0. 2005 Interim Results Announcement
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2005 Interim Results Announcement
Sinotrans Limited
August 26, 2005

1. Forward-Looking Statement Disclaimer
This Presentation and subsequent discussions may contain forward-looking statements that involve risks and uncertainties. These statements are generally indicated by the use of forward-looking terminology such as believe, expect, anticipate, estimate, plan, project, target, may, will or may be expressed to be results of actions that may or are expected to occur in the future. You should not place undue reliance on these forward-looking statements, which reflect our belief only as of the date of this presentation. These forward-looking statements are based on our own information and on information from other sources we believe to be reliable. Our actual results may be materially less favourable than those expressed or implied by these forward-looking statements which could depress the market price of our shares.

2. Outlook and Strategic Focus
Table of Contents
2005 Interim Highlights
Outlook and Strategic Focus
Conclusion
3 – 14
15 – 16
17 –18
Thank you once again to dial in and attend the teleconference today. I’d like to go through with you the interim results of Sinotrans for year 2005.
First of all, we’ll look at
Interim performance highlights; then,
2. The industry outlook and our strategic focus

3. Interim Highlights

4. Interim Summary Highlights
Steady IH revenue growth of 33.7% and Profit attributable to equity holders of the Company growth of 32.5%
Freight forwarding remained as the core business of the Group
Freight forwarding, storage and terminal service and the marine transport businesses continued to bring significant growth
The increase in the price of international marine transportation stimulated our revenue growth
Continuous efforts in restructuring business resources and developing new products
Rapid development of NVOOC business
Better customer structure
Development of extended value-added services
Improving marine transportation business
Better management and operational efficiency and cost control
The market remains competitive in But the management is happy to report a strong growth in the first half.
Profit attributable to equity holders of the Company grew 32.5 per cent to RMB498.7 million in the first half this year, while turnover surge a comparative 33.7 per cent to RMB13.25 billion.
During the period, Sinotrans made significant efforts in optimizing our business resources. As a result, the NVOOC business handled by our overseas network grew considerably compared to a year earlier.
Besides, we also saw better customer structure, meaning a better revenue stream for our freight forwarding business. The project-based and exhibition transportation business segment also developed in the first half and we saw it as an extended service to cater the needs for our customers.
Our company reform – meaning better management and operational efficiency also yielded results.

5. Strong Financial Performance
Turnover from Continuing Operations
Operating Profit from Continuing Operations
(RMB mm)
(RMB mm)
700.0
600.0
654.3
13,074.0
500.0
533.2
8000.0
400.0
9,754.4
300.0
6000.0
200.0
4000.0
100.0
2000.0
1H 2004
1H 2005
1H 2004
1H 2005
Profit Attributable to Equity Holders of the Company
EPS: RMB0.12
(RMB mm)
700.0
600.0
500.0
400.0
498.7
Dividend: RMB per share
300.0
During the period, turnover grew 33.7 per cent year on year to RMB13.25 billion.
Turnover from continuing operations rose 34 per cent year on year to RMB13.07 billion. Operating profit of continuing operations jumped 21.7 per cent year on year to RMB497 million.
Discontinued operations – which is the UPS express service, generated a turnover of RMB178 million in the first half, whereas operating profit reached RMB104 million, up 150 per cent year on year.
Total operating profit rose 22.7 per cent to RMB654.3 million.
Profit attributable to equity holders of the Company was RMB498.7million, which represents a jump of 32.5 per cent compared to RMB376.3 million in the same period of 2004.
We can see a better growth in business and profitability in our business compared to 2004.
376.3
200.0
100.0
1H 2004
1H 2005
Effective enhancing operational efficiency resulted in stable growth in financial performance
Stronger growth in our 2005 interim financial performance

6. Growing Turnover of Continuing Operations
Turnover Trend
Operating Turnover by Segment
(RMB mm)
34.0%
(RMB mm)
14,000.0
1H 04–1H 05
growth
14,000.0
13,000.0
9537.2
269.6
1083.4
1878.3
434.2
152.1
13,074.0
12,000.0
42.5%
12,000.0
26.8%
11,000.0
10,000.0
7158.5
231.6
818.9
1380.9
304.6
66.6
36.0%
10,000.0
9,000.0
9,754.4
8,000.0
8,000.0
32.3%
7,000.0
6,000.0
6,000.0
16.4%
5,000.0
4,000.0
4,000.0
33.2%
3,000.0
2,000.0
2,000.0
1,000.0
128%
1H 2004
1H 2005
1H 2004
1H 2005
Freight Forwarding
Express Services
Storage
Revenue
Growth
Shipping Agency
Marine Transportation
Other
Key drivers of revenue growth
Continued momentum in freight forwarding and marine transportation services; strong growth in storage and terminal services
Adopted aggressive marketing strategy and enhancement in operational efficiency
As said, our interim turnover of continuing operations grew 34 per cent in the first half this year – which is a stronger growth compared to the growth rate of 26.8 per cent last year.
All major business of the company saw strong revenue growth, especially freight forwarding, storage and terminal services and marine transportation.
The Group continued to restructure business resources this year. We developed new products, integrated marketing activities and enhanced service network to achieve economies of scale.
2005 Interim Turnover Contribution
(RMB mm) H H 2005
Freight Forwarding
7,158.5
9,537.2
231.6
269.6
Shipping Agency
Express Services
818.9
1,083.4
Marine Transportation
1,380.9
1,878.3
Storage and Terminal Services
304.6
434.2
Other
66.6
152.1

7. Improving Operating Profit Performance of Continuing Operations
Operating Profit Trend
Operating Profit by Segment
(RMB mm)
22.7%
(RMB mm)
1H 04–1H 05 growth
700.0
4.0
600.0
654.3
204.9
124.6
172.8
97.8
64.6%
600.0
533.2
500.0
155.3
110.9
166.6
87.5
59.4
42.4%
500.0
400.0
3.7%
400.0
300.0
300.0
12.4%
200.0
200.0
31.9%
100.0
100.0 NA
1H 2004
1H 2005
1H 2004
1H 2005
Freight Forwarding
Express Services
Storage
Revenue
Growth
Shipping Agency
Marine Transportation
Other
Note: After unallocated costs
Our 2004 interim operating profit of continuing operations grew to RMB million, up 22.7 per cent year on year.
Operating profit contributed by different businesses also saw significant growth.
Note: Before unallocated costs
Operating Profit Contribution
(RMB mm) H H 2005
Freight Forwarding
155.3
204.9
Growth in operating profit from freight forwarding, marine transportation business and storage and terminal business
Shipping Agency
110.9
124.6
Express Services
166.6
172.8
Marine Transportation
87.5
124.6
Storage and Terminal Services
59.4
97.8
Other
(0.7)
4.0
Note: Before unallocated costs

8. Key Business Lines Sinotrans Limited Core Services Support Services
Express
Services
Freight
Forwarding
Shipping
Agency
Storage & Terminal Services
Trucking
Marine
Transportation
Integrated Logistics
Turnover Contribution (1)
Operating Profit Contribution (2)
Let’s take a look closely to our business segments.
Our core services, including express services, freight forwarding and shipping agency, contributed to about 81.5 per cent to our turnover and 69 per cent to our operating profit.
Freight forwarding is still our largest business segment, representing approximately 71.4 per cent of our turnover and 28.2 per cent of our operating profit.
Total Revenue: RMB13.074bn
Total Operating Profit: RMB728.7mn
(1) Percentage contribution is before inter-segment eliminations
(2) Percentage contribution is before unallocated costs and exclude the negative operating profit from others
Freight Forwarding
Express Services
Shipping Agency
Marine Transportation
Storage & Terminal Services
Other

9. Freight Forwarding Operating Performance
Cargo Volume Growth
Turnover and Growth
(million TEUS) (Kilogram in million)
(RMB mm)
30.4%
150.0
10,000.0
33.2%
34.4%
9,000.0
16.0
23.5%
53.4%
154.4
8,000.0
14.0
30.1%
7,000.0
12.0
9,537.2
7,158.5
118.4
100.0
6,000.0
10.0
2.19
5,000.0
1.63
5,502.8
8.0
1.32
77.2
4,000.0
6.0
50.0
3,000.0
4.0
2,000.0
2.0
1,000.0
1H 2003
1H 2004
1H 2005
1H 2003
1H 2004
1H 2005
1H 2003
1H 2004
1H 2005
Number of TEU
Amount of cargo
Growth
Growth
Note: Before elimination adjustments
Operating Profit and Growth
A relatively fast business development pace with better customer structure
(RMB mm)
200.0
13.4%
31.9%
160.0
Turnover from our freight forwarding business grew 33.2 per cent year on year to RMB9.54 billion. Operating profit from this segment also rose 31.9 per cent to RMB204.9 million in the first half.
In operating terms, we handled 2.19 million teu of container in the first half, which was an increase of 34.4 per cent. The amount of cargo handled in our air freight forwarding services increased 30.4 per cent to 154,400 tonnes.
The growth in freight forwarding is a results of our ability to maintain a relatively fast business pace with better customer structure.
204.9
120.0
179.3
155.3
80.0
40.0
1H 2003
1H 2004
1H 2005
Note: Before unallocated costs

10. Express Services – the Performance of Continuing Operations
Packages Growth
Turnover and Growth
(Packages in millions)
(RMB mm)
7.0
1200.0
21.0%
32.3%
6.0
1000.0
1083.4
5.0
800.0
4.0
4.43
5.36
600.0
3.0
818.9
400.0
2.0
1.0
200.0
1H 2004
1H 2005
1H 2004
1H 2005
Growth
Growth
Note: Before elimination adjustments
Operating Profit and Growth
(RMB mm)
250.0
Enhanced marketing efforts resulted in rapid business growth
3.7%
200.0
The turnover from our continue operations of express services reached RMB 1.08 billion, representing an increase of 32.3 per cent. Total package handled rose 21 per cent to 5.36million.
150.0
172.8
166.6
100.0
50.0
1H 2004
1H 2005
Note: Before unallocated costs

11. Shipping Agency Operating Performance
Net Registered Vessel Tonnage
Turnover and Growth
(NRT in millions)
160.0
17.8%
(RMB mm)
16.4%
140.0
250.0
35.8%
120.0
200.0
4.04%
100.0
153.8
130.6
130.6
269.6
80.0
150.0
96.2
231.6
60.0
222.6
100.0
40.0
20.0
50.0
1H 2003
1H 2004
1H 2005
1H 2003
1H 2004
1H 2005
Growth
Growth
Note: Before elimination adjustments
Turnover and volume growth due to enhanced customer service and marketing efforts
Operating Profit and Growth
(RMB mm)
12.4%
140.0
10.8%
120.0
Turnover from our shipping agency services reached RMB million, representing an increase of 16.4 per cent from RMB million in the same period of last year.
In the first half this year, the number of containers handled was 4.33 million TEUs, an increase of 25.5 per cent. Net registered tonnage of vessels handled by our shipping agency services recorded million tonnes, a 17.8 per cent increase. The number of vessel calls we managed increased by 2.6 per cent to 31,331.
100.0
80.0
124.6
124.3
110.9
60.0
40.0
20.0
1H 2003
1H 2004
1H 2005
Growth
Note: Before unallocated costs

12. Storage and Terminal Services Operating Performance
Turnover and Growth
Operating Profit and Growth
(RMB mm)
(RMB mm)
500.0
105.0
400.0
42.5%
90.0
64.6%
75.0
300.0
17.7%
434.2
304.6
60.0
16.9%
97.8
200.0
258.8
45.0
30.0
100.0
59.4
50.8
15.0
1H 2003
1H 2004
1H 2005
Growth
1H 2004
1H 2005
1H 2003
Note: Before elimination adjustments
Note: Before unallocated costs
Growth
Turnover from our storage and terminal services reached RMB million, representing an increase of 42.5 per cent from RMB million in the same period of last year.
In the first half this year, the warehouse operated by Sinotrans handled 3.8 million tonnes of bulk cargo, up 2.7 per cent compared to 3.7 million tonnes for the same period of The number of containers handled rose 23.5 per cent to 2.1 million TEUs. The number of containers handled in terminals reached 652,000 TEUs, up 31.5 per cent.

13. Marine Transportation Operating Performance
Turnover and Growth
Operating Profit and Growth
(RMB mm)
(RMB mm)
2500.0
105.0
42.4%
200.0
90.0
36%
75.0
1500.0
1,878.3
119.3%
17.5%
60.0
124.6
1000.0
45.0
1,175.5
1,380.9
30.0
500.0
87.5
39.9
15.0
1H 2003
1H 2004
1H 2005
Growth
1H 2004
1H 2005
1H 2003
Note: Before elimination adjustments
Note: Before unallocated costs
Growth
Turnover from our marine transportation reached RMB 1.88 billion, representing an increase of 36 per cent from RMB 1.38 billion in the same period of last year.

14. Income Statement 1H 2005(1) 1H 2004(2) RMB mm Turnover 13,074.0
9,754.4
Other revenues
46.9
29.3
Total revenues
13,120.9
9,783.7
Operating costs (excl. Depreciation and amortization)
(9,969.1)
(7,356.4)
Depreciation and amortization
(129.0)
(107.7)
Operating profit
654.3
533.2
Net financial income
12.6
22.6
Share of results of associates
6.6
6.5
Profit before taxation
673.5
562.3
Profit for the period from continuing operations
Profit for the period from discountinued operations
497.4
104.3
408.6
41.7
The next slide is our income statement.
Profit for the period
Profit attributable to shareholders
Note: (1) 2005 interim profit and loss statement is un-audited.
(2) 2004 interim profit and loss statement is re-stated.

15. Balance Sheet Statement
RMB mm
1H 20051
20042
Cash and cash equivalents
4,962.5
4,722.7
Term deposits with initial term of over three months
1,013.6
924.9
Trade and other receivables
5,005.4
4,073.6
Others
628.1
497.1
Total current assets
11,609.6
10,218.3
Property, plant and equipment
2,198.0
1,896.7
Other non-current assets
1,016.4
959.3
Total non-current assets
Non-current assets classified as held for sale
3,214.4
9.0
2,856.0
Total assets
14,833.0
13,083.3
Borrowings
136.9
194.5
Trade payables
3,896.1
3,074.6
Other current liabilities
2,102.0
1,926.0
Total current liabilities
6,135.0
5,195.1
4.4
13.8
Deferred tax liabilities
6.7
1.5
449.8
69.3
Total non-current liabilities
460.9
84.6
Owner’s equity
7,122.7
6,768.5
Minority interests
1,114.4
1,035.1
Total equity and liabilities
Following slide is our balance sheet. You may go through it yourself later….
Note: interim balance sheet statement is un-audited
interim profit and loss statement is re-stated.

16. Cash Flow Statement 1H 20051 1H 20042 RMB mm
Net cash inflow from operating activities
367.3
243.0
Net cash (used in)/ provided from investing activities
(488.1)
119.7
Net cash used in from financing activities
(165.0)
(34.8)
Net (decrease) / increase in cash and cash equivalents
(285.8)
327.9
Next is our cash flow statement…
Note: interim cash flow statement is un-audited.
interim profit and loss statement is re-stated.

17. 2. Outlook and Strategic Focus
Now, let’s look at the market outlook and our strategic focus going forward.

18. Company Strategies
Strengthen business integration and enhance operational quality to improve business efficiency 1
Improve the service network and to expand NVOCC business 2
Open up new revenue resources by developing new services and new products 3
Optimize marketing and customer management to enhance management level and cost control 4
Enjoy ongoing business growth in the ever-changing logistics and transportation market to cope with external trade and seasonal change in the industry in the second half of 2005
To retain our market leadership, we will continue to work on our 4 core strategies.
Strengthen business integration and enhance operational quality to improve business efficiency
Improve service network and expand NVOOC business
Open up new revenue resources by developing news services and new products
Optimize marketing and customer management to enhance management level and cost control

19. 3. Conclusion
To conclude…

20. Conclusion Extensive Network Full Service Capabilities
Market Leadership
Strong Brand Recognition
Valuable Strategic Relationships
We expect the market will remain competitive in the second half of But Sinotrans is well prepared to face the challenges. We are confident to achieve strong business growth riding on the rapid economic development in China.
With our competitive strength – our nationwide network, experienced management and brand recognition, we believe we will continue to be the winner in the market.
Superior Financial Performance
Experienced Management Team
Strong Sector Growth in China

21. - Thank You - Thank you for your kind attention…
We should now proceed to the Q&A session….