普华永道——Draft Report -Freddy Jun Jin.ppt

Project Shipping Overview CSCL made significant losses in 2001 and 2002; the Company is nearly or already at a net liability position presently The table opposite shows the key data of CSCL for the year ended 31 December 2000 and 2001 and the nine months ended 31 September 2002. No complete financial information of CSCL is available. Since its incorporation in late 1997, the container volume has increased to 1,737,000 TEU in 2001 from the original 4,600 TEU. However, due to the significant decrease in the freight rates in the second half year of 2001 and the increase in fixed costs, CSCL made significant loss in both 2001 and 2002, as shown at the table opposite. There are still lots of uncertainties that whether the international container liner market will pick up in the near future. Therefore, the forecast of the CSCL’s business is unclear. CSCL was originally held by CSGC, CSDC, GSC and SSC with interests of 40.06%, 25%, 15.44% and 19.5% respectively. In accordance with the joint venture agreement, CSDC has the right to assign most of the directors of CSCL and the management control. In addition, CSDC has the right to acquire the interests in CSCL from the other three investors. However, in September 2002, CSDC announced to sell its 25% interest of CSCL to CSG at a price of Rmb1 only. Our analysis shows that CSDC’s net assets as at 30 September 2002 was about Rmb24 million (the registered capital of CSDC is Rmb1.8 billion) as a result of significant losses made by CSCL in 2001 and 2002. In December 2002, CSGC invested additional Rmb1.0 billion in China Shipping Container Lines Co., Ltd., enhancing its registered capital to Rmb 2.8 billion. Appendix 1 – CSDC Transaction Services Project Shipping CSDC (formerly known as Shanghai Haixing Shipping Co., Ltd.) is the largest oil and coal carrier in China. Main scope of business Coastal, sea, ocean and Yangtze River cargo transportation Ship leasing Cargo forwarding and cargo transportation agency Purch