华谊集团(600623)轮胎橡胶2005年年度报告

上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 二○○六年三月十七日 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 目 录 一、重要提示 ............................................................... 1 二、公司基本情况简介 ................................................... 1 三、会计数据和业务数据摘要 ................................................. 3 四、股本变动及股东情况 ..................................................... 5 五、董事、监事和高级管理人员 ............................................... 8 六、公司治理结构 .......................................................... 12 七、股东大会情况简介 ...................................................... 14 八、董事会报告 ............................................................ 15 九、监事会报告 ............................................................ 25 十、重要事项 .............................................................. 27 十二、备查文件目录 ....................................................... 100 十三、报告确认意见 ....................................................... 103 1 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 一、重要提示 1、本公司董事会、监事会及董事、监事、高级管理人员保证本报告所载资料不存在 任何虚假记载、误导性陈述或者重大遗漏，并对其内容的真实性、准确性和完整性承担 个别及连带责任。 2、公司全体董事出席董事会会议。 3、上海立信长江会计师事务所有限公司为本公司出具了标准无保留意见的审计报 告。 4、公司负责人董事长范宪先生，主管会计工作负责人总会计师薛建民先生，会计机 构负责人（会计主管人员）总会计师薛建民先生声明：保证本年度报告中财务报告的真 实、完整。 二、公司基本情况简介 1、公司法定中文名称：上海轮胎橡胶(集团)股份有限公司 公司英文名称：Shanghai Tyre & Rubber Co., Ltd. 公司英文名称缩写：STRC 2、公司法定代表人：范宪 3、公司董事会秘书：王玲 联系地址：上海市四川中路 63 号 电话：021-33024666-6379 传真：021-63390367 E-mail：company@cstarc.com 公司证券事务代表：孙文 联系地址：上海市四川中路 63 号 电话：021-33024666-6378 传真：021-63390367 E-mail：wsun@cstarc.com 4、公司注册地址：上海市闵行区江川路 1251 号 605 室 公司办公地址：上海市四川中路 63 号 邮政编码：200002 1 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 公司国际互联网网址：http://www.cstarc.com 公司电子信箱：company@cstarc.com 5、公司信息披露报纸名称：《上海证券报》、《南华早报》 登载公司年度报告的中国证监会指定国际互联网网址：http://www.sse.com.cn 公司年度报告备置地点：公司董事会秘书室 6、公司 A 股上市交易所：上海证券交易所 公司 A 股简称：轮胎橡胶 公司 A 股代码：600623 公司 B 股上市交易所：上海证券交易所 公司 B 股简称：轮胎 B 股 公司 B 股代码：900909 7、其他有关资料 公司首次注册登记日期：1992 年 8 月 5 日 公司首次注册登记地点：上海市浦东即墨路 97 号 公司最新变更注册登记日期：2003 年 9 月 9 日 公司变更注册登记地点：上海市闵行区江川路 1251 号 605 室 公司法人营业执照注册号：企股沪总字第 019010 号 公司税务登记号码：310043607218997 公司聘请的境内会计师事务所名称：上海立信长江会计师事务所有限公司 公司聘请的境内会计师事务所办公地址：上海市南京东路 61 号 4 楼 公司聘请的境外会计师事务所名称：浩华国际会计师事务所 公司聘请的境外会计师事务所办公地址：香港湾仔港湾道 18 号中环广场 2001 室 8、公司其他基本情况 公司未流通股票的托管机构：中国证券登记结算有限责任公司上海分公司 公司美国存托凭证（ADR）托管机构：纽约银行 2 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 三、会计数据和业务数据摘要 （一）本报告期主要财务数据 单位:元 币种:人民币 项目 金额 利润总额 68,320,336.29 净利润 129,154,886.11 扣除非经常性损益后的净利润 95,947,915.61 主营业务利润 741,903,932.59 其他业务利润 61,305,647.40 营业利润 60,893,305.20 投资收益 -24,896,272.15 补贴收入 1,561,387.67 营业外收支净额 30,761,915.57 经营活动产生的现金流量净额 387,591,076.13 现金及现金等价物净增加额 -250,887,268.74 注：扣除的非经常性损益项目和金额如下： 金额（元）（收益 项 目 ＋，损失－） （一）处置长期股权投资、固定资产、在建工程、无形资产、其他长期 41,815,179.99 资产产生的损益 （二）各种形式的政府补贴 1,561,387.67 （三）扣除公司日常根据企业会计制度规定计提的资产减值准备后的其 -8,404,869.54 他各项营业外收入、支出 （四）以前年度已经计提各项减值准备的转回 17,283,302.99 （五）所得税影响额 -14,572,724.16 （六）少数股东损益影响额 -4,475,306.45 合 计 33,206,970.50 （二）境内外审计差异调节表（单位：人民币元） 2005 年度 除税及少数股东权益后 股东权益 利润/(亏损） 根据中国会计准则 129,154,886.11 1,480,313,237.92 合并附属公司之亏损 -8,184,062.58 少数股东权益承担附属公司高于 资本的亏损之冲回 -314,762.74 -12,968,971.13 商誉摊销之差异 -413,201.14 -413,201.14 开办费摊销 -971,996.88 -3,278,243.71 根据国际财务报告准则 119,270,862.77 1,463,652,821.94 3 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 2005年经审计的税后利润，A股为129,154,886.11元，B股为119,270,862.77元，两 者 差 异 9,884,023.34 元 的 构 成 为 ： 1) 大 孚 等 子 公 司 当 年 发 生 的 超 额 亏 损 净 额 8,184,062.58元，A股列为未确认投资损失，B股按国际会计准则的规定列为集团损失 （ 由 大 股 东 承 担 ） ； 2) B 股 根 据 上 述 调 整 相 应 的 调 整 少 数 股 东 权 益 ， 增 加 损 失 314,762.74元；3) B股调整商誉摊销方法，增加损失413,201.14元；4) 如皋公司当年开 办费的摊销余额971,996.88元，B股列为损失。 2005 年 经 审 计 的 股 东 权 益 ， A 股 为 1,480,313,237.92 元 ， B 股 为 1,463,652,821.94 元，两者差异 16,660,415.98 元的构成为：1) 子公司当年发生的由少 数股东承担的超额亏损净额 12,968,971.13 元，B 股按国际会计准则的规定调减股东权 益；2) B 股调整商誉摊销方法增加的损失 413,201.14 元相应地调减股东权益；3)公司历 年的开办费摊销余额 3,278,243.71 元，B 股调减股东权益。 （三）报告期末公司前三年主要会计数据和财务指标 单位:元 币种:人民币 本年比上年增 2005 年 2004 年 2003 年 减（%） 主营业务收入 5,077,962,996.85 4,722,463,743.06 7.53 3,901,888,711.92 利润总额 68,320,336.29 163,422,301.52 -58.19 -71,068,578.78 净利润 129,154,886.11 113,558,469.43 13.73 76,185,742.61 扣除非经常性损益的净利润 95,947,915.61 98,966,324.64 -3.05 37,207,193.86 经营活动产生的现金流量净额 387,591,076.13 128,407,308.33 201.85 435,812,372.82 每股收益 0.145 0.128 13.28 0.086 最新每股收益 0.145 0.128 13.28 0.086 净资产收益率（%） 8.725 8.354 0.371 7.003 扣除非经常性损益的净利润为 6.482 7.281 -0.799 3.420 基础计算的净资产收益率（%） 每股经营活动产生的现金流 0.436 0.144 202.78 0.490 量净额 本年末比上年 2005 年末 2004 年末 2003 年末 末增减（%） 总资产 6,037,994,548.07 5,538,091,753.97 9.03 5,109,210,961.21 股东权益（不含少数股东权益） 1,480,313,237.92 1,359,328,628.45 8.90 1,087,828,745.64 每股净资产 1.664 1.528 8.90 1.223 调整后的每股净资产 1.455 1.255 15.94 0.997 （四）按中国证监会发布的《公开发行证券公司信息披露编报规则》第 9 号的要求计算 的净资产收益率及每股收益 单位:元 币种:人民币 净资产收益率（%） 每股收益 报告期利润 全面摊薄 加权平均 全面摊薄 加权平均 主营业务利润 50.118 52.103 0.8341 0.8341 4 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 营业利润 4.114 4.276 0.0685 0.0685 净利润 8.725 9.070 0.1452 0.1452 扣除非经常性损益后的净利润 6.482 6.738 0.1079 0.1079 （五）报告期内股东权益变动情况及变化原因 单位:元 币种:人民币 项目 股本 资本公积 盈余公积 法定公益金 未确认投资损失 未分配利润 股东权益合计 期初数 889,467,722.00 1,136,694,022.86 257,315,731.22 13,026,472.99 -113,428,067.72 -823,747,252.90 1,359,328,628.45 本期增加 --- 13,785.94 14,713,948.31 --- --- 925,873,910.24 940,601,644.49 本期减少 --- 552,450,742.05 244,268,282.08 --- 8,184,062.58 14,713,948.31 819,617,035.02 期末数 889,467,722.00 584,257,066.75 27,761,397.45 13,026,472.99 -121,612,130.30 87,412,709.03 1,480,313,237.92 本年度资本公积、盈余公积减少系根据四届三次（2004 年度）股东大会审议通过： 公司根据中国证监会《公开发行证券的公司信息披露规范问答第 3 号——弥补累计亏损 的来源程序及信息披露》的规定，本着稳健原则，母公司用盈余公积 244,268,282.08 元、资本公积 552,450,742.05 元弥补 2004 年末未弥补亏损 796,719,024.13 元，并于 2005 年 6 月完成账务处理。 四、股本变动及股东情况 （一）股本变动情况 1、股份变动情况表 单位:股 本次变动前 本次变动增减（＋，－） 本次变动后 比例 发行 公积金 比例 数量 送股 其他 小计 数量 (%) 新股 转股 (%) 一、未上市流通股份 1、发起人股份 617,767,722 69.46 617,767,722 69.46 其中： 国家持有股份 608,357,461 68.40 -2,500,000 605,857,461 68.12 境内法人持有股份 9,410,261 1.06 2,500,000 11,910,261 1.34 境外法人持有股份 其他 2、募集法人股份 5,720,000 0.64 5,720,000 0.64 3、内部职工股 4、优先股或其他 未上市流通股份合计 623,487,722 70.10 623,487,722 70.10 二、已上市流通股份 1、人民币普通股 22,880,000 2.57 22,880,000 2.57 2、境内上市的外资股 243,100,000 27.33 243,100,000 27.33 3、境外上市的外资股 4、其他 5 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 已上市流通股份合计 265,980,000 29.90 265,980,000 29.90 三、股份总数 889,467,722 100.00 889,467,722 100.00 2、股票发行与上市情况 (1) 前三年无股票发行情况 (2) 公司股份总数及结构的变动情况 2005 年 4 月，经国务院国资委等有关部门的批准，上海华谊（集团）公司将所持有 本公司国家股 608,357,461 股中的 2,500,000 股转让给上海市公积金管理中心。本次股 权转让后，本公司的总股本仍为 889,467,722 股，其中：上海华谊（集团）公司持有 605,857,461 股，占 68.12%；上海市公积金管理中心持有 2,500,000 股，占 0.28%，股 份性质为国有法人股。 (3) 公司无内部职工股 （二）股东情况 1、股东数量和持股情况 单位:股 报告期末股东总数 48,277 户 前十名股东持股情况 持股比 持有非流通 质押或冻结 股东名称 股东性质 持股总数 年度内增减 股份类别 例(%) 股数量 的股份数量 上海华谊（集团）公司 国有股东 68.12 605,857,461 -2,500,000 未流通 605,857,461 冻结 徐州轮胎（集团）公司 国有法人股东 1.06 9,410,261 未流通 9,410,261 8,730,000 DEBORAH WANG LIN 外资股东 0.31 2,792,000 已流通 未知 NAITO SECURITIES CO., LTD. 外资股东 0.31 2,786,400 1,335,000 已流通 未知 刘春富 外资股东 0.29 2,563,000 已流通 未知 上海市公积金管理中心 国有法人股东 0.28 2,500,000 2,500,000 未流通 2,500,000 TOYO SECURITIES ASIA LTD. 外资股东 0.21 1,882,680 581,500 已流通 未知 A/C CLIENT 是裕兴 外资股东 0.09 833,000 已流通 未知 HSBC FUND SERVICES A/C 外资股东 0.09 780,000 已流通 未知 006-113039-431 AIZAWA SECURITIES CO., 外资股东 0.08 698,696 已流通 未知 LTD. 前十名流通股股东持股情况 股东名称 持有流通股数量 股份种类 DEBORAH WANG LIN 2,792,000 境内上市外资股 NAITO SECURITIES CO., LTD. 2,786,400 境内上市外资股 刘春富 2,563,000 境内上市外资股 6 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 TOYO SECURITIES ASIA LTD. A/C CLIENT 1,882,680 境内上市外资股 是裕兴 833,000 境内上市外资股 HSBC FUND SERVICES A/C 006-113039-431 780,000 境内上市外资股 AIZAWA SECURITIES CO., LTD. 698,696 境内上市外资股 DBS VICKERS （HONG KONG） LTD A/C CLIENT 651,989 境内上市外资股 粤兴发有限公司 651,000 境内上市外资股 BANK OF NEW YORK ADR FOR TYRE & RUBBER 643,638 境内上市外资股 上述股东关联关 公司未知上述股东之间是否存在关联关系或属于《上市公司股东持股变动信息披露管理办 系或一致行动关 法》规定的一致行动人。 系的说明 公司第一、第二和第五大股东三者之间不存在关联关系或一致行动，其中第二大股 东徐州轮胎（集团）公司持有本公司国有法人股 873 万股被冻结，冻结期限从 2005 年 10 月 7 日至 2006 年 4 月 6 日（期间为六个月）。其余流通股股东之间是否存在关联关 系，其所持有的股份是否质押或冻结等情况未明。 2、控股股东及实际控制人简介 (1) 法人控股股东和持股 10%以上股东情况 公司名称：上海华谊（集团）公司 法人代表：张培璋 注册资本：406,624 万元 成立日期：1997 年 1 月 23 日 主要经营业务或管理活动：授权范围内国有资产经营和管理、实业投资，化工医药 产品及设备的制造和销售，从事化工医药装备工程安装、维修及承包服务。 (2) 实际控制人：上海市国有资产监督管理委员会 (3) 控股股东及实际控制人变更情况 本报告期内公司控股股东及实际控制人没有发生变更。 (4) 公司与实际控制人之间的产权及控制关系的方框图 上海市国有资产监督管理委员会 100% 上海华谊（集团）公司 68.12% 上海轮胎橡胶（集团）股份有限公司 7 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 五、董事、监事和高级管理人员 （一）董事、监事、高级管理人员情况 单位:股 币种:人民币万元 报告期内从公 性 年 任期起始 任期终止 年初持 年末持 股份增 变动 姓名 职务 司领取的报酬 别 龄 日期 日期 股数 股数 减数 原因 总额(万元) 范 宪 董事长 男 52 2005-06-17 2008-06-17 0 0 39.7 岳春辰 董事、总经理 男 58 2005-06-17 2008-06-17 0 0 32.6 隆有明 董事、技术总监 男 63 2005-06-17 2008-06-17 0 0 24.5 黄玉贵 董事 男 55 2005-06-17 2008-06-17 0 0 0 郑国培 独立董事 男 65 2005-06-17 2008-06-17 0 0 15 张晖明 独立董事 男 50 2005-06-17 2008-06-17 0 0 15 李柏龄 独立董事 男 52 2005-06-17 2008-06-17 0 0 15 江秋霞 监事会主席 女 58 2005-06-17 2008-06-17 0 0 0 时来荣 监事会副主席 男 55 2005-06-17 2008-06-17 0 0 25.3 孙昌明 监事 男 55 2005-06-17 2008-06-17 429 429 13.9 金晓敏 监事 女 49 2005-06-17 2008-06-17 0 0 13.9 刘现平 监事 男 53 2005-06-17 2008-06-17 0 0 11.8 柳启岳 副总经理 男 52 2005-06-17 2008-06-17 0 0 25.3 周立才 副总经理 男 57 2005-06-17 2008-06-17 429 429 25.3 王曾金 副总经理 男 40 2005-06-17 2008-06-17 0 0 24.5 薛建民 总会计师 男 48 2005-06-17 2008-06-17 0 0 24.5 王 玲 董事会秘书 女 49 2005-06-17 2008-06-17 14,500 14,500 17.1 合 计 / / / / / / 323.4 董事、监事、高级管理人员最近 5 年的主要工作经历： (1) 范宪，男，1954 年 10 月出生，研究生学历，博士学位，高级工程师。2000 年 7 月至今任上海华谊（集团）公司副总裁，上海轮胎橡胶（集团）股份有限公司董事 长、党委书记，上海制皂（集团）有限公司董事长。 (2) 岳春辰，男，1948 年 1 月出生，工商管理硕士，高级经济师。曾任上海轮胎橡 胶（集团）股份有限公司副总经理，兼任公司下属双钱载重轮胎公司总经理、党委书 记。现任公司总经理。 (3) 隆有明，男，1943 年 9 月出生，大学本科学历，教授级高级工程师。曾任上海 轮胎橡胶（集团）股份有限公司副总工程师，轮胎研究所所长。现任公司技术总监，兼 任公司下属轮胎研究所名誉所长，双钱载重轮胎公司总工程师，大中华正泰轮胎公司总 工程师。 8 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 (4) 黄玉贵，男，1951 年 12 月出生，大专学历，高级政工师。曾任上海市化学设 计院党委副书记，上海有机氟材料研究所及上海三爱富新材料股份有限公司纪委书记、 党委副书记、副监事长。现任济南三爱富公司副董事长。 (5) 郑国培，男，1941 年 8 月出生，研究生学历，教授级高级工程师。曾任上海市 轻工业局副局长、局长，上海市轻工控股（集团）公司董事长、党委书记，上海闵行联 合发展有限公司董事长、党委书记。现任上海闵行联合发展有限公司名誉董事。 (6) 张晖明，男，1956 年 7 月出生，研究生学历，博士学位，教授。曾任日本关西 大学和比利时鲁汶大学客座教授，上海市经济体制改革研究会副会长，上海市企业联合 会常务理事。兼任上海上实集团、友谊集团、光明乳业、鞍山信托、山东六合集团等公 司的经营顾问。现任复旦大学现代企业理论与实践方向博士生导师，复旦大学企业研究 所所长，复旦大学太平洋金融学院院长。 (7) 李柏龄，男，1954 年出生，大学本科学历，经济学学士，教授，高级会计师， 注册会计师。曾任上海经济管理干部学院财会教研室主任、财会系主任、审计处处长， 大华会计师事务所业务部经理，上海白猫有限公司副总经理。现任上海国有资产经营有 限公司财务融资部总经理。 (8) 江秋霞，女，1948 年 8 月出生，大学本科学历，高级会计师。曾任上海市机电 工业管理局财务处处长、局长助理，上海机电控股（集团）公司总会计师，上海电气集 团总公司总会计师。现任上海华谊（集团）公司财务总监，兼任上海医药（集团）有限 公司董事，上海输配电股份有限公司独立董事。 (9) 时来荣，男，1951 年 1 月出生，大专学历，高级政工师。1997 年 12 月至今任 上海轮胎橡胶（集团）股份有限公司党委副书记、纪委书记，2003 年 6 月起兼任公司工 会主席，2005 年 1 月起兼任公司综合办公室主任。 (10) 孙昌明，男，1951 年 8 月出生，大专学历，高级政工师。1996 年 6 月至今任 上海轮胎橡胶（集团）股份有限公司纪委副书记，2003 年 3 月至 7 月兼任公司下属上海 制皂有限公司党委书记 ，2005 年 1 月起兼任公司法律顾问室主任。 (11) 金晓敏，女，1957 年 11 月出生，大专学历，高级政工师。曾任上海轮胎橡胶 （集团）股份有限公司工会副主席，兼任部室党总支书记、党委书记、工会主席。现任 公司工会副主席，兼任部室工会主席，并担任公司下属双钱载重轮胎公司党委书记、纪 委书记。 (12) 刘现平，男，1953 年 4 月出生，大学本科学历，政工师。曾任上海轮胎橡胶 （集团）股份有限公司资产财务部资产总监、管理部资产总监，公司下属大中华正泰轮 9 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 胎公司总经理兼党委副书记、党委书记。现任公司下属上海制皂（集团）有限公司副总 经理，兼任上海制皂有限公司总经理、党委副书记。 (13) 柳启岳，男，1954 年 12 月出生，工商管理硕士，工程师。曾任上海轮胎橡胶 （集团）股份有限公司物资部部长兼采购总监。现任公司副总经理、物资部部长，兼任 公司下属上海制皂（集团）有限公司总经理、党委副书记。 (14) 周立才，男，1949 年 6 月出生，大专学历，高级经济师。1993 年 1 月至今任 上海轮胎橡胶（集团）股份有限公司副总经理。2005 年 1 月至 12 月兼任公司下属大中 华正泰轮胎公司总经理。 (15) 王曾金，男，1966 年 4 月出生，研究生学历，博士学位，高级经济师。曾任 上海轮胎橡胶（集团）股份有限公司资产财务部资产副总监、资产总监、管理部资产总 监、公司下属轮胎研究所常务副所长、公司总经济师。现任公司副总经理，兼任公司下 属轮胎研究所所长。。 (16) 薛建民，男，1958 年 9 月出生，专业会计学硕士，高级会计师、注册会计 师。曾任上海轮胎橡胶（集团）股份有限公司副总会计师。现任公司总会计师，兼任财 务部部长、资产部部长。 (17) 王玲，女，1957 年 11 月出生，工商管理硕士，会计师。曾任上海轮胎橡胶 （集团）股份有限公司财务部经理、财务部财务总监。现任公司董事会秘书。 （二）在股东单位任职情况 是否领取 姓名 股东单位名称 担任的职务 任期起始日期 任期终止日期 报酬津贴 范宪 上海华谊（集团）公司 副总裁 2000-06-01 否 江秋霞 上海华谊（集团）公司 财务总监 1999-09-01 是 黄玉贵 上海华谊（集团）公司 外派专职董事 2001-09-01 否 在其他单位任职情况 是否领取 姓名 其他单位名称 担任的职务 任期起始日期 任期终止日期 报酬津贴 郑国培 上海闵行联合发展有限公司 名誉董事 2004-03-01 是 李柏龄 上海国有资产经营有限公司 财务融资部总经理 2001-01-01 是 复旦大学企业研究所 所长 1996-05-01 是 张晖明 复旦大学太平洋金融学院 院长 2004-09-01 是 黄玉贵 济南三爱富公司 副董事长 2001-08-01 是 10 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 （三）董事、监事、高级管理人员报酬情况 1、董事、监事、高级管理人员报酬的决策程序：董、监事报酬由股东大会决定， 其他高管人员的报酬由董事会决定。 2、董事、监事、高级管理人员报酬确定依据：根据年度经营指标完成情况，以及 公司的经营业绩和年终考评结果发放。 3、不在公司领取报酬津贴的董事监事情况 不在公司领取报酬津贴的董事、监事的姓名 是否在股东单位或其他关联单位领取报酬津贴 黄玉贵 是 江秋霞 是 （四）公司董事监事高级管理人员变动情况 1、2005 年 6 月 17 日，公司在上海光大会展中心国际大酒店 30 楼会议厅召开了 2004 年度股东大会，大会通过了关于选举第五届董事会董事的议案，选举范宪先生、岳 春辰先生、隆有明先生、黄玉贵先生、张晖明先生、李柏龄先生、郑国培先生为第五届 董事会董事。其中张晖明先生、李柏龄先生、郑国培先生为公司独立董事。 2、在五届一次董事会上，选举范宪先生为公司第五届董事会董事长，聘任岳春辰 先生为公司总经理，聘任柳启岳先生、周立才先生、王曾金先生为公司副总理，聘任薛 建民先生为公司总会计师，聘任隆有明先生为公司技术总监，聘任王玲女士为公司董事 会秘书。 3、报告期内，经公司工会职工代表组长联席会议通过，金晓敏女士、刘现平先生 为第五届监事会职工代表监事。经 2004 年度股东大会选举，江秋霞女士、时来荣先 生、孙昌明先生为第五届监事会股东代表监事。 4、在五届一次监事会上，选举江秋霞女士为公司第五届监事会主席，选举时来荣 先生为公司第五届监事会副主席。 （五）公司员工情况 截止 2005 年 12 月 31 日，公司在职员工共有 3823 人。 1、公司员工的专业构成情况：生产人员 2213 人，占 57.89%；销售人员 80 人，占 2.09%；技术人员 282 人，占 7.38%；财务人员 41 人，占 1.07%；行政管理人员 252 人，占 6.59%；其他人员 955 人，占 24.98%。 2、公司员工按教育程度划分：研究生学历以上 20 人，大学本科学历 161 人，大专 学历 340 人。 3、公司需承担费用的离退休职工人数为 5015 人，公司承担费用 1156.3 万元/年。 11 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 六、公司治理结构 （一）公司治理的情况 报告期内，公司严格按照《公司法》、《证券法》和中国证监会有关法律法规要 求，建立健全法人治理结构，根据中国证监会《关于督促上市公司修改公司章程的通 知》（证监公司字[2005]15 号）和上海监管局的转发通知（沪证监公司字[2005]54 号） 文之精神和相关规定，公司对《章程》进行了相应的修改。公司按照中国证监会有关信 息披露的要求和《上海证券交易所股票上市规则》的有关规定，对公司《信息披露制 度》进行了相应的修订，推动了公司法人治理结构的规范运作。 1、关于股东与股东大会：公司根据《上市公司股东大会规范意见》和《公司章 程》，制定了《股东大会议事规则》，以最大限度地保护股东权益；平等对待所有股 东，中小股东享有平等地位，能够充分行使自己的权利；鼓励股东参与公司治理，能够 在股东大会上就公司的经营管理发表自己的意见和建议，并行使自己的投票权。 2、关于控股股东与上市公司：控股股东通过股东大会依法行使出资人权利，没有 超越股东大会直接、间接干预公司的决策与经营活动；公司与控股股东在人员、资产、 财务、机构和业务上相互独立，公司董事会、监事会和内部机构功能健全、独立运作。 3、关于董事与董事会：公司董事会人数与构成符合有关法律法规和《公司章程》 的要求；公司董事会制定了《董事会议事规则》，公司董事能够以认真负责的态度出席 或授权委托出席董事会和股东大会，并积极行使自己的权利和履行相应义务；公司董事 会共有 7 名成员，其中独立董事 3 名，占董事会成员总数的三分之一以上，并成立了战 略、审计、提名、薪酬与考核四个专门委员会，使得公司董事会的决策更具科学性和专 业性。 4、关于监事和监事会：公司制定了《监事会议事规则》，规范了监事会的议事程 序和内容；监事会的人员和构成符合有关法律法规的要求；监事会成员能够以认真负责 的态度出席监事会和股东大会及列席董事会；监事会能够认真履行职责，本着对全体股 东负责的态度，对公司财务及公司董事、经理和其他高管人员履行职责的合法合规性进 行监督，并独立发表意见。 5、关于绩效评价与激励约束机制：公司已建立了绩效考评制度，将公司的经营业 绩与个人的经济利益直接挂钩，对员工的任用实行公开招聘，做到公平、公正、公开、 高效、透明，符合法律、法规的有关规定。 6、关于相关利益者：公司能够充分尊重和维护银行及其他债权人、员工、客户等 相关利益者的合法权益，能够关注环境保护、公益事业等问题，在经济交往中，共同推 12 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 动公司持续、健康的发展。 7、关于信息披露与透明度：公司能够严格按照法律、法规和公司章程的规定，真 实、准确、完整、及时地披露有关信息；公司建立了《信息披露制度》；公司董事会指 定董事会秘书负责信息披露工作，接待投资者来访和咨询工作；能够按照有关规定，及 时披露大股东或公司实际控制人的相关资料和股份的变化情况。 （二）独立董事履行职责情况 1、独立董事参加董事会的出席情况 本年应参加 独立董事姓名 亲自出席（次） 委托出席（次） 缺席（次） 备注 董事会次数 郑国培 6 6 李柏龄 6 6 张晖明 6 6 独立董事自受聘以来，本着对公司和全体股东诚信和勤勉的态度，认真负责地参加 了公司报告期内董事会，认真履行了作为独立董事应承担的职责，积极了解公司的各项 运作情况，就公司经营决策、投资战略和高管人员任免等事项作出了客观、公正的判 断，对公司的持续、健康、稳定发展发挥了积极的作用。 2、独立董事对公司有关事项提出异议的情况 报告期内，公司独立董事未对公司本年度的董事会议案及其他非董事会议案事项提 出异议。 （三）公司相对于控股股东在业务、人员、资产、机构、财务等方面的独立情况 1、业务方面：公司业务独立于控股股东，自主经营，业务结构完整，有独立的生 产、供应、销售系统。 2、人员方面：公司在劳动、人事及工资管理等方面独立于控股股东；公司的总经 理、副总经理、总经济师、总会计师、技术总监、董事会秘书等高级管理人员专职于公 司工作，并在公司领取报酬，没有在大股东处兼任任何职务；大股东推选董事经过了合 法的程序进行，没有干预公司董事会和股东大会已作出的人事任免决定。 3、资产方面：公司拥有独立的法人资格，对资产具有完全的占有、使用、收益和 处置的权利，可独立支配其拥有的各类资产。 13 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 4、机构方面：公司设立了独立健全的组织机构体系，同时配置相应的管理人员， 定岗定编；董事会、监事会等内部机构独立运行，不存在与控股股东职能部门之间的从 属关系。 5、财务方面：公司设有独立的财务部门，在银行独立开设帐户，对银行帐户拥有 独立的使用权，公司资金完全存入公司帐户，不存在与控股股东共同帐户现象；公司作 为独立纳税的法人实体，进行独立的税务登记，并依法纳税；公司独立进行财务决策， 不存在控股股东干预公司资金使用的情况；公司独立聘用财务人员，建立了独立的会计 核算体系和财务管理制度。 （四）高级管理人员的考评及激励情况 公司已建立了《经营者群体考核奖励办法》，作为对公司高层和中层管理人员考核 和奖励的依据，高级管理人员的考评和奖励方案具体由公司董事会薪酬与考核委员会制 订，并报董事会审议。 报告期内，公司对董事、监事和高级管理人员的年度薪酬均根据公司的经营业绩和年终 考评结果发放。 七、股东大会情况简介 （一）年度股东大会情况 1、公司于 2005 年 6 月 17 日 召开上海轮胎橡胶（集团）股份有限公司 2004 年度 股东大会年度股东大会 ，决议公告刊登在 2005 年 6 月 21 日 的《上海证券报》、《南 华早报》。 会议审议通过了《2004 年度董事会工作报告》、《2004 年度监事会工作报告》、 《2004 年度财务决算报告和 2005 年度财务预算报告》、《关于选举第五届董事会董事 的议案》、《关于选举第五届监事会监事的议案》、《关于双钱载重轮胎公司增加 25 万条全钢子午胎项目的议案》、《关于上海轮胎橡胶（集团）如皋有限公司增加 20 万 条全钢子午胎项目的议案》、《关于大中华正泰轮胎公司实施产品结构调整，新建 40 万条全钢子午胎项目并授权公司经营班子制定斜交胎梯度转移方案的议案》、《关于修 改公司部分内容的议案》、《关于修改公司部分内容的议案》、《2004 年度利润分配方 案》、《关于提取 2004 年度奖励福利费用和确认 2004 年内公司董监事和高管人员报酬 总额的议案》、《关于 2004 年度会计师事务所审计费用及续聘 2005 年度会计师事务所 的议案》、《关于向中国进出口银行上海市分行申请 8 亿元人民币借款的议案》等 14 项议案。 14 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 （二）临时股东大会情况 1、2005 年第一次临时股东大会情况 公司于 2005 年 11 月 25 日召开上海轮胎橡胶（集团）股份有限公司 2005 年第一 次临时股东大会临时股东大会，决议公告刊登在 2005 年 11 月 26 日的《上海证券 报》、《南华早报》。 会议审议通过了《关于上海轮胎橡胶（集团）如皋有限公司新建 10 万套全钢工程 子午线轮胎和炼胶车间扩建技改项目议案》、《关于长阳路 447 号地块处置的议案》等 2 项议案。 八、董事会报告 （一）报告期内公司经营情况的回顾 1、报告期内公司总体经营情况概述 从 2001 年到 2005 年整个“十五”时期，公司董事会以“三个代表”重要思想为指 导，全面贯彻落实科学发展观，加快产品结构调整，实施品牌战略，带领公司全体员 工，坚定信心，锐意改革，科学决策，大胆创新，使公司在国内外市场竞争异常激烈的 困难情况下，连续五年公司的主要经济指标保持了两位数的快速增长。 2005 年是我国“十五”时期的最后一年，也是公司全面落实“十五”规划的关键之 年。公司面对原材料价格持续上涨、国内轮胎行业全钢胎产量大幅增长、轮胎销售市场 竞争异常激烈的困难情况下，全面落实“强科技，抓质量，确保双钱领先；严管理，降 成本，提升回力赢利；树品牌，拓市场，增强竞争优势；重投入，上技改，加速产品发 展；明责任，严考核，提高整体效率；善教育，转观念，加大员工择业。”的生产经营 方针，大力实施“一厂一品一名”战略，面对严峻的市场形势，公司仍取得了较好的经 营业绩。 报告期内公司主营业务稳定发展，经营业绩持续增长。公司实现利润总额 6,832.03 万元，净利润 12,915.49 万元。公司完成主营业务收入 507,796.30 万元，实现主营业务 利润 74,190.39 万元。公司主营业务稳定发展，主要原因是公司近几年通过加快产品结 构调整，加速项目建设，使载重子午线轮胎的产能进一步增加，随着产品质量的进一步 提升和积极的市场营销战略，确保了公司有效销售。2005 年 11 月 19 日，公司投资新 建的上海轮胎橡胶（集团）如皋有限公司年产 50 万条全钢载重子午胎一期项目建成开 业，上轮如皋公司隆重举行了开业庆典，上海市委常委、常务副市长冯国勤，江苏省副 省长张卫国及上海市政府有关部门、南通市、如皋市及华谊集团等领导应邀出席并发表 重要讲话，高度赞扬上轮公司具有战略眼光，上轮如皋公司的建设是增强企业竞争优势 的有效举措，也是推进沪苏经济合作的成功典范。上轮如皋公司的建成开业，对推动公 15 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 司的持续发展起到了积极的作用。截止到 2005 年 12 月 31 日，公司共生产轮胎 488.82 万套，同比增长 5.8%，其中全钢胎 266.36 万套，同比增长 18.3%；斜交胎 222.46 万 套，同比下降 6.1%。目前，公司的生产规模、销售收入和盈利水平在国内同行业中处 于先进水平。 2、报告期内公司主营业务及其经营状况的分析 公司属化工行业，主营轮胎、制皂、电池、油墨等业务，其中全钢载重子午胎的销 售收入和利润在公司收入和利润构成中占主导地位。 ⑴主营业务分行业、产品情况表 （单位：人民币元） 主营业 主营业务收 主营业务成 主营业务利润 主营业务 主营业务 分行业 务利润 入比上年同 本比上年同 率比上年同期 收入 成本 率(%) 期增减（%） 期增减（%） 增减（%） 工业 6,012,527,048.02 5,373,853,141.66 11.88 35.36 41.68 -2.73 商业 4,017,163,184.88 3,835,483,922.70 4.52 -8.08 -7.73 -0.36 房地产 3,296,034.15 2,138,598.80 35.12 -96.88 -97.35 11.50 旅游饮食 3,449,161.64 602,955.41 82.52 -11.91 -3.44 -1.53 服务业 其中：关联 5,742,803,169.16 5,616,440,139.82 2.20 28.23 20.94 -0.05 交易总额 其中：应相 互抵消的关 4,958,472,431.84 4,959,580,520.96 -0.02 18.08 18.82 -0.01 联交易 主营业 主营业务收 主营业务成 主营业务利润 主营业务 主营业务 分产品 务利润 入比上年同 本比上年同 率比上年同期 收入 成本 率(%) 期增减（%） 期增减（%） 增减（%） 轮 胎 4,190,324,748.88 3,529,329,511.60 15.77 14.70 19.37 -3.30 其中：关 698,071,148.50 656,859,618.86 6.27 46.79 联交易 关联交易的定价原则 关联方交易价格的确定依据为市场价。 其中：报告期内上市公司向控股股东及其子公司销售产品的关联交易总金额为 0 元。 ⑵主营业务分地区情况表 （单位：人民币元） 地区 主营业务收入（元） 主营业务收入比上年同期增减（%） 上海地区 5,204,619,075.37 10.21% 其他地区 522,926,173.53 3,685.28% 内部抵销 649,582,252.05 4,602.1% 合计 5,077,962,996.85 7.21% 16 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 ⑶主要供应商、客户情况 （单位：人民币元） 前五名供应商采购金额合计 1,183,309,482.52 占采购总额比重 29.13% 前五名销售客户销售金额合计 1,129,385,372.41 占销售总额比重 22.24% ⑷占主营业务收入或主营业务利润总额 10%以上的主要产品 （单位：人民币元） 分产品 主营业务收入 主营业务成本（元） 主营业务利润率（%） 轮 胎 4,190,324,748.88 3,529,329,511.60 15.77 占主营业务收入或主营业务利润总额 10%以上的业务经营活动及其所属行业 （单位：人民币元） 分行业 主营业务收入（元） 主营业务成本（元） 主营业务利润率（%） 工 业 6,012,527,048.02 5,373,853,141.66 11.88 商 业 4,017,163,184.88 3,835,483,922.70 4.52 注：上述工业、商业相关数据未经抵消。 3、公司资产构成、营业费用、管理费用、财务费用、所得税同比变化情况分析 ⑴报告期公司资产构成同比变化情况及产生变动的主要原因 （单位：人民币元） 占总资产 占总资产 项目 2005 年 12 月 31 日 2004 年 12 月 31 日 同比增减（±%） 比重（%） 比重（%） 应收帐款 936,130,195.88 15.50 833,664,821.98 15.05 0.45 存 货 983,165,186.87 16.28 798,278,614.21 14.41 1.87 长期股权投资 511,961,219.88 8.48 394,507,267.32 7.12 1.36 固定资产 4,103,246,846.31 67.96 3,494,081,748.47 63.09 4.87 在建工程 357,794,580.20 5.92 471,746,632.75 8.52 2.60 短期借款 1,578,179,701.14 26.14 1,683,542,484.53 30.40 -4.26 长期借款 1,332,675,644.19 22.07 1,165,541,189.88 21.05 1.02 总资产 6,037,994,548.07 5,538,091,753.97 9.00 说明： 05 年与 04 年比：总资产规模增加 49,990.27 万元，主要系对米其林等公司投资增 加和 60 万套项目、如皋项目投入增加合计 66,200 万元，因扩产使公司的主营业务收入 增长约 30,000 万元，现金流量也较上年度有所改观，加上当年收到正泰土地转让收 入，所以总资产规模增加并未同步增加银行借款，但扩产后期末应收账款、存货均有相 应的上升。 17 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 ⑵报告期内公司营业费用、管理费用、财务费用、所得税同比变化情况及产生的主 要原因。 （单位：人民币元） 项目 2005 年 1~12 月 2004 年 1~12 月 同比增减（±%） 营业费用 277,182,413.34 268,679,289.59 3.16 管理费用 335,599,713.91 292,247,512.38 14.83 财务费用 129,534,147.54 96,327,436.27 34.47 所得税 -3,090,094.48 7,872,478.19 -139.25 说明： 营业费用：较上年度增加 850.31 万元，增加的比例为 3.16%。 管理费用：较上年度增加 4,335.22 万元，增加的比例为 14.83%，增加的主要原因 为子公司增计应收账款坏账准备 1,000 余万元；安置职工 1,400 万元；确认大孚橡胶有 限公司当年亏损 1,266 万元和如皋项目竣工一次性摊入的开办费及正泰补偿费部分冲转 管理费用等综合所致。 财务费用：较上年度增加 3,320.67 万元，增加的比例为 34.47%，增加的主要原因 为借款增加及贷款利率上调增加 1,760 万元，人民币升值影响汇兑损益增加 1,419 万 元。 所得税：较上年度减少 1,096.26 万元，减少的比例为 139.25%，减少的主要原因 为子公司按上年所得税清算结果调整当年所得税费用所致。 4、报告期公司现金流量构成情况，同比发生重大变动的情况及报告期净利润存在重 大差异的原因说明 ⑴经营活动产生的现金流量：38,759.11 万元，比上年度 12,840.73 万元增加 25,918.38 万元，增加的比例为 201.85%，增加的主要原因系因扩产使公司的主营业务 收入增长约 3 亿。 ⑵投资活动产生的现金流量：-57,863.13 万元，比上年度-46,529.05 万元减少 11,334.08 万元，减少的比例为 24.36%，减少的主要原因系本年度项目投入和对外投资 较上年度有所增长所致。 ⑶ 筹资活动产生的现金流量： -5,269.81 万元，比上年度 49,972.95 万元 减 少 55,242.76 万元，减少的比例为 110.55%，减少的主要原因系 05 年借款增幅小于 04 年 及利息支出大于去年所致。 5、对公司设备利用情况、订单获取情况、产品的销售或积压情况、主要技术人员 变动情况等与公司相关的重要信息 报告期公司产品销售情况较好，无积压情况。主要技术人员无变动。 18 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 6、公司主要控股公司及参股公司的经营情况及业绩分析 ⑴主要控股公司的经营情况及业绩 （单位：万元） 公司名称 业务性质 主要产品 注册资本 资产规模 股权% 净利润 上海制皂（集团）有限公司 轻工 肥皂、电池 16,069.00 111,088.57 60.00 -3,679.18 东海橡胶厂 化工 轮胎 1,468.00 10,285.69 65.00 -551.09 泗泾橡胶厂 化工 轮胎 980.00 9,654.79 79.75 -3,111.75 上海欣业发展实业有限公司 商业 轮胎、房产 14,558.00 19,769.13 100.00 376.93 上海轮胎橡胶(集团)供销有限公司 商业 轮胎 2,100.00 15,098.22 100.00 6,002.34 上海双钱碧源置业有限公司 商业 房产 1,000.00 1,000.00 90.00 0 上海轮胎橡胶(集团)如皋投资公司 8,750.00 11,553.60 81.83 -417.68 上海轮胎橡胶(集团)如皋有限公司 化工 轮胎 2,148.00 万美元 86,282.60 75.00 -1,181.70 上海轮胎橡胶(集团)股份有限公司 化工 轮胎 3,000.00 9,890.58 100.00 -2,175.07 轮胎研究所 大孚橡胶有限公司 化工 轮胎 3,667.00 1,553.08 100.00 -1,266.15 ⑵控股子公司经营情况（适用控股子公司净利润对公司净利润影响达到 10%以上） （单位：万元） 业务 主要 主营业务 主营业务 影响公 公司名称 注册资本 资产规模 股权% 净利润 性质 产品 收入 利润 司利润 上海制皂（集团） 肥 皂 轻工 16,069.00 111,088.57 60.00 88,089.31 15,912.32 -3,679.18 -2,207.51 有限公司 电池 泗泾橡胶厂 化工 轮胎 980.00 9,654.79 79.75 20,030.80 -580.66 -3,111.75 -2,481.62 上海轮胎橡胶(集团) 商业 轮胎 2,100.00 15,098.22 100.00 300,760.51 13,810.30 6,002.34 5,128.60 供销有限公司 上海轮胎橡胶(集团) 股份有限公司轮胎研 化工 轮胎 3,000.00 9,890.58 100.00 61,768.50 2,052.79 -2,175.07 -2,175.07 究所 ⑶参股公司经营情况（适用投资收益对公司净利润影响达到 10％以上） （单位：万元） 业务 主要 主营业务收 主营业务 公司名称 注册资本 资产规模 股权% 净利润 投资收益 性质 产品 入 利润 上海米其林 回力轮胎股 化工 轮胎 96,320.00 200,868.99 28.50 118,524.18 22,073.91 -5,499.55 -1,567.37 份有限公司 （二）对公司未来发展的展望 1、公司所处的行业发展趋势及面临的市场竞争格局 2006 年作为我国“十一五”规划的开局之年、起步之年，至关重要，据专家预测， 新一年我国的经济增长仍将保持平稳快速的态势，同时强调经济社会发展各方面的稳 19 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 定、协调和可持续性。而且加快改革，促进体制创新在“十一五”规划中将占有重要位 置。宏观经济政策也是中性偏积极的。这些都会促使“十一五”经济继续处于快速增长 轨道。这些有利的因素，将会为企业新一年的发展和今后几年的发展带来良好的机遇。 其次，投融资体制改革在新一年也将进一步深化。金融方面将进一步完善与市场经 济相适应的监管和服务体系。资本市场方面股权分置改革全面推开，不仅是金融领域推 进资本市场改革开放和稳定发展的关键，而且是整个国家“深度市场化”改革的重大制 度性变迁。这对提高上市公司的发展能力、激活资本市场、扩大直接融资比重都将会产 生重大影响。 第三，我国全钢载重子午线轮胎的发展前景依然广阔，未来需求量不断增长。因 为，支持我国子午线轮胎发展的几大要素仍未变，如高速公路的较快发展、交通运输业 的不断增长以及把子午线轮胎列为高新技术产品加以扶持等等，促使轮胎产业的发展依 然有着良好的前景。 第四，公司管理层在驾驶市场经济的能力在不断增强。公司经过五年来的调整、改 革、发展，取得了巨大的成绩，公司管理层在驾驭经济发展大局的本领有了较大的增 强，特别是近几年来，面对各种不利因素和外部环境，我们都能妥善化解风险，加深了 对市场经济的认识，并掌握了宝贵的经验，这些，都将会对新一年的经济发展带来有利 的推动作用。 在面对机遇的同时，必须清醒地看到公司所面临的严峻挑战。 一是原材料成本上升给我们带来的严峻挑战。随着轮胎工业的迅速发展，各轮胎企 业对相关资源的依赖与需求也越来越大，公司所需原材料的供需矛盾状况在近年内较难 趋缓。目前天然橡胶资源紧张，价格继续上涨；受国际原油价格主导的合成橡胶、炭 黑、助剂等原材料价格也将会继续处于高位的运行状态，这将给公司的生产经营带来严 峻的挑战。 二是市场供过于求的矛盾在新的一年里将更为显现。主要表现为产能集中释放、供 过于求的矛盾突现，导致行业库存增加、价格大幅回落、利润下降。据业内分析预测， 由于轮胎行业投资过热、过快，“十一五”末轮胎年产量将达 3 亿条，特别是全钢子午 线轮胎领域的竞争将更趋激烈，相关企业将会采取各种措施来抢占市场。 为此，在新的一年来，作为“十一五”开局之年，公司将开好局、起好步，重点抓 好公司项目建设、市场营销、资产运作、体制改革和机制创新等工作，进一步把握好产 品结构调整和产品质量的提升工作，加强企业精细化管理和优化内销、外销两个市场， 确保新一年各项经济目标的顺利完成。 2、公司发展战略 以市场为导向，以创新求发展，以盈利为准则，集中有效资源，做强优势企业 ，实 施“一厂一品一名”经营战略，加速双钱牌全钢载重子午线轮胎的产业发展，推进产品 20 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 结构调整，以引进消化和原创技术的研发，增强企业核心竞争力。同时，努力拓展国内 国际市场，优化人员结构，提高人员素质，大力发展循环经济，坚定不移地走科技含量 高、经济效益好、资源消耗低、环境污染少、人力资源得到充分发挥的新型工业化道 路。 3、新年度的经营计划 公司计划 2006 年销售收入比 2005 年增加 10%以上。 一是明确了 2006 年企业生产经营方针，提出了具体的落实措施，即“保名牌拓网 络，建设双钱通路。聚资源扩销售，产销满意提高。上技改增毛利，适应竞争需要。精 调度严质量，安全生产确保。勤预测抓机会，保证供配周道。细测算巧运作，预算执行 牢靠。抓科研建基础，创新课题实效。严管理细考核，激励处罚明晰。” 二是加快产品结构调整和项目建设。 ⑴实施如皋二期项目。2006 年第一季度将土建工程全部完工，设备安装到位，年内 项目进行整体竣工并验收。 ⑵实施如皋三期项目。2006 年开始实施项目建设，预计 2007 年下半年整体竣工验 收。 ⑶实施双钱载重轮胎公司增加 25 万条全钢子午胎项目，年内对项目进行整体竣工 验收。 4、实现经营计划的资金需求和资金来源 公司完成 2006 年经营目标，预计需增加资金约 3 亿元；非募集资金项目尚未完工 部分需用资金 7.48 亿元。2006 年增量资金总需求 10.48 亿元。 资金来源：一是自有资金，二是银行贷款。 5、可能对公司未来发展战略和经营目标的实现产生的不利影响的风险因素 ⑴市场风险 由于近年来国内外轮胎市场需求旺盛，推动了中国轮胎工业的发展。在利益的驱动 之下，无论是外资企业还是内资企业，纷纷增加投资、扩大规模。由于投资项目过多、 产能增长过快，使得供过于求的局面不可避免，公司将在新一年的市场营销中面临严峻 的考验。 ⑵生产经营风险 自 2005 年 6 月起，已在高位运行的天然胶开始大幅攀升；同时，以石油为原料的 合成胶、炭黑、助剂等价格依然居高不下，公司原材料成本大幅增加，使得盈利水平下 降。同时，人民币升值对轮胎出口的影响也在逐步显现，部分削弱了出口轮胎的价格优 21 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 势。此外，产品的相对过剩，竞争的进一步加剧，也让产品的提价不能一步到位，使公 司的生产经营面临严峻的考验。 针对市场风险，公司将进一步提升企业核心竞争能力，重点开展质量提升工作和生 产适销对路产品；加大品牌建设力度，实施品牌战略工程，增强品牌知名度和美誉度； 同时，积极拓展和优化内销、外销两个市场，化解市场风险带来的不利影响。 针对生产经营风险，公司将重点开展企业精细化管理工作，进一步降低产品成本、 推动技术进步和满足客户需求；其次，开展企业流程再造工作，用创新的方法进行组织 结构的再造和工作方法的创新；三是加强成本管理和费用控制工作，推行采购工作的 “阳光工程”，化解原材料上涨对企业生产经营带来的不利影响。 （三）公司投资情况 1、募集资金使用情况 报告期内，公司无募集资金或前期募集资金使用到本期的情况。 2、非募集资金项目情况 ⑴上海轮胎橡胶（集团）如皋有限公司新建 50 万条全钢载重子午线轮胎项目投资 预算总额约 47,886 万元，截止 2005 年 12 月 31 日，累计投入资金约 49,960 万元，完 成项目进度的 100%，并已全部投入正式生产，本报告期，新增产量 155,750 套，新增 销售收入约 17,301 万元。 ⑵上海轮胎橡胶（集团）如皋有限公司新增 50 万条全钢载重子午线轮胎项目（即 30 万套+20 万套）投资预算总额 29,972.88 万元，截止 2005 年 12 月 31 日，累计投入 资金约 23,882.01 万元，完成项目进度的 79.7%。 ⑶上海轮胎橡胶（集团）如皋有限公司新增 10 万套全钢工程子午线轮胎和炼胶车 间扩建技改项目总投资概算为 55,282 万元，本报告期内，该项目处于正式启动阶段。 ⑷填平补齐增产 20 万套子午胎项目投资总额为 13,260 万元，其中外汇 259.2 万 元，截止 2005 年 12 月 31 日，累计投入资金 7,312.64 万元，完成项目进度的 72%。 ⑸双钱载重轮胎公司增加 25 万条全钢子午胎项目总投资概算为 8,985.44 万元，截 止 2005 年 12 月 31 日，累计投入资金 1,474.16 万元，完成项目进度的 16.4%。 （四）董事会日常工作情况 1、报告期内董事会的会议情况及决议内容 ⑴四届二十一次董事会 公司于 2005 年 4 月 8 日在江苏省如皋市泰华宾馆召开。决议公告刊登在 2005 年 4 月 12 日的《上海证券报》、《南华早报》。会议经审议和表决，一致通过了：公司 22 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 《2004 年经济工作总结和 2005 年经济工作要点》、《董事会工作报告》、《2004 年 年度报告》正文及其摘要、《关于 2004 年度财务决算和 2005 年度财务预算的报告》、 《关于公司第五届董事候选人的议案》、《关于双钱载重轮胎公司增加 25 万条全钢子 午胎项目的议案》、《关于上海轮胎橡胶（集团）如皋有限公司增加 20 万条全钢子午 胎项目的议案》、《关于拟对上海轮胎橡胶（集团）如皋有限公司增资的议案》、《关 于大中华正泰轮胎公司实施产品结构调整新建 40 万条全钢子午胎项目并授权公司经营 班子制定斜交胎梯度转移方案的议案》、《关于上海牡丹油墨有限公司购置森凌湾大厦 的议案》、《关于实施大中华正泰轮胎公司实施产品结构调整，新建 40 万条全钢子午 胎项目并授权公司经营班子制定斜交胎梯度转移方案的议案》、关于修改公司《信息披 露制度》的议案、关于修改公司《董事会议事制度》的议案、《公司关于提取 2004 年 度奖励福利费用和确认 2004 年内公司董监事和管理人员报酬总额的议案》、《关于 2004 年度会计师事务所审计费用及续聘 2005 年度会计师事务所的议案》、《2004 年 利润分配预案》、关于召开公司 2004 年度股东大会的议案、关于修改公司《章程》的 议案、《关于为上海轮胎橡胶（集团）如皋有限公司项目建设贷款提供担保的议案》、 《关于王曾金同志职务任免的议案》。 ⑵四届二十二次董事会 2005 年 4 月 21 日以通讯方式召开，应参加表决董事 7 名，实际参加表决董事 7 名，经审议一致通过了：《公司 2005 年第一季度报告》正文及其摘要；董事会同意将 《关于向中国进出口银行上海市分行申请 8 亿元人民币借款的议案》作为公司 2004 年 度股东大会第 14 项议案提交股东大会审议。 ⑶五届一次董事会 2005 年 6 月 17 日在上海光大会展中心国际大酒店 30 楼会议室召开。决议公告刊 登在 2005 年 6 月 21 日的《上海证券报》、《南华早报》。会议经审议和表决，一致通 过了：选举范宪先生为公司第五届董事会董事长。经董事长范宪先生提名，聘任岳春辰 先生为公司总经理。经总经理岳春辰先生提名，聘任柳启岳先生、周立才先生、王曾金 先生为公司副总经理；聘任薛建民先生为公司总会计师；聘任隆有明先生为公司技术总 监。经董事长范宪先生提名，聘任王玲女士为公司董事会秘书。委任孙文先生为董事会 证券事务代表。会议经审议和表决，一致通过了《关于调整董事会专门委员会成员的议 案》。 ⑷五届二次董事会 2005 年 8 月 5 日在公司本部召开。决议公告刊登在 2005 年 8 月 9 日的《上海证券 报》、《南华早报》。会议经审议和表决，一致通过了：《2005 年半年度报告》正文及 23 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 其摘要、《关于对董事长授权的议案》、《关于为上海轮胎橡胶（集团）如皋有限公司 项目建设贷款提供担保的议案》。 ⑸五届三次董事会 2005 年 9 月 14 日以通讯方式召开。决议公告刊登在 2005 年 9 月 16 日的《上海证 券报》、《南华早报》。经审议一致通过了：《关于成立“上海双钱轮胎销售有限公司” 的议案》。 ⑹五届四次董事会 2005 年 10 月 21 日在公司本部召开。决议公告刊登在 2005 年 10 月 25 日的《上海 证券报》、《南华早报》。会议经审议和表决，一致通过了：《2005 年第 3 季度报告》 正文及其摘要、《关于上海轮胎橡胶（集团）如皋有限公司新建 10 万套全钢工程子午 线轮胎和炼胶车间扩建技改项目议案》、《关于长阳路 447 号地块处置的议案》、关于 召开 2005 年第一次临时股东大会的议案。 2、董事会对股东大会决议的执行情况 报告期内，公司董事会严格执行股东大会决议，无违背或超越股东大会决议的情 况。 （五）利润分配或资本公积金转增预案 2005 年 度 公 司 实 现 税 后 利 润 129,154,886.11 元 ， 依 法 提 取 法 定 公 积 金 14,713,948.31 元（含子公司提取数），弥补以前年度亏损 27,028,228.77 元，全年可供 全体股东分配的利润为 87,412,709.03 元。拟按 2005 年末的总股本 889,467,722 股为 基数，向全体股东每 10 股派 0.5 元现金红利（含税），B 股股利折算成美元支付，尚余 42,939,322.93 元列入未分配利润转至下一年度。 上述利润分配预案需经公司 2005 年度股东大会审议通过。 （六）其他披露事项 1、公司选定信息披露报纸无变更。 2、独立董事关于公司对外担保情况的专项说明及独立意见 作为上海轮胎橡胶（集团）股份有限公司独立董事，我们根据中国证监会证监发 （2003）56 号《关于规范上市公司与关联方资金往来及上市公司对外担保若干问题的 通知》、及中国证监会、中国银行业监督管理委员会联合发布的证监发（2005）120 号 《关于规范上市公司对外担保行为的通知》的有关规定，对报告期内公司对外担保情况 进行了必要的核查。 24 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 截止 2005 年 12 月 31 日，公司对外担保余额（不包括对控股子公司担保）1,303 万元；公司对控股子公司的担保额 59,903.27 万元，担保总额 61,206.27 万元，占公司 净资产比例为 41.35%。 作为独立董事，今后我们将督促董事会和公司经营班子严格按照证监发（2003）56 号文和证监发（2005）120 号文之精神，规范公司担保行为，充分披露担保信息，严格 控制担保比例，有效防范担保风险。 九、监事会报告 （一）监事会会议召开情况 报告期内公司监事会召开会议五次 1、四届十二次监事会 公司四届十二次监事会议于 2005 年 4 月 8 日在江苏省如皋市泰华宾馆召开，应到 监事 5 名，实到监事 5 名，会议内容如下： (1)审议通过监事会 2004 年度工作报告； (2)审议通过公司 2004 年度报告； (3)推荐第五届监事会候选人。 2、四届十三次监事会 公司四届十三次监事会议于 2005 年 5 月 21 日在公司本部会议室召开，应到监事 5 名，实到监事 5 名，会议内容如下： (1)听取公司总会计师关于公司一季度财务状况的介绍； (2)审议公司 2005 年第一季度报告； (3)讨论公司《关于向中国进出口银行上海市分行申请 8 亿元人民币借款的议案》并 提请公司年度股东大会审议。 3、五届一次监事会 公司五届一次监事会议于 2005 年 6 月 17 日在上海光大会展中心国际大酒店会议室 召开，应到监事 5 名，实到监事 5 名，会议内容如下： (1)选举江秋霞女士为公司第五届监事会主席； (2)选举时来荣先生为公司第五届监事会副主席； (3)聘任孙昌明先生为公司第五届监事会秘书。 4、五届二次监事会 公司五届二次监事会议于 2005 年 8 月 5 日在公司本部会议室召开，应到监事 5 名，实到监事 5 名，会议内容如下： 25 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 (1)听取公司总会计师介绍公司财务状况及清产核资工作情况； (2)听取公司副总经理介绍当前市场销售情况； (3)听取公司副总经理介绍当前原材料市场情况； (4)审议公司 2005 年半年度报告； (5)审议公司董事会的有关授权事项。 5、五届三次监事会 公司五届三次监事会议于 2005 年 10 月 21 日在公司本部会议室召开，应到监事 5 名，实到监事 4 名(1 名因出国请假)，会议内容如下： 审议公司 2005 年第三季度报告。 本年度监事会成员列席了公司各次董事会议。 （二）监事会对公司依法运作情况的独立意见 本年度监事会依法参加和列席了公司各次股东大会及董事会，并认真地审阅了股东 大会的各项文件和董事会的有关报告。监事会认为报告期内公司股东大会和董事会决策 程序合规，决策事项合法，没有发现因决策失误而损害公司利益和股东利益的情况，也 未发现董事会成员在执行公务中有违反法律规定和公司章程或损害公司利益的行为。 监事会认为在报告期内公司董事会带领公司经营班子和公司全体员工全面落实“强 科技，抓质量，确保双钱领先；严管理，降成本，提升回力赢利；树品牌，拓市场，增 强竞争优势；重投入，上技改，加速产品发展；明责任，严考核，提高整体效率；善教 育，转观念，加大员工择业。”的生产经营方针，大力实施“一厂一品一名”战略，主 要经济指标继续实现快步增长，各项工作实现了预期的目标，经济运行保持了稳步较快 发展。公司在生产经营活动中严格按照国家法律法规、公司章程规范运作，公司高级管 理人员忠于职守，勤勉敬业，没有发现有违反法律法规、公司章程及损害公司利益和股 东权益的行为。 公司监事会针对公司面临原材料大幅上涨及子公司过多、企业链过长，业务审批权 限的规定已不适应目前实际等情况提出了内抓挖潜、外抓市场，抓紧子公司的清理工作 及重新修订业务审批权限、强化内部控制的建议，引起了公司的高度重视，各项措施均 在整改落实之中。 （三）监事会对检查公司财务情况的独立意见 公司监事会按照《监事会议事规则》的规定，及时了介公司财务状况及预算执行情 况，定期审核公司财务报表。监事会认为本年度公司财务状况良好，报表经立信会计师 事务所审核，较客观地反映了 2005 年度的财务状况和经营成果。 26 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 （四）监事会对公司收购出售资产情况的独立意见 公司监事会就公司本年度内收购出售资产的情况进行了监督。本年度内监事会对公 司在将下属运输公司股权转让给巴士公司，将持有的徐州徐工轮胎有限公司的股权转让 给徐州徐轮物资贸易有限公司，上海制皂厂将持有南源永芳化工公司的股权转让给上海 洋泾工业公司、上海广茂投资有限公司等过程中的审计、资产评估、资产的转让价格及 上市挂牌交易等各个环节进行了监督。监事会认为公司在企业改制过程中均能严格执行 国家的有关规定，做到了公开、公平、公正，确保了公司资产的安全，同时本年度杨浦 区土地发展中心收购储备我公司长阳路 447 号地块的事项也均能按照国家有关规定进 行，没有发现企业在资产收购出售过程中有资产流失的情况。 （五）监事会对公司关联交易情况的独立意见 监事会对报告期内与日常经营相关的关联交易进行了关注，监事会认为本报告期内 公司在向关联方采购物资及销售产品的关联交易中是按市场价格进行的，未发现有损害 公司利益和中小股东权益的情况。 2006 年是我国实施“十一五”规划的开局之年，做好新一年的工作极为重要。公司 监事会将继续努力工作，认真履行监督职能，为实现“努力为中国乃至全球的大中型交 通车辆提供安全、先进、经济、绿色的轮胎，成为中国第一、亚洲先进、世界有名的轮 胎制造商”的公司愿景而贡献力量。 十、重要事项 （一）重大诉讼仲裁事项 1、截止 2005 年 12 月 31 日未决诉讼情况 ⑴上海轮胎橡胶（集团）供销有限公司诉新疆维吾尔族自治区第九运输公司一案， 已于 2004 年 8 月 23 日起诉，诉讼标的 656.28 万元，目前尚在审理之中。 ⑵上海轮胎橡胶（集团）供销有限公司诉广东电白县沪贸轮胎有限公司一案，已于 2005 年 10 月 26 日起诉，诉讼标的 109.51 万元，目前尚在审理之中。 ⑶上海轮胎橡胶（集团）供销有限公司诉南宁地区双钱轮胎有限责任公司一案，已 于 2005 年 10 月 26 日起诉，诉讼标的 245.67 万元，目前尚在审理之中。 ⑷上海轮胎橡胶（集团）供销有限公司诉青岛上青橡胶轮胎经营有限公司一案，已 于 2005 年 10 月 26 日起诉，诉讼标的 492.96 万元，目前尚在审理之中。 ⑸上海轮胎橡胶（集团）供销有限公司诉商丘市回力双钱轮胎销售有限公司一案， 已于 2005 年 1 月 11 日异地起诉，诉讼标的 242.88 万元，目前尚在审理之中。 27 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 ⑹上海轮胎橡胶（集团）供销有限公司诉余姚市东江工贸有限公司一案，已于 2005 年 1 月 26 日异地起诉，诉讼标的 440.41 万元，目前尚在审理之中。 2、截止 2005 年 12 月 31 日已决诉讼情况 ⑴上海轮胎橡胶（集团）供销有限公司诉李高仓一案，诉讼标的 260 万元，已于 2005 年 9 月 8 日判决，目前尚在执行中。 ⑵上海轮胎橡胶（集团）供销有限公司诉莆田市精华实业开发有限公司和福州河马 轮胎有限公司一案，诉讼标的 923.83 万元，已于 2005 年 3 月 21 日判决，目前正在执 行中。 ⑶上海轮胎橡胶（集团）供销有限公司诉贵州黔中轮胎橡胶有限责任公司司一案， 诉讼标的 45.03 万元，已于 2005 年 4 月 6 日判决，目前正在执行中。 ⑷上海轮胎橡胶（集团）供销有限公司诉新余市汽车配件总公司一案，诉讼标的 93.7 万元，已于 2005 年 6 月 30 日判决，目前正在执行中。 ⑸上海轮胎橡胶（集团）供销有限公司诉南京化轻轮胎超市有限公司一案，诉讼标 的 85.26 万元，已于 2005 年 4 月 27 日判决，目前正在执行中。 ⑹上海轮胎橡胶（集团）供销有限公司诉上海正兴房地产公司一案，诉讼标的 11,928.36 万元，已于 2005 年 9 月 10 日调解，目前已执行了其中的 5,622.98 万元，余 款仍在执行中。 ⑺上海轮胎橡胶（集团）供销有限公司诉烟台双回轮胎物资有限责任公司一案，诉 讼标的 41.53 万元，已于 2005 年 12 月 20 日判 决，目前正在执行中。 ⑻上海轮胎橡胶（集团）供销有限公司诉重庆安凯客车有限公司一案，诉讼标的 32.42 万元，已于 2005 年 12 月 20 日判 决，目前正在执行中。 ⑼上海轮胎橡胶（集团）供销有限公司诉南阳市汽车配件总公司一案，诉讼标的 43.30 万元，已于 2005 年 8 月 12 日判 决，目前正在执行中。 （二）报告期内公司收购及出售资产、吸收合并事项 1、报告期内公司的子公司制皂集团下属子公司制皂厂将持有南源永芳化工公司 40%的股权，按 35%和 5%分别转让给上海洋泾工业公司、上海广茂投资有限公司，产 权已全部过户，所涉及的债权债务已全部转移。本次交易以评估价格为依据，经产权交 易所挂牌，股权转让价为 598 万元，公司因此获得股权转让收益 310.59 万元。 28 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 2、报告期内公司将全资子公司上海轮胎橡胶集团运输有限公司 100%的股权，按 55%和 45%分别转让给上海君通物流有限公司、上海巴士物流投资有限公司，产权已全 部过户，所涉及的债权债务已全部转移。本次交易以评估价格为依据，经产权交易所挂 牌，股权转让价为 538.29 万元，公司因此获得股权转让收益 287.93 万元。对公司业务 和管理层的稳定性没有影响，有利于公司集中优势力量做好主营业务项目。 3、报告期内公司将持有徐州徐工轮胎有限公司 10%的股权，以评估价格为依据， 经产权交易所挂牌，按 44.17 万元价格转让给徐州徐轮物资贸易有限公司，产权已全部 过户，所涉及的债权债务已全部转移，股权转让收益-455.83 万元。 4、报告期内公司将上海森凌置业发展有限公司 20%的股权，转让给上海三口士投 资管理有限公司，产权已全部过户，所涉及的债权债务已全部转移。本次交易以评估价 格为依据，经产权交易所挂牌，股权转让价为 552.02 万元，公司因此获得股权转让收 益 405.99 万元。 5、报告期内，为了支持杨浦区的发展与建设，经过与杨浦区房地局、规划局等部 门多次协商，杨浦区土地发展中心按照国家的有关规定收购储备我公司长阳路 447 号地 块。（详见 2005 年 12 月 9 日 的《上海证券报》C7 版、《南华早报》） （三）报告期内公司重大关联交易事项 1、与日常经营相关的关联交易 ⑴存在控制关系且已纳入本公司合并会计报表范围的子公司，其相互间交易及母子 公司交易已作抵销。 ⑵向关联方采购货物： 交易规模： 企业名称 本年度金额 上年度金额 上海轮胎橡胶（集团）运输公司 …… 26,640,064.52 上海碳酸钙厂 192,705.79 26,582.40 上海神马帘子布有限公司 …… 85,336,496.86 泰国华泰橡胶公司 45,572,430.66 52,345,586.41 上海米其林回力轮胎股份有限公司 18,934,651.85 2,422,953.00 上海焦化有限公司 70,688,832.10 58,682,000.85 上海敦煌制罐厂 3,214,039.74 4,750,014.00 上海奉平民政实业有限公司华利颜料厂 17,398,120.75 19,801,254.66 上海制皂（集团）如皋有限公司 18,901,630.80 30,119,894.76 合计 174,902,411.69 280,124,847.46 29 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 采购价格的确定依据为市场价。 ⑶向关联方销售货物： 交易规模： 企业名称 本年度金额 上年度金额 China Manufacturers Alliance,LLC USD85,353,994.92 USD57,460,428.33 （中国北美轮胎销售公司） 上海米其林回力轮胎股份有限公司 39,302,282.00 52,336,570.92 上海轮胎橡胶（集团）联营公司 323,300.00 350,000.00 上海沪轮轮胎橡胶有限公司 6,480,414.78 7,500,054.88 上海奉平民政实业有限公司华利颜料厂 13,287,770.07 13,333,199.71 上海制皂（集团）如皋有限公司 26,865,811.97 - 美元小计 USD85,353,994.92 USD57,460,428.33 人民币小计 86,259,578.82 73,519,825.51 合计 784,330,727.32 549,091,060.58 关联方交易价格的确定依据为市场价。 ⑷其他关联方交易事项： 根据与上海米其林回力轮胎股份有限公司的协议向其提供、收取商标使用费 10,000,000.00 元、服务收入 19,000,000.00 元、租赁费 3,741,666.75 元、加工费水电 气及劳务 2,772,132.33 元。 2、关联方往来款项余额： 年末金额 项 目 本年末 上年末 应收帐款： 上海制皂厂海南联合日化分厂 572,351.94 572,351.94 中国北美轮胎销售公司 282,824,366.06 226,355,347.16 上海制皂（绵阳）有限公司 264,624.00 187,200.00 上海正力橡胶工贸公司 1,403,628.66 1,403,628.66 上海正华工贸公司 306,022.91 306,022.91 上海华轮贸易有限公司 3,318,657.07 3,318,657.07 海南回力工贸公司 2,434,929.66 2,434,929.66 上海敦信贸易有限公司 524,818.45 524,818.45 上海福浦橡胶有限公司 347,410.58 370,410.58 上海制皂（集团）如皋有限公司 40,595,851.73 71,854.73 厦门回力工贸公司 319,105.60 396,612.70 小计 332,911,766.66 235,941,833.86 其他应收款： 海南回力工贸公司 100,946.83 100,946.83 上海宝轮实业公司 142,925.82 142,925.82 上海奉平民政实业有限公司华利颜料厂 1,000,000.00 1,000,000.00 30 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 上海沪轮橡胶有限公司 …… 1,180,000.00 上海华轮贸易有限公司 …… 4,820,000.00 上海回力宾馆 2,453,795.19 2,469,908.19 上海克勒艺术雕刻有限公司 921,252.10 921,252.10 上海龙泰精细橡胶公司 49,699,806.60 42,794,701.62 上海轮胎橡胶（集团）运输有限公司 …… 673,653.00 上海轮胎橡胶机械模具有限公司 17,519,908.72 15,954,244.64 上海米其林回力轮胎股份有限公司 …… 1,222,317.57 上海森凌置业发展有限公司 …… 115,566,039.96 上海森懋实业公司 411,696.45 411,696.45 上海上联化工实业公司 1,311,253.70 2,676,200.00 上海神马帘子布有限公司 128,599.50 128,599.50 上海生生模具有限公司 …… 1,922,000.00 上海碳酸钙厂 1,772,320.49 1,981,320.49 上海橡胶工业供销公司 618,573.00 …… 上海正华工贸公司 1,599,198.40 1,599,198.40 上海正力橡胶工贸公司 72,827.41 72,827.41 上海正兴房产有限公司 62,880,076.98 119,411,342.78 上海制皂（集团）如皋有限公司 12,229,674.09 27,183,077.59 上海制皂（绵阳）有限公司 …… 206,017.15 上海总联橡胶实业公司 14,325,630.38 14,205,901.38 厦门回力工贸公司 3,688.30 3,688.30 上海橡机一厂 …… 124,551.43 上海轮胎橡胶（集团）房屋交换部 13,723.38 …… 上海敦煌制罐厂 320,650.14 …… 上海欣兴贸易有限公司 92,170.00 …… 小计 167,618,717.48 356,772,410.61 预付账款： 泰国华泰橡胶公司 13,444,436.71 15,874,512.39 上海森凌置业发展有限公司 …… 53,779,500.00 小计 13,444,436.71 69,654,012.39 应付账款 上海轮胎橡胶（集团）运输有限公司 …… 1,218,744.24 上海天开计算机系统有限公司 529,107.72 529,107.72 上海敦煌制罐厂 1,123,387.00 1,159,370.56 上海福浦橡胶有限公司 8,690.29 8,690.29 上海奉平民政实业有限公司华利颜料厂 …… 976,350.45 上海科欣化学助剂有限公司 101,357.58 31,764.63 上海生生轮胎模具有限公司 …… 37,882.00 上海橡胶一厂 235,796.30 2,632.68 上海制皂（绵阳）有限公司 353,328.00 473,483.75 上海制皂（集团）如皋有限公司 572,507.87 816,018.00 31 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 上海焦化有限公司 6,728,327.50 6,845,185.20 上海助剂厂 147,728.23 …… 上海碳酸钙厂 55,099.73 …… 上海爱化测试仪器维修站 7,000.00 …… 上海轮胎橡胶机械模具有限公司 200,000.00 …… 上海正兴房地产有限公司 664,829.39 …… 小计 10,727,159.61 12,099,229.52 其他应付款 上海米其林回力轮胎股份有限公司 …… 2,839.14 上海双力物业管理有限公司 10,707,935.13 10,230,624.55 厦门回力工贸公司 133,410.36 …… 深圳上轮贸易有限公司 31,849.70 38,494.99 上海敦信贸易有限公司 …… 816,634.92 上海欣明橡胶厂 514,336.03 514,336.03 上海欣兴贸易公司 …… 674,135.16 上海华轮贸易有限公司 25,000.00 1,093,276.61 海口孚华轮胎销售有限公司 3,241,429.78 3,241,429.78 上海正兴房产有限公司 600,000.00 600,000.00 上海敦煌制罐厂 7,932.20 34,949.40 上海沪轮橡胶有限公司 5,000.00 5,000.00 上海泰华出租汽车有限公司 10,174,466.95 9,686,606.19 上海轮胎橡胶机械模具有限公司 …… 400,000.00 上海科欣化学助剂有限公司 …… 68,428.55 上海总联橡胶实业公司 …… 615,143.47 上海橡胶助剂厂 197,060.00 …… 上海橡胶工业供销公司 25,050.00 …… 上海制皂（集团）如皋有限公司 10,000.00 …… 小计 25,673,470.15 28,021,898.79 预收账款 上海华轮贸易有限公司 973,726.39 973,726.39 上海沪轮轮胎橡胶有限公司 10,128,533.51 4,620,446.70 上海轮胎橡胶（集团）运输有限公司 …… 1,126,007.74 无锡锡成油脂化工有限公司 …… 12,901.90 小计 11,102,259.90 6,733,082.73 长期应付款 上海华谊（集团）公司 93,863,544.23 93,863,544.23 小计 93,863,544.23 93,863,544.23 注：根据 2005 年 9 月 5 日（2005）沪高民二（商）初字第 23 号民事调解书公司 与上海正兴房地产有限公司（以下简称正兴房产）达成协议，正兴房产以其拥有的沪房 地卢字（2001）第 006674 号上海市徐家汇路 560 号华仑大厦第 5 层至第 12 层共计 8 32 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 个 楼 面 ， 总 面 积 6247.76 平 方 米 ， 按 单 价 人 民 币 9000 元 / 平 方 米 ， 折 抵 人 民 币 56,229,840.00 元，截至 2005 年 12 月 31 日尚余 62,880,076.98 元未归还。 （四）托管情况 本年度公司无托管事项。 （五）承包情况 本年度公司无承包事项。 （六）租赁情况 本年度公司无重大租赁事项。 （七）担保情况 公司对外担保情况（不包括对控股子公司的担保） 发生日期 是否为关联方 是否履 担保对象名称 （协议签 担保金额 担保类型 担保期 担保（是或 行完毕 署日） 否） 承担连带责 上海橡胶助剂厂 05.11.28 1,330,000.00 05.12.13～ 06.04.20 否 是 任的担保 上海远东国际(集 承担连带责 05.07.05 4,500,000.00 05.07.05～ 06.01.05 否 否 团)有限公司 任的担保 上海远东国际(集 承担连带责 05.08.17 4,500,000.00 05.08.17～ 06.02.28 否 否 团)有限公司 任的担保 上海远银进出口 承担连带责 05.09.15 2,700,000.00 05.09.15～ 06.03.24 否 否 有限公司 任的担保 报告期内担保发生额合计 13,030,000.00 报告期末担保余额合计 13,030,000.00 公司对控股子公司的担保情况 报告期内对控股子公司担保发生额合计 599,032,700.00 报告期末对控股子公司担保余额合计 599,032,700.00 公司担保总额情况（包括对控股子公司的担保） 担保总额 612,062,700.00 担保总额占公司净资产的比例(%) 41.35% 其中： 为股东、实际控制人及其关联方提供担保的金额 1,330,000.00 直接或间接为资产负债率超过 70%的被担保对象提 109,100,000.00 供的债务担保金额 担保总额超过净资产 50%部分的金额 0 上述三项担保金额合计 110,430,000.00 33 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 （八）委托理财情况 本年度公司无委托理财事项。 （九）其他重大合同 本年度公司无其他重大合同。 （十）承诺事项履行情况 报告期内或持续到报告期内，公司或持股 5%以上股东没有承诺事项。 （十一）聘任、解聘会计师事务所情况 经与上海立信长江会计师事务所和浩华国际会计师事务所协商，2005 年度的审计费 用为 150 万元人民币，其中，立信长江会计师事务所的境内审计费用为 80 万元人民 币，浩华国际会计师事务所的境外审计费用为 70 万元人民币。 鉴于公司和上述事务所多年来的合作，公司将继续聘请上海立信长江会计师事务所 和浩华国际会计师事务所为公司 2006 年度境内外审计的会计师事务所。 截止 2005 年 12 月 31 日是，上海立信长江会计师事务所有限公司已为本公司提供 境内审计服务 5 年，浩华国际会计师事务所已为本公司提供境外审计服务 5 年。 （十二）公司、董事会、董事受处罚及整改情况 报告期内公司、公司董事会及董事均未受中国证监会的稽查、行政处罚、通报批评 及证券交易所的公开谴责。 （十三）其它重大事项 1、2002 年根据四届四次董事会决议，公司将应收账款与上海华谊（集团）公司置 换入的上海长阳路 447 号、龙华东路 397 号和张江镇新康村西一队钱家宅三块地块的工 业土地使用权，截止 2005 年 12 月 31 日权证尚未办理，其中龙华东路 397 号和张江镇 新康村西一队钱家宅三块地块的工业土地使用权，账务尚未处理。 公司于 2005 年 12 月 7 日与上海市杨浦区土地发展中心签定《上海市杨浦区工业系 统国有土地使用权收购合同》，由杨浦区土地发展中心支付人民币 25,195.70 万元收购 上海长阳路 447 号 26,660 平方米的土地使用权，其中 17,995.5 万元作为公司土地转让 34 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 款，7,200.20 万元作为公司厂房腾空、设备搬迁、人员安置等动迁补偿费。公司拟于 2006 年将 15,160 平方米的土地使用权回购，因此本期公司账务处理如下： ⑴26,660 平方米土地转让收入 17,995.5 万元，考虑到回购因素，故按 15,160 平方 米、11,500 平方米的比例，对 15,160 平方米的收入 10,233 万元、无形资产 3,983.2 万 元 未 作 账 务 处 理 ； 当 年 确 认 11,500 平 方 米 的 收 入 7,762.5 万 元 、 结 转 相 应 成 本 3,021.55 万元，当年获利 4,740.95 万元。公司承诺在规定的时间内完成场地清理并为 此向上海市杨浦区土地发展中心支付保证金 12,597.85 万元挂在其他应收款。 ⑵截至 2005 年 12 月 31 日正泰厂的资产账面净值为 676.94 万元计入当年损益， 2001 年至 2005 年共发生协解费用、待工人员工资等 3,918.5 万元，按规定在补偿费中 列支，尚余补偿费 3,281.7 万元留作正泰剩余人员的安置和场地清理专用，与回购土地 相对应的土地款 10,233 万元和土地成本 3,983.20 万元本期未做账务处理。 2、根据 2003 年度第一次临时股东大会决议，公司将应收债权 152,297,829.03 元 与上海华谊（集团）公司名下的由双钱载重轮胎公司和大中华正泰轮胎公司实际使用的 土 地 使 用 权 （ 土 地 面 积 268,600 平 方 米 、 土 地 面 积 69,685 平 方 米 ， 评 估 价 格 151,094,305.00 元），以 152,297,829.03 元对价置换，按约定置换中所涉及的有关税 费及土地出让金应由本公司承担。截至 2005 年 12 月 31 日止工业土地使用权权证尚未 办理，账务尚未处理。 3、根据 2004 年度股东大会决议，公司以盈余公积 244,268,282.08 元、资本公积 552,450,742.05 元弥补 2004 年末未弥补亏损 796,719,024.13 元。弥补后母公司 2004 年末的未分配利润为零。 35 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 十一、财务会计报告 （一）审计报告 审 计 报 告 信长会师报字（2006）第 10486 号 上海轮胎橡胶（集团）股份有限公司全体股东： 我们审计了后附的上海轮胎橡胶（集团）股份有限公司（以下简称“贵公司”） 2005 年 12 月 31 日的资产负债表和合并的资产负债表、2005 年度的利润及利润分配表 和合并的利润及利润分配表，以及 2005 年度现金流量表和合并的现金流量表。这些会 计报表的编制是贵公司管理当局的责任，我们的责任是在实施审计工作的基础上对这些 会计报表发表意见。 我们按照中国注册会计师独立审计准则计划和实施审计工作，以合理确信会计报表 是否不存在重大错报。审计工作包括在抽查的基础上检查支持会计报表金额和披露的证 据，评价管理当局在编制会计报表时采用的会计政策和作出的重大会计估计，以及评价 会计报表的整体反映。我们相信，我们的审计工作为发表意见提供了合理的基础。 我们认为，上述会计报表符合国家颁布的企业会计准则和《企业会计制度》的规 定，在所有重大方面公允反映了贵公司 2005 年 12 月 31 日的财务状况以及 2005 年度 的经营成果和现金流量。 上海立信长江会计师事务所 中国注册会计师 有限公司 中国·上海 二○○六年三月十七日 36 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 （二）财务报表 资产负债表 编制单位:上海轮胎橡胶（集团）股份有限公司 单位:元 币种:人民币 合并 母公司 项目 期末数 期初数 期末数 期初数 流动资产： 货币资金 522,607,486.33 710,702,110.95 218,042,662.26 439,325,428.62 短期投资 应收票据 170,106,368.34 238,131,942.67 275,707,885.56 303,317,969.44 应收股利 11,148,464.92 19,655,723.95 11,138,023.57 7,920,512.35 应收利息 应收账款 633,870,488.14 548,628,591.88 439,892,402.29 323,037,115.35 其他应收款 482,153,738.31 630,861,237.05 612,732,466.02 596,845,940.28 预付账款 102,719,393.27 127,815,723.54 65,250,892.10 99,710,773.98 应收补贴款 508,090.19 508,090.19 存货 967,214,894.61 781,367,188.67 628,324,963.44 478,128,739.43 待摊费用 37,151.00 99,561.36 一年内到期的长期债权投资 其他流动资产 流动资产合计 2,890,366,075.11 3,057,770,170.26 2,251,089,295.24 2,248,286,479.45 长期投资： 长期股权投资 483,200,328.36 369,729,007.17 849,216,209.09 708,595,953.69 长期债权投资 长期投资合计 483,200,328.36 369,729,007.17 849,216,209.09 708,595,953.69 其中：合并价差(贷差以“-” 号表示，合并报表填列) 28,931,151.61 33,455,240.86 其中：股权投资差额(贷差以 “-”号表示，合并报表填列) 固定资产： 固定资产原价 4,103,246,846.31 3,494,081,748.47 2,717,297,046.96 2,636,523,766.54 减：累计折旧 1,743,423,158.66 1,678,173,851.32 1,292,144,720.88 1,256,367,053.96 固定资产净值 2,359,823,687.65 1,815,907,897.15 1,425,152,326.08 1,380,156,712.58 减：固定资产减值准备 187,137,134.87 238,965,369.64 108,201,696.29 156,971,564.98 固定资产净额 2,172,686,552.78 1,576,942,527.51 1,316,950,629.79 1,223,185,147.60 工程物资 519,984.52 1,086,378.76 192,699.57 401,268.30 在建工程 356,921,109.21 431,343,993.03 35,453,102.14 97,083,155.94 固定资产清理 固定资产合计 2,530,127,646.51 2,009,372,899.30 1,352,596,431.50 1,320,669,571.84 无形资产及其他资产： 无形资产 114,520,877.87 81,036,257.92 42,772,888.61 3,826,422.80 长期待摊费用 5,021,251.18 11,226,284.49 6,147,946.64 其他长期资产 14,758,369.04 8,957,134.83 无形资产及其他资产合计 134,300,498.09 101,219,677.24 42,772,888.61 9,974,369.44 递延税项： 递延税款借项 资产总计 6,037,994,548.07 5,538,091,753.97 4,495,674,824.44 4,287,526,374.42 公司法定代表人: 范宪 主管会计工作负责人:薛建民 会计机构负责人:薛建民 37 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 资产负债表(续) 编制单位:上海轮胎橡胶（集团）股份有限公司 单位:元 币种:人民币 合并 母公司 项目 期末数 期初数 期末数 期初数 流动负债： 短期借款 1,578,179,701.14 1,683,542,484.53 1,145,474,560.82 1,223,596,184.53 应付票据 109,834,360.04 23,952,700.25 124,648,466.19 78,987,331.39 应付账款 633,077,304.38 493,745,511.47 277,703,659.90 221,483,759.72 预收账款 103,280,040.82 60,011,896.39 3,227,065.97 17,536,570.91 应付工资 699,128.49 1,640,000.00 应付福利费 6,271,644.22 5,968,365.94 896,773.73 应付股利 219,375.00 219,375.00 219,375.00 219,375.00 应交税金 165,495,423.82 229,366,660.66 72,231,423.62 111,919,619.35 其他应交款 3,152,107.72 2,949,568.18 54,470.01 115,672.36 其他应付款 361,232,145.03 238,037,153.80 218,583,475.45 115,299,320.35 预提费用 3,852,025.56 1,508,402.93 3,730,505.56 1,241,807.93 预计负债 一年内到期的长期负债 771,091,729.10 84,734,101.78 694,589,300.52 11,720,265.31 其他流动负债 流动负债合计 3,736,384,985.32 2,825,676,220.93 2,540,462,303.04 1,783,016,680.58 长期负债： 长期借款 561,583,915.09 1,080,807,088.10 252,491,355.09 946,407,051.10 应付债券 长期应付款 93,863,544.23 93,863,544.23 6,079,172.60 6,079,172.60 专项应付款 1,470,000.00 1,470,000.00 其他长期负债 长期负债合计 656,917,459.32 1,176,140,632.33 258,570,527.69 952,486,223.70 递延税项： 递延税款贷项 负债合计 4,393,302,444.64 4,001,816,853.26 2,799,032,830.73 2,735,502,904.28 少数股东权益(合并报表填列) 164,378,865.51 176,946,272.26 所有者权益（或股东权益）： 实收资本（或股本） 889,467,722.00 889,467,722.00 889,467,722.00 889,467,722.00 减：已归还投资 实收资本（或股本）净额 889,467,722.00 889,467,722.00 889,467,722.00 889,467,722.00 资本公积 584,257,066.75 1,136,694,022.86 675,464,094.86 1,211,545,859.32 盈余公积 40,787,870.44 270,342,204.21 16,285,585.47 247,728,912.95 其中：法定公益金 13,026,472.99 13,026,472.99 3,460,630.87 3,460,630.87 未分配利润 87,412,709.03 -823,747,252.90 115,424,591.38 -796,719,024.13 拟分配现金股利 外币报表折算差额(合并报表 填列) 减：未确认投资损失(合并报 表填列) 121,612,130.30 113,428,067.72 所有者权益（或股东权益）合 计 1,480,313,237.92 1,359,328,628.45 1,696,641,993.71 1,552,023,470.14 负债和所有者权益（或股东权 益）总计 6,037,994,548.07 5,538,091,753.97 4,495,674,824.44 4,287,526,374.42 公司法定代表人: 范宪 主管会计工作负责人:薛建民 会计机构负责人:薛建民 38 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 利润及利润分配表 编制单位:上海轮胎橡胶（集团）股份有限公司 单位:元 币种:人民币 合并 母公司 项目 本期数 上年同期数 本期数 上年同期数 一、主营业务收入 5,077,962,996.85 4,722,463,743.06 3,928,207,489.87 3,432,753,586.51 减：主营业务成本 4,252,498,097.61 3,831,741,510.75 3,467,149,318.93 2,954,787,030.40 主营业务税金及附加 83,560,966.65 96,813,202.83 65,256,907.00 70,092,844.70 二、主营业务利润（亏损以“-”号填 列） 741,903,932.59 793,909,029.48 395,801,263.94 407,873,711.41 加：其他业务利润（亏损以“-”号填 列） 61,305,647.40 53,649,036.95 42,759,160.32 49,221,194.72 减: 营业费用 277,182,413.34 268,679,289.59 83,339,358.93 87,472,158.65 管理费用 335,599,713.91 292,247,512.38 71,886,102.32 136,064,322.64 财务费用 129,534,147.54 96,327,436.27 99,904,346.19 74,061,079.56 三、营业利润（亏损以“-”号填列） 60,893,305.20 190,303,828.19 183,430,616.82 159,497,345.28 加：投资收益（损失以“-”号填列） -24,896,272.15 -45,515,863.97 -91,251,243.34 -40,034,788.31 补贴收入 1,561,387.67 3,942,747.16 营业外收入 54,887,377.21 24,922,351.19 53,360,013.81 2,196,706.86 减：营业外支出 24,125,461.64 10,230,761.05 17,289,841.31 5,990,130.55 四、利润总额（亏损总额以“-”号填 列） 68,320,336.29 163,422,301.52 128,249,545.98 115,669,133.28 减：所得税 -3,090,094.48 7,872,478.19 减：少数股东损益 -49,560,392.76 -33,490,436.37 加：未确认投资损失(合并报表填列) 8,184,062.58 -75,481,790.27 五、净利润（亏损以“-”号填列） 129,154,886.11 113,558,469.43 128,249,545.98 115,669,133.28 加：年初未分配利润 -823,747,252.90 -930,493,089.36 -796,719,024.13 -912,388,157.41 其他转入 796,719,024.13 796,719,024.13 六、可供分配的利润 102,126,657.34 -816,934,619.93 128,249,545.98 -796,719,024.13 减：提取法定盈余公积 14,713,948.31 3,519,892.24 12,824,954.60 提取法定公益金 3,292,740.73 提取职工奖励及福利基金(合并报表填 列) 提取储备基金 提取企业发展基金 利润归还投资 七、可供股东分配的利润 87,412,709.03 -823,747,252.90 115,424,591.38 -796,719,024.13 减：应付优先股股利 提取任意盈余公积 应付普通股股利 转作股本的普通股股利 八、未分配利润(未弥补亏损以“-”号 填列) 87,412,709.03 -823,747,252.90 115,424,591.38 -796,719,024.13 补充资料： 1.出售、处置部门或被投资单位所得收 益 5,286,251.97 3,354,040.50 5,755,210.77 -352,598.15 2.自然灾害发生的损失 3.会计政策变更增加(或减少)利润总额 4.会计估计变更增加(或减少)利润总额 5.债务重组损失 6.其他 公司法定代表人: 范宪 主管会计工作负责人:薛建民 会计机构负责人:薛建民 39 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 现金流量表 编制单位:上海轮胎橡胶（集团）股份有限公司 单位:元 币种:人民币 本期数 项 目 合并数 母公司数 一、经营活动产生的现金流量： 销售商品、提供劳务收到的现金 5,515,558,723.97 4,261,406,315.41 收到的税费返还 18,670,064.41 收到的其他与经营活动有关的现金 183,508,256.76 55,148,606.50 经营活动现金流入小计 5,717,737,045.14 4,316,554,921.91 购买商品、接受劳务支付的现金 4,214,650,588.03 3,454,339,308.73 支付给职工以及为职工支付的现金 415,374,569.32 256,877,271.33 支付的各项税费 299,139,737.33 203,470,892.42 支付的其他与经营活动有关的现金 400,981,074.33 212,556,364.87 经营活动现金流出小计 5,330,145,969.01 4,127,243,837.35 经营活动现金流量净额 387,591,076.13 189,311,084.56 二、投资活动产生的现金流量： 收回投资所收到的现金 17,519,913.82 5,758,831.18 其中：出售子公司收到的现金 取得投资收益所收到的现金 15,672,728.44 3,148,098.85 处置固定资产、无形资产和其他长期资产而收回的现金 289,695,487.55 257,166,235.00 收到的其他与投资活动有关的现金 投资活动现金流入小计 322,888,129.81 266,073,165.03 购建固定资产、无形资产和其他长期资产所支付的现金 738,489,396.12 247,910,289.67 投资所支付的现金 163,030,000.00 228,586,890.00 支付的其他与投资活动有关的现金 0.00 投资活动现金流出小计 901,519,396.12 476,497,179.67 投资活动产生的现金流量净额 -578,631,266.31 -210,424,014.64 三、筹资活动产生的现金流量： 吸收投资所收到的现金 36,983,795.38 其中：子公司吸收少数股东权益性投资收到的现金 36,983,795.38 借款所收到的现金 3,205,433,034.33 2,331,502,694.01 收到的其他与筹资活动有关的现金 17,300,000.00 筹资活动现金流入小计 3,259,716,829.71 2,331,502,694.01 偿还债务所支付的现金 3,139,479,827.06 2,415,938,307.06 分配股利、利润或偿付利息所支付的现金 121,405,025.43 88,789,195.05 其中：支付少数股东的股利 0.00 支付的其他与筹资活动有关的现金 51,530,104.00 9,930,104.00 其中：子公司依法减资支付给少数股东的现金 0.00 筹资活动现金流出小计 3,312,414,956.49 2,514,657,606.11 筹资活动产生的现金流量净额 -52,698,126.78 -183,154,912.10 四、汇率变动对现金的影响 -7,148,951.78 -6,541,384.18 五、现金及现金等价物净增加额 -250,887,268.74 -210,809,226.36 公司法定代表人: 范宪 主管会计工作负责人:薛建民 会计机构负责人:薛建民 40 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 现金流量表(续) 编制单位:上海轮胎橡胶（集团）股份有限公司 单位:元 币种:人民币 本期数 补充资料 合并数 母公司数 1、将净利润调节为经营活动现金流量： 净利润 129,154,886.11 128,249,545.98 加：少数股东损益(亏损以“-”号填列) -49,560,392.76 0.00 减：未确认的投资损失 8,184,062.58 0.00 加：计提的资产减值准备 8,646,986.04 -46,529,405.71 固定资产折旧 159,135,029.24 109,761,035.00 无形资产摊销 6,347,330.42 885,484.56 长期待摊费用摊销 8,011,099.67 6,147,946.64 待摊费用减少（减：增加） 62,410.36 0.00 预提费用增加（减：减少） 0.00 0.00 处理固定资产、无形资产和其他长期资产的损失(减:收益) -36,528,928.02 -42,914,465.33 固定资产报废损失 -916,184.96 -916,184.96 财务费用 116,357,827.32 87,425,333.65 投资损失（减：收益） 24,896,272.15 91,251,243.34 递延税款贷项（减：借项） 0.00 0.00 存货的减少（减：增加） -190,448,117.33 -148,846,758.31 经营性应收项目的减少(减：增加) 116,921,686.06 -4,009,634.01 经营性应付项目的增加(减：减少) 103,695,234.41 8,806,943.71 其他(预计负债的增加) 0.00 经营活动产生的现金流量净额 387,591,076.13 189,311,084.56 2．不涉及现金收支的投资和筹资活动： 债务转为资本 一年内到期的可转换公司债券 融资租入固定资产 3、现金及现金等价物净增加情况： 现金的期末余额 389,781,897.50 176,526,073.43 减：现金的期初余额 640,669,166.24 387,335,299.79 加：现金等价物的期末余额 减：现金等价物的期初余额 现金及现金等价物净增加额 -250,887,268.74 -210,809,226.36 公司法定代表人: 范宪 主管会计工作负责人:薛建民 会计机构负责人:薛建民 41 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 资产减值表 编制单位:上海轮胎橡胶（集团）股份有限公司(合并) 单位:元 币种:人民币 项目 期初余额 本期增加数 本期减少数 期末余额 坏账准备合计 417,847,931.42 10,896,510.71 27,983.20 428,716,458.93 其中：应收账款 285,036,230.10 17,223,477.64 0.00 302,259,707.74 其他应收款 132,811,701.32 -6,326,966.93 27,983.20 126,456,751.19 短期投资跌价准备合计 其中：股票投资 债券投资 存货跌价准备合计 16,911,425.54 388,332.42 1,349,465.70 15,950,292.26 其中：库存商品 3,178,355.83 388,332.42 0.00 3,566,688.25 原材料 3,562,305.16 0.00 1,298,224.23 2,264,080.93 长期投资减值准备合计 24,778,260.15 5,393,639.94 1,411,008.57 28,760,891.52 其中：长期股权投资 24,778,260.15 5,393,639.94 1,411,008.57 28,760,891.52 长期债权投资 0.00 0.00 0.00 0.00 固定资产减值准备合计 238,965,369.64 51,828,234.77 187,137,134.87 其中：房屋、建筑物 68,476,574.39 14,861,784.61 53,614,789.78 机器设备 155,166,790.37 36,118,005.87 119,048,784.50 无形资产减值准备 其中：专利权 商标权 在建工程减值准备 39,830,639.72 0.00 38,957,168.73 873,470.99 委托贷款减值准备 资产减值合计 738,333,626.47 16,678,483.07 93,573,860.97 661,438,248.57 公司法定代表人: 范宪 主管会计工作负责人:薛建民 会计机构负责人:薛建民 42 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 资产减值表 编制单位:上海轮胎橡胶（集团）股份有限公司(母公司) 单位:元 币种:人民币 项目 期初余额 本期增加数 本期减少数 期末余额 坏账准备合计 360,610,427.62 -46,529,405.71 27,983.20 314,053,038.71 其中：应收账款 341,078,744.67 -46,487,379.69 0.00 294,591,364.98 其他应收款 19,531,682.95 -42,026.02 27,983.20 19,461,673.73 短期投资跌价准备合计 0.00 0.00 0.00 0.00 其中：股票投资 0.00 0.00 0.00 0.00 债券投资 0.00 0.00 0.00 0.00 存货跌价准备合计 3,227,054.53 0.00 1,349,465.70 1,877,588.83 其中：库存商品 0.00 0.00 0.00 0.00 原材料 3,175,813.06 0.00 1,298,224.23 1,877,588.83 长期投资减值准备合计 7,215,205.76 5,268,099.70 0.00 12,483,305.46 其中：长期股权投资 7,215,205.76 5,268,099.70 0.00 12,483,305.46 长期债权投资 0.00 0.00 0.00 0.00 固定资产减值准备合计 156,971,564.98 0.00 48,769,868.69 108,201,696.29 其中：房屋、建筑物 14,589,351.23 0.00 13,496,236.59 1,093,114.64 机器设备 128,558,874.91 0.00 34,901,249.66 93,657,625.25 无形资产减值准备 其中：专利权 商标权 在建工程减值准备 38,957,168.73 0.00 38,957,168.73 委托贷款减值准备 资产减值合计 566,981,421.62 -41,261,306.01 89,104,486.32 436,615,629.29 公司法定代表人:范宪 主管会计工作负责人: 薛建民 会计机构负责人: 薛建民 43 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 上海轮胎橡胶（集团）股份有限公司 二 00 五年度会计报表附注 一、公司简介： 上海轮胎橡胶（集团）股份有限公司前身系上海轮胎橡胶（集团）公司。一九九 二年五月经批准改制为中外合资股份有限公司，一九九二年十二月在上海证券交易所上 市。二 OOO 年十月十七日变更后的《企业法人营业执照》注册号为企股沪总字第 019010 号，二 OO 三年注册地址变更为：上海市闵行区江川路 1251 号 605 室；税务登记号码： 310043607218997，法定代表人：范宪；截止二○○五年十二月三十一日，股本总额 889,467,722.00 元，其中：国有股 605,857,461.00 元、国有法人股 11,910,261.00 元 、 法 人 股 5,720,000.00 元 、 人 民 币 普 通 股 22,880,000.00 元 、 外 资 股 243,100,000.00 元。所属行业为工业类。公司经营范围为轮胎、力车胎、胶鞋及其他橡 胶制品和前述产品的配件、橡胶原辅材料、橡胶机械、模具、轮胎橡胶制品钢丝（涉及 许可经营的凭许可证经营）。主要产品为轮胎。 二、公司采用的主要会计政策、会计估计和合并会计报表的编制方 法： （一）会计制度 执行企业会计准则、《企业会计制度》及其有关的补充规定。 （二）会计年度 公历 1 月 1 日至 12 月 31 日止。 （三）记帐本位币 采用人民币为记帐本位币。 （四）记帐基础和计价原则 以权责发生制为记帐基础，以历史成本为计价原则。 （五）外币业务核算方法 外币业务按发生当期期初的市场汇价作为折算汇率，折合成人民币记账，期末外币 账户余额按期末市场汇价折合成人民币金额进行调整。外币专门借款账户期末折算差 额，在所购建固定资产达到预定可使用状态前的特定时间段内，按规定予以资本化，计 44 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 入在建工程成本，其余的外币账户折算差额均计入财务费用。不同货币兑换形成的折算 差额，均计入财务费用。 （六）外币会计报表的折算方法 按照财政部财会字（1995）11 号《关于印发的通知》， 除所有者权益类项目（不含未分配利润项目）以发生时的市场汇价（中间价）折算为人 民币外，资产、负债、损益类项目均以合并会计报表决算日的市场汇价（中间价）折算 为人民币。外币报表折算差额在合并资产负债表中单独列示。 （七）现金等价物的确定标准 在编制现金流量表时，将同时具备期限短（从购买日起，三个月到期）、流动性 强、易于转换为已知现金、价值变动风险很小四个条件的投资，确定为现金等价物。 （八）短期投资核算方法 1、取得的计价方法 取得投资时按实际支付的价款（扣除已宣告未领取的现金股利或已到期未领取的债 券利息）、相关税费计价。债务重组取得债务人用以抵债的短期投资，以应收债权的账 面价值为基础确定其入账价值；以非货币性交易换入的短期投资，以换出资产的账面价 值为基础确定其入账价值。 2、短期投资跌价准备的计提 中期末及年末，按成本与收盘价孰低提取或调整短期投资跌价准备。 按投资单项投资计算并确定计提的跌价损失准备。 3、短期投资收益的确认 短期投资待处置时确认投资收益。在持有期间分得的现金股利和利息，冲减投资成 本或相关应收项目。 （九）坏帐核算方法 1、坏帐的确认标准 对因债务人撤销、破产，依照法律清偿程序后确实无法收回的应收款项；因债务人 死亡，既无遗产可清偿，又无义务承担人，确实无法收回的应收款项；因债务人逾期未 履行偿债义务并有确凿证据表明，确实无法收回的应收款项，按照公司管理权限批准核 销。 2、坏帐损失的核算方法 采用备抵法核算，应收账款按账龄分析法并结合个别认定法估算坏账损失，其他应 收款按个别认定法估算坏账损失。 45 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 3、应收账款坏帐准备计提比例 账龄 计提比例 1 年以内 5％ 1至2年 30％ 2至3年 50％ 3 年以上 100％ （十）存货核算方法 1、存货分类为 存货分类为：在途物资、原材料、包装物、低值易耗品、库存商品（包括库存的外 购商品、自制商品产品、自制半成品等）、委托加工物资、开发产品、开发成本。 2、取得和发出的计价方法 （1）原材料采用计划成本核算，月末按发出原材料的计划成本计算应摊销的材料成 本差异； （2）其他存货按取得时的实际成本计价，发出时按加权平均法计价。 债务重组取得债务人用以抵债的存货，以应收债权的账面价值为基础确定其入账价 值；非货币性交易换入的存货以换出资产的账面价值为基础确定其入账价值。 3、低值易耗品的摊销方法 （1）轮胎模具采用分期摊销法； （2）其他采用一次摊销法。 4、开发用土地的核算方法 （1）纯土地开发项目：其费用支出单独构成土地开发成本； （2）连同房产整体开发的项目：其费用可分清负担对象，一般按实际占用面积分摊 计入商品房成本。 5、公共配套设施费用的核算方法 （1）不能有偿转让的公共配套设施：按收益比例定标准分配计入商品房成本； （2）能有偿转让的公共配套设施：以各配套设施项目独立作为成本核算对象，归集 所发生的成本。 6、出租开发产品的摊销方法 按房屋建筑物的房地产所有权证年限，最长不超过 50 年，采用直线法计算出月摊销 额，计入出租开发产品的经营成本费用。 7、出租开发产品的期末列示 以出租为目的的出租开发产品的账面价值，在资产负债表的“其他长期资产”项目 中列示。 8、存货的盘存制度 采用永续盘存制。 9、存货跌价准备的计提方法 中期末及年末，对存货进行全面清查后，按存货的成本与可变现净值孰低提取或调 整存货跌价准备。 存货跌价准备按单个存货项目计提。 46 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 （十一）长期投资核算方法 1、取得的计价方法 长期投资取得时以初始投资成本计价，包括相关的税金、手续费等。债务重组取得 债务人用以抵债的股权投资，以应收债权的账面价值为基础确定其入账价值；非货币性 交易换入的股权投资，以换出资产的账面价值为基础确定其入账价值。 2、长期股权投资的核算方法 对被投资单位无控制、无共同控制且无重大影响的，采用成本法核算；对被投资单 位能实施控制、共同控制或重大影响的，采用权益法核算。 按权益法核算长期股权投资时，初始投资成本高于应享有被投资单位净资产份额所 确认的股权投资差额，若合同规定投资期限的按投资期限平均摊销；若合同未规定投资 期限的按 10 年平均摊销。初始投资成本低于应享有被投资单位净资产份额的差额，计入 资本公积（股权投资准备）。财会[2004]3 号文生效前发生的股权投资差额贷差仍按原 规定摊销。再次投资发生的股权投资差额按财会[2004]3 号文处理。 3、长期债权投资的核算方法 中期末及年末，按合同规定利率或债券票面利率计提利息，并同时按直线法摊销债 券投资溢价或折价。 如果计提的利息到期不能收回，停止计息并冲回原已计提的利息。 4、长期投资减值准备的计提 中期末及年末，按预计可收回金额低于长期投资账面价值的差额，计提长期投资减 值准备。自 2004 年起计提长期投资减值准备时对以前年度已发生的股权投资差额按财会 （2004）3 号文处理。 长期投资减值准备按个别投资项目计算确定。 （十二）委托贷款核算方法 企业对委托金融机构贷出的款项，按实际委托的贷款金额入账。年末，按照委托贷 款合同规定的利率计提应收利息。如果计提的利息到期不能收回，则停止计息并冲回原 已计提的利息。 中期末及年末，对委托贷款可收回金额低于贷款本金的差额，计提委托贷款减值准 备。 （十三）固定资产计价和折旧方法 1、固定资产标准 指为生产商品、提供劳务、出租或经营管理而持有的并且使用期限超过一年、单位 价值较高的有形资产。 2、固定资产的分类 房屋及建筑物、专用设备、通用设备、运输设备、其他设备、固定资产装修、租入 固定资产改良支出。 3、固定资产的取得计价 一般遵循实际成本计价原则计价。 债务重组取得债务人用以抵债的固定资产，以应收债权的账面价值为基础确定其入 账价值；非货币性交易换入的固定资产，以换出资产的账面价值为基础确定其入账价 值。 47 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 融资租入的固定资产，按租赁开始日租赁资产的原账面价值与最低租赁付款额的现 值两者中较低者作为入账价值，如果融资租赁资产占企业资产总额等于或小于 30％的， 则按最低租赁付款额作为入账值。 4、固定资产折旧计提方法 固定资产折旧采用年限平均法分类计提。根据固定资产类别、预计使用年限和预计 净残值率确定折旧率。 除制皂集团及其所属子公司外的公司各类固定资产的折旧年限和年折旧率： 类别 预计经济使用年限 预计残值率 年折旧率 房屋及建筑物 30 年 5％ 3.17％ 专用设备 15 年 5％ 6.33％ 通用设备 15 年 5％ 6.33％ 运输设备 5年 5％ 19％ 其他设备 5年 5％ 19％ 制皂集团及其所属子公司各类固定资产的折旧年限和年折旧率： 类别 预计经济使用年限 预计残值率 年折旧率 房屋及建筑物 10-50 年 3-10％ 9.7％－1.8％ 专用设备 10-20 年 3-10％ 9.7％－4.5％ 通用设备 5年 3-10％ 19.4－18％ 运输设备 5-10 年 3-10％ 19.4－9％ 其他设备 5年 3-10％ 19.4－18％ 符合资本化条件的固定资产装修费用，在两次装修期间与固定资产尚可使用年限两 者中较短的期间内，采用年限平均法单独计提折旧；经营租赁方式租入的固定资产改良 支出，在剩余租赁期与租赁资产尚可使用年限两者中较短的期间内，采用年限平均法单 独计提折旧。 融资租赁方式租入的固定资产，能合理确定租赁期届满时将会取得租赁资产所有权 的，在租赁资产尚可使用年限内计提折旧；无法合理确定租赁期届满时能够取得租赁资 产所有权的，在租赁期与租赁资产尚可使用年限两者中较短的期间内计提折旧。融资租 赁方式租入的固定资产发生的符合资本化条件的装修费用，在两次装修期间、剩尚租赁 期与固定资产尚可使用年限三者中较短的期间内，采用年限平均法单独计提折旧。 5、固定资产减值准备的计提 中期末及年末，对由于市价持续下跌、技术陈旧、实体损坏、长期闲置等原因导致 其可收回金额低于账面价值的，按预计可收回金额低于其账面价值的差额，计提固定资 产减值准备。 固定资产减值准备按单项资产计提。 （十四）在建工程核算方法 1、取得的计价方法 以立项项目分类核算工程发生的实际成本，当所建工程项目达到预定可使用状态 时，转入固定资产核算，尚未办理竣工决算的，按估计价值转账，待办理竣工决算手续 后再作调整。 48 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 2、在建工程减值准备的计提 中期末及年末，对于长期停建并预计在未来三年内不会重新开工的在建工程，或在 性能、技术上已落后且给企业带来经济利益具有很大不确定性的在建工程，计提在建工 程减值准备。 在建工程减值准备按单项工程计提。 （十五）无形资产核算方法 1、取得的计价方法 按取得时的实际成本入账。 债务重组取得债务人用以抵债的无形资产，按应收债权的账面价值为基础确定其入 账价值；非货币性交易换入的无形资产，按换出资产的账面价值为基础确定其入账价 值。 2、摊销方法 采用直线法。相关合同与法律两者中只有一方规定受益年限或有效年限的，按不超 过规定年数的期限平均摊销；两者均规定年限的按孰低者平均摊销；两者均未规定年限 的按不超过十年的期限平均摊销。 3、无形资产减值准备的计提 中期末及年末，对于因被其他新技术替代、市价大幅下跌而导致创利能力受到重大 不利影响或下跌价值预期不会恢复的无形资产，按预计可收回金额低于其账面价值的差 额，计提无形资产减值准备。 无形资产减值准备按单项资产计提。 （十六）长期待摊费用摊销方法 1、开办费转销方法 在开始生产经营的当月一次计入损益。 2、其他长期待摊费用摊销方法 在受益期内平均摊销，其中： 预付经营租入固定资产的租金，按租赁合同规定的期限平均摊销。 （十七）借款费用 1、借款费用资本化的确认原则 专门借款的辅助费用在所购建资产达到预定可使用状态前，予以资本化，若金额较 小则直接计入当期损益。 专门借款的利息、溢折价摊销、汇兑差额开始资本化应同时满足以下三个条件：资 产支出已经发生；借款费用已经发生；为使资产达到预定可使用状态所必要的购建活动 已经开始。 当购建资产项目发生非正常中断且连续三个月或以上时，借款费用暂停资本化。当 购建资产项目达到预定可使用状态后，借款费用停止资本化。 当购建资产中部分项目分别完工且可单独使用时，该部分资产借款费用停止资本 化。 普通借款的借款费用和不符合资本化规定的专门借款的借款费用，均计入发生当期 损益。 49 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 2、借款费用资本化期间 按半年度计算借款费用资本化金额。 3、专门借款的借款费用资本化金额的确定方法 每一会计期间利息资本化的金额＝至当年末止购建固定资产累计支出加权平均数× 借款加权平均利率。 允许资本化的辅助费用、汇兑差额按实际发生额直接资本化。 （十八）预计负债 与或有事项相关的义务同时符合以下条件时，公司将其列为预计负债： 1、该义务是企业承担的现时义务； 2、该义务履行很可能导致经济利益流出企业； 3、该义务金额可以可靠地计量。 （十九）收入确认原则 1、销售商品 公司已将商品所有权上的重要风险和报酬转移给买方；公司不再对该商品实施继续 管理权和实际控制权；与交易相关的经济利益能够流入企业；相关的收入和成本能可靠 地计量时，确认营业收入实现。 2、提供劳务 在同一年度内开始并完成，在劳务已经提供，收到价款或取得收取价款的依据时， 确认劳务收入的实现；如劳务的开始和完成分属不同的会计年度，在提供劳务交易的结 果能够可靠估计的情况下，在资产负债表日按完工百分比法确认相关的劳务收入。 3、让渡资产使用权 与交易相关的经济利益能够流入企业，收入的金额能可靠地计量时，按合同或协议 规定确认为收入。 4、出租物业收入 （1） 具有承租人认可的租赁合同、协议或其他结算通知书； （2） 履行了合同规定的义务，开具销售发票且价款已经取得或确信可以 得； （3） 出租开发成本能够可靠地计量。 （二十）未确认投资损失的确认 如果被投资单位发生亏损，公司按持股比例计算亏损分担额，并冲减长期股权投资 的账面价值，一般以长期股权投资减记至零为限。未确认的亏损分担额，在编制合并会 计报表时分别在资产负债表和利润及利润分配表中确认为未确认投资损失。 （二十一）所得税的会计处理方法 采用应付税款法。 （二十二）合并会计报表的编制方法 1、合并会计报表按照《合并会计报表暂行规定》及有关文件，以母公司和纳入合 并范围的子公司的个别会计报表以及其他资料为依据进行编制。但对行业特殊及子公司 50 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 规模较小，符合财政部财会二字（1996）2 号《关于合并会计报表合并范围请示的复 函》文件的规定，则不予合并。合并时对内部权益性投资与子公司所有者权益、内部投 资收益与子公司利润分配、内部交易事项、内部债权债务进行抵销，对合并盈余公积进 行调整。 2、母公司与子公司采用的会计政策和会计处理方法无重大差异。 三、税项： （一）公司主要税种和税率为 税 种 税率 备 注 增值税 17％ 商品（产品）销售 13％ 橡胶销售 消费税 10％ 生产环节的轮胎 （除子午线轮胎）销售 8％ 制皂集团护发类产品 营业税 5％ 其他 5％ 所得税 27％ 母公司、上海制皂有限公司 33％ （二）税负减免 所得税 上海轮胎橡胶（集团）公司房地产开发经营公司，注册于浦东新区，根据沪财企一 （1994）158 号文，1994 年起所得税减按 15％计征； 上海轮胎橡胶（集团）供销有限公司，注册于浦东新区，根据沪财企一（1996） 20 号文，1995 年 6 月起所得税减按 15％计征； 上海牡丹油墨有限公司 2005 年所得税实际税负为 15％； 四、母公司的汇总范围： （一）上海轮胎橡胶（集团）股份有限公司本部 （二）上海轮胎橡胶（集团）股份有限公司正泰橡胶厂（以下简称正泰厂）（注） （三）上海轮胎橡胶（集团）股份有限公司大中华正泰公司（以下简称大正公司） （四）上海轮胎橡胶（集团）股份有限公司双钱载重轮胎公司（以下简称载重公司） 注：见十二/（一） 51 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 五、控股子公司及合营企业: （一）公司所控制的所有子公司、合营企业情况及其合并范围（金额单位：人民币 元）： 合并范围 母公司控 是否 被投资单位全称 注册资本 经营范围 母公司实际投资额 内控股比 备注 股比例 合并 例 上海制皂（集团）有限公司 160,690,000.00 国内贸易（除专项规定） 180,000,000.00 60.00% 60.00% 是 （注 1） 上海轮胎橡胶（集团）股份公 30,000,000.00 汽车轮胎开发研制、相关技 30,000,000.00 100.00% 100.00% 是 （注 1） 司轮胎研究所 术、商品信息咨询服务 上海轮胎橡胶（集团）如皋投 87,500,000.00 向第二、第三产业投资（国家 71,600,000.00 81.8286% 81.8286% 是 （注 1） 资有限公司 有专项规定的除外）；轮胎、 橡胶制品、办公用品、电子元 器件、建筑材料、针纺织品、 通用机械及零部件、电器机械 销售、代理、售后服务。 上海轮胎橡胶（集团）如皋有 注册资本 制造、加工、组装销售轮胎， USD18,739,500.00 51.67% 75.00% 是 （注 2） 限公司 USD36,270,000.00 胶鞋及其他橡胶制品和前述产 元 品的配件，橡胶原辅材料，橡 实到 胶机械、模具，轮胎橡胶制品 USD34,705,819.00 钢丝（国家有专项规定的按规 元 定执行，涉及许可证的凭有效 许可证生产经营） 上海轮胎橡胶(集团)供销有限 21,000,000.00 轮胎及橡胶制品、橡胶机械、 19,000,000.00 90.48% 100.00% 是 （注 2） 公司 化工原料（除危险品）、金属 材料、建筑材料、机电设备、 轮胎辅料、机械配件经销 上海大孚橡胶有限公司 36,670,000.00 轮胎、力车胎、技贸结合 33,000,000.00 90.00% 100.00% 是 （注 2） 上海欣业实业有限公司 145,580,000.00 轮胎、金属材料、化工原料及 131,022,000.00 90.00% 100.00% 是 （注 2） 制品、电器机械及器材 上海轮胎橡胶（集团）泗泾橡 28,510,000.00 销售内胎垫带 22,736,735.00 79.75% 79.75% 是 （注 1） 胶有限公司 上海轮胎橡胶（集团）东海轮 14,680,000.00 销售轮胎、橡胶、橡胶制品， 9,542,000.00 65.00% 65.00% 是 （注 1） 胎有限公司 机械设备 上海双钱碧源置业有限公司 10,000,000.00 房产开发、经营，物业管理及 9,000,000.00 90.00% 90.00% 是 （注 1） 自管房租赁。（以上经营范围 涉及许可经营的凭许可证经 营）。 海口孚华轮胎销售公司 2,000,000.00 橡胶机械配件、橡胶机械设 1,800,000.00 90.00% 90.00% 否 （注 1） 备、化工原料、轮胎辅料、轮 胎及橡胶制品销售 上海轮胎橡胶机械模具有限公 18,000,000.00 橡胶机械，模具，气门嘴，技 22,497,487.86 43.68% 51.00% 否 （注 2） 司 术服务 上海轮胎橡胶（集团）联营公 5,070,000.00 国内商业、物资供销业 3,300,000.00 59.6745% 69.6203% 否 （注 2） 司 上海橡胶工业供销公司 8,500,000.00 批发，零售，加工服务 8,000,000.00 94.12% 94.12% 否 （注 1） 厦门回力工贸公司 1,600,000.00 化工原料、其他食品、纺织 1,600,000.00 100.00% 100.00% 否 （注 1） 品、日用百货、建筑材料批 发、零售 52 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 海南回力工贸公司 900,000.00 橡胶制品，帘子布，钢丝，轮 900,000.00 100.00% 100.00% 否 （注 1） 胎，化工原料 美国 SHANGHAIT.R.T.R 公司 USD200,000.00 轮胎销售、技贸结合 1,218,280.00 70.00% 70.00% 否 （注 1） 劳动房屋（除中介），劳动保 上轮劳动服务有限公司 100,000.00 80,000.00 80.00% 80.00% 否 （注 1） 障咨询（除经纪）。 上海轮胎橡胶（集团）公司房 20,000,000.00 房地产开发经营服务，物业管 100.00% 是 （注 3） 地产开发经营公司 理，建筑、装潢材料 上海天福房地产发展有限公司 USD11,400,000.00 在本地块内从事商品住宅办公 60.00% 是 （注 3） 楼及其附属设备的建设开发、 销售与出租；从事与房地产有 关的咨询、代理、物业管理业 务；从事地块建筑物内的商 场、餐饮、文化娱乐等业务 （涉及许可经营的凭许可证经 营） 上海欣兴贸易公司 600,000.00 炭黑，橡胶及制品，摩托车及 100.00% 否 （注 3） 汽车配件，钢材，化工产品， 浴具，装璜材料，劳防用品， 五金交电，食品，副食品南北 货，摩托车维修，非炭黑设备 加工、安装，炭黑技术服务， 蛇类制品，酒，烟 上海爱化测试仪器维修站 30,000.00 仪器维修及技术咨询，仪器零 100.00% 否 （注 3） 配件销售 深圳上轮贸易有限公司 1,100,000.00 国内商业、物资供销业 100.00% 否 （注 4） 上海上联化工实业公司 3,810,000.00 轮胎加工、化工原料及制品 100.00% 否 （注 3） 上海正力橡胶工贸公司 1,004,000.00 橡胶及橡胶制品、化工原料及 100.00% 否 （注 3） 产品、金属材料、机电产品及 配件、建筑材料、装潢材料、 五金交电、汽车配件家具及制 品、木材、工艺品、附设分支 机构 上海碳酸钙厂 1,082,000.00 碳酸钙（工业用、药用、食 100.00% 否 （注 3） 用） 上海总联橡胶实业公司 1,060,000.00 橡胶及制品，化工原料及产品 100.00% 否 （注 3） （除危险品），橡胶模具、服 装鞋帽，文教用品，体育用 品，五金交电，金属材料，机 电设备及配件（除专营），纺 织品，建筑、装潢材料 上海正华工贸公司 1,000,000.00 轮胎及橡胶制品、化工原料 100.00% 否 （注 3） （除危险品）、汽配、五金工 具，建筑五金，再生胶，摩托 车胎生产，建材，水暖轮胎维 修，钢丝盘头加工维修，金属 材料，电线电缆，机电产品， 百货，五金交电，食品，油漆 及辅料 上海欣业广告公司 500,000.00 承担各类广告设计、制作 100.00% 否 （注 3） 上海欣明橡胶厂 1,500,000.00 轮胎销售、批发、加工业务 94.67% 否 （注 3） 53 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 上海宝轮实业公司 500,000.00 轮胎销售、批发、加工业务 80.00% 否 （注 3） 上海敦信贸易有限公司 1,800,000.00 钢材、木材、建筑材料、装潢 83.33% 否 （注 3） 材料、化工原料及产品（不含 危险品）、五金交电、日用化 学品、汽车配件、橡胶制品的 销售，附设分支机构 上海泰华出租公司 3,500,000.00 汽车客运、车辆配件的销售 90.00% 否 （注 3） 上海华轮贸易有限公司 1,700,000.00 橡胶制品、五金交电、摩托 88.24% 否 （注 3） 车、电机、汽车配件、建筑材 料、装潢材料、钢材、木材、 化工原料及配件（除危险 品）、百货销售、废旧橡胶回 收、劳动服务 上海回力宾馆 4,000,000.00 内外宾住宿、饭、菜、烟、西 80.00% 否 （注 3） 点、冷热饮的销售，棋牌娱乐 上海双力物业管理有限公司 500,000.00 物业管理，房屋租赁，杂务劳 90.00% 否 （注 4） 动，建材、钢材、百货、五金 交电、普通劳防用品、汽配批 发、零售、代购代销 上海龙泰精细橡胶公司 11,250,000.00 轮胎橡胶制品，密封件 53.33% 否 （注 3） 上海福浦橡胶有限公司 3,000,000.00 橡胶、橡胶制品、橡胶粒 80.00% 否 （注 3） 子、胶粉、橡胶模具制造、加 工、服装、鞋帽、文教用品、 五金交电、金属材料、机电设 备及配件、纺织品、建筑装潢 材料批发、零售（上述经营范 围涉及许可经营的凭许可证经 营） 上海轮胎橡胶（集团）房屋交 500,000.00 物业管理，房屋租赁交换服务 100.00% 否 （注 3） 换部 天开计算机系统有限公司 1,000,000.00 计算机、自动控制专业领域内 80.00% 否 （注 3） 的八技服务等 上海白象天鹅电池有限公司 35,000,000.00 经营本企业电池即及配件、生 100.00% 是 （注 4） 产电池的机械设备、仪器仪表 及零配件的出口业务；经营本 企业生产科研所需的原辅材 料、机械设备、仪器仪表及零 配件的进口业务；电光源化工 原材料（除危险品）有色金属 汽配五金交电建筑材料。 上海制皂集团产品销售有限公 10,000,000.00 主营皂类，甘油，印刷油墨， 100.00% 是 （注 4） 司 印花涂料，有机颜料，树脂， 洗涤用品，油脂，油脂工业产 品及其衍生物产品，香精，香 料，表面活性剂，化工原料 （除危险品），日用百货，包 装材料，服装，纺织品销售 上海制皂厂 94,360,000.00 制皂，甘油，油脂，鞣料及皮 100.00% 是 （注 3） 革化学品。粘结剂，表面活性 剂，香精.工业品粘结剂和胶 涂料，人用洗洁用品，香料， 化妆品，动物用化妆润滑剂 54 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 上海油墨厂 17,282,000.00 印刷油墨、涂料印花色浆。涤 100.00% 是 （注 3） 纶着色浆、颜料、树脂 上海凌旭油脂储炼有限公司 USD700,000.00 生产精练工业用油脂及相关基 65.27% 是 （注 3） 础油脂原料，销售自产产品 （涉及许可经营的凭许可证经 营） 上海牡丹油墨有限公司 85,000,000.00 印刷油墨、印花涂料、树脂， 100.00% 是 （注 4） 颜料，经营公司自产产品及技 术的出口业务，经营公司生 产、科研所需的原辅材料，仪 器仪表、机械设备、零配件及 技术的进口业务（国家限定公 司经营和国家禁止进出口的商 品及技术除外），经营进料加 工和“三来一补”业务（以上 经营范围涉及许可经营的凭许 可证经营） Moltech Holdings USD50,000.00 从事英属维尔京群岛法律所允 70.00% 是 （注 3） Corporation 许的经营活动 上海克勒色母粒化工有限公司 USD3,000,000.00 生产、销售各类色母粒产品及 60.00% 否 （注 3） 相关的塑料制品 四川克勒联营公司 2,000,000.00 油墨、涂料、颜料、色母粒、 51.00% 否 （注 3） 油墨树脂 上海制皂有限公司 USD41,950,000.00 生产香皂、洗衣皂、甘油、洁 75.00% 是 （注 3） 净洗涤用品、油脂化工产品及 其衍生物产品，销售自产产品 （涉及许可经营的凭许可证经 营） 默特克电源（上海）有限公司 注册资本 研发、生产、加工各类无汞碱 100.00% 是 （注 3） USD25,000,000.00 锰电池、动力镍氢电池、锂离 实到 子电池，销售自产产品并提供 USD18,505,000.00 售后服务（涉及许可经营的凭 许可证经营） 默特克电源（如皋）有限公司 注册资本 研发生产加工销售各类无汞碱 100.00% 是 （注 3） USD12,000,000.00 锰电池、动力镍氢电池、锂离 实到 子电池可充电电池及其配套产 USD9,300,000.00 品，并提供售后服务 Moltech Power Systems USD10,000.00 从事福罗里达州法律所允许的 100.00% 是 （注 3） Inc. 经营活动 Moltech Power Systems USD233,000.00 从事法律所允许的经营活动 100.00% 是 （注 3） European Operations 注 1：由上海轮胎橡胶（集团）股份有限公司直接投资； 注 2：由上海轮胎橡胶（集团）股份有限公司及其子公司共同投资； 注 3：由上海轮胎橡胶（集团）股份有限公司的子公司直接投资； 注 4：由上海轮胎橡胶（集团）股份有限公司的子公司之间共同投资。 （二）未纳入合并会计报表范围的子公司： 1、未合并的子公司详见（一） 2、未合并的原因： 55 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 根据财政部财会（1996）2 号《关于合并会计报表合并范围请示的复函》的精神， 并参照对境外投资者公布报表的合并范围。 （三）报告期内出售子公司情况 出售日 出售子公司名称 流动资产 长期投资 固定资产 无形资产 其他资产 流动负债 长期负债 上年末 上海轮胎橡胶 …… 4,088,044.49 …… 6,360,290.71 …… …… 7,761,322.29 …… （集团）运输有 …… 3,493,008.45 …… 6,884,991.48 …… …… 7,542,350.59 …… 限公司 年初至出售日 出售子公司名称 主营业务收入 主营业务利润 利润总额 所得税 净利润 上年度 上海轮胎橡胶 …… 10,139,072.10 426,134.98 -148,636.43 …… -148,636.43 （集团）运输有 …… 45,759,790.50 124,828.53 -2,386,432.78 42,972.29 -2,429,405.07 限公司 六、合并会计报表主要项目注释 （以下金额单位若未特别注明者均为人民币元，凡未注明年初数的均为年末数） （一）货币资金 项 目 年 末 数 年 初 数 现 金 344,323.06 674,115.19 银行存款 366,419,435.94 634,965,927.94 其他货币资金 155,843,727.33 75,062,067.82 合 计 522,607,486.33 710,702,110.95 其中美元：外币金额 17,723,502.46 20,945,694.29 折算汇率 8.0702 8.2765 折合人民币 143,032,209.53 173,357,038.46 港元：外币金额 6,647,407.60 37,431,357.81 折算汇率 1.0403 1.0637 折合人民币 6,915,299.48 39,815,735.39 英镑：外币金额 584,658.08 3,020,107.59 折算汇率 13.9122 15.9310 折合人民币 8,133,880.14 48,113,334.02 56 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 欧元：外币金额 11,846.18 11,834.18 折算汇率 9.5797 11.2627 折合人民币 113,482.85 133,284.83 新币：外币金额 1,705.61 1,705.61 折算汇率 4.8543 4.9681 折合人民币 8,279.54 8,473.64 1、年末余额中有人民币 31,586,484.83 元为信用证开证保证金，在编制现金流量表 时已剔除，在购买商品、接受劳务支付的现金反映。 2、年末余额中有人民币 9,930,104.00 元银行承兑汇票保证金，在编制现金流量表 时已剔除，在支付的其他与筹资活动有关的现金反映。 3、年末余额中有人民币 35,829,000.00 元银行承兑汇票保证金，在编制现金流量表 时已剔除，在购建固定资产、无形资产和其他长期资产所支付的现金反映。 4、年末余额中有人民币 13,880,000.00 元银行承兑汇票保证金，在编制现金流量表 时已剔除，在购买商品、接受劳务支付的现金反映。 5、年末余额中有定期存单 41,600,000.00 元质押借款，在编制现金流量表时已剔 除，在支付的其他与筹资活动有关的现金反映。 （二）应收票据 种 类 年 末 数 年 初 数 银行承兑汇票 166,643,135.96 231,278,877.93 商业承兑汇票 3,463,232.38 6,853,064.74 合 计 170,106,368.34 238,131,942.67 1、已质押的应收票据：见十/（二） 2、已贴现的商业承兑汇票金额为 70,000,000.00 元，系母公司取得合并范围 内控股子公司开具的商业承兑汇票 70,000,000.00 元贴现。 （三）应收股利 项目 金额 性质和内容 上海新轮开发公司 11,138,023.57 未收到股利 上海银轮工程监理公司 10,441.35 未收到股利 合 计 11,148,464.92 （四）应收补贴款 项目 金额 应收出口退税 508,090.19 57 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 （五）应收帐款 1、帐龄分析 年 末 数 年 初 数 帐 龄 坏帐准备 坏帐准备 占总额比 计提比例 占总额比 计提比例 帐面余额 坏帐准备 帐面余额 坏帐准备 例 除个别认 例 除个别认 定外 定外 1 年以内 658,491,014.90 70.34% 5% 32,924,550.78 538,931,731.14 64.65% 5% 26,946,586.56 1－2 年 6,023,829.39 0.64% 30% 1,807,148.81 21,281,876.02 2.55% 30% 7,306,298.37 2－3 年 11,612,970.87 1.24% 50% 7,525,627.43 56,494,889.25 6.78% 50% 33,827,019.60 3 年以上 260,002,380.72 27.78% 100% 260,002,380.72 216,956,325.57 26.02% 100% 216,956,325.57 合 计 936,130,195.88 100.00% …… 302,259,707.74 833,664,821.98 100.00% …… 285,036,230.10 2、年末应收帐款中欠款金额前五名的累计总欠款金额为 360,950,782.91 元，占应 收帐款总金额的 38.56％。 3、本年度除 3 年以上应收账款按会计政策计提 100%坏帐准备外全额计提坏帐准备 的说明： 账龄 账面余额 坏账准备 计提比例 理由 2－3 年 3,438,283.96 3,438,283.96 100% 预计无法收回 4、年末应收帐款中无持本公司 5％以上（含 5％）表决权股份的股东单位欠款。 （六）其他应收款 1、帐龄分析 年 末 数 年 初 数 帐龄 占总额 占总额比 帐面余额 坏帐准备 帐面余额 坏帐准备 比例 例 1 年以内 199,631,476.95 32.80% 12,632,862.92 186,989,045.22 24.49% 1,418,900.54 1－2 年 68,663,231.27 11.28% 3,341,389.22 113,271,237.17 14.83% 17,551,136.81 2－3 年 50,222,727.24 8.25% 3,505,000.00 139,926,705.55 18.32% 21,808,079.74 3 年以上 290,093,054.04 47.67% 106,977,499.05 323,485,950.43 42.36% 92,033,584.23 合 计 608,610,489.50 100.00% 126,456,751.19 763,672,938.37 100.00% 132,811,701.32 58 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 2、年末其他应收款中欠款金额前五名的累计总欠款金额为 410,753,570.72 元，占 其他应收款总金额的比例为 67.49％。 3、本年度全额计提坏帐准备或部分计提坏帐准备的说明： 欠款人名称 欠款金额 计 提 比 例 理 由 担保款 10,252,155.12 100% 预计无法收回 预付工程款 5,045,714.01 100% 预计无法收回 预付款 8,470,368.12 100% 预计无法收回 暂借款 74,035,618.83 10%－100% 预计无法收回 置换土地款 28,161,495.11 18% 按无法收回的部分计提 其他 491,400.00 100% 预计无法收回 合计 126,456,751.19 4、年末金额较大的其他应收款： 欠款人名称 金额 性质或内容 土地置换款 152,297,829.03 注1 上海市杨浦区土地发展中心 125,978,500.00 保证金(注 2) 上海正兴房产有限公司 6,2880,076.98 暂借款 上海龙泰精细橡胶公司 49,699,806.60 预付土地补偿金 上海远东国际(集团)有限公司 19,897,358.11 暂借款 合计 410,753,570.72 注 1：经 2003 年度第一次临时股东大会决议，同意将以下应收款项列入置换计划，故本年未计 提坏账准备（详见附注十二/（二））。 注 2：（详见附注十二/（一））。 5、年末其他应收款中无持本公司 5％以上（含 5％）表决权股份的股东单位欠款。 （七）预付帐款 1、帐龄分析 年 末 数 年 初 数 帐 龄 金 额 占总额比例 金 额 占总额比例 1 年以内 47,660,482.75 46.40% 127,470,703.07 99.73% 1－2 年 55,038,360.52 53.58% 345,020.47 0.27% 2－3 年 20,550.00 0.02% － － 3 年以上 － － － － 合 计 102,719,393.27 100.00% 127,815,723.54 100.00% 59 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 2、年末预付帐款中无持本公司 5％以上（含 5％）表决权股份的股东单位欠款。 （八）存货及存货跌价准备 年 末 数 年 初 数 项 目 帐面余额 跌价准备 帐面余额 跌价准备 原材料 420,168,812.84 2,264,080.93 358,118,083.59 3,562,305.16 包装物 518,302.74 － 570,013.04 － 低值易耗品 79,080,958.22 69,523.08 40,985,613.26 69,523.08 库存商品 328,235,512.42 3,566,688.25 277,250,280.82 3,178,355.83 在产品 111,518,950.76 － 65,872,014.55 － 委托加工物资 1,213,722.73 － 14,506,924.31 51,241.47 开发产品 12,836,554.99 － 9,235,422.47 － 开发成本 29,592,372.17 10,050,000.00 31,740,262.17 10,050,000.00 合计 983,165,186.87 15,950,292.26 798,278,614.21 16,911,425.54 年末存货按成本高于可变现净值的差额计提存货跌价准备，确定可变现净值的依据 为：以存货的估计售价减去至完工估计将要发生的成本、估计的销售费用以及相关税金 后的金额。 （九）待摊费用 类别 年初数 本年增加 本年摊销 年末数 年末结存原因 保险费 99,561.36 165,574.14 227,984.50 37,151.00 属 2006 年度承担费用 （十）长期投资： 项 目 年 末 数 年 初 数 帐面余额 减值准备 帐面余额 减值准备 长期股权投资 511,961,219.88 28,760,891.52 394,507,267.32 24,778,260.15 小计 511,961,219.88 28,760,891.52 394,507,267.32 24,778,260.15 60 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 1、长期股票投资 ： （1）股票投资： 占被投资 被投资公司 股票数量 股份类别 公司注册 初始投资成本 年末帐面余额 减值准备 年初帐面余额 名称 （股） 资本比例 爱建股份 法人股 208,339 》（2005 年修订）的要求，我们作为董事和高级管理人员 在全面了解和审核公司 2005 年年度报告后认为：公司严格按照股份制公司财务制度规 范运作，公司 2005 年年度报告公允地反映了公司本年度财务状况和经营成果；经上海 立信长江会计师事务所注册会计师审计的 2005 年年度审计报告是实事求是、客观公正 的。我们保证公司 2005 年年度报告内容真实、准确和完整，承诺其中不存在任何虚假 记载、误导性陈述或重大遗漏，并对其内容真实性、准确性和完整性承担个别及连带责 任。 签名：范 宪、岳春辰、隆有明、黄玉贵、郑国培、张晖明、李柏龄 柳启岳、周立才、王曾金、薛建民、王 玲 101 Shanghai Tyre & Rubber Co., Ltd. 2005 Annual Report March 17, 2006 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 Contents 1. Important Notice........................................................ 2 2. Basic information of the Company........................................ 2 3. Financial Highlights.................................................... 4 4. Change of Capital Shares and Particulars of Shareholders ............... 7 5. Directors, Supervisors and Senior Executives .......................... 10 6. Management Structure of the Company ................................... 16 7. Briefing on Shareholders' Meetings..................................... 20 8. Report of the Board of Directors....................................... 21 9. Report of the Supervisory Committee ................................... 36 10. Significant Events.................................................... 40 12. Documents for Reference............................................... 50 13. Confirmation Opinion on the Report ................................... 51 1 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 1. Important Notice 1) The Company's Board of Directors, Supervisory Committee and their members, senior executives now ensure that, the information contained in this report does not have any false statement, misleading representation or significant omission, and will assume joint and several liabilities for the truth, accuracy and integrity of its content. 2) All the Directors of the Company attended the Board meeting. 3) Shanghai Lixin Changjiang Certified Public Accountants Co., Ltd. issued the audit report with standard unqualified opinion for the Company. 4) Mr. Fan Xian, Chairman of the Board, Mr. Xie Jianming, Chief Accountant in charge of accounting work and head of accounting department (Accounting Officer), declare to guarantee the truth and integrity of the financial report in this annual report. 2. Basic information of the Company 1) Chinese legal name: Shanghai Tyre & Rubber Co., Ltd. English name: Shanghai Tyre & Rubber Co., Ltd. Abbr.: STRC 2) Legal representative: Fan Xian 3) Secretary to the Board of Directors: Wang Ling Contact address: 63 Sichuan Zhong Rd., Shanghai Tel.: 021- 33024666- 6379 Fax: 021-63390367 E-mail：company@cstarc.com Representative of securities affairs: Sun Wen Contact address: 63 Sichuan Zhong Rd., Shanghai Tel.: 021-33024666-6378 Fax：021-63390367 E-mail：wsun@cstarc.com 4) Registered address: Rm. 605 No. 1251 Jiangchuan Rd., Minhang District, Shanghai Business add.: 63 Sichuan Zhong Rd., Shanghai Zip code: 200002 2 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 Website: http://www.cstarc.com E-mail: company@cstarc.com 5) Newspaper for information disclosure: "Shanghai Securities News" and "South China Morning Post" Website appointed by the China Securities Regulatory Commission for publishing the Company's annual report: http://www.sse.com.cn Location for filing annual report: Secretary's office of the Board of Directors of the Company 6) Stock exchange for listing of the Company's A share: Shanghai Stock Exchange Short name for the Company's A share: Tyre & Rubber Share code for the Company's A share: 600623 Stock exchange for listing of the Company's B share: Shanghai Stock Exchange Short name of the Company's B share: Tyre B Share Share code of the Company's B share: 900909 7) Other relevant information First registration date of the Company: August 5, 1992 First registration site of the Company: No. 97 Jimo Rd., Pudong District, Shanghai Latest date of changing registration of the Company: September 9, 2003 Address of changing registration of the Company: Rm. 605 No. 1251 Jiangchuan Rd., Minhang District, Shanghai Registration No. of legal person business license of the Company: Qiguhuzongzi No. 019010 Tax registration No.: 310043607218997 Domestic public accounting firm engaged by the Company: Shanghai Lixin Changjiang Certified Public Accountants Co., Ltd. Business address: 4/F 61 Nanjing Dong Rd., Shanghai Overseas public accounting firm engaged by the Company: Horwath International Certified Public Accountants Business address: 2001 Central Plaza, 18 Harbour Rd., Wanchai, Hong Kong 8) Other basic information of the Company 3 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 Institution commissioned for custody of the Company's non-tradable shares: Shanghai Branch of China Securities Depository & Clearing Corporation Limited Institution commissioned for custody of the Company's American Depositary Receipt (ADR): Bank of New York 3. Financial Highlights 1) Major financial data for the report period Unit: RMB Currency: Renminbi Item Amount Gross profit 68,320,336.29 Net profit 129,154,886.11 Net profit after deduction of extraordinary gain or loss 95,947,915.61 Main business profit 741,903,932.59 Other business profit 61,305,647.40 Operating profit 60,893,305.20 Investment earnings -24,896,272.15 Income from subsidy 1,561,387.67 Non-operating revenue and expenditure 30,761,915.57 Net cash flow from operating activities 387,591,076.13 Net increase of cash and cash equivalents -250,887,268.74 Note: Deducted items of extraordinary gain or loss and the corresponding amounts: Amount (RMB) (gain +, Item loss -) 1. Gain or loss from disposal of long-term equity investment, fixed assets, construction in progress, intangible assets and other long-term assets 41,815,179.99 2. Government subsidy in various forms 1,561,387.67 3. Net non-operating revenue and expenditure after provision for depreciation of assets appropriated according to enterprise accounting system -8,404,869.54 4. Return from provisions for depreciation of various items appropriated during previous years 17,283,302.99 5. Impact from income tax -14,572,724.16 6. Impact from minority shareholders' gain or loss -4,475,306.45 Total 33,206,970.50 2) Reconciliation statement for difference between domestic audit and overseas audit (unit: RMB) 2005 Gain/(loss) after deduction of Shareholders' equity tax and minority interests According to Chinese accounting standard 129,154,886.11 1,480,313,237.92 Loss from merging affiliated companies -8,184,062.58 4 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 Offset of loss beyond capital of affiliated companies with minority interests -314,762.74 -12,968,971.13 Difference of amortization on goodwill -413,201.14 -413,201.14 Amortization of initial expenses -971,996.88 -3,278,243.71 According to international financial report standard 119,270,862.77 1,463,652,821.94 After-tax profit for 2005 after audit is RMB129,154,886.11 for A share and RMB119,270,862.77 for B share with a difference of RMB9,884,023.34 between the two, which consists of: 1) the net excess loss of RMB8,184,062.58 for the report year in subsidiaries including Dafu with A share listed as unconfirmed investment loss and B share as group loss (borne by big shareholders) according to regulations in the international accounting standard; 2) an increased loss of RMB314,762.74 for B share by adjusting its minority interests correspondingly according to the aforesaid adjustment;3) an increased loss of RMB 413,201.14 for B share by adjusting its mode of amortization on goodwill4) the amortization balance of RMB971,996.88 for initial expenses of Rugao Company in the report year with B share listed as loss. Shareholders' equity for 2005 after audit is RMB1,480,313,237.92 for A share and RMB 1,463,652,821.94 for B share with a difference of RMB16,660,415.98 between the two, which consists of: 1) decreasing shareholders' equity for B share according to regulations in the international accounting standard due to the net excess loss of RMB borne by minority shareholders in subsidiaries in the report year; 2) decreasing shareholders' equity correspondingly according to the increased loss of RMB413,201.14 due to adjustment of mode of amortization on goodwill for B share;3) decreasing shareholders' equity for B share due to amortization balance of RMB3,278,243.71 for initial expenses in the Company in history. 3) Major accounting data and financial indicators for previous 3 years as of the end of the report period Unit: RMB Currency: Renminbi Increaseordecrease 2005 2004 2003 (%) Main business income 5,077,962,996.85 4,722,463,743.06 7.53 3,901,888,711.92 Gross profit 68,320,336.29 163,422,301.52 -58.19 -71,068,578.78 Net profit 129,154,886.11 113,558,469.43 13.73 76,185,742.61 Net profit after deduction of 95,947,915.61 98,966,324.64 -3.05 37,207,193.86 extraordinary gain or loss Net cash flow from operating 387,591,076.13 128,407,308.33 201.85 435,812,372.82 activities Earnings per share 0.145 0.128 13.28 0.086 Latest earnings per share 0.145 0.128 13.28 0.086 5 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 Return on net assets (%) 8.725 8.354 0.371 7.003 Return on net assets accrued on the basis of net profit after 6.482 7.281 -0.799 3.420 deduction of extraordinary gain o loss (%) Net cash flow from operating 0.436 0.144 202.78 0.490 activities per share Increaseordecrease End of 2005 End of 2004 End of 2003 (%) Total assets 6,037,994,548.07 5,538,091,753.97 9.03 5,109,210,961.21 Shareholders' equity (minority 1,480,313,237.92 1,359,328,628.45 8.90 1,087,828,745.64 intersts excluded) Net assets value per share 1.664 1.528 8.90 1.223 Net assets value per share after 1.455 1.255 15.94 0.997 adjustment 4) Return on net assets and earnings per share calculated according to requirements of No. 9 "Editing Rule for Information Disclosure of Publicly Listed Companies issued by the China Securities Regulatory Commission Unit: RMB Currency: Renminbi Return on net assets Earnings per share (%) Profit in the report period Fully Weighted Fully Weighted diluted average diluted average Main business profit 50.118 52.103 0.8341 0.8341 Operating profit 4.114 4.276 0.0685 0.0685 Net profit 8.725 9.070 0.1452 0.1452 Net profit after deduction of extraordinary gain or loss 6.482 6.738 0.1079 0.1079 5) Change of shareholders' equity in the report period and its cause Unit:RMB Currency: Renminbi Statutory Total of Capital public Surplus Unconfirmed Undistributed Item Share capital public welfare shareholders' reserve reserve investment loss profit fund equity Beginning 889,467,722.00 1,136,694,022.86 257,315,731.22 13,026,472.99 -113,428,067.72 -823,747,252.90 1,359,328,628.45 balance Increase --- 13,785.94 14,713,948.31 --- --- 925,873,910.24 940,601,644.49 Decrease --- 552,450,742.05 244,268,282.08 --- 8,184,062.58 14,713,948.31 819,617,035.02 Closing 889,467,722.00 584,257,066.75 27,761,397.45 13,026,472.99 -121,612,130.30 87,412,709.03 1,480,313,237.92 balance Decrease of capital public reserve and surplus public reserve for the report year was discussed and approved by the 3rd meeting of the 4th general meeting of shareholders (2004) as follows: According to the No.3 Information Disclosure Norm for Listed Companies - Procedure on Offsetting Accumulated Loss and Information Disclosure issued by the China Securities Regulatory Committee, the Company should, under the principle of conservation, use the surplus reserves of RMB 244,268,282.08 and capital reserves of RMB 552,450,742.05 to offset the uncovered loss of RMB 796,719,024.13 at the end of 2004 and complete handling the accounts by June 2005. 6 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 4. Change of Capital Shares and Particulars of Shareholders 1) Change of capital shares (1) Table of change of capital shares Unit: share Before this change Increase or decrease (+, -) After this change Shares tranferred New Ratio Bonus from Ratio Number shares Other Subtotal Number (%) shares capital (%) issued public reserve 1. Non-listed shares 1) Promoter's shares 617,767,722 69.46 617,767,722 69.46 Incl.: State-owned shares 608,357,461 68.40 -2,500,000 605,857,461 68.12 Domestic legal person 9,410,261 1.06 2,500,000 11,910,261 1.34 shares Overseas legal person shares Other 2) Raised legal person 5,720,000 0.64 5,720,000 0.64 shares 3) Internal staff shares 4) Preferred shares or other Subtotal of non-listed shares 623,487,722 70.10 623,487,722 70.10 2. Listed shares 1) Renminbi ordinary shares 22,880,000 2.57 22,880,000 2.57 2) Domestically listed 243,100,000 27.33 243,100,000 27.33 foreign capital shares 3) Overseas listed foreign capital shares 4) Other Subtotal of listed shares 265,980,000 29.90 265,980,000 29.90 3. Total 889,467,722 100.00 889,467,722 100.00 (2) Share issuance and listing A. No share issuance during the previous 3 years; B. Change of the total and the composition of shares in the Company In April 2005, approved by relevant departments such as State-owned Assets Supervision and Administration Commission of the State Council, Shanghai Huayi (Group) Company 7 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 transferred 2,500,000 shares out of the 608,357,461 state-owned shares held in the Company into Shanghai Capital Reserve Management Centre. After the equity transfer, the total capital shares in the Company remain 889,467,722 shares with 605,857,461 shares or 68.12% of the total held by Shanghai Huayi (Group) Company and 2,500,000 shares of stated-owned legal person stock or 0.28% by Shanghai Public Reserve Management Centre. C. No internal staff shares in the Company; 2) Particulars of shareholders (1) Number of shareholders and particulars of shareholding Unit: share Total of shareholders at the end of report 48,277 period Shareholding particulars of the top 10 shareholders Shareh Increase or Number of Classifica Number of Nature of olding Total of decrease shares Name of shareholder tion of non-tradable shareholder ratio shares held during the pledged or stock shares held (%) year frozen Shanghai Huayi (Group) State-owned non- 68.12 605,857,461 -2,500,000 605,857,461 Company shareholder tradable State-owned legal Non- 8,730,000 Xuzhou Tyre (Group) Company 1.06 9,410,261 9,410,261 personshareholder tradable frozen Foreign funded DEBORAH WANG LIN 0.31 2,792,000 Tradable Unknown shareholder NAITO SECURITIES CO., Foreign funded 0.31 2,786,400 1,335,000 Tradable Unknown LTD. shareholder Foreign funded Liu Chunfu 0.29 2,563,000 Tradable Unknown shareholder Shanghai Public Reserve State-owned legal Non- 0.28 2,500,000 2,500,000 2,500,000 Management Centre personshareholder tradable TOYO SECURITIES ASIA Foreign funded 0.21 1,882,680 581,500 Tradable Unknown LTD. A/C CLIENT shareholder Foreign funded Shi Yuxing 0.09 833,000 Tradable Unknown shareholder HSBC FUND SERVICES A/C Foreign funded 0.09 780,000 Tradable Unknown 006-113039-431 shareholder AIZAWA SECURITIES CO., Foreign funded 0.08 698,696 Tradable Unknown LTD. shareholder Shareholding particulars of the top 10 holders of tradable shares Name of shareholder Number of tradable shares held Classification of stock DEBORAH WANG LIN 2,792,000 Domestically listed foreign 8 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 capital share Domestically listed foreign NAITO SECURITIES CO., LTD. 2,786,400 capital share Domestically listed foreign Liu Chunfu 2,563,000 capital share Domestically listed foreign TOYO SECURITIES ASIA LTD. A/C CLIENT 1,882,680 capital share Domestically listed foreign Shi Yuxing 833,000 capital share Domestically listed foreign HSBC FUND SERVICES A/C 006-113039-431 780,000 capital share Domestically listed foreign AIZAWA SECURITIES CO., LTD. 698,696 capital share Domestically listed foreign DBS VICKERS （HONG KONG） LTD A/C CLIENT 651,989 capital share Domestically listed foreign Yuexingfa Co., Ltd. 651,000 capital share Domestically listed foreign BANK OF NEW YORK ADR FOR TYRE & RUBBER 643,638 capital share Remarks on associative relations or It is unknown to the Company whether there is relations between the aforesaid shareholders or whether concerted actions they belong to the concerted actors stated in the "Management Method for Information Disclosure for between the Change of Shares Held by the Shareholders of Listed Companies". aforesaid 10 shareholders: There are no associative relations or concerted actions existing among the first, second and fifth of the top ten shareholders. The 8,730,000 state-owned legal person shares in the Company held by the second biggest shareholder Xuzhou Tyre (Group) Comany have been frozen with a freezing term from October 7, 2005 to April 6,2006 (altogether 6 months in between). It remains unknown whether there exist associative relations among the rest of the top 10 holders of tradable shares and whether the shares held by them have been mortgaged or frozen. (2) Brief introduction to the controlling shareholder and the actual controller A. Briefing on the legal person controlling shareholder and holders of over 10% shares Company name: Shanghai Huayi (Group) Company Legal representative: Zhang Peizhang Registered capital: RMB4,066,240,000 Establishment date: January 23, 1997 9 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 Main operating business or management activities: operation and management of state- owned assets within the frame of the authorization, industrial investment, manufacture and sales of chemical and medical products and equipment, engagement in service of installation, maintenance and contracting of chemical and medical equipping project. B. Actual controller: Shanghai State Assets Regulatory Committee C. Change of the controlling shareholder and the actual controller During the report period the controlling shareholder and the actual controller of the Company were not changed. D. Chart representing the controlling relationships of the property right between the Company and the actual controller Shanghai State Assets Regulatory Committee 100% Shanghai Huayi (Group) Company 68.12% Shanghai Tyre & Rubber Co., Ltd. 5. Directors, Supervisors and Senior Executives 1) Particulars of Directors, Supervisors and Senior Executives Unit: share Currency: RMB10,000 Start date of End Shares Shares Total of rewards drawn Increase Cause office term date of held at held at from the Company Name Position Gender Age or of office beginning end of during the report period decrease change term of year year (RMB10,000) Chairman of 06-17- Fan Xian the Board of Male 52 06-17-2005 2008 0 0 39.7 directors Director, Yue 06-17- General Male 58 06-17-2005 0 0 32.6 Chunchen 2008 Manager Long 06-17- Youming Director, CTO Male 63 06-17-2005 2008 0 0 24.5 Huang 06-17- Yugui Director Male 55 06-17-2005 2008 0 0 0 Zheng Independent 06-17- Male 65 06-17-2005 0 0 15 Guopei Director 2008 Zhang Independent 06-17- Male 50 06-17-2005 0 0 15 Huiming Director 2008 Independent 06-17- Li Bailing Male 52 06-17-2005 0 0 15 Director 2008 Jiang Chairman of 06-17- 女 58 06-17-2005 0 0 0 Qiuxia the 2008 10 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 Supervisory Committee Vice- chairman of Shi 06-17- the Male 55 06-17-2005 0 0 25.3 Lairong 2008 Supervisory Committee Sun 06-17- Changmi Supervisor Male 55 06-17-2005 429 429 13.9 2008 ng Jin 06-17- Supervisor Female 49 06-17-2005 0 0 13.9 Xiaomin 2008 Liu 06-17- Supervisor Male 53 06-17-2005 0 0 11.8 Xianping 2008 Deputy 06-17- Liu Qiyue General Male 52 06-17-2005 0 0 25.3 2008 Manager Deputy Zhou 06-17- General Male 57 06-17-2005 429 429 25.3 Licai 2008 Manager Deputy Wang 06-17- General Male 40 06-17-2005 0 0 24.5 Cengjin 2008 Manager Xue Chief 06-17- Male 48 06-17-2005 0 0 24.5 Jianmin Accountant 2008 Secretary to Wang 06-17- the Board of Female 49 06-17-2005 14,500 14,500 17.1 Ling 2008 Directors Total / / / / / / 323.4 Main working experiences of directors, supervisors and senior executives over the recent 5 years: (1) Fan Xian, male, born in October 1954, post-graduate, Doctor's Degree, Senior Engineer. Since July 2000 he has been the vice president of Shanghai Huayi (Group) Company, Chairman and Party secretary of Shanghai Tyre & Rubber Co., Ltd., and Chairman of Shanghai Soap Making (Group) Co., Ltd. (2) Yue Chunchen, male, born in January 1948, Master of Business Administration, Senior Economic Engineer. He has been the deputy general manager of Shanghai Tyre & Rubber Co., Ltd. and the general manager and Party secretary of the Double Coin Truck Tyre Company, a subsidiary of the Company. Currently, he serves as General Manager of the Company. (3) Long Youming, male, born in September 1943, undergraduate degree, Senior Engineer with professor level. He used to be vice Chief Engineer of Shanghai Tyre & Rubber Co., Ltd. and Director of Tyre Research Institute. Now he is Technical Controller of the Company, and Honorary Director of the Company's Tyre Research Institute, Chief Engineer of Double Coin Truck Tyre Company and Chief Engineer of Great China 11 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 Zhengtai Tyre Company. (4) Huang Yugui, male, born in Dec 1951, junior college degree, Senior Political Engineer. He used to be deputy Party secretary to Shanghai Chemical Designing Institute, Secretary to Party disciplinary committee, deputy Party Secretary and vice Chief Supervisor of Shanghai Organic Fluorine Material Research Institute and Shanghai 3F New Materials Co., Ltd. Now he is Vice Chairman of Jinan 3F Company. (5) Zheng Guopei, male, born in August 1941, post graduate, Senior Engineer with professor level. He used to be the Deputy Director General and Director General of Shanghai Light Industry Bureau, Chairman and Party Secretary of Shanghai Light Industry (Holding) Company, Chairman and Party Secretary of Shanghai Minghang United Development Co., Ltd. Now he is Honourary Director of Shanghai Minghang United Development Co., Ltd. (6) Zhang Huiming, male, born in July 1956, post graduate, Doctor's Degree, professor. He used to be Guest Professor of the Kansai University of Japan and the Catholic University of Louvain of Belgium, Vice Chairman of Shanghai Research Association of Economic System Reform, and Standing Director of Shanghai Enterprise Association. He has also been Operating Advisor of Shanghai Industrial Group Co., Ltd., Friendship Group, Guangming Milk, Anshan Trust, Shandong Liuhe Group. Now he is Doctor's Tutor of modern enterprise theory and practice in Fudan University, Director of Enterprise Research Institute of Fudan University and dean of Pacific Finance Institute of Fuduan University. (7) Li Bailing, male, born in 1954, undergraduate degree, Bachelor of Economics, professor, senior accountant and certified public accountant. He used to be Chief of finance teaching & research group, Dean of accounting department and chief of auditing section in Shanghai Economic Management Cadre Institute, Manager of business department of Dahua Certified Public Accountants, and Deputy General Manager of Shanghai White Cat Co., Ltd. Now he is General Manager of financing department of Shanghai State-owned Assets Operating Co., Ltd. (8) Jiang Qiuxia, female, born in August 1948, undergraduate degree, Senior Accountant. He used to be Chief of accounting section of Shanghai Machinery & Electric Industry Bureau, Assistant to Director General, Chief Accountant of Shanghai 12 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 Electromechanical Holding (Group) Company, Chief Accountant of the general company of Shanghai Electric Group. Now he is CFO of Shanghai Huayi (Group) Company, Director of Shanghai Medicine (Group) Co., Ltd. and Independent Director of Shanghai Power Transmission & Distribution Co., Ltd. (9) Shi Lairong, male, born in January 1951, junior college degree, Senior Political Engineer. He has been Deputy Party Secretary and Secretary to the Discipline Committee of Shanghai Tyre & Rubber Co., Ltd. since December 1997, Chairman of trade union of the Company since June 2003, and Chief of general office of the Company since January 2005. (10) Sun Changming, male, born in August 1951, junior college degree, Senior Political Engineer. He has been Deputy Secretary to the Disciplinary Committee of Shanghai Tyre & Rubber Co., Ltd. since June 1996, Party Secretary of Shanghai Soap Maing Co., Ltd., a subsidiary of the Company, from March 2003 to July 2003, and Chief of legal advisor office of the Company since January 2005. (11) Jin Xiaomin, female, born in November 1957, junior college degree, Senior Political Engineer. He used to be Vice Chairman of trade union of Shanghai Tyre & Rubber Co., Ltd. and Secretary to the Party branch and the Party Committee and Chairman of trade union of the headquarter office. Currently, he serves as Vice Chairman of the Company's trade union, Chairman of the department trade union and Secretary to the Party Committee and the Disciplinary Committee of Double Coin Truck Tyre Company under the Company. (12) Liu Xianping, male, born in April 1953, undergraduate degree, Senior Political Engineer. He used to be Assets Controller of assets & finance department and assets controller of management department of Shanghai Tyre & Rubber Co., General Manager, Deputy Party Secretary and Party Secretary to the Great China Zhengtai Tyre Company, a subsidiary of the Company. Now he is Vice General Manager of Shanghai Soap Making (Group) Co., Ltd., and General Manager and Deputy Party Secretary of Shanghai Soap Making Co., Ltd. (13) Liu Qiyue, male, born in Dec. 1954, Master of Business Administration, Engineer. He used to be the head and purchase controller of material department of Shanghai Tyre & Rubber Co., Ltd. Now he is deputy General Manager and head of material 13 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 department of the Company, and General Manager and deputy Secretary to CCP committee of Shanghai Soap Making (Group) Co., Ltd. under the Company. (14) Zhou Licai, male, born in Jun. 1949, junior college degree, Senior Economic Engineer. He has been Deputy General Manager of Shanghai Tyre & Rubber Co., Ltd. since January 1993. He was at the same time serving as General Manager of Great China Zhengtai Tyre Company from January to December 2005. (15) Wang Cengjin, male, born in April 1966, post-graduate, Doctor's Degree, Senior Economic Engineer. He used to be Deputy Assets Controller and Assets controller of assets and financial department and Assets controller of management department of Shanghai Tyre & Rubber Co., Ltd., Deputy Standing Director of the tyre research institute of the Company and Chief Economic Engineer of the Company. Currently he serves as Deputy General Manager of the Company and Director of the tyre research institute of the Company. (16) Xue Jianmin, male, born in September 1958, Master of Professional Accounting, Senior Accountant, and Certified Public Accountant. He used to be Deputy Chief Accountant of Shanghai Tyre & Rubber Co., Ltd. Currently he serves as Chief Accountant, Heads of financial deparment and assets deparment of the Company. (17) Wang Ling, female, born in November 1957, Master of Business Administration, Accountant. She used to be Manager and Financial Controller of financial department of Shanghai Tyre & Rubber Co., Ltd. Now she is Secretary to the Board of Directors of the Company. 2) Post holding in shareholder's unit Whether get Start date of End date of Name Shareholder's unit Position rewards or office term office term allowances Shanghai Huayi (Group) Fan Xian Vice President 06-01-2000 No Company Shanghai Huayi (Group) Jiang Qiuxia CFO 09-01-1999 Yes Company Huang Shanghai Huayi (Group) Assigned full-time 09-01-2001 No Yugui Company Director Post holding in other units 14 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 Whether get Start date of End date of Name Other units Position rewards or office term office term allowances Zheng Shanghai Minhang United Honorary Director 03-01-2004 Yes Guopei Development Co., Ltd. General Manager of Shanghai State-owned Assets financial and Li Bailing 01-01-2001 Yes Operation Co., Ltd. financing department Enterprise Research Institute of Director 05-01-1996 Yes Zhang Fudan University Huiming Pacific Ocean Finance College Dean 09-01-2004 Yes of Fudan University Vice Chairman of Huang Jinan 3F Company the Board of 08-01-2001 Yes Yugui Directors 3) Rewards to Directors, Supervisors and Senior Executives (1) Decision-making process for the rewards of Directors, Supervisors and senior executives: The reward of Directors and Supervisors should be decided by the shareholders' meeting, and the rewards of other senior executives should be decided by the Board of Directors. (2) How to decide the rewards of Directors, Supervisors and senior executives: Decide the rewards according to the completion of annual operating objectives, the Company's operating results and annual checking results. (3) Directors and Supervisors not getting rewards or allowances in the Company Directors and Supervisors not getting rewards or Whether get rewards or allowances in shareholder's allowances in the Company unit or other related units or not Huang Yugui Yes Jiang Qiuxia Yes 4) Change of Directors, Supervisors and Senior Executives of the Company (1) On June 17, 2005, the Company held the 2004 Annual Shareholders' Meeting at the conference hall on the 30th floor of the International Hotel in Shanghai Everbright Convention & Exhibition Centre, which approved the proposal of electing members of the 5th Board of Directors, appointing Mr. Fan Xian, Mr. Yue Chunchen, Mr. Long Youming, Mr. Huang Yugui, Mr. Zhang Huiming, Mr. Li Bailing and Mr. Zheng Guopei the 5th 15 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 Board of Directors. Among them, the latter three are Independent Directors of the Company. (2) At the 1st meeting of the 5th Board of Directors, Mr. Fanxian was elected as Chairman of the Company's 5th Board of Directors, Mr. Yue Chunchen was engaged as General Manager of the Company, Mr. Liu Qiyue, Mr. Zhou Licai and Mr. Wang Cengjin engaged as Deputy General Manager of the Company, Mr. Xue Jianmin engaged as Chief Accountant of the Company, Mr. Longyouming engaged as CTO of the Company and Ms. Wang Ling engaged as Secretary to the Company's Board of Directors. (3) During the report period, upon approval by joint meeting of employee representatives and headmans of the Company's trade union, Ms. Jin Xiaomin and Mr. Liu Xianping were appointed employee representative Supervisor of the 5th Supervisory Committee. Upon election of the 2004 Annual Shareholders' Meeting, Ms. Jiang Qiuxia, Mr. Shi Lairong and Mr. Sun Changming were appointed shareholder representative Supervisor of the 5th Supervisory Committee. (4) At the 1st meeting of the 5th Supervisory Committee, Ms. Jiang Qiuxia was elected as Chairman of the Company's 5th Supervisory Committee and Mr. Shi Lairong as its Vice Chairman. 5) The Company's employees As of December 31, 2005 the Company totally had 3823 employees on the job. (1) Composition of the Companies employees: 2213 production personnel, accounting for 57.89%; 80 sales personnel, accounting for 2.09%; 282 technical personnel, accounting for 7.38%; 41 financial personnel, accounting for 1.07%; 252 administrative and managerial staff, accounting for 6.59%; 955 other employees, accounting for 24.98%. (2) Dividing the Company's employees according to education level: over 20 people with postgraduate degree, 161 people with undergraduate degree, and 340 people with junior college degree. (3) The Company has 5015 retired employees and need to bear the correponding cost of RMB11,563,000 per year. 6. Governance System of the Company 1) Governance of the Company 16 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 During the report period, the Company established a sound legal person governance system in strict accordance with requirements in the "Company Law", the "Securities Law" and relevant laws and regulations of China Securities Regulatory Commission. It also amended the "Articles of Association" correpondingly in pursuance to relevant regulations and spirit in the "Notice on Prompting Listed Companies to Amend the Articles of Association" (Zhengjiangongsizi [2005] No. 15) by China Securities Regulatory Commission and the forwarded notice by Shanghai Supervsion and Management Bureau (Huzhengjiangongsizi [2005] No. 54). According to relevant requirements on information disclosure by China Securities Regulatory Commission and relevant regulations in Listing Rules for Shares in Shanghai Stock Exchange, the Company made corresponding amendments to the "System of Information Disclosure", thus pushing forward the standardized operation of the Company's legal person governance system. (1) About the shareholders and the shareholders' meetings: The Company has laid down the Rules of Procedure of the Shareholers' Meeting according to the Normal Opinion on the Shareholders' Meetings of Listed Companies and the Articles of Association to protect the interests of shareholders to the greatest extent; treated all the shareholders fairly and let the middle and small shareholders being able to exercise their rights fully; encouraged the shareholders to participate in the management to the Company, express their opinions and suggestions on the Company's operation and management in the shareholders' meeting, and exercise their voting rights. (2) About the controlling shareholder and the listed company: The controlling shareholder exercised its right through shareholders' meetings, not ignoring the shareholders' meeting to interfere in the Company's decision and operating activities directly or indirectly. The Company and its controlling shareholder are independent each other in personnel, assets, finance, organization and business; the Company's Board of Directors, Supervisory Committee and internal departments are of perfect functions and can operate independently. (3) About Directors and the Board of Directors: The member number and structure of the Board of Directors of the Company conforms to the requirements of relevant laws and codes and the Articles of Association. The Board of Directors of the Company has laid down the Rules of Procedure of the Meetings of the Board of Directors; the Directors could attend, or entrust to attend the Board meetings and shareholders' meetings seriously, and exercise their rights 17 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 and fulfill their related obligations actively; the Board of Directors totally has 7 members, including 3 Independent Directors accounting for more than 1/3, and has established 4 professional committees: strategy, audit, nomination, and wage & checking, to make the decision of the Company's Board of Directors more scientific and professional. (4) About Supervisors and Supervisory Committee: The Company laid down the Rules of Procedure of the Supervisory Committee to standardize the discussion procedurs and contents of the Supervisory Committee; the membership and structure of the Supervisory Committee meets the requirements of laws and statutes; the members of the Supervisory Committee can attend the meetings of the Supervisory Committee and shareholders meetings seriously, and attend the Board meetings with no voting power; the Supervisory Committee can fulfill its duty seriously, make supervision on the legality of the duties performed by the Company's finance and the Company's Directors, managers and other senior executives, and express their opinions independently. (5) About performance evaluation and encouraging system: The Company has set up a performance checking system to combine the Company's operating results with individual economic interests directly and publicly engage the employees in the principle of justice, fair, open, high efficiency and transparence, meeting the relevant regulations of laws and codes. (6) About stakeholders: The Company can fully respect and maintain the lawful rights and interests of bank and other creditors, employees, customers and other stakeholders, can pay attention to the problems of environmental protection and public welfare establishments, and thus can commonly promote the Company's lasting and healthy development. (7) About information and transparency: The Company can, strictly according to the provisions of laws, codes and the Articles of Association, disclose the relevant information truly, accurately, completely and timely; the Company has laid down an Information Disclosure System; The Board of Directors of the Company appoints the secretary of the Board to be in charge of the information disclosure and receive the visiting and consultation of the investors; it can according to the relevant regulations disclose the relevant information and change of shares held of the majority shareholder or actual controller timely. 2) Duty performance of Independent Directors 18 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 (1) Independent Director's attendance in Board meetings Name of Entrusted Specified attendances Attendance in Absence Independent attendance Remarks in Board meetings person (times) (times) Director (times) Zheng 6 6 Guopei Li Bailing 6 6 Zhang 6 6 Huiming The Independent Directors, since assuming the position, in the manner of being responsible for the Company and all its shareholders, attended the Board meetings during the report period, performed their duties earnestly, investigated the Company's operations actively, turn in objective and fair judgment on the Company's operation decision, investment strategy, and appoint or dismissal of senior executives, and played active role on the Company's lasting, healthy and stable development. (2) Objection put forward by Independent Directors on relevant matters of the Company During the report period the Company's Independent Directors did not raise any objection to the motions of the Board of Directors or other motions of the Company. 3) The Company's independence against its controlling shareholder in business, personnel, assets, organization and finance, etc. (1) Business: The Company makes its business independent of its controlling shareholder. It is engaged with independent operation with complete structure and has independent system of production, supply and marketing. (2) Personnel: The Company is independent of its controlling shareholder in human affair and wage administration; its general manager, deputy general manager, chief economic engineer, chief accountant, CTO, Board secretary and other senior executives work for the Company in full time, get rewards from the Company and does not assume any position in the big shareholder; the big shareholder recommends the Director through legal process, not interfering in the personnel appointment or dismissal made by the Company's Board of Directors and shareholders' meetings. (3) Assets: The Company owns independent legal person qualification, has the complete right of possessing, using, acquiring earning from and disposing the assets; it can control all its 19 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 assets independently. (4) Organization: The Company has established independent organization system and assigned relevant managerial personnel. The Board of Directors, Supervisory Committee and other internal departments are all running independently, without subbordinate relations with the functional departments of the controlling shareholder. (5) Finance: The Company has its independent finance department, set up acconts in the bank independently and has independent use right to the bank account. The Company's fund are all deposited into its own account and no account is commonly used by the Company and its controlling shareholder. The Company as an independent legal person, makes independent tax registration and pay the tax according to law. The Company makes its financial decision independently and the controlling shareholder has never interfere in the use of the Company's fund. The Company has engaged its financial personnel independently and set up independent accounting system and financial management system. 4) Checking and encouraging of senior executives The Company has set up the Measures on Checking and Rewarding Operators as the basis for checking and rewarding the Company's high level and middle level managerial personnel. The plan on checking and rewarding senior executives should be laid down by the wage and salary committee of the Company's Board of Directors and should be submitted to the Board of Directors for approval. During the report period the annual rewards of Directors, Supervisors and senior executives should be issued according to the Company's operating results and annual checking results. 7. Briefing on Shareholders' Meetings 1) Annual Shareholders' Meeting (1) The Company held the 2004 Annual General Meeting of Shareholders of Shanghai Tyre & Rubber Co., Ltd. on June 17, 2005 with announcement on its resolution published in the “Shanghai Securities News” and the “South China Morning Post” on June 21, 2005. The Meeting approved after discussion 14 proposals including the "2004 Annual Work Report of the Board of Directors", the "2004 Annual Work Report of the Supervisory Committee", the "2004 Annual Financial Settlement Report and 2005 Annual Financial Budget 20 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 Report", the "Proposal on Election of Members of the 5th Board of Directors", the "Proposal on Election of Members of the 5th Supervisory Committee", the "Proposal on the Project of Adding 250,000 All-steel Radial Tyres of Double Coin Truck Tyre Company", the "Proposal on the Project of Adding 200,000 All-steel Radial Tyres of Shanghai Tyre & Rubber (Group) Rugao Co., Ltd.", the "Proposal on the Project of Newly Producing 400,000 All-steel Radial Tyres and Authorizing the Company's Management with Stipulation of the Scheme of Gradually Transferring Bias Tyre Production in the Implementation of Product Structure Adjustment of Great China Zhengtai Tyre Company", the "Proposal on Amending Some Content of the Company", the "Scheme of Profit Distribution for 2004", the "Proposal on Drawing Prize and Welfare Fees for 2004 and Confirming the Total Amount of the Company's Directors, Supervisors and Senior Executives in 2004", the "Proposal on the Audit Fee to the Accounting Firm for 2004 and Renewing the Engagement of the Accounting Firm for 2005", the "Proposal on Application for a Loan of RMB800,000,000 to Shanghai Branch of the Export-Import Bank of China", etc. 2) Provisional Shareholders' Meetings (1) The 1st Provisional Shareholders' Meeting of 2005 The Company held the 1st Provisional Shareholders' Meeting of 2005 of Shanghai Tyre & Rubber Co., Ltd. on November 25, 2005 with the announcement on its resolutions published in the "Shanghai Securities News" and the "South China Morning Post". The Meeting approved after discussion 2 proposals including the "Proposal on the Project of Newly Production of 100,000 All-steel Engineering Radial Tyres and Expansion and Technical Innovation of Rubber Refining Workshop" and the "Proposal on Disposal of the Land Lot at 447 Changyang Rd." 8. Report of the Board of Directors 1) Review of the Company's operation during the report period (1) Overview of general situation of the Company's operation during the report period During whole period of "the 10th 5-year plan" from 2001 to 2005, guided by the significant thoughts of "three represents", the Company's Board of Directors put into practice the scientific view of development in an all-round way, accelerated adjustment of product structure and implemented brand strategy. It led the whole staff of the Company to firm confidence, unswerving reform, scientific policy-making and vigorous innovation so that the 21 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 Company kept fast growth at a two-digit speed in its major economic indicators for 5 consecutive years under the circumstances of extraordinarily violent competition in domestic and overseas markets. 2005 is the last year in the period of "the 10th 5-year plan" of China and at the same time the crucial year of the Company's putting the plan into practice in an all-round way. Faced with continuous rise of raw material prices, large growth of all-steel tyres production in domestic tyre industry and extraordinarily violent competition in tyre sales market, the Company put into practice the production and operation policies of "strengthening technology, improving quality and ensuring the leading place of Double Coin", "enhancing management, reducing cost and exalting profitability of Warrior", "establishing a famous brand, exploiting market and strengthening competitive advantage", "stressing contribution, promoting technical innovation and accelerating product development", "confirming responsibilities, enhancing check and advancing the whole efficiency" and "bettering education, changing views and broadening position selection scope of staff". The Company still achieved relatively good business performance by vigorously implementing the strategy of "one factory with one product and one brand" in this stern market. During the report period, main business of the Company steadily developed and business performance continuously grew. The Company realized gross profit of RMB68,320,300 and net profit of RMB129,154,900. The Company achieved main business income of RMB5,077,963,000 and main business profit of RMB741,903,900. The steady development of the Company's main business is mainly owing to further increase in productivity of truck radial tyres by accelerating adjustment of product structure and project construction and further improvement in quality of products and vigorous marketing strategies, which ensured effective sales of the Company. On November 19, 2005, Phase One Project of Yearly Production of 500,000 All-steel Truck Radial Tyres of Shanghai Tyre & Rubber (Group) Rugao Co., Ltd. (Rugao Company) was completed and put into operation. Rugao Company held a grand celebration for starting business where the standing member of Shanghai Municipal Committee and Standing Deputy Mayor Feng Guoqin, Deputy Provincial Governor of Jiangsu Province Zhang Weiguo and leaders from relevant departments of Shanghai Municipal Government, Nantong, Rugao and Huayi Group attended the ceremony at invitation and made important speeches, which highly praised Shanghai Tyre & Rubber Co., Ltd for its strategic vision and stated that the construction of Rugao Company was an effective measure for strengthening competitive advantages of enterprise and at the same time a successful model of promoting economic cooperation between Shanghai and Jiangsu. That Rugao Company was established and put into operation played an active role in pushing forward sustained development of the 22 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 Company. As of December 31, 2005, the Company had totally produced 4,888,200 sets of tyres with a year-on-year increase of 5.8%, which consists of 2,663,600 sets of all-steel tyres at a year-on-year increase of 18.3% and 2,224,600 bias tyres at a year-on-year decrease of 6.1%. Currently, the production scale, sales income and profitability level of the Company stand in the leading place among its domestic rivals. (2) The Company's main business during the report period and its analysis The Company belongs to chemical industry and is mainly engaged with tyre, battery, printing ink and other business, in which the sales income and profit for the all-steel heavy duty radial truck tyre have taken predominating position in the income and profit structure of the Company. A. main business divided by business and product (Unit: RMB) Increase or Increase or decrease of Increase or decrease of main decrease of Profit main business main business rate of business cost Main business Main business income profit rate Business main compared income cost compared compared with business with the with the the same (%) same period same period period of the of last year of last year last year (%) (%) (%) Industry 6,012,527,048.02 5,373,853,141.66 11.88 35.36 41.68 -2.73 Commerc 4,017,163,184.88 3,835,483,922.70 4.52 -8.08 -7.73 -0.36 e Realestate 3,296,034.15 2,138,598.80 35.12 -96.88 -97.35 11.50 Tourism and food 3,449,161.64 602,955.41 82.52 -11.91 -3.44 -1.53 service Including: Total of 5,742,803,169.16 5,616,440,139.82 2.20 28.23 20.94 -0.05 associative transactions Including: The associative transactions 4,958,472,431.84 4,959,580,520.96 -0.02 18.08 18.82 -0.01 offsetting from each other 23 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 Increase or Increase or decrease of Increase or decrease of main decrease of Profit main business main business rate of business cost By Main business Main business income profit rate main compared product income cost compared compared with business with the with the the same (%) same period same period period of the of last year of last year last year (%) (%) (%) Tyre 4,190,324,748.88 3,529,329,511.60 15.77 14.70 19.37 -3.30 Including: Associative 698,071,148.50 656,859,618.86 6.27 46.79 transactions Pricing principle of associative The price of associative transactions is set according to market price. transactions Including: The total amount of associative transactions for the Company to sell goods to its controlling shareholder and subsidiaries during the report period is zero. B. Main business in different regions (Unit: RMB) Main business income Increase or decrease of main business income Region (RMB) compared with the same period of last year (%) Shanghai region 5,204,619,075.37 10.21% Other regions 522,926,173.53 3,685.28% Internally offset 649,582,252.05 4,602.1% Total 5,077,962,996.85 7.21% C. Main suppliers and clients (Unit: RMB) Ratio in the total Total of procurement from the 1,183,309,482.52 amount of 29.13% top 5 suppliers procurement Ratio in the total Total of sales to the top 5 clients 1,129,385,372.41 22.24% amount of sales D. Major products accounting for over 10% of total of main business income or main business profit (Unit: RMB) Profit rate of main By product Main business income Main business cost (RMB) business (%) Tyre 4,190,324,748.88 3,529,329,511.60 15.77 24 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 Operating activities and their industries accounting for over 10% of total of main business income or main business profit (Unit: RMB) Main business income Profit rate of main By business Main business cost (RMB) (RMB) business (%) Industry 6,012,527,048.02 5,373,853,141.66 11.88 Commerce 4,017,163,184.88 3,835,483,922.70 4.52 Note: The aforesaid relevant data of industry and commerce haven't been offset. (3) Analysis of year-on-year changes of assets composition, operating expenses, management expenses, financial expenses and income tax of the Company A. Year-on-year change of assets composition of the Company during the report period and its main causes (Unit: RMB) Ratio in Ratio in Increase or Item December 31, 2005 total assets December 31, 2004 total assets decrease (%) (%) (%) Accounts 936,130,195.88 15.50 833,664,821.98 15.05 0.45 receivable Inventory 983,165,186.87 16.28 798,278,614.21 14.41 1.87 Long-term 511,961,219.88 8.48 394,507,267.32 7.12 1.36 equity investment Fixed assets 4,103,246,846.31 67.96 3,494,081,748.47 63.09 4.87 Project in 357,794,580.20 5.92 471,746,632.75 8.52 2.60 construction Short-term 1,578,179,701.14 26.14 1,683,542,484.53 30.40 -4.26 loan Long-term 1,332,675,644.19 22.07 1,165,541,189.88 21.05 1.02 loan Total assets 6,037,994,548.07 5,538,091,753.97 9.00 Remarks: Comparing 2005 with 2004: an increase of RMB499,902,700 in scale of total assets, mainly owing to the total investments of RMB662,000,000 in companies such as Michelin and 600,000-set project and Rugao project; an increase of RMB300,000,000 in main business income due to production expansion with improved cash flow compared with the last year and income from transfer of Zhengtai land in the report year; so there was no simultaneous increase in bank loan caused with expansion in scale of total assets except for the corresponding rise in accounts receivable and inventory at the end of the report period after production expansion. 25 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 B. year-on-year changes of operating expenses, management expenses, financial expenses and income tax of the Company and their main causes (Unit: RMB) Increase or decrease Item January to December 2005 January to December 2004 (±%) Operating expenses 277,182,413.34 268,679,289.59 3.16 Management 335,599,713.91 14.83 292,247,512.38 expenses Financial expenses 129,534,147.54 96,327,436.27 34.47 Income tax -3,090,094.48 7,872,478.19 -139.25 Remarks: Operating expenses: an increase of RMB8,503,100 or 3.16% compared with the last year. Management expenses: an increase of RMB43,352,200 or 14.83% compared with the last year, mainly due to increasing bad-debt provision for accounts receivable of subsidiaries by over RMB10,000,000, RMB14,000,000 for helping employees settle down, confirmed loss of RMB12,660,000 of Dafu Rubber Co., Ltd. in the report year partly offset by one- time amortized initial cost in completion of Rugao Project and compensation fees of Zhengtai. Financial expenses: an increase of RMB33,206,700 or 34.47% compared with the last year, mainly due to increase of RMB17,600,000 in loan and loan interest rate and increase of RMB14,190,000 in exchange gain or loss influenced by appreciation of RMB. Income tax: an decrease of RMB10,962,600 or 139.25% compared with the last year, mainly due to the subsidiaries' adjusting expenses for income tax in the report year according to the liquidating results of the last year. (4) Cash flow composition of the Company during the report period, significant changes on a year-on-year basis and remarks on cause of significant difference in net profit during the report period A. Cash flow from operating activities: RMB387,591,100, an increase of RMB259,183,800 or 201.85% compared with RMB128,407,300 of the last year, mainly due to increase of main business income by about RMB300,000,000 caused by production expansion. B. Cash flow from investment activities: RMB-578,631,300, a decrease of RMB113,340,800 or 24.36% compared with RMB-465,290,500 of the last year, mainly due to increase in project investment and outward investment for the report year compared with the last year. 26 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 C. Cash flow from fund raising activities: RMB-52,698,100, a decrease of RMB552,427,600 or 110.55% compared with RMB499,729,500 of the last year, mainly due to loan increase of 2005 smaller than that of 2004 whereas interest expenses bigger than the last year. (5) Significant information relevant to the Company on equipment using, order acquisition, product sales or backlog and change of major technical personnel, etc. During the report period, the Company's products sold well with no backlog. There is no change in major technical personnel. (6) Operation of major holding companies and stake-taking companies of the Company and analysis of their performance A. Operation and performance of major holding companies (Unit: RMB10,000) Business Main Registered Assets Company name Equity % Net profit nature products capital volume Shanghai Soap Making (Group) Co., Light Soap, battery 16,069.00 111,088.57 60.00 -3,679.18 Ltd. industry Donghai Rubber Chemical Tyre 1,468.00 10,285.69 65.00 -551.09 Factory industry Chemical Sijin Rubber Factory Tyre 980.00 9,654.79 79.75 -3,111.75 industry Shanghai Xinye Development Industry Tyre, house Commerce 14,558.00 19,769.13 100.00 376.93 Co., Ltd. property Shanghai Tyre & Rubber (Group) Supply Commerce Tyre 2,100.00 15,098.22 100.00 6,002.34 and Marketing Co., Ltd. Shanghai Double Coin Biyuan Zhiye House Commerce 1,000.00 1,000.00 90.00 0 Co., Ltd. property Shanghai Tyre & Rubber (Group) Rugao 8,750.00 11,553.60 81.83 -417.68 Investment Company Shanghai Tyre & Rubber (Group) Rugao Chemical Tyre US$21,480,000 86,282.60 75.00 -1,181.70 Co., Ltd. industry Tyre Research Institute of Shanghai Tyre Chemical Tyre 3,000.00 9,890.58 100.00 -2,175.07 & Rubber Co., Ltd. industry Chemical Dafu Rubber Co., Ltd. Tyre 3,667.00 1,553.08 100.00 -1,266.15 industry B. Operation of holding companies (applicable to holding companies whose net profit influenced over 10% the Company's net profit) (Unit: RMB10,000) Impact on Main Main Company Business Main Registered Assets Equity Net the business business name nature products capital volume % profit Company's income profit profit Shanghai Soap Light Soap, Making (Group) 16,069.00 111,088.57 60.00 88,089.31 15,912.32 -3,679.18 -2,207.51 industry battery Co., Ltd. Sijin Chemical Rubber Tyre 980.00 9,654.79 79.75 20,030.80 -580.66 -3,111.75 -2,481.62 industry Factory 27 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 Shanghai Tyre & Rubber (Group) Commerce Tyre 2,100.00 15,098.22 100.00 300,760.51 13,810.30 6,002.34 5,128.60 Supply and Marketing Co., Ltd. Tyre Research Institute of Shanghai Chemical Tyre 3,000.00 9,890.58 100.00 61,768.50 2,052.79 -2,175.07 -2,175.07 Tyre & Rubber Co., industry Ltd. C. Operation of stake-taking companies (applicable to those whose investment earnings influenced over 10 the Company's net profit) (Unit: RMB10,000) Busi Main Main Main Company ness Registere Assets Equity Investment produ business business Net profit name natu d capital volume % earnings cts income profit re Che Shanghai mica Michelin l Tyre 96,320.00 200,868.99 28.50 118,524.18 22,073.91 -5,499.55 -1,567.37 Warrior Tyre indu Co., Ltd. stry 2) Outlook for future development of the Company (1) The development trend of the industry engaged in and market competitive situation faced with by the Company The year 2006 is crucially important as the starting year of "the 11th 5-year plan" of China. Upon prediction by experts, the economic growth of China will continue to keep its stable and fast momentum in the new year and importance is attached to the stability, harmony and sustainability in development of various aspects including economy and society. In addition, speeding up reform and promoting system innovation will take the significant place in "the 11th 5-year plan". The macroeconomic policy will be neutral and tilt towards proactivity. All these will lead to economy in the period of "the 11th 5-year plan" onto the road of fast growth. All these favourable factors will bring about good opportunities for the development of the Company in the new year and the next few years. Secondly, reform of investment and financing system will be further deepened in the new year. Supervision and service system fitting in with market economy in terms of finance will be further perfected. In terms of capital market, the equity division reform is carried out in full swing, which is not only the key to financial field promoting open-up and reform and steady development of capital market but also a significant institutional transition in the reform of "deepened marketization" for the whole country. It will produce 28 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 significant influence on improvement of developmental abilities of listed companies, activation of capital market and expansion of direct financing ratio. Thirdly, the developmental prospect of all-steel truck radial tyre in China remains broad with continuous growth of future demands. It's because the major factors supporting the development of radial tyre in China remain unchanged, such as relatively fast development of super highways, continuous growth of traffic and transportation industry and supporting radial tyre by listing it as high-tech product, which produce a good prospect of the development of tyre industry. Fourthly, the ability of steering market economy of the management of the Company is keeping enhanced. The Company obtained great achievements through adjustment, reform and development over the past 5 years. Its management greatly enhanced its ability of steering the overall situation of economic development, especially over the recent years. Faced with various unfavourable factors and outer environment, we managed to solve risks in a proper way, thus deepening the knowledge of market economy and mastering valuable experience. All these will favourably push forward the economic development for the new year. When faced with opportunities, we should soberly see the rigorous challenges confronting the Company. Firstly, rigorous challenge brought about by rise in raw material cost. With the fast development of tyre industry, the reliance on and demand for relevant resources of tyre businesses is becoming bigger and bigger. Thus, the conflict between supply and demand of raw materials needed by the Company is difficult to get relieved in coming years. Currently, the tight resources of natural rubber and continuous rise in its price and the constantly high price of other raw materials including synthetic rubber, black pigment and addition agent will bring about rigorous challenge to the production and operation of the Company. Secondly, the conflict of supply over demand of market will be more evident in the year. It is mainly present as focused release of production capacity, emergence of conflict of supply over demand and stock increase caused by it, large drop in price and profit. According to the analysis and prediction by insiders, the overheated and over fast investment in tyre industry will lead to a yearly output of up to 300,000,000 tyres at the end of the period of "the 11th 5-year plan" and increasingly violent competition in the field of all-steel radial tyre especially with relevant enterprises fighting to occupy market by adopting various measures. 29 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 To achieve it, in the new year or the starting year of "the 11th 5-year plan", the Company will have a good start and focus on promoting project construction, marketing, assets operation, system reform and mechanism innovation. It will further master adjustment of product structure and improvement of product quality and enhance refined management of enterprise and optimize domestic and overseas markets to ensure the smooth completion of economic goals in the new year. (2) Developmental strategy of the Company Under the guidance of market seek to development through innovation and take profitability as norm to make full use of effective resources to build a powerful enterperise with enhanced advantages; implement its business strategy of "one plant, one product and one brand", speed up the development of Double Coin all-steel truck radial tyre industry, promote the readjustment of product mix and strengthen the core competitive power of the Company through technological introduction and digestion and research and development on its original technique. Meanwhile, it will further exploit domestic and international markets, optimize personnel structure, enhance the quality of its employees, develop cyclic economy with every efforts, and develop unswervingly the new-type industrialization with high content of science and technology, good economic benefits, low consumption on resources, less environment pollution and full use of human resources. (3) Operation plan for the new year The Company plans to increase annual sales revenue of 2006 by over 10% compared with that of 2005. Firstly, it confirms the production and operation policy of enterprise for 2006 and put forward concrete implementation measures, i.e., "maintaining famous brand and expanding sales network to establish channel for Double Coin", "gathering resources and expanding sales to improve satisfaction level of production and sales", "implementing technical innovation and increasing gross profit to meet the requirements of competition", "refining deployment and improving quality to ensure safe production", "diligent in prediction and grasping good opportunities to ensure reasonable and adequate supply and distribution", "carefully calculating and operation in a flexible way to ensure reliable budget", "promoting scientific research and establishing basis to effect subjects of innovation" and "strictly managing and carefully checking to make awarding and punishing clear-cut". Secondly, it will accelerate the adjustment of product structure and the project construction. 30 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 A. carrying out Phase Two of Rugao Project. All the civil engineering will be completed within the 1st quarter of 2006 with fully installed equipment. The Project will be completed as a whole and then checked and accepted within the year. B. carrying out Phase Three of Rugao Project. Construction of the Project will begin in 2006 and is expected to be completed and checked before acceptance within the second half year of 2007. C. carrying out the project of adding over 250,000 all steel radial tyre of Double Coin Truck Tyre Company, which will be wholly completed and accepted after check within the year. (4) Fund demand and fund sources for realizing the operation plan The Company is expected to need fund increase of RMB300,000,000 for completion its operation goal for 2006. The uncompleted part of the non capital raising project needs a fund of RMB748,000,000. So the total demand for fund increase for 2006 is RMB1,048,000,000. Fund sources: self-owned fund and bank loan. (5) Risk factors which are likely to produce unfavourable influence on the future development strategy and operation goal of the Company A. Market risk The thriving demand of domestic and overseas tyre markets in recent years has propelled the development of China tyre industry. Driven by profit, both foreign-funded and domestic- funded enterprises increased investment in and expanded scale of the industry. The excessive investment projects and over fast growth of production capacity makes the situation of supply over demand inevitable. So the Company will face rigorous challenge in marketing in the new year. B. Risk of production and operation From June 2005, the already high price of natural rubber began to jump; meanwhile, that prices of synthetic adhesive, black pigment, and addition agent, which are produced from oil, remain high plus large increase of cost of raw materials of the Company reduced the profitability level. At the same time, the influence of appreciation of RMB on export of tyres is gradually getting obvious and weakens the price advantage of tyre export to a certain extent. In addition, relatively surplus of produsts and further violent competition make the price raising of products cannot be completed at once thus posing a rigorous challenge to the production and operation of the Company. 31 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 Aiming at market risk, the Company will further improve its core competitive power and attach importance to quality improvement and manufacture of marketable products. In addition, it will enhance establishment of famous brands, implement brand strategic project and strengthen brand awareness and reputation. Meanwhile, it will vigorously exploit and optimize domestic and overseas markets and solve the unfavourable influence brought about by market risk. Aiming at risk of production and operation, the Company will focus on launching refinement of enterprise management, further reduce product cost, push forward technical progress and meet the requirements of clients. Secondly, it will launch reproduction of enterprise process, i.e., reproduction of organization in a creative way and innovation of working method. Thirdly, it will enhance cost management and expenses control by pushing ahead with the "Sunshine Project" of procurement and thus solving the unfavorable influence on enterprise production and operation brought about by rise of raw material prices. 3) Investment of the Company (1) Use of raised capital During the report period, there are no such conditions in the Company as using raising capitals or using capitals raised in the last period up to the current period. (2) Projects with non-raised capital A. The total budget of investment in the project of newly production of 500,000 all-steel truck radial tyres of Shanghai Tyre & Rubber (Group) Rugao Co., Ltd. is about RMB478,860,000. As of December 31, 2005, it accumulatively invested RMB499,600,000 and complete 100% of the project, which have all been put into production officially. As of the end of the report period, the production capacity increased by 155,750 sets and the sales revenue increased by RMB173,010,000. B. The total budget for investment in the project of newly production of 500,000 all-steel truck radial tyres (300,000 sets + 200,000 sets) of Shanghai Tyre & Rubber (Group) Rugao Co., Ltd. is RMB299,728,800. As of December 31, 2005, it accumulatively invested RMB238,820,100 and completed 79.7% of the whole project. C. The total budget for investment in the Project of Shanghai Tyre & Rubber (Group) Rugao Co., Ltd.'s Newly Production of 100,000 Sets of All Steel Engineering Ra1al Tyre and 32 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 Expansion and Technical Improvement of Rubber Refining Workshop is RMB552,820,000. During the report period, the project is in officially starting phase. D. The total investment in the project of increasing the productivity of radial tyres by 200,000 sets is RMB132,600,000, including foreign exchange of US$2,592,000. As of December 31, 2005, it accumulatively invested RMB73,126,400 and completed 72% of the whole project. E. The total budget for investment in the project of newly production of 250,000 all-steel radial tyres of Double Coin Truck Tyre Company is RMB89,854,400. As of December 31, 2005, it accumulatively invested RMB14,741,600 and completed 16.4% of the whole project. 4) Daily work of the Board of Directors (1) Board meetings and their resolutions during the report period A. 21st meeting of 4th Board of Directors The Company held the meeting at Taihua Hotel in Jiangsu Province on April 8, 2005. The announcement on its resolutions was published in "Shanghai Securities News" and "South China Morning Post" on April 12, 2005. The meeting discussed and unanimously approved by voting: the Company's "Summary of Economic Work for 2004 and Key Points of Economic Work for 2005", the "Work Report of the Board of Directors", the "2004 Annual Report" and its abstract, the "Report on Financial Settlement for 2004 and Financial Budget for 2005", the "Proposal on Cadidates for the 5th Board of Directors of the Company", the "Proposal on the Project of Newly Production of 250,000 All-steel Radial Tyres of Double Coin Truck Tyre Company", the "Proposal on the Project of Newly Production of 200,000 All-steel Radial Tyres of Shanhai Tyre & Rubber (Group) Rugao Co., Ltd.", the "Proposal on Planning to Adding Capital to Shanghai Tyre & Rubber (Group) Rugao Co., Ltd.", the "Proposal on the Project of Newly Production of 400,000 All-steel Radial Tyres for Implementation of Product Structure Adjustment of Great China Zhengtai Tyre Company and on Authorizing the Company's Management with Stipulation of the Scheme of Gradual Transfer of Bias Tyres", the "Proposal on Shanghai Peony Printing Ink Co., Ltd.'s Purchasing Senlingwan Mansion", the Proposal on Amending the Company's "System of Information Disclosure", the Proposal on Amending the Company's "Discussion System of the Board of Directors", the "Proposal on the Company's Drawing Fees for Awards and Welfare for 2004 and Confirmation of the Total Amount of Payment to the Company's Supervisors and Management within 2004", the "Proposal on Audit Fees to the Accouting Firm for 2004 and Renewing the Engagement of the Accounting Firm of 2005", the 33 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 "Proposal on Profit Distribution for 2004", the Proposal on Convening the Company's 2004 Annual General Meeting of Shareholders, the Proposal on Amending the Company's "Articles of Association", the "Proposal on Providing Loan Guarantee for Project Construction of Shanghai Tyre & Rubber (Group) Rugao Co., Ltd." and the "Proposal on Appointment and Dismissal of Mr. Wang Cengjin". B. 22nd meeting of 4th Board of Directors The meeting was held on April 21, 2004 by way of communication with all the 7 directors who should join in the voting participating in the voting actually, who unanimously approved: full text of "the Company's 1st Quarterly Report for 2005" and its abstract, submitting the "Proposal on Application for a Loan of RMB800,000,000 to Shanghai Branch of the Export-Import Bank of China" as the 14th proposal to the General Shareholders' Meeting for discussion. C. 1st meeting of 5th Board of Directors The meeting was held in the conference room on the 30th floor of Shanghai Everbright Convention & Exhibition Center International Hotel on June 17, 2005. The announcement on its resolutions was published in "Shanghai Securities News" and "South China Morning Post" on June 21, 2005. The meeting unanimously approved after discussion and voting of electing Mr. Fan Xian as Chairman of the 5th Board of Directors. Mr. Yue Chunchen was engaged as the general manager of the Company through the nomination of Mr. Fan Xian, Chairman of the Board. Through nomination of Mr. Yue Chunchen, the general manager, engaged Mr. Liu Qiyue, Mr. Zhou Licai and Mr. Wang Cengjin as the deputy general manager of the Company; engaged Mr. Xue Jianmin as the chief accountant of the Company; engaged Mr. Long Youming as the technical controller of the Company. Ms. Wang Ling was engaged as the Board of Directors of the Company through the nomination of Mr. Fan Xian, Chairman of the Board. It appointed Mr. Sun Wen representative of securities affairs of the Board of Directors. The meeting examined and unanimously passed the Motion on Adjusting the Membership of the Special Committees of the Board of Directors. D. 2nd meeting of 5th Board of Directors This meeting was convened in the headquarter of the Company on August 5, 2005. The announcement on its resolutions was published in the Shanghai Securities News and South China Morning Post of August 9, 2005. The meeting approved after discussion and voting of the 2005 Annual Report and its abstract, the "Proposal of Authorization to the Board 34 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 Chairman", the "Motion on Providing Guarantee for Shanghai Tyre & Rubber (Group) Rugao Co., Ltd.'s Loan for its Project Construction". E. 3rd meeting of 5th Board of Directors The meeting was held on September 14, 2005 by way of communication. The announcement on its resolutions was published in "Shanghai Securities News" and "South China Morning Post" of September 16, 2005. It unanimously approved "the Motion on the Establishment of Shanghai Double Coin Tyre Sales Co., Ltd.". F. 4th meeting of 5th Board of Directors The meeting was held in the Company's headquarter on October 21, 2005. The announcement on its resolutions was published in "Shanghai Securities News" and "South China Morning Post" of October 25, 2005. The meeting unanimously approved after discussion and voting of the 3rd Quarterly Report for 2005 and its abstract, the "Proposal on the Project of Newly Production of 100,000 All-steel Engineering Radial Tyres and Expansion and Technical Innovation of Rubber Refining Workshop", the "Proposal on Disposal of the Land Lot at 447 Changyang Rd." and the proposal on convening the 1st Provisional Shareholders' Meeting of 2005. (2) Execution of the resolutions of shareholders' meetings by the Board of Directors During the report period the Board of Directors of the Company strictly executed the resolutions of shareholders' meetings, no behavior of violating or ignoring the resolutions of shareholders' meetings. 5) Proposal on profit distribution or capitalization from capital public reserve The Company realized after-tax profit of RMB129,154,886.11 for 2005 and legally extracted RMB14,713,948.31 (including the amount extracted by subsidiaries) for official reserves. After it used RMB27,028,228.77 to make up for loss in previous years, the profit distributable to the whole shareholders is RMB87,412,709.03. It plans to distribute a cash dividend of RMB0.5 (taxes included) for every 10 shares to the whole shareholders on the basis of the 889,467,722 total issued shares at the end of 2005 with B share paid in US Dollars. The remaining RMB42,939,322.93 will be listed as undistributed profit and transferred to the next year. The aforesaid profit distribution proposal needs to be discussed and approved by the Company's 2005 Annual General Meeting of Shareholders. 35 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 6) Other disclosures (1) No change of the newspapers for information disclosure of the Company. (2) The specific remarks and independent opinion of the Independent Directors on outward guarantees of the Company As Independent Directors of Shanghai Tyre & Rubber Co., Ltd., we carried out necessary examination on outward guarantees of the Company during the report period according to the Zhengjianfa (2003) No. 56 File of the "Notice on Normalizing the Cash Flow between the Listed Company and its Associative Parties and Some Problems Related to the Listed Company's Guarantee for Other Companies" issued by China Securities Regulatory Commission and the Zhengjianfa (2005) No. 120 File of the "Notice on Standardalizing Outward Guarantee Actions of Listed Companies" jointly issued by China Securities Regulatory Commission and Supervision and Management Committee of the Bank of China. As of December 31, 2005, the balance of outward guarantees the Company provided reached RMB13,030,000 (excluding guarantees for subsidiaries; the Company's guarantees for its holding subsidiaries reached RMB599,032,700. So the total of guarantees is RMB612,062,700, accounting for 41.35% of the Company's net assets. As Independent Directors, we shall urge the Board of Directors and the management of the Company to strictly comply with the spirit of the Zhengjianfazi (2003) No. 56 File and the Zhengjianfa (2005) No. 120 File so as to standardize its guarantee actions, fully diclose guarantee information, strictly control guarantee ratio and effectively prevent guarantee risk. 9. Report of the Supervisory Committee 1) Covening of meetings of the Supervisory Committee During the report period the Supervisory Committee of the Company totally convened 4 meetings. (1) The 12th Meeting of 4th Supervisory Committee The meeting was held at Taihua Hotel in Rugao of Jiangsu Province on April 8, 2005 with all the 5 supervisors who should attend the meeting present. Content of the meeting is as follows: A. discussing and approving the 2004 annual work report of the Supervisory Committee; B. discussing and approving the 2004 annual report of the Company; C. recommending cadidates for the 5th Supervisory Committee. 36 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 (2) The 13th Meeting of 4th Supervisory Committee The meeting was held in the conference room of the Company's headquarter on May 21, 2005 with all the 5 supervisors who should attend the meeting present. Content of the meeting is as follows: A. hearing the introduction to the Company's financial status for the 1st quarter by Chief Accountant of the Company; B. examing and discussing the 1st quarterly report of the Company for 2005; C. discussed the Company's "Proposal on Application for Renminbi Loan of RMB800,000,000 to Shanghai Branch of the Export-Import Bank of China" and submitted it to the Company's annual shareholders' meeting for discussion. (3) The 1st meeting of 5th Supervisory Committee The meeting was held in the conference room of the International Hotel of Shanghai Everbright Convention & Exhibition Center on June 17, 2005 with all the 5 supervisors who should attend the meeting present. Content of the meeting is as follows: A. Electing Mr. Jiang Qiuxia as Chairman of the Company's 5th Supervisory Committee; B. Electing Mr. Shi Lairong as Vice Chairman of the Company's 5th Supervisory Committee; C. Engaging Mr. Sun Changming as Secretary to the Company's 5th Supervisory Committee. (4) The 2nd meeting of 5th Supervisory Committee The meeting was held at the conference room of the Company's headquarter on August 5, 2005 with all the 5 supervisors who should attend the meeting present. Content of the meeting is as follows: A. hearing introduction to the Company's financial status and assets clearing and check by Chief Accountant of the Company; B. hearing introduction to the sales status in current market by the Company's Deputy General Manager; C. hearing introduction to current raw material market by the Company's Deputy General Manager; D. examining and discussing the interim report of the Company for 2005; E. examining and discussing relevant issues on authorization of the Company's Board of Directors. 37 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 In this year the members of the Supervisory Committee attended all the meetings of the Board of Directors with no voting rights. 2) The Supervisory Committee's independent opinion on the Company's operation In this year the members of the Supervisory Committee attended all the Board meetings and shareholders' meetings and examined all the files of shareholders' meetings and the related reports of the Board of Directors. The Supervisory Committee deems that during the report period the Board of Directors of the Company and the shareholders' meeting made legal decision-making process and decision matters. No such mistaken decisions infringing the Company's interest and shareholders' equity have been discovered, nor such behavior of violating laws and the Articles and Association and infringing the Company's interests by the members of the Board of Directors of the Company in their duty performance have been discovered. The Supervisory Committee thinks that, during the report period, the Company's Board of Directors led the Company's management and staff in putting into practice the production and operation policies of "strengthening technology, improving quality and ensuring the leading place of Double Coin", "enhancing management, reducing cost and exalting profitability of Warrior", "establishing a famous brand, exploiting market and strengthening competitive advantage", "stressing contribution, promoting technical innovation and accelerating product development", "confirming responsibilities, enhancing check and advancing the whole efficiency" and "bettering education, changing views and broadening position selection scope of staff". The Company vigorously implemented the strategy of "one factory with one product and one brand". Major economic indicators continued to realized fast growth, rich fruits were achieved in various tasks and the economic operation kept steady and rapid development. The Company could strictly observe the laws and codes and the Articles of Association to conduct operation; the Company’s senior executives could be loyal to their duties and work diligently; no such behaviors of violating laws, codes and the Articles of Association and infringing the shareholders' equities and the Company's interest have been discovered. Pointing at large rise in raw material prices, too many subsidiaries on book and the regulations on business examination and approval's already unfitting with the current actual condition, the Company's Supervisory Committee put forward the advice of exploiting internal potential, promoting external market, pressing ahead with clearing of subsidiaries and restipulating authority limit of business examination and approval to enhance internal 38 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 control. The Company put high emphasis on the advice and has put into practice all the measures. 3) The Supervisory Committee's independent opinion on the Company's financial status The Company's Supervisory Committee conducted regular checking on the Company's financial statements to find out the Company's financial status and implementation on budget based on the Rules of Procedure of the Supervisory Committee. The Supervisory Committee deems that, the Company's financial status is good, the statements, audited by Lixing Certified Public Accountants, could relatively objectively reflect the financial status and operating results in 2005. 4) The Supervisory Committee's independent opinion on the Company's purchase and sale of assets The Company's Supervisory Committee supervised the Company's purchasing and selling assets during the report year. These transactions include trasferring equity of the subsidiary Transportation Company to Bus Company, equity of Nanyuan Yongfang Chemical Industry Company to Shanghai Yangjing Industry Company and Shanghai Guangmao Investment Co., Ltd., equity of Xuzhou Xugong Tyres Co., Ltd. to Xuzhou Xulun Material Trade Co., Ltd. The Supervisory Committee supervised every parts of the process concerning audit, assets appraisal, transfer price and listing on stock exchange. The Supervisory Committeet thinks that the Company strictly carried out relevant regulations of the state I n process of enterprise reorganization and ensured safety of the Company's assets by achieving publicity, fairness and justice. At the same time, the issue of Yangpu District Land Development Center's purchasing the land lot at 447 Changyang Rd. of the Company in the report year managed to be implemented pursuant to relevant regulations of the state with no discovery of any assets loss in the process of assets transfer. 5) The Supervisory Committee's independent opinion on the Company's Associative transactions The Supervisory Committee paid attention to associative transactions concerning daily operation during the report period. It thinks that the Company implemented associative transactions of purchasing from and selling to related parties at market price with no discovery of harming profit of the Company and of intermediate and small shareholders. The year 2006 is the starting year for China's implementing the "11th 5-year plan" and therefore it's of great important to do the work well in the new year. The Company's Supervisory Committee will keep on working hard and seriously carry out supervisory 39 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 function to contribute itself to the prospect that the Company will strive to provide large and middle sized transportation vehicles in China and in the world as a whole with safe, advanced, economic and pollution-free tyres and become a manufacturer ranking number one in China, leading in Asia and advanced in the world. 10. Significant Events 1) Important lawsuits and arbitrations (1) Pending actions as of December 31, 2005 A. The case that Shanghai Tyre & Rubber (Group) Supply and Sales Co., Ltd. sued Xinjiang Uygur Autonomous Region Autonomous Region No. 9 Transportation Company was filed on August 23, 2004 with the litigation target of RMB6,562,800. Currently, it is still in trial. B. The case that Shanghai Tyre & Rubber (Group) Supply and Sales Co., Ltd. sued Humao Tyre Co., Ltd. based in Dianbai County of Guangdong Province was filed on October 26, 2005 with the litigation target of RMB1,095,100. Currently, it is still in trial. C. The case that Shanghai Tyre & Rubber (Group) Supply and Sales Co., Ltd. sued Double Coin Tyre Co., Ltd. based in Nanning Region was filed on October 26, 2005 with the litigation target of RMB2,456,700 Currently. Currently it is still in trial. D. The case that Shanghai Tyre & Rubber (Group) Supply and Sales Co., Ltd. sued Qingdao Shangqing Rubber & Tyre Operation Co., Ltd. was filed on October 26, 2005 with the litigation target of RMB4,929,600 Currently. Currently it is still in trial. E. The case that Shanghai Tyre & Rubber (Group) Supply and Sales Co.,Ltd. sued Shangqiu Warrior and Double-coin Tyre Sales Co.,Ltd. was filed on January 11,2005 with the litigation target of RMB2,428,800. Currently, it is still in trial. F. The case that Shanghai Tyre & Rubber (Group) Supply and Sales Co.,Ltd. sued Yuyao Dongjiang Industry & Trade Co., Ltd. was filed on January 26, 2005 with the litigation target of RMB4,404,100. Currently, it is still in trial. (2) Completed actions as of December 31, 2005 A. The case that Shanghai Tyre & Rubber (Group) Supply and Sales Co., Ltd. sued Li Gaochang with the litigation target of RMB2,600,000 was ruled over on September 8, 2005 and is currently in execution. 40 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 B. The case that Shanghai Tyre & Rubber (Group) Supply and Sales Co., Ltd. sued Putian Jinghua Industrial Development Co., Ltd. and Fuzhou Hema Tyre Co., Ltd. with a litigation target of RMB9,238,300, was ruled over on March 21, 2005 and is currently in execution. C. The case that Shanghai Tyre & Rubber (Group) Supply and Sales Co., Ltd. sued Guizhou Qianzhong Tyre and Rubber Co., Ltd with the litigation target of RMB450,300 was ruled over on April 6, 2005 and is currently in execution. D. The case that Shanghai Tyre & Rubber (Group) Supply and Sales Co., Ltd. sued Xinyu Automobile Accessory Parent Company with the litigation target of RMB937,000 was ruled over on June 30, 2005 and is currently in execution. E. The case that Shanghai Tyre & Rubber (Group) Supply and Sales Co., Ltd. sued Nanjing Chemical, Light Industry & Tyre Supermarket Co., Ltd. with the litigation target of RMB852,600 was ruled over on April 27, 2005 and is currently in execution. F. The case that Shanghai Tyre & Rubber (Group) Supply & Sales Co., Ltd. sued Shanghai Zhengxing Real Estate Company with the litigation target of RMB119,283,600 was ruled over on September 10, 2005. RMB56,229,800 has been executed with the rest still in execution. G. The case that Shanghai Tyre & Rubber (Group) Supply and Sales Co., Ltd. sued Yantai Shuanghui Tyre & Material Co., Ltd. with the litigation target of RMB415,300 was ruled over on December 20, 2005 and is currently in execution. H. The case that Shanghai Tyre & Rubber (Group) Supply and Sales Co., Ltd. sued Chongqing Ankai Passenger Car Co., ltd. with the litigation target of RMB324,200 was ruled over on December 20, 2005 and is currently in execution. I. The case that Shanghai Tyre & Rubber (Group) Supply and Sales Co., Ltd. sued Nanyang Automobile Accessory Parent Company with the litigation target of RMB433,000 was ruled over on August 12, 2005 and is currently in execution. 2) The Company's purchase and sale of assets and consolidation by merger during the report period (1) During the report period, the soap plant, subsidiary business under Soap Group, which is in turn a subsidiary corporation under the Company, transferred 7/8 of the 40% equity held of 41 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 Nanyuan Yongfang Chemical Industry Company to Shanghai Yangjing Industry Company and 1/8 to Shanghai Guangmao Investment Co., Ltd. The transfer has been fully completed and the concerned creditor's rights and debts have all been transferred. The price for this equity transfer is RMB5,980,000 based on the appraisal price through the Property Right Exchange. Thus, the Company acquired income of RMB3,105,900 from this equity transfer. (2) During the report period, the Company transferred 55% of the 100% equity held of its solely-invested enterprise Shanghai Tyre & Rubber Group Transportation Co., Ltd. to Shanghai Juntong Logistics Co., Ltd. and 45% to Shanghai Bus Logistics Investment Co., Ltd. All the property right and all the creditor's rights and debts have been transferred. The price for this equity transfer is RMB5,382,900 based on the appraisal price through the Property Right Exchange. Thus, the Company acquired income of RMB2,879,300 from this equity transfer. The equity transfer makes no influence to the stability to the Company's business and management, this is helpful to the Company for concentrating its force to be engaged with its main business. (3) During the report period, the Company transferred 10% equity held of Xuzhou Xugong Tyre Co., Ltd. to Xuzhou Xulun Material Trade Co., Ltd. through the Property Right Exchange at the price of RMB441,700 based on appraisal price. All the property right and all the creditor' rights and debts concerned in it have been transferred. The Company acquired RMB-4,558,300 for income from equity transfer. (4) During the report period, the Company transferred 20% equity of Shanghai Senling Real Estate Development Co., Ltd. to Shanghai Sankoushi Venture Capital Management Co., Ltd. All the property right and all the creditor's rights and debts concerned have been transferred. The price for this equity transfer is RMB5,520,200 based on the appraisal price through the Property Right Exchange. Thus, the Company acquired income of RMB4,059,900 from this equity transfer. (5) During the report period, in order to support the development and construction of Yangpu District, the Yangpu District Land Development Center purchased the land lot at No.447 Changyang Road according to the relevant provisions of the state through negotiations with Yangpu District Estate Bureau and Land Planning Bureau and other departments. (For details, please refer to Page C7 of Shanghai Securities News and South China Morning Post 42 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 on December 9, 2005.) 3) Significant associative transactions during the report period (1) Associative transactions relevant to daily operation A. For the subsidiaries controlled by the Company and consolidated the accounting statements of the Company, the transactions between them and between the parent company and them have already been offset. B. Purchasing goods from associative parties: Scale of transactions: Name of enterprise Amount of this year Amount of last y Shanghai Tyre & Rubber (Group) Transportation Company …… 26,640,06 Shanghai Calcium Carbonate Factory 192,705.79 26,58 Shanghai Shenma Tyre Fabrics Co., Ltd. …… 85,336,49 Thailand Huatai Rubber Company 45,572,430.66 52,345,58 Shanghai Michelin Warrior Tyre Co., Ltd. 18,934,651.85 2,422,95 Shanghai Carbonization Co., Ltd. 70,688,832.10 58,682,00 Shanghai Dunhuang Canmaking Factory 3,214,039.74 4,750,01 Shanghai Fenping Mingzheng Industry Co., Ltd. Huali Pigment Factory 17,398,120.75 19,801,25 Shanghai Soap Making (Group) Rugao Co., Ltd. 18,901,630.80 30,119,89 Total 174,902,411.69 280,124,84 The purchase price is set according to market price. C. Selling goods to associative parties: Scale of transactions: Name of enterprise Amount of this year Amount of last year China Manufacturers Alliance,LLC（China USD85,353,994.92 USD57,460,428.33 North American Tyre Sales Company） Shanghai Michelin Warrior Tyre Co., Ltd. 39,302,282.00 52,336,570.92 Shanghai Tyre & Rubber (Group) Associate 323,300.00 350,000.00 Company Shanghai Hulun Tyre & Rubber Co., Ltd. 6,480,414.78 7,500,054.88 Shanghai Fenping Mingzheng Industry Co., 13,287,770.07 13,333,199.71 Ltd. Huali Pigment Factory Shanghai Soap Making (Group) Rugao Co., 26,865,811.97 - Ltd. Subtotal (in U.S. dollar) USD85,353,994.92 USD57,460,428.33 Subtotal (in Renminbi) 86,259,578.82 73,519,825.51 Total 784,330,727.32 549,091,060.58 43 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 The price of associative transactions is set according to market price. D. Other associative transactions: According to the agreement with Shanghai Michelin Warrior Tyre Co., Ltd., the Company provided or charged RMB10,000,000.00 for trademark using fee, RMB19,000,000.00 for sales of service, RMB3,741,666.75 for rental and leasing fees and RMB2,772,132.33 for processing fee, water and power cost and labour service. (2) Balance of funds flowing between related parties: Amount at end of year Item End of this year At the end of last year Accounts receivable: Shanghai Soap Making Factory Hainan 572,351.94 572,351.94 United Daily Cosmetics Branch Factory China North American Tyre Sales Company 282,824,366.06 226,355,347.16 Shanghai Soap Mmaking (Mianyang) Co., 264,624.00 187,200.00 Ltd. Shanghai Zhengli Rubber Industry & Trade 1,403,628.66 1,403,628.66 Company Shanghai Zhenghua Rubber Industry & Trade 306,022.91 306,022.91 Company Shanghai Hualun Trade Co., Ltd. 3,318,657.07 3,318,657.07 Hainan Warrior Industry & Commerce 2,434,929.66 2,434,929.66 Company Shanghai Dunxin Trade Co., Ltd. 524,818.45 524,818.45 Shanghai Fupu Rubber Co., Ltd. 347,410.58 370,410.58 Shanghai Soap Making (Group) Rugao Co., 40,595,851.73 71,854.73 Ltd. Xiamen Warrior Industry & Commerce 319,105.60 396,612.70 Company Subtotal 332,911,766.66 235,941,833.86 Other receivables: Hainan Warrior Industry & Commerce 100,946.83 100,946.83 Company Shanghai Baolun Industrial Company 142,925.82 142,925.82 Shanghai Fenping Mingzheng Industry Co., 1,000,000.00 1,000,000.00 Ltd. Huali Pigment Factory Shanghai Hulun Rubber Co., Ltd. …… 1,180,000.00 Shanghai Hualun Trade Co., Ltd. …… 4,820,000.00 Shanghai Warrior Hotel 2,453,795.19 2,469,908.19 Shanghai Keleh Art & Sculpture Co., Ltd. 921,252.10 921,252.10 Shanghai Longtai Fine Rubber Company 49,699,806.60 42,794,701.62 Shanghai Tyre & Rubber (Group) …… 673,653.00 Transportation Co., Ltd. Shanghai Tyre & Rubber Machinery Molds 17,519,908.72 15,954,244.64 Co., Ltd. Shanghai Michelin Warrior Tyre Co., Ltd. …… 1,222,317.57 Shanghai Shenlin Zhiye Development Co., …… 115,566,039.96 Ltd. Shanghai Shenmao Industrial Company 411,696.45 411,696.45 44 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 Shanghai Shanglian Chemical Industry 1,311,253.70 2,676,200.00 Company Shanghai Shenma Tyre Fabrics Co., Ltd. 128,599.50 128,599.50 Shanghai Shengsheng Molds Co., Ltd. …… 1,922,000.00 Shanghai Calcium Carbonate Factory 1,772,320.49 1,981,320.49 Shanghai Rubber Industry Supply & 618,573.00 …… Marketing Company Shanghai Zhenghua Rubber Industry & Trade 1,599,198.40 1,599,198.40 Company Shanghai Zhengli Rubber Industry & Trade 72,827.41 72,827.41 Company Shanghai Zhengxin House Property Co., Ltd. 62,880,076.98 119,411,342.78 Shanghai Soap Making (Group) Rugao Co., 12,229,674.09 27,183,077.59 Ltd. Shanghai Soap Mmaking (Mianyang) Co., …… 206,017.15 Ltd. Shanghai Zonglian Rubber Industrial 14,325,630.38 14,205,901.38 Company Xiamen Warrior Industry & Commerce 3,688.30 3,688.30 Company Shanghai Rubber Machinery No. 1 Factory …… 124,551.43 Shanghai Tyre & Rubber (Group) House 13,723.38 …… Exchange Division Shanghai Dunhuang Canmaking Factory 320,650.14 …… Shanghai Xinxing Trade Co., Ltd. 92,170.00 …… Subtotal 167,618,717.48 356,772,410.61 Advance payment: Thailand Huatai Rubber Company 13,444,436.71 15,874,512.39 Shanghai Shenlin Zhiye Development Co., …… 53,779,500.00 Ltd. Subtotal 13,444,436.71 69,654,012.39 Accounts payable Shanghai Tyre & Rubber (Group) …… 1,218,744.24 Transportation Co., Ltd. Shanghai Tiankai Computer System Co., Ltd. 529,107.72 529,107.72 Shanghai Dunhuang Canmaking Factory 1,123,387.00 1,159,370.56 Shanghai Fupu Rubber Co., Ltd. 8,690.29 8,690.29 Shanghai Fenping Mingzheng Industry Co., …… 976,350.45 Ltd. Huali Pigment Factory Shanghai Kexin Chemical Addition Agent 101,357.58 31,764.63 Co., Ltd. Shanghai Shengsheng Molds Co., Ltd. …… 37,882.00 Shanghai Rubber No. 1 Factory 235,796.30 2,632.68 Shanghai Soap Mmaking (Mianyang) Co., 353,328.00 473,483.75 Ltd. Shanghai Soap Making (Group) Rugao Co., 572,507.87 816,018.00 Ltd. Shanghai Carbonization Co., Ltd. 6,728,327.50 6,845,185.20 Shanghai Addition Agent Factory 147,728.23 …… Shanghai Calcium Carbonate Factory 55,099.73 …… Shanghai Aihua Testing Instrument 7,000.00 …… 45 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 Maintenance Station Shanghai Tyre & Rubber Machinery Molds 200,000.00 …… Co., Ltd. Shanghai Zhengxing Real Estate Co., Ltd. 664,829.39 …… Subtotal 10,727,159.61 12,099,229.52 Other payables Shanghai Michelin Warrior Tyre Co., Ltd. …… 2,839.14 Shanghai Shuangli Realty Management Co., 10,707,935.13 10,230,624.55 Ltd. Xiamen Warrior Industry & Commerce 133,410.36 …… Company Shenzhen Shanglun Trade Co., Ltd. 31,849.70 38,494.99 Shanghai Dunxin Trade Co., Ltd. …… 816,634.92 Shanghai Xinming Rubber Factory 514,336.03 514,336.03 Shanghai Xinxin Trade Company …… 674,135.16 Shanghai Hualun Trade Co., Ltd. 25,000.00 1,093,276.61 Haikou Fuhua Tyre Sales Co., Ltd. 3,241,429.78 3,241,429.78 Shanghai Zhengxin House Property Co., Ltd. 600,000.00 600,000.00 Shanghai Dunhuang Canmaking Factory 7,932.20 34,949.40 Shanghai Hulun Rubber Co., Ltd. 5,000.00 5,000.00 Shanghai Taihua Taxi Co., Ltd. 10,174,466.95 9,686,606.19 Shanghai Tyre & Rubber Machinery Molds …… 400,000.00 Co., Ltd. Shanghai Kexin Chemical Addition Agent …… 68,428.55 Co., Ltd. Shanghai Zonglian Rubber Industrial …… 615,143.47 Company Shanghai Rubber Chemicals Factory 197,060.00 …… Shanghai Rubber Industry Supply & 25,050.00 …… Marketing Company Shanghai Soap Making (Group) Rugao Co., 10,000.00 …… Ltd. Subtotal 25,673,470.15 28,021,898.79 Accounts received in advance Shanghai Hualun Trade Co., Ltd. 973,726.39 973,726.39 Shanghai Hulun Tyre & Rubber Co., Ltd. 10,128,533.51 4,620,446.70 Shanghai Tyre & Rubber (Group) …… 1,126,007.74 Transportation Co., Ltd. Wuxi Xicheng Grease Chemical Co., Ltd. …… 12,901.90 Subtotal 11,102,259.90 6,733,082.73 Long-term payable Shanghai Huayi (Group) Company 93,863,544.23 93,863,544.23 Subtotal 93,863,544.23 93,863,544.23 Note: according to (2005) Hugaomin'er (Shang) Chuzi No. 23 civil mediation letter of September 5, 2005, the Company reached agreement with Shanghai Zhengxing Real Estate Co., Ltd. (hereinafter referred to as "Zhengxing") that Zhengxing would 46 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 convert its Hufangdi Luzi (2001) No. 006674 real estate of the altogether 8 floors from the 5th to the 12th floor of Hualun Mansion at 560 Xujiahui Rd. Shanghai with a total floorage of 6247.76 square meters into RMB56,229,840.00 at RMB9,000 per square meter. As of December 31, 2005, RMB62,880,076.98 remained unfunded. 4) Trusteeship In this year the Company did not have any trusteeship. 5) Contracting In this year the Company did not have any contracting. 6) Renting and Leasing In this year the Company did not have any significant renting or leasing. 7) Guarantee Outward guarantees of the Company (excluding guarantees for holding subsidiaries) Occurring Whether date Whether guarantee for Name of guarantee Amount of Type of (agreement Guarantee term complete related parties object guarantee guarantee signing d or not or not (yes or day) no) Guarantee Shanghai Rubber with joint and 11.28.05 1,330,000.00 12.13.05～ 04.20.06 no Yes Chemicals Factory several liabilities Guarantee Shanghai Far East with joint and International 07.05.05 4,500,000.00 07.05.05～ 01.05.06 No no several (Group) Co., Ltd. liabilities Guarantee Shanghai Far East with joint and International 08.17.05 4,500,000.00 08.17.05～ 02.28.06 no no several (Group) Co., Ltd. liabilities Guarantee Shanghai Yuanyin with joint and Import & Export 09.15.05 2,700,000.00 09.15.05～ 03.24.06 no no several Co., Ltd. liabilities Total amount of guarantees occurring during the report period 13,030,000.00 Total balance of guarantees at the end of the report period 13,030,000.00 47 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 The Company's guarantees for holding subsidiaries Total amount of guarantees for holding subsidiaries 599,032,700.00 during the report period Total balance of guarantees for holding subsidiaries at 599,032,700.00 the end of the report period Total of guarantees of the Company (including guarantees for holding subsidiaries) Total amount of guarantees 612,062,700.00 Ratio of total amount of guarantees to the Company's 41.35% net assets (%) Incl.: Amount of guarantees provided for shareholders, actual 1,330,000.00 controller and related parties Amount of direct or indirect debt guarantees for objects 109,100,000.00 whose debt-to-asset ratio exceeding 70% Difference of total amount of guarantees over 50% net 0 assets Total of the aforesaid 3 amounts of guarantees 110,430,000.00 8) Entrusted financial management In this year the Company did not have any entrusted financial management. 9) Other significant contracts In this year the Company did not have any other significant contracts. 10) Implementation of commitments The Company or its shareholders holding 5% or over 5% equity interest did not have any promises during the report period or left over from previous period. 11) Engagement and dismissal of public accounting firm After negotiation with the Shanghai Lixin Changjiang Certified Public Accountants and Horwath International Certified Public Accountants, the Company's audit cost for 2005 should be RMB1,500,000, including domestic audit cost of RMB800,000 for the Lixin Changjiang Certified Public Accountants and overseas audit cost of RMB 700,000 for the Horwath International Certified Public Accountants. Considering its cooperation with the aforesaid firms for several years, the Company will continue to engage Shanghai Lixin Changjiang Certified Public Accountants and Horwath 48 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 International Certified Public Accountants as the Company's domestic auditor and overseas auditor for 2006. As of December 31, 2005, the Shanghai Lixin Changjiang Certified Public Accountants Co., Ltd. had provided the Company with domestic audit service for 5 years, and the Horwath International Certified Public Accountants had also provided the Company with overseas audit service for 5 years. 12) About punishment and rectification received by the Company, the Board of Directors and the Directors During the report period the Company, the Board of Directors of the Company and the Directors had not been checked by the China Securities Regulatory Committee and/or punished administratively and reprimanded publicly by the China Securities Regulatory Committee. and publicly condemned by the stock exchange. 13) Other major events (1) According to the 4th meeting of the 4th Board of Directors in 2002, the Company exchanged the accounts receivable for the industrial land using rights of the land lots at 447 Changyang Rd., 397 Longhuatong Rd. and Qianjiazhai, Xiyidui of Xinkang Village in Zhangjiang Town. As of December 31, 2005, the right certificates were not handled. Accounts of the indutrial land use rights of the land lots at 397 Longhuadong Rd. and Qianjiazhai, Xiyidui of Xinkang Village in Zhangjiang Town remained unhandled. The Company signed the "Contract of Purchas of Use Right of State-owned Land in the industrial system of Yangpu District of Shanghai" with Shanghai Yangpu District Land Development Center on December 7, 2005. Yangpu District Land Development Center paid RMB251,957,000 for purchasing land use right of the 26,660-square-meter land lot at 447 Changyang Rd., Shanghai, thereinto, RMB179,955,000 for land transfer and RMB72,002,000 as compensation fees for workshop evacuation, equipment relocation and personnel settlement. The Company planned to repurchase the land use right of 15,160 square meters in 2006 and therefore handled its accounts of this period as follows: A. Income for the land transfer 26,660 square meters is RMB179,955,000, which is divided at the ratio of 15,160 square meters to 11,500 square meters in consideration of repurchase. The income of RMB102,330,000 for the 15,160 square meters and 49 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 intangible assets of RMB39,832,000 are excluded from accounts handling. The confirmed income for the 11,500 square meters in the report year is RMB77,625,000. With the corresponding cost of RMB 30,215,500, the profit gained in the report year is RMB47,409,500. The Company promised to complete clearing the location within specified time and pay of RMB125,978,500 to Shanghai Yangpu District Land Development Center as security, which will be listed as other receivables. B. As of December 31, 2005, with the net assets value on book of RMB6,769,400 of Zhengtai Factory calculated into profit and loss of the report year, there occurred altogether RMB39,185,000 for consultation and settlement fees and pays to laid-off employees, which is listed in compensation fees according to relevant regulations. The remaining RMB32,817,000 is exclusively used for settling down of redundant personnel of Zhengtai and venue clearing, which is excluded from this period's accounts handling together with the corresponding land fund of RMB102,330,000 and land cost of RMB39,832,000 for land repurchase. (2) According to resolutions of the 1st Provisional Shareholders' Meeting of 2003, the Company exchanged its creditor's rights receivable of RMB152,297,829.03 for the land use rights under the name of Shanghai Huayi (Group) Company but acutually used by Double Coin Truck Tyre Company and Great China Zhengtai Tyre Company (with the land areas of 268,600 square meters and 69,685 square meters respectively or the appraisal price of RMB151,094,305.00) at the consideration of RMB152,297,829.03 with relevant taxes and land selling price concerned in the agreed displacement borne by the Company. As of December 31, 2005, use right certificate for industrial land and relevant accounts remained unhandled. (3) According to the resolutions of the 2004 Annual General Meeting of Shareholders, the Company used the surplus reserve of RMB244,268,282.08 and the capital public reserve of RMB552,450,742.05 to offset the uncovered loss of RMB796,719,024.13 of 2004. After the offset, the undistributed profit of the parent company at the end of 2004 is zero. 12. Documents for Reference 1) The annual report signed by the Chairman of the Board. 50 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 2) Accounting statements signed and sealed by the legal representative, the principal in charge of accounting work and the head of accounting department. 3) Original audit report sealed by the public accounting firm and signed and sealed by the certified public accountants. 4) All the formal documents of the Company and original version of the announcements publicly disclosed in the newspapers appointed by the China Securities Regulatory Committee during the report period. 5) All the above documents for reference are stored in full in the secretary's office of the Board of Directors of the Company. Chairman of the Board: Fan Xian Shanghai Tyre & Rubber Co., Ltd. March 17, 2006 13. Confirmation Opinion on the Report Written Confirmation Opinion on the Company's 2005 Annual Report of Directors and Senior Executives of Shanghai Tyre & Rubber Co., Ltd. According to the No. 68 provision of the "Securities Law" and requirements in the "Rule No.2 of Content and Format of Information Disclosure of Companies who Publicly Issue Securities -- Content and Format of Annual Report" (amended in 2005), we, as Directors and senior executives and after overall understanding and examination of the Company's 2005 Annual Report, think: the Company operated in strict accordance with the financial system of joint stock company and its 2005 annual report reflects its financial status and operating results of the report year openly and fairly; the 2005 annual audit report by certified accountants of 51 上海轮胎橡胶(集团)股份有限公司 2005 年年度报告 Shanghai Lixin Changjiang Certified Public Accountants is practical and realistic, objective and fair. We hereby ensure the truth, accuracy and integrity of the Company's 2005 annual report and promise that, the information contained in this report does not have any false statement, misleading representation or significant omission, and will take the several and joint responsibilities for the truth, accuracy and integrity of its contents. Signature: 范 宪、岳春辰、隆有明、黄玉贵、郑国培、张晖明、李柏龄 柳启岳、周立才、王曾金、薛建民、王 玲 52 AUDITORS’ REPORT TO THE SHAREHOLDERS OF SHANGHAI TYRE & RUBBER CO., LTD. (Incorporated in the People’s Republic of China with limited liability) We have audited the financial statements on pages 2 to 43 which have been prepared in accordance with International Financial Reporting Standards. RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITORS The Company’s directors are responsible for the preparation of financial statements which give a true and fair view. In preparing financial statements which give a true and fair view, it is fundamental that appropriate accounting policies are selected and applied consistently. It is our responsibility to form an independent opinion, based on our audit, on those statements and to report our opinion to you, as a body, and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report. BASIS OF OPINION We conducted our audit in accordance with International Standards on Auditing. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the Directors in the preparation of the financial statements and of whether the accounting policies are appropriate to the Group’s circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance as to whether the financial statements are free from material misstatement. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements. We believe that our audit provides a reasonable basis for our opinion. OPINION In our opinion the financial statements give a true and fair view of the state of affairs of the Group as at 31 December 2005 and of its profit and cash flows for the year then ended. HORWATH HONG KONG CPA LIMITED 2001 Central Plaza Certified Public Accountants 18 Harbour Road Wanchai 17 March 2006 Hong Kong Chan Kam Wing, Clement Practising Certificate number P02038 Page 1 SHANGHAI TYRE & RUBBER CO., LTD. CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2005 (Expressed in Renminbi thousands) 2005 2004 Notes RMB’000 RMB’000 Turnover 4 4,994,402 4,625,651 Cost of sales (4,252,498) (3,831,742) Gross profit 741,904 793,909 Other operating income 5 62,867 57,592 Selling expenses (277,182) (268,679) Administrative expenses (352,911) (313,139) Profit from operations 174,678 269,683 Other gains and losses 24,802 120,292 Finance costs 7 (113,195) (94,027) Gain on liquidation of a subsidiary 8 - 47,002 Share of results of unconsolidated subsidiaries and associates (19,350) (42,384) Profit before taxation 6 66,935 300,566 Income tax 9 3,090 (7,872) Profit for the year 70,025 292,694 Attributable to: Equity holders of the parent 119,271 326,320 Minority interests (49,246) (33,626) 70,025 292,694 Profit per share - Basic 10 RMB0.134 RMB0.367 The notes on pages 8 to 42 form part of these consolidated financial statements. Page 2 SHANGHAI TYRE & RUBBER CO., LTD. CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2005 (Expressed in Renminbi thousands) 2005 2004 Notes RMB’000 RMB’000 Non-current assets Property, plant and equipment 12 2,187,445 1,585,900 Construction in progress 13 357,441 432,430 Deferred assets 14 72,633 47,007 Intangible assets 15 109,249 74,636 Goodwill 16 33,455 33,455 Interests in unconsolidated subsidiaries 17 30,461 37,197 Interests in associates 18 313,078 185,463 Available-for-sale investments 19 105,793 113,614 3,209,555 2,509,702 Current assets Inventories 20 898,040 745,574 Accounts and notes receivable 21 764,996 785,331 Other receivables 22 406,998 427,842 Dividend receivables 11,148 19,656 Advances to suppliers 89,275 62,267 Prepayments 3,595 100 Due from unconsolidated subsidiaries and associates 32(b) 128,089 269,199 Cash and bank balances 23 522,607 710,702 2,824,748 3,020,671 Current liabilities Bank loans 24 2,349,272 1,768,277 Accounts and notes payable 739,961 512,516 Other payables and accruals 350,870 222,682 Advances from customers 92,178 53,279 Taxes payable 25 165,495 229,367 Dividends payable 219 219 Due to unconsolidated subsidiaries and associates 32(c) 38,390 33,924 3,736,835 2,820,264 Net current (liabilities)/assets (915,643) 200,407 Total assets less current liabilities carried forward 2,297,918 2,710,109 Page 3 SHANGHAI TYRE & RUBBER CO., LTD. CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2005 (Expressed in Renminbi thousands) 2005 2004 Notes RMB’000 RMB’000 Total assets less current liabilities brought forward 2,297,918 2,710,109 Non-current liabilities Long-term bank loans 24 561,584 1,080,807 Due to ultimate holding company 29(b) 93,863 93,863 Other long-term liabilities 1,470 1,470 (656,917) (1,176,140) 1,641,001 1,533,969 Equity Share capital 26 889,468 889,468 Reserves 27 574,185 454,900 Attributable to equity holders of the parent 1,463,653 1,344,368 Minority interests 177,348 189,601 Total equity 1,641,001 1,533,969 The consolidated financial statements were approved and authorised for issue by the board of directors on 17 March 2006. Director Director The notes on pages 8 to 44 form part of these consolidated financial statements. Page 4 SHANGHAI TYRE & RUBBER CO., LTD. CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY FOR THE YEAR ENDED 31 DECEMBER 2005 (Expressed in Renminbi thousands) Discret- Statutory Statutory ionary Attributable surplus public surplus Accumul- to equity Share Capital reserve welfare reserve ated holders of Minority Total capital reserves fund fund fund losses the parent interests Equity RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 (Note 28) (Note 29(a)) (Note 29(b)) (Note 29(b)) (Note 29(c)) At 1 January 2004 889,468 1,028,767 101,619 8,125 147,943 (1,157,874) 1,018,048 182,011 1,200,059 Net profit for the year - - - - - 326,320 326,320 (33,626) 292,694 Disposal of a subsidiary - - - - - - - (401) (401) Return to minority shareholders on liquidation of a subsidiary - - - - - - - (100) (100) Capital contributed by minority shareholders - - - - - - - 41,717 41,717 Income appropriation - - 3,520 3,293 - (6,813) - - - At 31 December 2004 889,468 1,028,767 105,139 11,418 147,943 (838,367) 1,344,368 189,601 1,533,969 Net profit for the year - - - - - 119,271 119,271 (49,246) 70,025 Others - 14 - - - - 14 9 23 Total recognized income and expenses for the year - 14 - - - 119,271 119,285 (49,237) 70,048 Capital contributed by minority shareholders - - - - - - - 36,984 36,984 Income appropriation - - 14,714 - - (14,714) - - - Offset accumulated losses (Note 29(e)) - (552,451) (96,398) - (147,870) 796,719 - - - At 31 December 2005 889,468 476,330 23,455 11,418 73 62,909 1,463,653 177,348 1,641,001 The notes on pages 8 to 42 form part of these consolidated financial statements. Page 5 SHANGHAI TYRE & RUBBER CO., LTD. CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2005 (Expressed in Renminbi thousands) 2005 2004 Note RMB’000 RMB’000 Operating activities Profit before taxation 66,935 300,566 Adjustments for: Depreciation of property, plant and equipment 159,989 137,758 Impairment losses on unconsolidated subsidiaries 5,002 1,686 Impairment losses on available-for-sale investments 5,393 440 Gain on disposal of a business - (84,192) Gain on disposal of an unconsolidated subsidiary (150) - Gain on disposal of associates (4,166) - Gain on disposal of available-for-sale investments 4,558 (510) Loss on disposal of a subsidiary - 1,380 Loss/(gain) on disposal of property, plant and equipment 14,964 (14,855) Gain on disposal of intangible assets (47,410) - Amortisation of deferred assets 31,745 20,278 Amortisation of intangible assets 5,219 4,798 Amortisation of goodwill - 5,472 Provision for doubtful debts (written back)/charged (46,034) (185,171) Interest expenses 118,515 100,910 Exchange gain (2,808) (24) Interest income (5,321) (6,833) Waiver of bank loans - (400) Loss on dilution of shareholding in an associate 1,724 - Gain on liquidation of a subsidiary 8 - (47,002) Gain on liquidation of an associate - (3,439) Shares of results of unconsolidated subsidiaries and associates 19,350 42,384 Dividend income from other investments (709) (1,858) Cash flow from operations before working capital changes 326,796 271,388 Increase in inventories (152,466) (169,045) Decrease/(increase) in accounts and notes receivable 37,075 (71,764) Increase in other receivables (129,919) (116,085) (Increase)/decrease in advances to suppliers (27,008) 138,738 (Increase)/d ecrease in prepayments and deposits (3,495) 196 Decrease in amounts due from unconsolidated subsidiaries and associates 141,110 102,416 Increase/(decrease) in accounts and notes payable 227,445 (72,985) Increase in other payables and accruals 131,899 251,350 Increase/(decrease) in advances from customers 38,899 (137,002) (Decrease)/increase in VAT and other tax payables (55,568) 6,693 Increase in amounts due to unconsolidated subsidiaries and associates 4,466 33,925 Decrease in amount due to ultimate holding company - (21,193) Decrease in other long-term liabilities - (3,366) Cash generated from operations 539,234 213,266 Income taxes paid (5,214) (6,979) Interest paid (81,297) (98,415) Net cash generated from operating activities 452,723 107,872 Page 6 SHANGHAI TYRE & RUBBER CO., LTD. CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2005 (Expressed in Renminbi thousands) 2005 2004 Notes RMB’000 RMB’000 Investing activities Purchase of property, plant and equipment and construction in progress (597,531) (517,451) Payment for intangible assets - (25,700) Payment for deferred assets (57,371) (9,978) Investments in unconsolidated subsidiaries (80) (310) Investments in associates (165,000) (4,000) Investments in available-for-sale investments (950) (900) Placement of pledged bank balances (62,792) 24,507 Proceeds from disposal of intangible assets 77,625 - Proceeds from disposal of a business - 3,500 Proceeds from disposal of an unconsolidated subsidiary 5,317 - Proceeds from disposal of associates 11,711 - Proceeds from disposal of available investments 442 2,010 Proceeds from disposal of property, plant and equipment and construction in progress - 54,799 Cash inflow on consolidation of a subsidiary previously not consolidated - 1,103 Cash outflow on liquidation of a subsidiary - (646) Cash outflow on disposal of a subsidiary - (1,933) Dividends received 13,008 3,192 Interest received 5,321 6,833 Net cash used in investing activities (770,300) (464,974) Financing activities New bank loans 3,149,743 3,152,110 Repayments of bank loans (3,120,037) (2,619,979) Capital contributed by minority shareholders 36,984 - Dividends paid to minority investors - 41,717 Paid to minority shareholders upon liquidation - (100) Net cash generated from/(used in) financing activities 66,690 573,748 Net increase/(decrease) in cash and cash equivalents (250,887) 216,646 Cash and cash equivalents, at beginning of year 640,669 424,023 Cash and cash equivalents, at end of year 389,782 640,669 Analysis of balances of cash and cash equivalents Cash and bank balances 522,607 710,702 Less: Pledged bank balances (132,825) (70,033) 389,782 640,669 The notes on pages 8 to 42 form part of these consolidated financial statements. Page 7 SHANGHAI TYRE & RUBBER CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Renminbi thousands) 1. ORGANISATION AND OPERATIONS Shanghai Tyre & Rubber Co., Ltd. (the “Company”) was incorporated on 11 July 1992 as a result of the reorganisation of a state-owned enterprise into a joint stock company limited by shares. The Company’s listed shares included ordinary shares (“A Shares”) and domestically listed foreign investment shares (“B Shares”), both of which are traded on the Shanghai Stock Exchange. The principal activities of the Company and its subsidiaries (the “Group”) are the manufacture of various types of rubber tyres (primarily bias tyres and radial tyres), other rubber products and machinery for production of rubber products and production and sale of soaps for industrial and commercial use. 2. ADOPTION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS In the current year, the Group has adopted all of the new and revised Standards and Interpretations issued by the International Accounting Standards Board (the “IASB”) and the International Financial Reporting Interpretations Committee (“IFRIC”) of the IASB that are relevant to its operations and effective for accounting periods beginning on 1 January 2005. The adoption of these new and revised Standards and Interpretations has resulted in changes to the Group’s accounting policies in the following areas that have affected the amounts reported for the current or prior years: IFRS 3, Business Combinations Goodwill IFRS 3 has been adopted for business combinations for which the agreement date is on or after 31 March 2004. The option of limited retrospective application of the Standard has not been taken up, thus avoiding the need to restate past business combinations. After initial recognition, IFRS 3 requires goodwill acquired in a business combination to be carried at cost less any accumulated impairment losses. Under IAS 36 Impairment of Assets (as revised in 2004), impairment reviews are required annually, or more frequently if there are indications that goodwill might be impaired. IFRS 3 prohibits the amortisation of goodwill. Previously, under IAS 22, the Group carried goodwill in its balance sheet at cost less accumulated amortisation and accumulated impairment losses. Amortisation was charged over the estimated useful life of goodwill, subject to the rebuttable presumption that the maximum useful life of goodwill was 20 years. Page 8 SHANGHAI TYRE & RUBBER CO., LTD. 2. ADOPTION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS (CONTINUED) In accordance with the transitional rules of IFRS 3, the Group has applied the revised accounting policy for goodwill prospectively from the beginning of its first annual period beginning on or after 31 March 2004, i.e. 1 January 2005, to goodwill acquired in business combinations for which the agreement date was before 31 March 2004. Therefore, from 1 January 2005, the Group has discontinued amortising such goodwill and has tested the goodwill for impairment in accordance with IAS 36. At 1 January 2005, the carrying amount of amortization accumulated before that date of RMB130,186,000 has been eliminated, with a corresponding decrease in goodwill. Because the revised accounting policy has been applied prospectively, the change has had no impact on amounts reported for 2004 or prior periods. No amortization has been charged in 2005. The charge in 2004 was RMB4,524,000. Excess of acquirer’s interest in the net fair value of acquiree’s identifiable assets, liabilities and contingent liabilities over cost (previously known as negative goodwill) IFRS 3 requires that, after reassessment, any excess of acquirer’s interest in the net fair value of acquiree’s identifiable assets, liabilities and contingent liabilities over cost of the business combination should be recognised immediately in profit or loss. IFRS 3 prohibits the recognition of negative goodwill in the balance sheet. Previously, under IAS 22 (superceded by IFRS 3), the Group released negative goodwill to income over a number of accounting periods, based on an analysis of the circumstances from which the balance resulted. Negative goodwill was reported as a deduction from assets in the balance sheet. In accordance with the transitional rules of IFRS 3, the Group has applied the revised accounting policy prospectively from 1 January 2005. Therefore, the change has had no impact on amounts reported for 2004 or prior periods. At the date of authorisation of these financial statements, the following Standards and Interpretations were in issue but not yet effective: IFRS 7 Financial instrument: Disclosure IFRIC 4 Determining whether an Arrangement contains a Lease IFRIC 8 Scope of IFRS 2 The directors anticipate that the adoption of these Standards and Interpretations in future periods will have no material impact on the financial statements of the Group. Page 9 SHANGHAI TYRE & RUBBER CO., LTD. 3. PRINCIPAL ACCOUNTING POLICIES The financial statements of the Group have been prepared in accordance with International Financial Reporting Standards (“IFRS”). The Group also prepares financial statements which comply with accounting regulations in the People’s Republic of China (the “PRC”). A reconciliation of the Group’s results and shareholders’ equity under IFRS and PRC accounting regulations is presented in Note 34. (a) Principles of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries and the Group’s interests in associates on the basis as set out in Notes 3 (c) and (d) below. The acquisition method of accounting is used for acquired businesses. Results of subsidiaries and associates acquired or disposed of during the year are included in the consolidated financial statements from the date of acquisition or to the date of disposal. The equity and net income attributable to minority shareholders’ interests are shown separately in the consolidated balance sheet and consolidated income statement, respectively. All significant intercompany balances and transactions, including intercompany profits and unrealised profits and losses are eliminated on consolidation. Consolidated financial statements are prepared using uniform accounting policies for like transactions and other events in similar circumstances. Minority interests in the net assets of consolidated subsidiaries are identified separately from the Group’s equity therein. Minority interests consist of the amount of those interests at the date of the original business combination and the minority’s share of changes in equity since the date of the combination. Losses applicable to the minority in excess of the minority’s interest in the subsidiary’s equity are allocated against the interests of the Group except to the extent that the minority has a binding obligation and is able to make an additional investment to cover the losses. (b) Business combinations The acquisition of subsidiaries is accounted for using the purchase method. The cost of the acquisition is measured at the aggregate of the fair values, at the date of exchange, of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquire, plus any costs directly attributable to the business combination. The acquiree’s identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under IRFS 3 are recognised at their fair values at the acquisition date. Page 10 SHANGHAI TYRE & RUBBER CO., LTD. 3. PRINCIPAL ACCOUNTING POLICIES (CONTINUED) (b) Business combinations (continued) Goodwill arising on acquisition is recognised as an asset and initially measured at cost, being the excess of the cost of the business combination over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised. If, after reassessment, the Group’s interest in the net fair value of the acquiree’s identifiable assets, liabilities and contingent liabilities exceeds the cost of the business combination, the excess is recognised immediately in profit or loss. The interest of minority shareholders in the acquiree is intitially measured at the minority’s proportion of the net fair value of the assets, liabilities and contingent liabilities recognised. (c) Subsidiaries A subsidiary is a company in which the Company has control. Control exists when the Company has the power to govern the financial and operating policies of the subsidiary so as to obtain benefits from its activities. Details of the Company’s subsidiaries as of 31 December 2005 are set out in Note 28 to the consolidated financial statements. (d) Associates An associate is a company, not being a subsidiary or a joint venture, in which the Company has significant influence. Significant influence exists when the Company has the power to participate in, but not control, the financial and operating decisions of the associate. The results and assets and liabilities of associates are incorporated in these financial statements using the equity method of accounting. Under the equity method, investments in associates are carried in the consolidated balance sheet at cost as adjusted for post-acquisition changes in the Group’s share of the net assets of the associate, less any impairment in the value of individual investments. Losses of an associate in excess of the Group’s interest in that associate (which includes any long-term interests that, in substance, form part of the Group’s net investment in the associate) are not recognised, unless the Group has incurred obligations or made payments on behalf of the associate. Any excess of the cost of acquisition over the Group’s share of the net fair value of the identifiable assets, liabilities and contingent liabilities of the associate recognised at the date of acquisition is recognised as goodwill. The goodwill is included within the carrying amount of the investment and is assessed for impairment as part of the investment. Any excess of the Group’s share of the net fair value of the identifiable assets, liabilities and contingent liabilities over the cost of acquisition, after reassessment, is recognised immediately in profit or loss. Page 11 SHANGHAI TYRE & RUBBER CO., LTD. 3. PRINCIPAL ACCOUNTING POLICIES (CONTINUED) (d) Associates (continued) Where a group entity transacts with an associate of the Group, profits and losses are eliminated to the extent of the Group’s interest in the relevant associate. (e) Goodwill Goodwill arising on the acquisition of a subsidiary or a jointly controlled entity represents the excess of the cost of acquisition over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the subsidiary or jointly controlled entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill is allocated to each of the Group’s cash-generating units expected to benefit from the synergies of the combination. Cash-generating units to which goodwill has been allocated are tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognised for goodwill is not reversed in a subsequent period. On disposal of a subsidiary or a jointly controlled entity, the attributable amount of goodwill is included in the determination of the profit or loss on disposal. The Group’s policy for goodwill arising on the acquisition of an associate is described under “Associate” above. (f) Property, plant and equipment and depreciation Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. The cost of an asset comprises its purchase price and any directly attributable costs of bringing the asset to its working condition and location for its intended use. Expenditure incurred after the property, plant and equipment have been put into operation, is recognised as an expense in the year in which it is incurred. In situations where it is probable that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of the asset, the expenditure is capitalised as an additional cost of the property, plant and equipment. Page 12 SHANGHAI TYRE & RUBBER CO., LTD. 3. PRINCIPAL ACCOUNTING POLICIES (CONTINUED) (f) Property, plant and equipment and depreciation (continued) Depreciation is calculated using the straight-line method to write off the cost, after taking into account the estimated residual value at 3%-5% of cost over its expected useful life. The expected useful lives are as follows: Buildings 10-30 years Machinery and equipment 5-15 years Motor vehicles 5-10 years Furniture, fixtures and office equipment 5 years When assets are sold or retired, their cost, accumulated depreciation and accumulated impairment losses are eliminated from the accounts and any gain or loss resulting from their disposal is included in the consolidated income statement. (g) Construction in progress Construction in progress (“CIP”) represents buildings under construction and machinery and equipment under installation and is stated at cost. Costs include costs of construction and machinery and equipment, other direct costs plus borrowing costs which include interest charges attributable to borrowings used to finance these projects during the construction or installation period. No provision for depreciation is provided on construction in progress until the relevant assets are completed and put into use. (h) Intangible assets (i) Land use rights Land use rights are stated at cost less accumulated amortisation. Amortisation is calculated using the straight-line method over the life of the land use rights. (ii) Trademarks Trademarks are stated at acquisition cost less accumulated amortisation. Amortisation is calculated using the straight-line method to write off the cost over the expected future economic life. Page 13 SHANGHAI TYRE & RUBBER CO., LTD. 3. PRINCIPAL ACCOUNTING POLICIES (CONTINUED) (i) Deferred assets Deferred assets includes moulds, utility capacity expansion charges and technical know-how are amortised on a straight-line basis over their estimated beneficial periods. (j) Impairment of tangible and intangible assets excluding goodwill At each balance sheet date, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduce to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which cash the impairment loss is treated as a revaluation decrease. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment less been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. (k) Inventories Inventories are stated at the lower of cost and net realisable value. Cost includes costs of raw materials computed using the weighted average method of costing and, in the case of work in progress and finished goods, direct labour and an appropriate proportion of production overheads. Net realisable value is determined on the basis of estimated selling prices less further costs expected to be incurred to completion and the related direct selling and distribution expenses. Provision is made for obsolete, slow-moving and defective items where appropriate. Page 14 SHANGHAI TYRE & RUBBER CO., LTD. 3. PRINCIPAL ACCOUNTING POLICIES (CONTINUED) (k) Inventories (continued) Properties for sale are stated at the lower of cost and net realisable value. Cost of properties comprises land cost and other direct costs attributable to such properties using the weighted average method of costing. Net realisable value is determined on the basis of estimated selling price less further cost expected to be incurred to completion of properties and the related direct selling and distribution expenses. (l) Financial instruments Financial assets and financial liabilities are recognised on the Group’s balance sheet when the Group becomes a party to the contractual provisions of the instrument. (i) Trade receivables Trade receivables are measured at initial recognition at fair value, and are subsequently measured at amortised cost using the effective interest rate method. Appropriate allowances for estimated irrecoverable amounts are recognised in profit or loss when there is objective evidence that the asset is impaired. The allowance recognised is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the effective interest rate computed at initial recognition. (ii) Investments Investments are recognised and derecognised on a trade date basis where the purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, plus directly attributable transaction costs. At subsequent reporting dates, debts securities that the Group has the expressed intention and ability to hold to maturity (held-to-maturity debt securities) are measured at amortised cost using the effective interest rate method, less any impairment loss recognised to reflect irrecoverable amounts. An impairment loss is recognised in profit or loss when there is objective evidence that the asset is impaired, and is measured as the difference between the investment’s carrying amount and the present value of estimated future cash flows discounted at the effective interest rate computed at initial recognition. Impairment losses are reversed in subsequent periods when an increase in the investment’s recoverable amount can be related objectively to an event occurring after the impairment was recognised, subject to the restriction that the carrying amount of the investment at the date the impairment is reversed shall not exceed what the amortised cost would have been had the impairment not been recognised. Page 15 SHANGHAI TYRE & RUBBER CO., LTD. 3. PRINCIPAL ACCOUNTING POLICIES (CONTINUED) (l) Financial instruments (continued) Investments other than held-to-maturity debt securities are classified as either investments held for trading or as available-for-sale, and are measured at subsequent reporting dates at fair value. Where securities are held for trading purposes, gains and losses arising from changes in fair value are included in profit or loss for the period. For available-for-sale investments, gains and losses arising from changes in fair value are recognised directly in equity, until the security is disposed of or is determined to be impaired, at which time the cumulate gain or loss previously recognised in equity is included in the profit or loss for the period. For investment in an equity instrument that does not have a quoted market price in active market and for which other methods of reasonably estimating fair value are clearly inappropriate or unworkable, the instrument would be measured at cost, subject to review of impairment. Impairment losses recognised in profit or loss for equity investments classified as available-for-sale are not subsequently reversed through profit or loss. Impairment losses recognised in profit or loss for debt instruments classified as available-for-sale are subsequently reversed if an increase in the fair value of the instrument can be objectively related to an event occurring after the recognition of the impairment loss. (iii) Cash and cash equivalents Cash represents cash in hand and deposits with any banks or other financial institutions which are repayable on demand. Cash equivalents represent short-term, highly liquid investments which are readily convertible into known amounts of cash and which are within three months of maturity when acquired, less advances from banks repayable within three months from dates of the advances. (iv) Bank borrowings Interest-bearing bank loans and overdrafts are initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest rate method. Any difference between the proceeds (net of transaction costs) and the settlement or redemption of borrowings is recognised over the term of the borrowings in accordance with the Group’s accounting policy for borrowing costs (see below). (v) Trade payables Trade payables initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest rate method. Page 16 SHANGHAI TYRE & RUBBER CO., LTD. 3. PRINCIPAL ACCOUNTING POLICIES (CONTINUED) (m) Operating leases Leases where substantially all the rewards and risks of ownership of assets remain with the leasing company are accounted for as operating leases. Rental payments under operating leases are charged to the income statement on a straight-line basis over the period of the relevant leases. (n) Provisions A provision is recognised when, and only when an enterprise has a present obligation (legal or constructive) as a result of a past event and it is probable (i.e. more likely than not) that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. Where the effect of the time value of money is material, the amount of a provision is the present value of the expenditure expected to be required to settle the obligation. (o) Contingencies Contingent liabilities are not recognised in the consolidated financial statements. They are disclosed unless the possibility of an outflow of resources embodying economic benefits is remote. A contingent asset is not recognised in the consolidated financial statements but disclosed when an inflow of economic benefits is probable. (p) Staff welfare and retirement benefits The Group is required to provide certain staff welfare and retirement benefits to its employees under the existing PRC legislation. The Group’s obligation, including a contribution to a defined contribution retirement plan administered by a government agency, is usually determined based on a certain percentage of the basic salary of the employees. The Group accounts for these contributions on an accrual basis. (q) Foreign currency translations Individual companies in the Group maintain their books and accounting records in RMB, which is not a freely convertible currency. Foreign currency transactions are translated into RMB at the rates of exchange prevailing at the time of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated into RMB at the rates of exchange prevailing at that date; non-monetary assets and liabilities denominated in foreign currencies are translated at historical rates. Page 17 SHANGHAI TYRE & RUBBER CO., LTD. 3. PRINCIPAL ACCOUNTING POLICIES (CONTINUED) (q) Foreign currency translations (continued) Exchange differences attributable to the translation of foreign currency borrowings used to finance the construction of buildings and installation of machinery and equipment, for periods prior to their being in a condition to enter service, are included in the cost of construction in progress or the related properties, plant and equipment. Other exchange differences are dealt with in the income statement. (r) Taxation Income tax expense represents the sum of the tax currently payable and deferred tax. The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the income statement because it excludes items of income or expenses that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries, associated companies and joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset realised. Deferred tax is charged or credited to profit or loss, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Page 18 SHANGHAI TYRE & RUBBER CO., LTD. 3. PRINCIPAL ACCOUNTING POLICIES (CONTINUED) (r) Taxation (continued) Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis. (s) Borrowing costs Borrowing costs are expensed as incurred except that borrowing costs directly attributable to the construction of buildings and installation of machinery and equipment that require a substantial period of time to bring them to their intended use are capitalised as cost of the buildings and machinery and equipment at rates based on the actual cost of the specific borrowings. (t) Revenue recognition Provided it is probable that the economic benefits associated with a transaction will flow to the company and the revenue and costs, if applicable, can be measured reliably, revenue is recognised on the following bases: (i) Sales of goods are recognised when the significant risks and rewards of ownership of goods have been transferred to the buyers. (ii) Interest income is recognised on a time proportion basis that take into account the effective yield on the assets. (u) Government grants Grants from the government are recognised at their fair value when there is a reasonable assurance that the grant will be received and all attached conditions are complied with. When the grant relates to an expense item, it is recognised as income over the period necessary to match the grant, on a systematic basis, to the costs which it is intended to compensate. Where the grant relates to an asset, the fair value is deducted in arriving at the carrying amount of the related asset. Page 19 SHANGHAI TYRE & RUBBER CO., LTD. 3. PRINCIPAL ACCOUNTING POLICIES (CONTINUED) (v) Use of estimate The preparation of the financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. 4. TURNOVER Turnover represents invoiced value (excluding VAT) of goods supplied to customers, net of returns, business tax, consumption tax and surtaxes. 2005 2004 RMB’000 RMB’000 Gross sales 5,077,963 4,722,464 Less: Sales returns, consumption tax, business tax and surtaxes (Note 9(c), (d) and (e)) (83,561) (96,813) Net sales 4,994,402 4,625,651 5. OTHER OPERATING INCOME 2005 2004 RMB’000 RMB’000 Rental income, net 24,938 18,827 Service income, net 18,050 18,050 Usage of trademark, net 10,738 10,039 Government subsidies 1,561 3,943 Others 7,580 6,733 62,867 57,592 Page 20 SHANGHAI TYRE & RUBBER CO., LTD. 6. OTHER GAINS AND LOSSES 2005 2004 RMB’000 RMB’000 Gain on disposal of a business - 84,192 Gain on disposal of intangible assets 47,410 - Gain on disposal of investments in unconsolidated subsidiaries and associates 4,316 - Loss on dilution of shareholdings in associates (1,724) - (Loss)/gain on disposal of property, plant and equipment (14,964) 14,855 Gain on liquidation of an associate - 3,439 Income from other investments 709 1,858 Compensation received - 1,592 (Loss)/gain on disposal of available-for-sale investments (4,558) 510 Others (6,387) 13,846 24,802 120,292 7. FINANCE COSTS 2005 2004 RMB’000 RMB’000 Bank interest income 5,321 6,883 Interest expense on bank loans (118,515) (100,910) (113,194) (94,027) Page 21 SHANGHAI TYRE & RUBBER CO., LTD. 8. PROFIT BEFORE TAXATION 2005 2004 RMB’000 RMB’000 Profit before taxation was determined after charging: Depreciation of property, plant and equipment 159,989 137,758 Operating leases – land use rights and buildings 4,901 Staff costs 199,550 Provision for impairment losses:- - Unconsolidated subsidiaries 5,002 1,686 - Other long-term investments 5,393 440 Amortisation:- - Deferred assets 31,745 20,278 - Intangible assets 5,219 4,798 - Goodwill - 5,472 Exchange loss, net 12,503 - and crediting: Provision for bad debts written back 46,034 185,171 Exchange gain, net - 1,690 9. TAXATION (a) Enterprise Income Tax (“EIT”) 2005 2004 RMB’000 RMB’000 Current taxation - Provision for the year 1,975 7,872 - Over provision in prior years (5,065) - (3,090) 7,872 The Company is subject to EIT at a rate of 33% on its taxable income. As certain consolidated subsidiaries enjoy preferential EIT treatment, consolidated subsidiaries of the Company are subject to EIT at rates ranging from 15% to 33% on their taxable income. Page 22 SHANGHAI TYRE & RUBBER CO., LTD. 9. TAXATION (CONTINUED) (b) Value Added Tax (“VAT”) The Group is subject to VAT, which is charged on top of the selling price. VAT is levied at the general rate of 13% or 17% on the gross turnover from sale of goods, processing or repairing services. An input credit is available whereby VAT previously paid on the purchase of semi-finished products or raw materials can be used to offset the VAT on sales to determine the net VAT payable. (c) Consumption Tax (“CT”) The Group is subject to CT at 8% or 10% of its domestic sales of truck and passenger car tyres, and sales of soaps. (d) Business Tax (“BT”) The Group is subject to BT at 3% to 7% of its sales of real estate properties and other service business. (e) Surtaxes The Group is subject to the following surtaxes: - City Construction Tax, a tax levied at 7% of CT, BT and net VAT payable; - Education Surcharge, a tax levied at 3% of CT, BT and net VAT payable. 10. PROFIT PER SHARE The calculation of basic profit per share is based on the consolidated net profit after taxation and minority interests attributable to shareholders of RMB119,271,000 (2004 : RMB326,320,000) divided by 889,467,722 shares in issue throughout 2004 and 2005. Page 23 SHANGHAI TYRE & RUBBER CO., LTD. 11. SEGMENT INFORMATION (a) Primary reporting format – business segments In 2005, the Group was reorganised into two major operating divisions – production and sale of rubber tyres and soaps. This is the basis on which the Group reports its primary segment information. Rubber tyres Soaps Others Consolidated 2005 2004 2005 2004 2005 2004 2005 2004 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 REVENUE Total revenue 4,111,732 3,618,770 314,805 394,192 567,865 612,689 4,994,402 4,625,651 RESULT Segment result 260,435 223,882 (53,825) (4,724) 11,203 168,959 217,813 388,117 Unallocated (income)/ expenses (12,153) 1,858 Profit from operations 205,660 389,975 Finance costs (113,195) (94,027) Gain on liquidation of a subsidiary - 47,002 Share of results of unconsolidated subsidiaries and associates 1,324 (42,292) (2,402) (4,353) (18,272) 4,547 (19,350) (42,098) Profit before taxation 73,115 300,852 Income tax (3,090) (8,158) Profit for the year 70,025 292,694 Page 24 SHANGHAI TYRE & RUBBER CO., LTD. 10. SEGMENT INFORMATION (CONTINUED) (a) Primary reporting format – business segments (continued) Rubber tyres Soaps Others Consolidated 2005 2004 2005 2004 2005 2004 2005 2004 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 ASSETS Segment assets 4,557,100 3,972,798 299,484 503,370 694,519 717,930 5,551,103 5,194,098 Interest in unconsolidated subsidiaries 5,037 5,568 - - 25,424 31,629 30,461 37,197 Interests in associates 71,231 40,786 14,157 11,647 232,628 133,030 318,016 185,463 Unallocated assets 134,768 113,615 Consolidated total assets 6,034,303 5,530,373 LIABILITIES Segment liabilities 3,570,408 2,965,169 350,428 481,806 472,247 549,211 4,393,083 3,996,186 Unallocated liabilities 219 218 Consolidated total liabilities 4,393,302 3,996,404 OTHER INFORMATION Depreciation 133,535 104,214 13,025 19,219 13,429 14,326 159,989 137,758 Amortisation 31,774 20,277 1,233 3,619 3,957 6,651 36,964 30,549 Impairment loss - - - 1,686 - 440 - 2,126 (b) Secondary reporting format – geographical segments In 2005, over 90% of the turnover of the Group was generated from business activities in the PRC. Page 25 SHANGHAI TYRE & RUBBER CO., LTD. 12. PROPERTY, PLANT AND EQUIPMENT Furniture Machinery fixtures and and Motor office Buildings equipment Vehicles equipment Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Cost: At 1 January 2004 1,031,050 2,232,902 59,005 81,334 3,404,291 Additions 1,993 5,754 3,083 4,832 15,662 Transferred from construction in progress 7,829 174,849 3,344 2,700 188,722 Transferred from inventories 63,376 - - - 63,376 Subsidiary previously not consolidated - 18,526 - - 18,526 Liquidation of a subsidiary (59,887) (80,806) (1,939) (586) (143,218) Transferred to investments - (747) - - (747) Disposal of a subsidiary (6,610) (6,403) (376) (124) (13,513) Disposals (47,862) (32,026) (4,841) (257) (84,986) At 31 December 2004 989,889 2,312,049 58,276 87,899 3,448,113 Additions 64,312 10,369 518 4,085 79,284 Transferred from construction in progress 206,390 464,737 11,192 20,927 703,246 Disposals (41,002) (112,718) (6,273) (7,022) (167,015) At 31 December 2005 1,219,589 2,674,437 63,713 105,889 4,063,628 Accumulated depreciation and impairment losses: At 1 January 2004 377,063 1,364,164 43,179 65,087 1,849,493 Charge for the year 32,314 95,676 4,392 5,376 137,758 Transferred from inventories 13,636 - - - 13,636 Subsidiary previously not consolidated - 2,605 - - 2,605 Liquidation of a subsidiary (27,191) (57,195) (1,632) (522) (86,540) Translated to investments - (214) - - (214) Disposal of a subsidiary (3,366) (5,852) (338) (112) (9,668) Written back on disposal (20,759) (19,475) (4,386) (237) (44,857) At 31 December 2004 371,697 1,379,709 41,215 69,592 1,862,213 Charge for the year 31,719 115,732 4,783 7,755 159,989 Written back on disposal (24,002) (109,003) (6,332) (6,682) (146,019) At 31 December 2005 379,414 1,386,438 39,666 70,665 1,876,183 Net book value: At 31 December 2005 840,175 1,287,999 24,047 35,224 2,187,445 At 31 December 2004 618,192 932,340 17,061 18,307 1,585,900 As of 31 December 2005, properties with a net book value of RMB5,767,000 (2004 : RMB15,013,000) were pledged as collateral for the Group’s bank loans (Note 24). Page 26 SHANGHAI TYRE & RUBBER CO., LTD. 13. CONTRUCTION IN PROGRESS 2005 2004 RMB’000 RMB’000 Costs of construction, machinery and equipment and other direct costs 358,314 472,261 Less: Provision for impairment losses (873) (39,831) 357,441 432,430 As of 31 December 2005, properties under construction at cost of RMB153,893,000 were pledged as collateral for the Group’s bank loans (Note 24). 14. DEFERRED ASSETS Utility capacity Property Technical expansion occupancy Moulds know-how charges rights Others Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 At 1 January 2004 37,622 11,117 5,464 570 2,611 57,384 Additions 9,978 - - - - 9,978 Liquidation of a subsidiary - - (78) - - (78) Amortisation for the year (11,807) (5,558) (2,024) (285) (603) (20,277) At 31 December 2004 35,793 5,559 3,362 285 2,008 47,007 Additions 57,371 - - - - 57,371 Amortisation for the year (23,989) (5,559) (1,619) (285) (293) (31,745) At 31 December 2005 69,175 - 1,743 - 1,715 72,633 Page 27 SHANGHAI TYRE & RUBBER CO., LTD. 15. INTANGIBLE ASSETS Land use rights Trademarks Total RMB’000 RMB’000 RMB’000 Cost: At 1 January 2004 95,494 33,258 128,752 Additions 11,700 - 11,700 Liquidation of a subsidiary (39,224) - (39,224) At 31 December 2004 67,970 33,258 101,228 Additions 39,832 - 39,832 At 31 December 2005 107,802 33,258 141,060 Accumulated amortisation: At 1 January 2004 19,199 6,779 25,978 Amortisation for the year 2,902 1,896 4,798 Liquidation of a subsidiary (4,184) - (4,184) At 31 December 2004 17,917 8,675 26,592 Amortisation for the year 3,322 1,897 5,219 At 31 December 2005 21,239 10,572 31,811 Net book value: At 31 December 2005 86,563 22,686 109,249 At 31 December 2004 50,053 24,583 74,636 All land in the PRC is owned by the State or is subject to collective ownership and neither individuals nor legal entities may own land. The remaining lease terms range from 21 to 45 years. Trademarks represented the overseas registration expenses of the Group’s brand names “Warrior” and “Double Coin” and acquisition costs of “White Elephant Swan”. Page 28 SHANGHAI TYRE & RUBBER CO., LTD. 16. GOODWILL RMB’000 Cost: At 1 January 2004 164,717 Liquidation of a subsidiary (1,076) At 31 December 2004 163,641 Elimination of amortization accumulated prior to the adoption of IFRS 3 (see note 2) (130,186) At 31 December 2005 33,455 Accumulated amortisation: At 1 January 2004 125,958 Charge for the year 4,524 Liquidation of a subsidiary (296) At 31 December 2004 130,186 Elimination of amortization accumulated prior to the adoption of IFRS 3 (see note 2) (130,186) At 31 December 2005 - Net book value: At 31 December 2005 33,455 At 31 December 2004 33,455 Page 29 SHANGHAI TYRE & RUBBER CO., LTD. 17. INTERESTS IN UNCONSOLIDATED SUBSIDIARIES 2005 2004 RMB’000 RMB’000 Cost of investments in unconsolidated subsidiaries 107,068 225,641 Share of post-acquisition results, net of dividend received (59,295) (170,248) Less : Provision for impairment losses (17,312) (18,196) 30,461 37,197 Details of the Group’s major unconsolidated subsidiaries as of 31 December 2005 were as follows: Percentage Name Location Registered capital owned Principal activities 2005 2004 2005 2004 RMB’000 RMB’000 Shanghai Taihua Taxi Shanghai 4,200 4,200 90% 90% Provision of Co., Ltd. transportation and repairs services Shanghai Tyre and Shanghai 5,000 5,000 100% 100% Provision of land Rubber Group transportation Transportation Co., services Ltd. Shanghai Tyre & Shanghai 5,530 5,530 67.84% 67.84% Trading of rubber Rubber (Group) materials and United Co., Ltd. related chemical materials The above subsidiaries were not consolidated as they were immaterial to the Group. The English names of the unconsolidated subsidiaries are direct translations of their registered names in Chinese. Page 30 SHANGHAI TYRE & RUBBER CO., LTD. 18. INTERESTS IN ASSOCIATES 2005 2004 RMB’000 RMB’000 Cost of investments in associates 498,298 349,870 Share of post-acquisition results, net of dividend received (178,459) (163,531) Less : Provision for impairment losses (6,761) (876) 313,078 185,463 Details of the Group’s principal associates as of 31 December 2005 were as follows: Duration of Percentage Name operation Registered capital owned Principal activities 2005 2004 2005 2004 ’000 ’000 Shanghai Michelin No fixed RMB663,200 RMB663,200 28.51% 28.51% Production and sale of Warrior Tire Co., Ltd. duration rubber tyres and related products Unicentury Holdings Co., 7/2001 to RMB60,000 RMB60,000 33.33% 33.33% Investment and Ltd. 7/2051 provision of (50 years) consultancy service business The English names of the associates are direct translations of their registered names in Chinese. Page 31 SHANGHAI TYRE & RUBBER CO., LTD. 18. INTERESTS IN ASSOCIATES (CONTINUED) Summarised financial information in respect of the Group’s principal associate is set out below: 2005 2004 RMB’000 RMB’000 Total assets 2,084,910 1,897,265 Total liabilities (1,694,144) (1,744,791) Net assets 390,766 152,474 Group’s share of associates’ net assets 113,156 45,567 Revenue 1,185,254 1,064,176 Loss for the year (61,707) (119,626) Group’s share of associates’ loss for the year (17,911) (33,839) 19. AVAILABLE-FOR-SALE INVESTMENTS 2005 2004 RMB’000 RMB’000 Non-publicly traded equity investments 76,455 76,455 Unlisted equity investments 39,911 42,867 Less: Provision for impairment losses (10,573) (5,708) 105,793 113,614 Page 32 SHANGHAI TYRE & RUBBER CO., LTD. 20. INVENTORIES 2005 2004 RMB’000 RMB’000 Raw materials 428,259 360,249 Work in progress 112,733 80,328 Finished goods 324,669 274,072 Properties for sale 32,379 30,925 898,040 745,574 21. ACCOUNTS AND NOTES RECEIVABLE 2005 2004 RMB’000 RMB’000 Accounts receivable 575,556 596,351 Notes receivable 170,106 238,132 Amount due from related companies (Note 32 (d)) 282,824 231,078 Less: Provision for doubtful debts (263,490) (280,230) 764,996 785,331 22. OTHER RECEIVABLES 2005 2004 RMB’000 RMB’000 Advanced settlement for acquisition of land use rights (Note) 201,998 208,153 Due from related companies (Note 32 (d)) 64,292 119,474 Others 140,709 100,215 406,999 427,842 Note: Included in advanced settlement for acquisition of land use rights was payment for acquisition of land use rights (Note 29(d)(ii)). Page 33 SHANGHAI TYRE & RUBBER CO., LTD. 23. CASH AND BANK DEPOSITS 2005 2004 RMB’000 RMB’000 Demand deposits 522,263 710,028 Cash on hand 344 674 522,607 710,702 As at 31 December 2005, bank balances of RMB132,825,000 (2004: RMB70,033,000) were pledged to banks to secure a bank loan and other banking facilities of the Group. 24. BANK LOANS 2005 2004 Interest rate Amount Interest rate Amount per annum RMB’000 per annum RMB’000 Unsecured, guaranteed by related companies and 3.30% 2,713,981 4.2% 2,714,205 non-related companies to 6.70% to 6.138% Secured by properties 5.31% to 73,000 5.31% 13,000 (Note 12 and 13) 6.42% to 6.588% Other secured loans 5.31% to 123,874 LIBOR plus 1% 37,145 (Note 23) 6.42% 2,910,855 2,764,350 Page 34 SHANGHAI TYRE & RUBBER CO., LTD. 24. BANK LOANS (CONTINUED) The borrowings are repayable as follows: 2005 2004 RMB’000 RMB’000 On demand or within one year 2,349,272 1,768,277 In the second year 28,093 762,739 In the third year 285,000 15,000 In the fourth year 85,000 253,068 In the fifth year 161,000 50,000 After five years 2,491 - 2,910,856 2,849,084 Less: Amount due for settlement within 12 months (shown under current liabilities) (2,349,272) (1,768,277) 561,584 1,080,807 25. TAXES PAYABLE 2005 2004 RMB’000 RMB’000 Consumption tax payable 138,677 169,935 Value added tax payable 11,450 34,381 Enterprise income tax payable (796) 7,508 Other taxes payable 16,164 17,543 165,495 229,367 Page 35 SHANGHAI TYRE & RUBBER CO., LTD. 26. SHARE CAPITAL As of 31 December 2005, outstanding share capital represented ordinary shares (“A Shares”) and domestically listed foreign investment shares (“B Shares”). The B Shares ranked pari passu in all respects with the A Shares. Details of share capital as of 31 December 2005 were as follows: 2005 2004 Share number RMB’000 Share number RMB’000 Authorised 889,467,722 889,468 889,467,722 889,468 Issued and fully paid State-owned shares 605,857,461 605,857 608,357,461 608,357 State-owned legal person shares 11,910,261 11,911 9,410,261 9,411 Legal person shares 5,720,000 5,720 5,720,000 5,720 Other A Shares 22,880,000 22,880 22,880,000 22,880 B Shares 243,100,000 243,100 243,100,000 243,100 889,467,722 889,468 889,467,722 889,468 Note: On 23 May 2005, the Company’s holding company transferred 2,500,000 state-owned shares it held to Shanghai Social Insurance Management Centre. Such shares were changed from state-owned shares to State-owned legal person shares. Page 36 SHANGHAI TYRE & RUBBER CO., LTD. 27. RESERVES (a) In accordance with the Company Law of the PRC, the Company shall record the following as capital surplus: (i) share premium arising from issue of shares; (ii) surplus arising from revaluation of assets; and (iii) other items prescribed by the government regulations. Capital surplus can only be utilised to offset a deficit or issue bonus shares. (b) The PRC laws and regulations require PRC joint stock limited companies to provide for certain statutory reserves which are to be appropriated from the net profit as reported in the Statutory Accounts. All statutory reserves are created for specific purposes. The Company is required to appropriate 10% of its net profit as reported in the Statutory Accounts to the statutory surplus reserve fund (“SSRF”); such appropriation is optional when the SSRF has reached 50% of its share capital. The SSRF can only be used, upon approval by the relevant authority, to offset a deficit or issue bonus shares. Except for the reduction of losses incurred, other usage should not result in the statutory surplus reserve falling below 25% of the registered capital. The Company is also required to appropriate 5% to 10% of its net profit to the statutory public welfare fund (“SPWF”), which can only be used on capital expenditure for the collective welfare of the employees. (c) Discretionary surplus reserve fund (“DSRF”) represents appropriations made at the discretion of the board of directors of the Company and approved by the shareholders. (d) In accordance with the articles of association, provisions of SSRF and SPWF should be based on after-tax profit determined in accordance with PRC accounting standard and regulations. After the issuance of the B Shares, the amount of profit available for distribution to the shareholders shall be determined based on the lower of the unappropriated profit determined under the accounting principles and financial regulations applicable in the PRC and that determined under IFRS. (e) Pursuant to the resolution approved by the shareholders at the 2004 annual meeting held in 2005, capital reserves, SSRF and DSRF of RMB552,451,000, RMB96,398,000 and RMB147,870,000 respectively were utilised to offset a deficit of RMB796,719,000. Page 37 SHANGHAI TYRE & RUBBER CO., LTD. 28. PRINCIPAL SUBSIDIARIES Details of the Company’s consolidated subsidiaries as of 31 December 2005 were as follows: Name Location Percentage of ownership Principal activities Direct Indirect Shanghai Xing Ye Development Shanghai 90% 7.98% Trading of rubber products, Company building materials and electrical parts Shanghai Tyre & Rubber Real Shanghai - 100% Property development Estate Management Company Shanghai Tyre & Rubber Trading Shanghai 90% 10% Trading of rubber tyres and Company rubber products Shanghai Tyre & Rubber Co., Ltd Shanghai 79.75% - Production of inner tubes Si Jin Rubber Factory Shanghai Dong Hai Rubber Factory Shanghai 65% - Production of rubber tyres Shanghai Da Fu Rubber Co., Ltd. Shanghai 90% 10% Production and sale of rubber tyres Luoyang Hai Hong Tyre Co., Ltd. Luoyang 50.42% - Production and sale of rubber tyres Shanghai Soap (Group) Co., Ltd. Shanghai 60% - Production and sale of various kinds of soaps Moltech Holdings Corporations The British - 70% Investment holding Virgin Islands Shanghai White Elephant Swan Shanghai 100% - Production and sale of Battery Co., Ltd. batteries and accessories Tyre Research Institute Shanghai 100% - Research and development of tyres Shanghai Tyre & Rubber Rugao Rugao 81.83% - Investment activities and sales Investments Co., Ltd. agency of rubber tyres and related products Page 38 SHANGHAI TYRE & RUBBER CO., LTD. 28. RESERVES (CONTINUED) Name Location Percentage of ownership Principal activities Direct Indirect Shanghai Tyre & Rubber Rugao Rugao 75% - Production and sales of rubber Co., Ltd. tyres and related products Shanghai Shuangqian Biyuan Shanghai 90% - Properties development Properties Ltd. The English names of the subsidiaries are direct translations of their registered name in Chinese. 29. RELATED PARTY TRANSACTIONS The ultimate holding company of the Group is Shanghai Hua Yi (Group) Company (“Hua Yi”) (incorporated in the PRC). Transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed in this note. Details of transactions between the Group and other related parties are disclosed below. (a) Trading transactions During the year, the Company had the following significant transactions with its ultimate holding company, unconsolidated subsidiaries and associates: 2005 2004 RMB’000 RMB’000 Sale of products to: - Associates 82,471 73,520 - A related company 698,071 470,571 Purchases from: - Unconsolidated subsidiaries and associates 86,816 201,642 - Related companies 88,087 78,483 Trademark fee income from an associate 10,000 10,000 Rental and utilities income from an associate 6,514 11,925 Service fee income from an associate 19,000 19,000 Page 39 SHANGHAI TYRE & RUBBER CO., LTD. 28. RELATED PARTY TRANSACTIONS (CONTINUED) (b) Balances with related parties (i) The balances due from unconsolidated subsidiaries and associates were unsecured, non-interest bearing and with no predetermined repayment terms. (ii) The balances due to unconsolidated subsidiaries, associates and ultimate holding company were unsecured, non-interest bearing and with no predetermined repayment terms. (iii) The balances due from/(to) the related companies were unsecured, non-interest bearing and have no predetermined repayment terms. (c) Compensation of key management personnel The remuneration of directors and other members of key management during the year was RMB3,234,000 (2004: RMB2,781,000). (d) Other related party transactions (i) Pursuant to an assets exchange agreement dated 21 December 2002, the Company transferred receivables of approximately RMB84,017,000 from its former subsidiary, Shanghai Da Fu Rubber Co., Ltd. to the ultimate holding company in exchange for certain of land use rights valued professionally at approximately RMB83,518,000. As at 31 December 2005, the ownership of such land use rights had not been transferred to the Company. The advanced settlement of the land use rights is included in other receivables. (ii) On 5 December 2003, the Company entered into an asset exchange agreement with the ultimate holding company whereby the Company transferred other receivables with a net book value of approximately RMB124,136,000 to the ultimate holding company in exchange for certain land use rights valued professionally at RMB151,094,000. Under the agreement, all relevant costs and taxes arising from the exchange of assets would be borne by the Company. As at 31 December 2005, the ownership of the land use rights had not been transferred to the Company. The advanced settlement of the land use rights is included in other receivables. (iii) During the year, the Group transferred its other receivables to the ultimate holding company in exchange for certain land use rights at RMB70,047,000. Page 40 SHANGHAI TYRE & RUBBER CO., LTD. 30. COMMITMENTS (a) Capital commitments As at 31 December 2005, the Group had commitments to purchase plant, machinery and equipment as follows: 2005 2004 RMB’000 RMB’000 Contracted for but not provided 55,188 534,188 (b) Operating lease commitments At 31 December 2005, the Group had outstanding commitments under non-cancellable operating leases, which fall due as follows: 2005 2004 RMB’000 RMB’000 Within one year 2,466 3,181 In the second to fifth years inclusive 5,824 4,833 After five years 9,930 16,245 18,220 24,259 31. PENSION SCHEMES Pursuant to PRC laws and regulations, contributions to basic old age insurance for the Group’s local staff have been made monthly to a government agency based on 29.5% of the standard salary set by the provincial government, of which 22.5% is borne by the Company and the remainder is borne by the staff. The government agency is responsible for the pension liabilities relating to such staff on their retirement. Page 41 SHANGHAI TYRE & RUBBER CO., LTD. 32. CONTINGENT LIABILITIES As of 31 December 2005, the Group had the following significant contingent liabilities: 2005 2004 RMB’000 RMB’000 Guarantees given to secure the credit facilities of: Certain unconsolidated subsidiaries and associates - 480 Others 26,000 45,433 26,000 45,913 33. FINANCIAL INSTRUMENTS The following methods and assumptions were used to estimate the fair value of each major class of the Group’s financial instruments: (a) Fair values (i) Cash and cash equivalents and short-term bank borrowings The carrying amounts approximate their fair values because these assets or liabilities either carry a current rate of interest or have a short period of time between the origination of the cash deposits or borrowings and their expected maturity. (ii) Other investments The carrying amounts approximate their market values. (iii) Notes receivable and payables, trade receivables and payables and loans to non-related parties The carrying amounts approximate their fair values. (iv) Balances with related parties Credit balances with related parties approximate their fair value because these are subject to normal commercial terms. No disclosure of fair values is made for other balances with related parties as it is not practicable to determine their fair values with sufficient reliability since these balances are non-interest bearing and have no fixed repayment terms. Page 42 SHANGHAI TYRE & RUBBER CO., LTD. 35. FINANCIAL INSTRUMENTS (CONTINUED) (b) Concentration of risks (i) Credit risk The carrying amounts of cash and cash equivalents, short-term investments, notes receivable, trade receivables, loans to non-related parties and amounts due from related parties represent the Group’s maximum exposure to credit risk in relation to financial assets. No other financial assets carry a significant exposure to credit risk. (ii) Interest rate risk The interest rates and terms of repayments of bank borrowings are disclosed in Notes 24 & 26. 34. IMPACT OF IFRS ADJUSTMENTS ON PROFIT FOR THE YEAR AND EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT The Statutory Accounts of the Group are prepared in accordance with PRC accounting standards and regulations applicable to joint stock limited companies. These accounting principles differ in certain significant respects from IFRS. The effects of these differences on profit for the year ended 31 December 2004 attributable to equity holders of the parent and equity attributable to equity holders of the parent at that date are summarised as follows: Profit for the Equity year attributable attributable to to equity holder equity holders of the parent of the parent RMB’000 RMB’000 As determined pursuant to PRC accounting standards and regulations 129,155 1,480,313 Recognition of losses of subsidiaries in excess of the Company’s investment costs in profit and loss account (8,184) - Recognition of losses attributable to the minority over their contribution in the Company’s accounts (315) (12,969) Difference in amortization of goodwill (413) (413) Pre-operating expenses written off (972) (3,278) As determined pursuant to IFRS 119,271 1,463,653 Page 43 SHANGHAI TYRE & RUBBER CO., LTD. 35. COMPARATIVE FIGURES Certain comparative figures have been reclassified to confirm with current year’s presentation. Page 44 SHANGHAI TYRE & RUBBER CO., LTD. CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2005 Contents Pages Auditors’ Report 1 Consolidated income statement 2 Consolidated balance sheet 3&4 Consolidated statement of changes in shareholders’ equity 5 Consolidated statement of cash flows 6&7 Notes to the consolidated financial statements 8 to 42 SHANGHAI TYRE & RUBBER CO., LTD. (Incorporated in the People’s Republic of China) CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2005