Draft Report -Freddy Jun Jin.ppt

1/25/01 14:31 Project William Glossary of terms and abbreviations Source Check List China Shipping (Group) Company Part A – Market Due Diligence Company profile Organization Chart Organization Chart (continued) Top management team Resume of Mr. Li Kelin Resume of Mr. Li Kelin (continued) Resume of Mr. Li Shaode Resume of Mr. Xu Zuyuan Resume of Mr. Wang Daxiong Part B – FDD CSCL and CSDC carries out two main business of CSGC; oil, coal and dry bulk shipping services is making profit while container liner services is suffering significant losses. China Shipping Group Company (“CSGC” or “the Group”) has two main businesses: oil, coal and dry bulk shipping services, which is mainly carried out by China Shipping Development Co., Ltd (CSDC), a public company listed in Hong Kong and Shanghai; and container liner services business, which is carried out by China Shipping Container Lines Co., Ltd. (CSCL). The table opposite summarises the revenue and profit analysis of CSCL and CSDC and the Group for the year ended 31 December 2001, which is based on the review and analysis of the public information of CSDC and the group financial information of CSGC provided by you. The container liner services business made a significant loss of Rmb1.1 billion in 2001, which resulted in a net loss of Rmb729 million to the Group. This is discussed further on page X. CSGC is the second largest shipping company in China, following COSCO (the leader of container liner business in Chin*. CSGC is the market leader of oil, coal and dry bulk shipping business in China. This business makes sound profits over the last four years, which provides stable cash inflow to Group. Although CSDC made significant losses, it is the Group’s strategy that CSGC should expand its container liner business to catch up with the rapid development of the market. Significant investment has been made in this business over the last four years. Detailed analysis of the income statement is made overleaf.