 2012     The Company         Field research        Institution    Tokiio Marine The Company’s business
                                                                Semi-Annual Report 2012 of CIMC
                                                                 AM               structure, the current
                                                                                  situation of the industry
                                                                                  and the Company’s main
                                                                                  business, investment
                                                                                  progress, and outlook for
                                                                                  development in 2012
                                                                 The 17th China
                                                                                  Summary of companies’
                                                                 Investment
                                                                                  business results in 2011
                                                                 Forum of
    15 May 2012   Beijing       Field research        Institution                     and outlook for the
                                                                 CLSA
                                                                                  financial environment in
                                                                 Asia-Pacific
                                                                                  2012
                                                                 Markets
                                                                                  The Company’s business
                                                                                  structure, the current
                                                                                  situation of the industry
                                                                 Cathay Life
    16 May 2012   The Company   Field research        Institution                     and the Company’s main
                                                                 Insurance
                                                                                  business, investment
                                                                                  progress, and outlook for
                                                                                  development in 2012
                                                                 Alliance
    18 May 2012   The Company   Field research        Institution                     Ditto
                                                                 Bernstein
                                                                 Foundation
                                                                 Asset
    18 May 2012   The Company   By phone              Institution                     Ditto
                                                                 Management
                                                                 HK
    23 May 2012   The Company   Field research        Institution    Guotai AMC       Ditto
                                                                 Shenyin &
                                                                 Wanguo
                                                                 “Mid-Cap Blue
                                                                 Chip” Listed
                                                                 Companies’
                                                                 Meeting
                                                                 (Caitong Fund,
                                                                 Northeast
                                                                 Securities,
                                                                 Xiamen Trust,    Summary of companies’
                                                                 AIA China,       business results in 2011
    24 May 2012   Xiamen        Field research        Institution    Bohai            and outlook for the
                                                                 Securities,      financial environment in
                                                                 Hongyuan         2012
                                                                 Securities,
                                                                 StarRock
                                                                 Investment,
                                                                 Daiwa Asset
                                                                 Management,
                                                                 Stockren
                                                                 Securities,
                                                                 CITIC
                                                                 Securities
                                                                              The Company’s business
                                                                              structure, the current
                                                                              situation of the industry
    31 May 2012   The Company   Field research        Institution    UOB Kay Hian and the Company’s main
                                                                              business, investment
                                                                              progress, and outlook for
                                                                              development in 2012
                                                                 Absolute Asia
    4 Jun. 2012   The Company   Field research        Institution    Asset            Ditto
                                                                 Management
                                                                 Chengdu
                                                                 Golden Nest
    6 Jun. 2012   The Company   Field research        Institution                     Ditto
                                                                 Capital
                                                                 Management
                                                                           Semi-Annual Report 2012 of CIMC
                                                                                             Recent development of
                                                                            USB Asian
                                                                                             the transport industry as a
    11 Jun. 2012       Hong Kong           Field research        Institution    Transport
                                                                                             whole and outlook for the
                                                                            Conference
                                                                                             industry
                                                                                             The Company’s business
                                                                                             structure, the current
                                                                                             situation of the industry
                                                                            Guangzhou
    18 Jun. 2012       The eastern plant   Field research        Institution                     and the Company’s main
                                                                            Securities
                                                                                             business, investment
                                                                                             progress, and outlook for
                                                                                             development in 2012
                                                                            Guosen
                                                                            Securities and
                   Zhangjiagang CIMC
                                                                            its clients and a
    27 Jun. 2012       Sanctum Cryogenic Field research          Institution                      Ditto
                                                                            few of other
                   Equipment Co., Ltd.
                                                                            institutional
                                                                            investors
                                                                            Guosen
                                                                            Securities and
                   Shijiazhuang Enric
                                                                            its clients and a
    28 Jun. 2012       Gas Equipment Co., Field research         Institution                      Ditto
                                                                            few of other
                   Ltd.
                                                                            institutional
                                                                            investors
                                                                            Guosen
                                                                            Securities and
                   Yantai Raffles,                                          its clients and a
    29 Jun. 2012                           Field research        Institution                      Ditto
                   Longkou Raffles                                          few of other
                                                                            institutional
                                                                            investors(XV) Particulars about engagement and disengagement of CPAs firmHas this semi-annual report been audited?□ Yes √ No □ InapplicableWhether changed to engage the CPAs firm or not?√Yes □No □InapplicableWhether changed the CPAs firm during the audit period or not?√Yes □No □InapplicableWhether executed relevant audit procedure for changing the CPAs firm or not?√Yes □No □InapplicableNotes of engagement and disengagement of CPAs firm:The Company convened the 8th Session of the 6th Board of Directors for 2012 by way oftelecommunication on 2 May 2012, at which reviewed and approved the Proposal on Engagement of CPAsFirm; and the Company convened the 2011 Annual Shareholders’ General Meeting on 25 May 2012, atwhich approved to engage PricewaterhouseCoopers Consulting as the CPAs firm for the annual audit of theCompany in 2012.(XVI) Particulars about punishment and rectification order received by the Company,its directors, supervisors, senior executives, shareholders, actual controller and acquirer□Applicable √Inapplicable(XVII) Explanation on other significant events□Applicable √Inapplicable
                                                                                 Semi-Annual Report 2012 of CIMC(XVIII) Particulars about significant changes in the profitability, asset status and creditstatus of the Company’s convertible bonds guarantor(Only listed companies which issue convertible corporate bonds are required to fill the form below.)□Applicable √Inapplicable(XIX) Index for information disclosure
                                                                                          Internet website for disclosing
                                   Newspapers for disclosing
             Event                                                 Publishing date        information and the searching
                                 information and relevant page
                                                                                                    approach
    CIMC: Announcement on Mr.        China Securities Journal,
    Sun Jiakang Ceasing to be a      Securities Times, Shanghai   3 Feb. 2012              http://www.cninfo.com.cn/
    CIMC Director                    Securities News, Ta Kung PaoCIMC: Announcement on
                              China Securities Journal,Resolutions Made at the Third
                              Securities Times, Shanghai   14 Feb. 2012                http://www.cninfo.com.cn/Session of the Sixth Board of
                              Securities News, Ta Kung PaoDirectors for 2012CIMC: Notice on Convening China Securities Journal,
    the First Special Shareholders’ Securities Times, Shanghai   14 Feb. 2012             http://www.cninfo.com.cn/
    General Meeting in 2012          Securities News, Ta Kung Pao
    CIMC: Management System        China Securities Journal,
    for Related Party Transactions Securities Times, Shanghai   14 Feb. 2012               http://www.cninfo.com.cn/
    (Feb. 2012)                    Securities News, Ta Kung PaoCIMC: Independent Opinion of
    Independent Directors on     China Securities Journal,
    Nomination and Election of   Securities Times, Shanghai   14 Feb. 2012                 http://www.cninfo.com.cn/
    Director Candidate for the   Securities News, Ta Kung PaoSixth Board of DirectorsCIMC: The Legal Opinion
                               China Securities Journal,Letter for the First Special
                               Securities Times, Shanghai   2 Mar. 2012                http://www.cninfo.com.cn/Shareholders’ General Meeting
                               Securities News, Ta Kung Paofor 2012CIMC: Announcement on
                                 China Securities Journal,Resolutions Made at the First
                                 Securities Times, Shanghai   2 Mar. 2012              http://www.cninfo.com.cn/Special Shareholders’ General
                                 Securities News, Ta Kung PaoMeeting for 2012CIMC: Announcement on
                                 China Securities Journal,Resolutions Made at the Fifth
                                 Securities Times, Shanghai   8 Mar. 2012              http://www.cninfo.com.cn/Session of the Sixth Board of
                                 Securities News, Ta Kung PaoDirectors for 2012
    CIMC: Announcement on the        China Securities Journal,
    Postponed Disclosure of the      Securities Times, Shanghai   20 Mar. 2012             http://www.cninfo.com.cn/
    2011 Annual Report               Securities News, Ta Kung Pao
    CIMC: Corporate Social        China Securities Journal,
    Responsibility Report of CIMC Securities Times, Shanghai   23 Mar. 2012                http://www.cninfo.com.cn/
    for Year 2011                 Securities News, Ta Kung PaoCIMC: Announcement on
                                 China Securities Journal,Resolutions of the 1st Session
                                 Securities Times, Shanghai   23 Mar. 2012             http://www.cninfo.com.cn/of the 6th Supervisory
                                 Securities News, Ta Kung PaoCommittee for 2012CIMC: Announcement on
                                 China Securities Journal,Resolutions of the Sixth
                                 Securities Times, Shanghai   23 Mar. 2012             http://www.cninfo.com.cn/Session of the Sixth Board of
                                 Securities News, Ta Kung PaoDirectors for Year 2012
                                                                                Semi-Annual Report 2012 of CIMCCIMC: Self-appraisal Report China Securities Journal,
    on Internal Control of the  Securities Times, Shanghai   23 Mar. 2012                 http://www.cninfo.com.cn/
    Company for 2011            Securities News, Ta Kung PaoCIMC: Specific Explanation on
                               China Securities Journal,Particulars of Non-operational
                               Securities Times, Shanghai   23 Mar. 2012              http://www.cninfo.com.cn/Capital Occupation and Other
                               Securities News, Ta Kung PaoIntercourse in 2011CIMC: Announcement on
    Providing Guarantees for         China Securities Journal,
    Application of Subsidiaries,     Securities Times, Shanghai   23 Mar. 2012            http://www.cninfo.com.cn/
    Their Dealers and Customers      Securities News, Ta Kung Paofor Bank Credits in 2012CIMC: Announcement onExecution of Daily
                                 China Securities Journal,Related-Party Transactions in
                                 Securities Times, Shanghai   23 Mar. 2012            http://www.cninfo.com.cn/2011 and Expected Daily
                                 Securities News, Ta Kung PaoRelated-Party Transactions in2012
                               China Securities Journal,CIMC: Work Report of
                               Securities Times, Shanghai   23 Mar. 2012              http://www.cninfo.com.cn/Independent Directors for 2011
                               Securities News, Ta Kung Pao
    CIMC: Auditor’s Report of       China Securities Journal,
    Internal Control as of 31 Dec.   Securities Times, Shanghai   23 Mar. 2012            http://www.cninfo.com.cn/
    2011                             Securities News, Ta Kung Pao
                                 China Securities Journal,CIMC: Annual Report 2011
                                 Securities Times, Shanghai   23 Mar. 2012            http://www.cninfo.com.cn/(Summary)
                                 Securities News, Ta Kung Pao
                             China Securities Journal,CIMC: 2011 Annual Auditor’s
                             Securities Times, Shanghai   23 Mar. 2012                http://www.cninfo.com.cn/Report
                             Securities News, Ta Kung Pao
                                 China Securities Journal,
    CIMC: Annual Report 2011         Securities Times, Shanghai   23 Mar. 2012            http://www.cninfo.com.cn/
                                 Securities News, Ta Kung Pao
    CIMC: Announcement on         China Securities Journal,
    Business Performance Forecast Securities Times, Shanghai   12 Apr. 2012               http://www.cninfo.com.cn/for the First Quarter of 2012 Securities News, Ta Kung Pao
                            China Securities Journal,CIMC: Summary of Report for
                            Securities Times, Shanghai   25 Apr. 2012                 http://www.cninfo.com.cn/the First Quarter of 2012
                            Securities News, Ta Kung Pao
                                 China Securities Journal,CIMC: Report for the First
                                 Securities Times, Shanghai   25 Apr. 2012            http://www.cninfo.com.cn/Quarter of 2012
                                 Securities News, Ta Kung PaoCIMC: Independent Opinion of China Securities Journal,
    Independent Directors on     Securities Times, Shanghai 4 May 2012                    http://www.cninfo.com.cn/Accounting Firm Engagement Securities News, Ta Kung PaoCIMC: Notice on Convening China Securities Journal,
    the 2011 Annual Shareholders’ Securities Times, Shanghai   4 May 2012                http://www.cninfo.com.cn/
    General Meeting                Securities News, Ta Kung PaoCIMC: Announcement on
                               China Securities Journal,Resolutions Made at the Eighth
                               Securities Times, Shanghai   4 May 2012                http://www.cninfo.com.cn/Session of the Sixth Board of
                               Securities News, Ta Kung PaoDirectors for 2012
    CIMC: Announcement on           China Securities Journal,
    Signing a Strategic Cooperation Securities Times, Shanghai 10 May 2012                http://www.cninfo.com.cn/Agreement with Bank of China Securities News, Ta Kung PaoCIMC: Suggestive Notice on China Securities Journal,
    Convening the 2011 Annual      Securities Times, Shanghai   22 May 2012               http://www.cninfo.com.cn/Shareholders’ General Meeting Securities News, Ta Kung Pao
    CIMC: The Legal Opinion          China Securities Journal,        26 May 2012         http://www.cninfo.com.cn/
                                                                             Semi-Annual Report 2012 of CIMC
    Letter for the Annual          Securities Times, ShanghaiShareholders’ General Meeting Securities News, Ta Kung Paofor 2011CIMC: Announcement on
                               China Securities Journal,Resolutions Made at the Annual
                               Securities Times, Shanghai   26 May 2012            http://www.cninfo.com.cn/Shareholders’ General Meeting
                               Securities News, Ta Kung Paofor 2011
    CIMC: Announcement on            China Securities Journal,
    Implementation of Equity         Securities Times, Shanghai   14 Jun. 2012         http://www.cninfo.com.cn/
    Distribution for the Year 2011   Securities News, Ta Kung Pao
                                        VIII. Financial Report
                                                              Semi-Annual Report 2012 of CIMCChina International Marine Containers (Group) Co., Ltd.Consolidated balance sheet as at 30 June 2012
                                                 30 June 2012         31 December 2011
                                         Note     RMB’000                RMB’000AssetsCurrent assets
    Cash at bank and on hand                 V.1            4,931,305                7,788,126
    Financial assets held for trading        V.2              378,440                    186,134
    Bills receivable                         V.3              557,965                1,030,528
    Accounts receivable                      V.4           10,349,376                8,110,784
    Prepayments                              V.6            2,035,275                1,930,496
    Interest receivable                                           5,141                    2,020
    Other receivables                        V.5            2,298,503                2,709,665
    Inventories                              V.7           16,749,710               15,468,352
    Non-current assets due within one year   V.8            3,142,843                2,635,287
    Other current assets                     V.9             948,263                  865,633
    Total current assets                                   41,396,821               40,727,025Non-current assets
    Available-for-sale financial assets      V.10             621,216                    571,954
    Long-term receivables                    V.11           1,996,331                2,311,235
    Long-term equity investments             V.12           1,941,456                1,957,187
    Investment property                      V.13             145,493                    126,983
    Fixed assets                             V.14          10,805,255               10,885,435
    Construction in progress                 V.15           2,287,206                1,898,330
    Intangible assets                        V.16           3,270,125                3,172,222
    Goodwill                                 V.17           1,289,950                1,207,504
    Long-term deferred expenses              V.18                34,418                   34,892
    Deferred tax assets                      V.19             678,095                 704,098
    Other non-current assets                 V.20            765,381                  764,849
    Total non-current assets                               23,834,926               23,634,689
    Total assets                                           65,231,747               64,361,714
                                                                      Semi-Annual Report 2012 of CIMCChina International Marine Containers (Group) Co., Ltd.Consolidated balance sheet as at 30 June 2012 (continued)
                                                          30 June 2012        31 December 2011
                                                  Note     RMB’000               RMB’000Liabilities and shareholders’equityCurrent liabilities
    Short-term loans                                  V.23           7,190,444               8,030,912
    Financial liabilities held for trading            V.24             18,111                    31,107
    Bills payable                                     V.25           1,370,738               3,295,226
    Accounts payable                                  V.26           8,041,510               7,328,966
    Advances from customers                           V.27           3,127,090               2,662,742
    Employee benefits payable                         V.28           1,913,019               2,012,608
    Taxes payable                                     V.29            666,997                 916,118
    Interest payable                                  V.30             65,554                 152,067
    Dividends payable                                 V.31            297,409                 116,253
    Other payables                                    V.32           3,563,860               3,393,837
    Provisions                                        V.33            830,677                 736,179
    Non-current liabilities due within one year       V.34           1,827,158               2,560,318
    Total current liabilities                                       28,912,567              31,236,333Non-current liabilities
    Financial liabilities held for trading            V.24             86,914                    74,836
    Long-term loans                                   V.35           8,285,995               6,572,585
    Bond payable                                      V.36           5,989,610               3,988,438
    Long-term payable                                 V.37            350,182                    86,846
    Special payable                                   V.38             10,730                     8,940
    Deferred tax liabilities                          V.19            653,453                 581,500
    Other non-current liabilities                     V.39            200,379                 198,564
    Total non-current liabilities                                   15,577,263              11,511,709
    Total liabilities                                               44,489,830              42,748,042Shareholders’ equity
    Share capital                                     V.40           2,662,396               2,662,396
    Capital reserve                                   V.41            854,158                 799,261
    Surplus reserve                                   V.42           2,953,160               2,953,160
    Retained earnings                                 V.43          12,494,100              12,785,092
    Foreign currency translation differences                         (548,318)               (566,755)Total equity attributable to equity holders of
                                                                18,415,496              18,633,154the Company
    Minority interests                                               2,326,421               2,980,518
    Total equity                                                    20,741,917              21,613,672
    Total liabilities and shareholders’ equity                     65,231,747              64,361,714
                                                              Semi-Annual Report 2012 of CIMCChina International Marine Containers (Group) Co., Ltd.Balance sheet as at 30 June 2012
                                                                              RMB'000
    Item                                   Note     Jun-30-2012           Dec-31-2011Current assets
    Cash at bank and on hand              Ⅻ、1          1,026,534               430,350
    Financial assets held for trading     Ⅻ、2            195,993                     -
    Dividends receivable                  Ⅻ、3          5,313,114              5,403,255
    Other receivables                     Ⅻ、4          7,417,830              6,798,779
    Total current assets                                 13,953,471             12,632,384Non-current assets
    Available-for-sale financial assets   Ⅻ、5            613,234               564,155
    Long-term equity investments          Ⅻ、6          4,835,214              4,341,151
    Fixed assets                                           135,802               137,642
    Construction in progress                                10,294                14,457
    Intangible assets                                       22,044                22,246
    Long-term deferred expenses                              6,733                 5,683
    Deferred tax assets                    Ⅻ、16            80,890                71,554
    Total non-current assets                              5,704,211              5,156,888
    Total assets                                         19,657,682             17,789,272
                                                                          Semi-Annual Report 2012 of CIMCChina International Marine Containers (Group) Co., Ltd.Balance sheet as at 30 June 2012 (continued)
                                                                                          RMB'000
    Item                                           Note         Jun-30-2012           Dec-31-2011Current liabilities
    Short-term loans                              Ⅻ、7                570,000                 363,009
    Financial liabilities held for trading        Ⅻ、8                      -                  21,290
    Employee benefits payable                     Ⅻ、9                761,719                 671,840
    Taxes payable                                 Ⅻ、10               164,791                  63,652
    Interest payable                              Ⅻ、11                24,394                 133,106
    Dividends payable                             Ⅻ、12               198,800                       -
    Other payables                                                      43,868                  72,733
    Non-current liabilities due within one year   Ⅻ、13              1,688,748              1,094,352
    Total current liabilities                                          3,452,320              2,419,982Non-current liabilities
    Financial liabilities held for trading                              84,518                  74,836
    Long-term loans                               Ⅻ、14              4,187,490              4,223,180
    Bonds Payable                                 Ⅴ、36              5,989,610              3,988,438
    Deferred tax liabilities                      Ⅻ、16                     -                     -
    Total non-current liabilities                                     10,261,618              8,286,454
    Total liabilities                                                 13,713,938             10,706,436Shareholders’ equity
    Share capital                                 V、40               2,662,396              2,662,396
    Capital reserve                               Ⅻ、17               289,649                 199,322
    Surplus reserve                               V、42               2,953,160              2,953,160Retained earnings
    Translation differences of financial                                38,539               1,267,958
    statements denominated in foreign currency                                -                     -
    Total equity                                                       5,943,744              7,082,836
    Total liabilities and Shareholders’ equity                       19,657,682             17,789,272
                                                                            Semi-Annual Report 2012 of CIMCChina International Marine Containers (Group) Co., Ltd.Consolidated income statementfor the period ended 30 June 2012
                                          From 1 January to 30 June 2012 From 1 January to 30 June 2011
    Item                                       Note                RMB’000                          RMB’000
    Operating income                           V.44               27,364,446                         36,478,098
    Less: Operating costs                      V.44               23,013,597                         29,499,900
    Business taxes and surcharges          V.45                 162,351                             73,154
    Selling and distribution expenses      V.46                 863,756                            968,591
    General and administrative expenses    V.47                1,655,709                          1,715,951
    Financial expenses                     V.48                 236,439                            399,962
    Impairment loss(reversal)              V.51                  (24,986)                           73,709
    Add: Gain from changes in fair value       V.49                  (14,934)                          (88,256)
    Investment income                     V.50                   (3,522)                           71,207(Including: Income from investment inassociates and jointly controlled
    enterprises)                                                     (10,095)                           28,739
    Operating profit                                               1,439,124                          3,729,782
    Add: Non-operating income                  V.52                  77,031                            103,013
    Less:Non-operating expenses                V.53                  23,104                             15,276(Including:Loss from non-current assets
    disposal)                                                         4,705                               7,041
    Profit before income tax                                       1,493,051                          3,817,519
    Less:Income tax expenses                   V.54                  485,373                          1,024,118
    Net profit for the period                                      1,007,678                          2,793,401Attributable to:
    Equity shareholders of the Company                             933,710                          2,807,629
    Minority shareholders                                          73,968                            (14,228)Earnings per share
    Basic earnings per share                 V.55                   0.3507                            1.0545
    Diluted earnings per share               V.55                   0.3495                            1.0545
    Other comprehensive income                 V.56                  35,279                             49,193
    Total comprehensive income                                     1,042,957                          2,842,594Attributable to:
    Equity shareholders of the Company                            980,741                           2,794,047
    Minority shareholders                                          62,216                             48,547
                                                                              Semi-Annual Report 2012 of CIMCChina International Marine Containers (Group) Co., Ltd.Income statement for the period ended 30 June 2012
                                                                                                       RMB'000
    Item                                     Note     From 1 January to 30 June 2012 From 1 January to 30 June 2011
    Ⅰ .Operating income                                                        233                            700
    Ⅱ .Operating costs                                                          17                              39
    Business tax and surcharges                                            11,947                              -
    General and administrative expenses                                   277,077                        285,548
    Financial expenses                                                   107,311                         (36,153)Add: Gains/(losses) from changes in fair
                                         Ⅻ、18                           3,458                          (8,719)value
    Investment income                     Ⅻ、19                         364,578                        222,704
    Ⅲ .Operating(loss)/ profit                                             (28,083)                        (34,749)
    Add: Non-operating income                Ⅻ、20                           2,082                           1,186
    Less: Non-operating Expenses                                                322                            310Including:Losses from disposal of non-
                                                                         (1,319)                          (608)current assets
    Ⅳ .(Loss)/Profit before income tax                                     (26,323)                        (33,873)
    Less:Income tax expenses                 Ⅻ、21                         (21,606)                        (37,687)
    Ⅴ .Net profit for the period                                            (4,718)                          3,814
    Ⅵ.Other comprehensive income            Ⅻ、22                          36,809                         (15,153)
    Ⅶ.Total comprehensive income                                            32,092                         (11,339)
                                                                                            Semi-Annual Report 2012 of CIMCChina International Marine Containers (Group) Co., Ltd.Consolidated cash flow statementfor the period ended 30 June 2012
                                                                                                                        RMB’000
    Item                                                       Note     From 1 January to 30 June 2012 From 1 January to 30 June 2011Cash flows from operating activities:Cash received from sale of goods and rendering of
                                                                                       25,950,382                      30,785,201services
    Refund of taxes                                                                        1,089,739                       2,088,686
    Other cash received relating to operating activities V.57(1)                           152,728                         227,162
    Sub-total of cash inflows                                                               27,192,849                     33,101,049
    Cash paid for goods and services                                                       24,935,924                      31,152,788
    Cash paid to and for employees                                                          2,051,733                       2,195,235
    Cash paid for all types of taxes                                                        1,343,578                       1,309,083
    Other cash paid relating to operating activities        V.57(2)                         968,657                       2,605,387
    Sub-total of cash outflows                                                              29,299,892                     37,262,493
    Net cash (outflow) / inflow from operating              V.58(1)                       (2,107,043)                    (4,161,444)Cash flows from investing activities:
    Cash received from disposal of investments                                                                                68,353
    Cash received from return on investments                                                  26,100                          24,617Net cash received from disposal of fixed assets,
                                                                                           21,949                           7,301intangible assets and other long-term assets
    Cash received from disposal of subsidiaries                                                     -                                -
    Cash received relating to other investing activities                                             -                                -
    Sub-total of cash inflows                                                                  48,049                         100,271Cash paid for acquisition of fixed assets, intangible
                                                                                          870,260                       1,083,498assets and other long-term assets
    Cash paid for acquisition of investments                                                  244,528                         295,502
    Cash paid for acquisition of subsidiaries                                                 718,944                          49,936
    Other cash paid relating to investing activities                                                -                               -
    Sub-total of cash outflows                                                               1,833,732                      1,428,936
    Net cash outflow from investing activities                                              (1,785,683)                    (1,328,665)Cash flows from financing activities:
    Cash received from investors                                                                     -                              -
    Including: Cash received from minority                                                           -                              -
    Cash received from borrowings                                                           15,241,020                     20,968,220
    Other cash received relating to financing activities                                             -                              -
    Sub-total of cash inflows                                                              15,241,020                      20,968,220
    Cash repayments of borrowings                                                          12,309,686                      12,913,949
    Cash paid for dividends, profits distribution or                                        1,581,590                       1,252,464Including: Dividends and profits paid to minority
                                                                                           23,224                            214shareholders of subsidiaries
    Other cash paid relating to financing activities        V.57(3)                          14,460                             -
    Sub-total of cash outflows                                                              13,905,736                     14,166,413
    Net cash inflow / (outflow) from financing                                               1,335,284                      6,801,807Effect of foreign exchange rate changes on cash
                                                                                         (101,374)                         (4,728)and cash equivalents
    Net increase / (decrease) in cash and cash              V.58(1)                       (2,658,816)                     1,306,970Add:cash and cash equivalents at the beginning
                                                                                        6,563,253                       3,797,415of the period
    Cash and cash equivalents at the end of the period                                       3,904,437                      5,104,385
                                                                                          Semi-Annual Report 2012 of CIMCChina International Marine Containers (Group) Co., Ltd.Cash flow statement for the period ended 30 June 2012
                                                                                                                      RMB'000
    Item                                                     Note    from 1 January to 30 June 2012 from 1 January to 30 June 2011Ⅰ .Cash flows from operating activities:
    Other cash received relating to operating activities                                 8,948,916                       5,852,855
    Cash paid to and for employees                                                          47,532                          49,433
    Cash paid for all types of taxes                                                        16,801                           7,420
    Other cash paid relating to operating activities                                     9,860,729                       7,983,815
    Sub-total of cash outflows                                                           9,925,062                       8,040,668
    Net cash inflow / (outflow) from operating activities Ⅻ、23                          (976,146)                     (2,187,813)Ⅱ .Cash flows from investing activities:
    Cash received from disposal of investments                                                 -                           45,853
    Cash received from return on investments                                               427,796                        133,002Net cash received from disposal of fixed assets,
                                                                                          2,005                          1,975intangible assets and other long-term assets
    Cash received from disposal of subsidiaries                                              4,218                               -
    Sub-total of cash inflows                                                              434,019                        180,830Cash paid for acquisition of fixed assets, intangible
                                                                                         7,683                         24,596assets and other long-term assets
    Cash paid for acquisition of investments                                               703,657                         93,600Sub-total of cash outflows
                                                                                       711,340                        118,196
    Net cash inflow /(outflow) from investing activities                                  (277,321)                        62,634Ⅲ .Cash flows from financing activities:Cash received from borrowings and subtotal of
                                                                                      3,997,130                      7,732,083cash inflows
    Cash repayments of borrowings                                                          784,267                       3,626,511Cash paid for dividends, profits distribution or
                                                                                      1,349,880                       905,494interest
    Payments relating to other financing activities cash                                    14,461                               -
    Sub-total of cash outflows                                                            2,148,608                      4,532,005
    Net cash inflow / (outflow) from financing activities                                 1,848,522                      3,200,078Ⅳ .Effect of foreign exchange rate changes on cash
                                                                                           916                           (919)and cash equivalentsⅤ .Net increase / (decrease) in cash and cash
                                                  Ⅻ、23                               595,971                       1,073,980equivalentsAdd:cash and cash equivalents at the beginning of
                                                                                       427,874                        417,461the year
    Ⅵ .Cash and cash equivalents at 30 June 2012           Ⅻ、23                        1,023,845                      1,491,441
                                                                                                                                                                                                                             Semi-Annual Report 2012 of CIMCChina International Marine Containers (Group) Co., Ltd.Consolidated statement of changes in shareholders’ equityfor the period ended 30 June 2012
                                                                                                                                                                                                                                                                          RMB'000
                                                                                               From 1 January to 30 June 2012                                                                                              2011
                                                                       Attributable to equity shareholders of the Company                                                            Attributable to equity s hareholders of the CompanyItem
                                                             Share         Capital       Surplus       Retained       Foreign currency       Minority                      Share         Capital        Surplus       Retained       Foreign currency     Minority
                                                     Note    capital       reserve       reserve       earnings           exc. Diff          interests        Total        capital       res erve       reserve       earnings           exc. Diff        interests        Total
    I.Balance at 1 January 2012                                  2,662,396       799,261     2,953,160      12,785,092             (566,755)       2,980,518     21,613,672    2,662,396      1,349,420      3,577,588    10,689,335            (2,055,682)     2,983,643     19,206,700
    II.Changes in equity for the period                                    -             -             -              -                      -               -             -             -              -             -              -                    -               -             -
    (I) Net profit for the period                                          -           -               -      933,710                     -            73,968     1,007,678              -            -               -    3,690,926                     -       (31,988)      3,658,938
    (II)Other comprehensive income for the year          V.56              -      28,594               -            -                18,437          (11,752)        35,279              -    (146,828)               -            -             (241,160)       (98,415)      (486,403)
    Sub-total of (I)&(II)                                                  -      28,594               -      933,710                18,437            62,216     1,042,957              -    (146,828)               -    3,690,926             (241,160)      (130,403)      3,172,535(III) Shareholders’ contributions and decrease of
    capital                                                                -             -             -              -                      -               -             -             -              -             -              -                    -               -             -
    1.Contributions by minority Shareholders                               -           -               -              -                      -              -             -              -     (58,964)               -              -                    -       353,660        294,696
    2.Acquisition of minority interests of subsidiary                      -    (33,003)               -              -                      -      (684,774)     (717,777)              -            -               -              -                    -             -              -3.Increase in minority interests resulted from
    acquisition of subsidiary                                              -             -             -              -                      -               -             -             -              -             -              -                    -               -             -4.Decrease in minority interests resulted from
    disposal of subsidiary                                                 -             -             -              -                      -               -             -             -              -             -              -                    -               -             -5.Decrease in retained earnings resulted from
    acquisition of minority interests                                      -             -             -              -                      -               -             -             -              -             -      (19,843)                     -       (29,856)      (49,699)6.Increase in shareholders’ equity resulted from
                                                     VII.2
    share-based payments                                                 -        59,306             -               -                     -               -          59,306           -        117,805              -             -                     -          4,333         122,138
    (IV)Appropriation of profits                                         -             -             -               -                     -               -               -           -              -              -             -                     -              -               -
    1.Appropriation for surplus reserve                                  -             -             -               -                     -               -               -           -              -         92,110      (92,110)                     -              -               -
    2.Distributions to shareholders                      V.43            -             -             -     (1,224,702)                     -        (31,539)     (1,256,241)           -              -              -     (931,839)                     -      (200,859)     (1,132,698)
    (V) Effect of change in functional currency          II.4            -             -             -               -                     -               -               -           -      (462,172)      (716,538)     (551,377)             1,730,087              -               -
    III.Balance at 30 June 2012                                  2,662,396       854,158     2,953,160      12,494,100             (548,318)       2,326,421      20,741,917   2,662,396        799,261      2,953,160    12,785,092             (566,755)      2,980,518      21,613,672
                                                                                                                                                                                      Semi-Annual Report 2012 of CIMCChina International Marine Containers (Group) Co., Ltd.Statement of changes in shareholders’ equityfor the period ended 30 June 2012
                                                                                                                                                                                                                        RMB'000
                                                                            from 1 January to 30 June 2012                                                           from 1 January to 31 December 2011
                                                                                                 Translation differences                                                                    Translation differences
                 Item                  Note      Share        Capital    Surplus     Retained of financial statements                     Share        Capital        Surplus Retained of financial statements
                                                                                                                            Total                                                                                         Total
                                                capital       reserve    reserve     earnings denominated in foreign                     capital       reserve         reserve earnings denominated in foreign
                                                                                                       currency                                                                                   currency
    Ⅰ.Balance at 1 January 2012                    2,662,396     199,322     2,953,160   1,267,958                         -   7,082,836    2,662,396      852,264        3,577,588 1,579,889               (1,533,994)     7,138,143
    Ⅱ.Changes in equity for the period                     -           -             -            -                        -            -           -            -                -          -                         -            -
    (Ⅰ)Net profit for the period                           -           -             -      (4,717)                        -      (4,717)           -            -                -   921,095                          -      921,095(Ⅱ)Other comprehensive income for
                                       Ⅻ、22
    the period                                                -     36,809            -           -                         -      36,809              - (149,727)                -           -                         -     (149,727)
    Sub-total of (Ⅰ)&(Ⅱ)                                    -     36,809            -     (4,717)                         -      32,092              - (149,727)                -     921,095                         -       771,368(Ⅲ) Shareholders' contributions and
    decrease of capital                                       -          -            -           -                         -            -             -             -            -           -                         -             -1.Increase in shareholders equity
    resulted from sharebased payment       Ⅶ、2            -      53,518             -           -                         -      53,518            -   105,164                  -           -                         -      105,164
    (Ⅳ) Appropriation of profits                           -           -             - (1,224,702)                         - (1,224,702)            -         -                  -           -                         -            -
    (Ⅰ).Extracting surplus reserve       V、42            -           -             -           -                         -           -            -         -             92,110    (92,110)                         -            -
    (Ⅱ). Distributions to shareholders   V、43            -           -             - (1,224,702)                         - (1,224,702)            -         -                  -   (931,839)                         -    (931,839)
    (V)Currency change                                      -           -             -           -                         -           -            - (608,379)          (716,538)   (209,077)                 1,533,994            -
    Ⅲ.Balance at 30 June 2012                      2,662,396     289,649     2,953,160      38,539                         -   5,943,744    2,662,396 199,322            2,953,160   1,267,958                         -    7,082,836
                                                                Semi-Annual Report 2012 of CIMCChina International Marine Containers (Group) Co., Ltd.Notes to the financial statements(Expressed in thousands of Renminbi Yuan unless otherwise indicated)
    I     COMPANY STATUS
      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]
      1736” issued by the General Office of the People’s Government of Shenzhen and
      “Shen Ren Yin Fu Zi (1992) 261” issued by Shenzhen Special Economic Zone
      Branch of People’s 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] 925” issued by the General
      Office of the People’s Government of Shenzhen and “Shen Zheng Ban Fu [1994] 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”. Up to 30 June 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
      Group’s 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 equipment such as pressure container and
      compressor; providing integrated services for natural gas distribution; production of
      static container and pot-type wharf equipment 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 Stock Exchange of Hong Kong Limited. 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.
                                                                Semi-Annual Report 2012 of CIMC
    II.   BASIS OF PREPARATION
    1.    BASIS OF FINANCIAL REPORTING
      The financial statements have been prepared on the basis that the Company will
      continue to operate throughout the next accounting period until 31 December 2012 as
      a going concern.
    2.    STATEMENT OF COMPLIANCE
      The financial statements have been prepared in accordance with the requirements of
      “Accounting Standards for Business Enterprises No. 32-Interim Financial Reporting”
      issued by the Ministry of Finance (MOF) of the People’s Republic of China (PRC),
      and “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 (CSRC) in 2007.The same accounting policies are
      followed in the interim financial statements as compared with financial statements for
      the year 2011.
      According to “Accounting Standards for Business Enterprises No. 32-Interim
      Financial Reporting”, notes to interim financial statements are properly compared
      with annual report.
    3.    ACCOUNTING YEAR
      The accounting year of the Group is from 1 January to 31 December.
    4.    FUNCTIONAL 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 certain subsidiaries domiciled in PRC
      was U.S dollar for the year of 2010 and prior years. Due to the fact that Renminbi
      becomes the currency in which major income and costs are denominated and settled,
      the functional currency of the Company and these subsidiaries was changed to be
      Renminbi starting from 1 January 2011. Hong Kong and certain 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).
                                                                 Semi-Annual Report 2012 of CIMC
    II.   BASIS OF PREPARATION (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 acquirer’s 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 acquirer’s interest in the fair value at the
      acquisition date of the acquiree’s 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 acquiree‘s
      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.
                                                                  Semi-Annual Report 2012 of CIMC
    II.   BASIS OF PREPARATION (CONTINUED)
    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 subsidiary‘s 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 subsidiary’s 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.
                                                                  Semi-Annual Report 2012 of CIMC
    II.   BASIS OF PREPARATION (CONTINUED)
    6.    PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS
      (CONTINUED)
      Where the Company acquired a minority interest from a subsidiary’s minority
      shareholders before 7 August 2008, any excess of the investment cost for acquiring
      the minority interest over the Group’s interest in the fair value of the identifiable net
      assets of the minority interest acquired is recognised as goodwill. Where the
      Company acquired a minority interest from a subsidiary’s minority shareholders, the
      difference between the investment cost for acquiring the minority interest and the
      corresponding reduction of minority interest in the consolidated financial statements,
      is adjusted to the capital reserve in the consolidated balance sheet except for the
      portion that has been recognised as goodwill. If the credit balance of capital reserve 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.
      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 Company’s 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, demand deposits, and short-term,
      highly liquid investments, which are readily convertible into known amounts of cash
      and are subject to an insignificant risk of change in value.
                                                                 Semi-Annual Report 2012 of CIMC
    II.   BASIS OF PREPARATION (CONTINUED)
    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 People’s 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 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.
    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.
                                                                   Semi-Annual Report 2012 of CIMC
    II.   BASIS OF PREPARATION (CONTINUED)
    9.    FINANCIAL INSTRUMENTS (CONTINUED)
    (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.
      -       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.
                                                              Semi-Annual Report 2012 of CIMC
    II.   BASIS OF PREPARATION (CONTINUED)
    9.    FINANCIAL INSTRUMENTS
    (1)   Recognition and measurement of financial assets and financial liabilities
      (continued)
      -     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 whose fair value cannot be measured
            reliably are measured at cost subsequent to initial recognition. Other
            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. Dividend
            income from the available-for-sale equity instruments is recognised in profit
            or loss when the investee declares the dividends.
      -     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 the liabilities arising from financial
            guarantee contracts. 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).
            Except for the liabilities arising from financial guarantee contracts described
            above, subsequent to initial recognition, other financial liabilities are
            measured at amortised cost using the effective interest method.
                                                                   Semi-Annual Report 2012 of CIMC
    II.   BASIS OF PREPARATION (CONTINUED)
    9.    FINANCIAL INSTRUMENTS
    (2)   Offsetting a financial asset against a financial liability
      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.
    (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 arm’s 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 Group’s contractual rights to the cash flows
      from the financial asset expire or if the Group transfers substantially all the risks and
      rewards of ownership of the financial asset to another party.
      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.
                                                                   Semi-Annual Report 2012 of CIMC
    II.   BASIS OF PREPARATION (CONTINUED)
    9.    FINANCIAL INSTRUMENTS (CONTINUED)
    (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 includes but is 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.
      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.
                                                                Semi-Annual Report 2012 of CIMC
    II.   BASIS OF PREPARATION (CONTINUED)
    9.    FINANCIAL INSTRUMENTS (CONTINUED)
    (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.
    10.   IMPAIRMENT OF RECEIVABLES
      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 asset’s carrying amount exceeding that which would have been
      determined had no impairment loss been recognised in prior years.
                                                                Semi-Annual Report 2012 of CIMC
    II.   BASIS OF PREPARATION (CONTINUED)
    10.   IMPAIRMENT OF RECEIVABLES (CONTINUED)
      (a)   Receivables that are individually significant and impairment provided on an
            individual basis:
            Criteria of provision for    Individually significant receivables are the
            receivable that are          receivables with the individual amount over
            individually significant     RMB10 million (inclusive) or accounting to 5% or
            and impairment provided      more of the total receivables.
            on an individual basis.
            Method of provision for      An impairment loss is calculated as the excess of
            receivable that are          its carrying amount over the present value of the
            individually significant     estimated future cash flows (exclusive of future
            and impairment provided      credit losses that have not been incurred)
            on an individual basis.      discounted at the original effective interest rate.
      (b)   Receivable that are individually insignificant but impairment provided on an
            individual basis:
            Criteria of provision for    Within the receivables whose amounts are
            receivables that are         individually insignificant, impairment is assessed
            individually insignificant   on an individual basis for the overdue receivables
            but impairment provided      unpaid after collection efforts or with unique
            on an individual basis.      characteristics.
            Method of provision for      An impairment loss is calculated as the excess of
            receivable that are          its carrying amount over the present value of the
            individually insignificant   estimated future cash flows (exclusive of future
            but impairment provided      credit losses that have not been incurred)
            on an individual basis.      discounted at the original effective interest rate.
                                                                  Semi-Annual Report 2012 of CIMC
    II.   BASIS OF PREPARATION (CONTINUED)
    10.   IMPAIRMENT OF RECEIVABLES (CONTINUED)
      (c)   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.
            Determination method of Accounts receivable are divided into six groups of
            the group based on credit containers, vehicles, energy and chemistry
            risk characteristics        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 offshore engineering groups
                                        and other groups, the relevant receivables within
                                        credit period have lower credit risk after the
                                        grouping based on credit risk characteristics
                                        according to individual credit risk assessment and
                                        historical data. No provision is provided accordingly.
                                        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 equipment            Provision is determined based on an ageing analysis.
             Other business            Provision is determined based on an ageing analysis.
            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%
                                               Semi-Annual Report 2012 of CIMC2 to 3 years
    (inclusive)                  100%     1.5 - 30%        100%          100%
    Over 3 years                 100%         100%         100%          100%Note: Aforesaid ageing group, the provision of Group 2 is determined based
      on natural age, while others are determined based on the overdue age.
                                                                  Semi-Annual Report 2012 of CIMC
    II.   BASIS OF PREPARATION (CONTINUED)
    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 value of inventories
      and the 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.
      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.
                                                                Semi-Annual Report 2012 of CIMC
    II.   BASIS OF PREPARATION (CONTINUED)
    11.   INVENTORIES (CONTINUED)
    (5)   Amortisation of reusable material including low-value consumables and packaging
      materials
      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 Company’s share of the carrying amount of the
                    subsidiary’s 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.
             -      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.
                                                               Semi-Annual Report 2012 of CIMC
    II.   BASIS OF PREPARATION (CONTINUED)
    12.   LONG-TERM EQUITY INVESTMENTS (CONTINUED)
    (2)   Subsequent measurement
      (a)   Investments in subsidiaries
            In the Company’s 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 Group’s consolidated financial statements, investments in subsidiaries
            are accounted for in accordance with the principles described in Note II. 6.
      (b)   Investment in jointly controlled enterprises and associates
            A jointly controlled enterprise is an enterprise which operates under joint
            control (see NoteII.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 NoteII.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 Group’s interest in the fair value of the investee’s
                   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 Group’s interest in the fair value of the
                   investee’s identifiable net assets at the date of acquisition, the
                   investment is initially recognised at the investor’s share of the fair
                   value of the investee’s identifiable net assets, and the difference is
                   charged to profit or loss.
                                                               Semi-Annual Report 2012 of CIMC
    II.   BASIS OF PREPARATION (CONTINUED)
    12.   LONG-TERM EQUITY INVESTMENTS (CONTINUED)
    (2)   Subsequent measurement (continued)
      (b)   Investment in jointly controlled enterprises and associates (continued)
            -      After the acquisition of the investment, the Group recognises its share
                   of the investee’s 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.
                   The Group recognises its share of the investee’s 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 investee’s 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 Group’s 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 Group’s
                   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.
                                                                   Semi-Annual Report 2012 of CIMC
    II.   BASIS OF PREPARATION (CONTINUED)
    12.   LONG-TERM EQUITY INVESTMENTS (CONTINUED)
    (2)   Subsequent measurement (continued)
      (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.
    (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 investee’s 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 investee’s 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.
                                                                Semi-Annual Report 2012 of CIMC
    II.   BASIS OF PREPARATION (CONTINUED)
    12.   LONG-TERM EQUITY INVESTMENTS (CONTINUED)
    (3)   Basis for determining the existence of joint control or significant influence over an
      investee (continued)
      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; or
             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.
    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. 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.
                                                                 Semi-Annual Report 2012 of CIMC
    II.   BASIS OF PREPARATION (CONTINUED)
    13.   INVESTMENT PROPERTIES (CONTINUED)
      The useful lives, residual value rate and depreciation / amortisation rate of each class
      of investment properties are as follows:
                                                                                  Depreciation
                                                                  residual      / Amortisation
                                              useful life    value rate(%)            rate (%)
      Land use rights                     29 - 50 years                  -            2 - 3.4%
      Plant and buildings                 20 - 30 years               10%             3 - 4.5%
    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.
                                                                                    Semi-Annual Report 2012 of CIMC
    II.   BASIS OF PREPARATION (CONTINUED)
    14.   FIXED ASSETS (CONTINUED)
    (2)   Depreciation
      Fixed assets are depreciated using the straight-line method over their estimated useful
      lives, unless the fixed asset is classified as held for sale (see Note II.28). The
      estimated useful lives, residual values and depreciation rates of each class of fixed
      assets are as follows:
                                                                   Residual      Depreciation
                                                          period      value Depreciation
      Classes                                            (years)        rate             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%
      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)   Criteria of recognition and method of measuring for fixed assets under a finance
      lease
      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 derecognised:
                on disposal; or
                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.
                                                                 Semi-Annual Report 2012 of CIMC
    II.   BASIS OF PREPARATION (CONTINUED)
    15.   CONSTRUCTION IN PROGRESS
      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 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.
                                                            Semi-Annual Report 2012 of CIMC
    II.   BASIS OF PREPARATION (CONTINUED)
    16.   BORROWING COSTS (CONTINUED)
      -   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.
          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.
                                                                  Semi-Annual Report 2012 of CIMC
    II.   BASIS OF PREPARATION (CONTINUED)
    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 asset’s 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:
                                                                 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
      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.
      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.
      Expenditures on research phase are recognised in profit or loss when incurred.
      Expenditures on development phase are capitalised if development costs can be
      measured reliably, the product or process is technically and commercially feasible,
      and the Group intends to and has sufficient resources to complete development.
      Capitalised development costs are stated at cost less impairment losses (see Note
      II.20). Other development expenditures are recognised as expenses in the period in
      which they are incurred.
                                                                 Semi-Annual Report 2012 of CIMC
    II.   BASIS OF PREPARATION (CONTINUED)
    18.   GOODWILL
      Goodwill represents the excess of cost of acquisition over the acquirer’s 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.
    19.   LONG-TERM DEFERRED EXPENSE
      Long-term deferred expenses are amortised on a straight-line method within the
      beneficial period:
                              Item                                      Amortisation period
          Water and electricity
              capacity enlargement expenses                                        5-10 years
          Rental                                                                   2-10 years
          Others                                                                   5-10 years
    20.   IMPAIRMENT OF ASSETS OTHER THAN INVENTORIES,
      FINANCIAL ASSETS AND OTHER LONG-TERM INVESTMENTS
      The carrying amounts of the following assets are reviewed at each balance sheet date
      based on the internal and external sources of information to determine whether there
      is any indication of impairment:
      -        fixed assets
      -        construction in progress
      -        intangible assets
      -        investment properties measured using a cost model
      -        long-term equity investments in subsidiaries, associates and jointly controlled
               enterprises
      -        goodwill and etc.
      If any indication exists that an asset may be impaired, the recoverable amount of the
      asset is estimated. In addition, the Group estimates the recoverable amounts of
      goodwill at no later than each year-end, irrespective of whether there is any indication
      of impairment. Goodwill is allocated to each asset group or set of asset groups, which
      is expected to benefit from the synergies of the combination for the purpose of
      impairment testing.
                                                                  Semi-Annual Report 2012 of CIMC
    II.   BASIS OF PREPARATION (CONTINUED)
    20.   IMPAIRMENT OF ASSETS OTHER THAN INVENTORIES,
      FINANCIAL ASSETS AND OTHER LONG-TERM INVESTMENTS
      (CONTINUED)
      The recoverable amount of an asset, asset group or set of asset groups is the higher of
      its fair value less costs to sell and its present value of expected future cash flows.
      An asset group is the smallest identifiable group of assets that generates cash inflows
      that are largely independent of the cash inflows from other assets or asset groups. An
      asset group is composed of assets directly relating to cash-generation. Identification
      of an asset group is based on whether major cash inflows generated by the asset group
      are largely independent of the cash inflows from other assets or asset groups. In
      identifying an asset group, the Group also considers how management monitors the
      Group’s operations and how management makes decisions about continuing or
      disposing of the Group’s assets.
      An asset’s fair value less costs to sell is the amount determined by the price of a sale
      agreement in an arm’s length transaction, less the costs that are directly attributable to
      the disposal of the asset. The present value of expected future cash flows of an asset
      is determined by discounting the future cash flows, estimated to be derived from
      continuing use of the asset and from its ultimate disposal, to their present value using
      a pre-tax discount rate.
      If the result of the recoverable amount calculating indicates the recoverable amount of
      an asset is less than its carrying amount, the carrying amount of the asset is reduced to
      its recoverable amount. That reduction is recognised as an impairment loss and
      charged to profit or loss for the current period. A provision for impairment of the
      asset is recognised accordingly. For impairment losses related to an asset group or a
      set of asset groups first reduce the carrying amount of any goodwill allocated to the
      asset group or set of asset groups, and then reduce the carrying amount of the other
      assets in the asset group or set of asset groups on a pro rata basis. However, the
      carrying amount of an impaired asset will not be lower than the greatest amount of its
      individual fair value less costs to sell (if determinable), the present value of expected
      future cash flows (if determinable) and zero.
      Once an impairment loss is recognised, it is not reversed in a subsequent period.
                                                                 Semi-Annual Report 2012 of CIMC
    II.   BASIS OF PREPARATION (CONTINUED)
    21.   PROVISIONS AND CONTINGENT LIABILITIES
      A provision is recognised for an obligation related to a contingency if the Group has a
      present obligation that can be estimated reliably, and it is probable that an outflow of
      economic benefits will be required to settle the obligation. Where the effect of time
      value of money is material, provisions are determined by discounting the expected
      future cash flows.
      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. And 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.
    (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.
                                                               Semi-Annual Report 2012 of CIMC
    II.   BASIS OF PREPARATION (CONTINUED)
    22.   SHARE-BASED PAYMENTS (CONTINUED)
    (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.
            For share-based payment transactions among entities within the group          of
            companies (comprising the ultimate parent of the Group and all of             its
            subsidiaries), the Group receiving services recognises the transaction as     an
            equity-settled share-based payment transaction when the Group has             no
            obligation to settle the transaction.
      -     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.
            For share-based payment transactions among entities within the group of
            companies (comprising the ultimate parent of the Group and all of its
            subsidiaries), the Group receiving services recognises the transaction as a
            cash-settled share-based payment transaction if it has an obligation to settle
            the transaction and the awards granted to its employees are the equity
            instruments of other entities within the same group.
                                                                Semi-Annual Report 2012 of CIMC
    II.   BASIS OF PREPARATION (CONTINUED)
    23.   REVENUE RECOGNITION
      Revenue is the gross inflow of economic benefit in the periods arising in the course of
      the Group’s 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&nbs