PART A

Income Statements

Income statement   2015 2014 2013

Note
Income statement as reported RMB million RMB million RMB million
s
         
Revenue  
403,616 366,042 331,798

Other Income   3,000 2,414 2,054

    406,616 368,456 333,852

         
Operating expenses:        
Raw material, consumables, services, subcontracted
work   247284 234960 212470
personal expenses   86993 75224 68241
other expenses   35369 27761 24770
depreciation, ammortization, Impairment   11916 8502 9563

    381,562 346,447 315,044

         
other gains   744 1776 767
share in profit   384 339 222
         

operating result   26,182 24,124 19,797

         
Finance income and cost        
Finance income   3701 3588 2428
Finance Cost   10212 10108 6373
         

Profit before tax   19,671 17,604 15,852

income tax   3758 3721 3580
         

net profit   15,913 13,883 12,272

Common Size income Statement
year ended December 31   2015 2014 2013 2015 2014

Income statement as RMB

Notes RMB million RMB million % %
reported million

Revenue   100 100

403,616 366,042 331,798
Cost of Sales (A)   87.7 89.3
-353,862 -326,770 -297,860
Gross Profit  
49,754 39,272 33,938 12.30% 10.70%
Selling and marketing
  0.20
expenses (A) 696 528 480
0.1
Other andAdministrative
 
expenses 27,004 19,149 16,704
6.7 5.
Finance income  
3,701 3,588 2,428 0.9 1.0
Finance cost, net  
10,212 10,108 6,373 2.5 2.
other income  
4,128 4,529 3,043 1 1.
profit before tax  
19,671 17,604 15,852 4.87% 4.81%
income tax   3758 3721 3580 0.93% 1.02%
net income
  15,913 13,883 12,272 3.94% 3.79%
 Part B)
Analysis

Revenue has increased each year from 2013 to 2015. It has increase
Sale 10% (366042-331798/331798) from 2013-2014 and 10.3% (403616-
  366042/366042) from 2014-2015.
Gross profit Gross profit has improved 0.5% (10.7-10.2) from 2013 to 2014 and
margin GP = GP/ sales *100 1.6% (10.7-12.3) from 2014 to 2015.
IC = interest/profit Interest cover is 0.4 in 2013, 0.73 in 2014 and 0.64 in the year
interest cover before tax 2015.
Net profit margin for the year 2013 is 3.7% (12272/331798), 3.79%
(13883/366042) in 2014 and 3.94% (15913/403616) in the year
Net profit NP = NP/sales *100 2015.
Operating result= Operating result is 5.9% in 2013. 6.5% in 2014, and 6% in the year
operating result OR/sales 2015.
     
Profit before
interest, tax,
depreciation EBITDAI = EBITDA / sales The EBITDAI is 9%, which remains same in all the years
and *100 (2013,2014,2015)
ammortisation
and impairment

Part C) Benefits

GP margin helps the decision maker to analyze the business earnings taking
into account the needed cost to produce to goods and services. It also helps to
GP margin the efficiency of core operations of the business.
It is the abiility of money to pay the interest. It helps to determine how many
Interest cover time the company can pay its interest from its profit.
It provides a final pictures of a company as it helps to decision maker to analyze
Net profit the profit after taking into account all the expenses of the company
EBITDA describes the profit of the company after taking out all the non cash
items. It describes the actual cash flow generated by the comapany and is a
EBITDA better indicator of company's performance to the decision maker.
Part D
Comparison

The sales Royal Boskalis westminster has increased by 0.7% and 2.3% in 2014 and 2015
Sales respectively. When compared with China communication construction whose sale has
increased by 10% and 10.3% respectively, the sales of CCC has increased rapibly over the
years. Hence CCC has shown better performance in terms of sale.
The operating result % in CCC is 5.9%, 6.5%, 6% in the year 2013, 2014, 2015 respectively.
Operating Result On the other hand, the operating result % in RBW is 14.7%, 20.6%, 17.4% in the year
2013,2014,2015 respectively. The operating results of RBW shows better results when
compared to CCC.
The net profit of CCC is 3.7%, 3.79% and 3.94% in the year 2013,2014,2015 respectively,
Net Profit which is quite lower when compared with RBW, whose Net profit is 11.6%, 15.5%, 13.7% in
2013,2014,2015 respectively.
Eventhough CCC's sales has increased at a better percentage than RBW, its operation result
Conclusion and net profit margin is significantly lower than RBW. These comparison shows that RBW
has made better profits than CCC and has increased the wealth of shareholders better than
CCC.