Exhibit 12.1
Computation of Ratio of Earnings to Fixed Charges (Unaudited)
Earnings available for fixed charges are calculated first, by determining the sum of: (a) income (loss) from continuing operations before income taxes and equity income; (b) distributed equity income; (c) fixed charges, as defined below; and (d) amortization of capitalized interest, if any. From this total, we subtract capitalized interest and net income attributable to noncontrolling interests.
Fixed charges are calculated as the sum of: (a) interest costs (both expensed and capitalized); (b) amortization of debt expense and discount or premium relating to any indebtedness; and (c) that portion of rental expense that is representative of the interest factor.
| Year ended December 31, | ||||||||||||||||||||
| (in Rmb million, except ratios) | 2008 | 2009 | 2010 | 2011 | 2012 | |||||||||||||||
Fixed charges: | ||||||||||||||||||||
Interest expense | 36 | 68 | 288 | 438 | 282 | |||||||||||||||
Capitalized interest | 524 | 440 | 394 | 1,150 | 1,549 | |||||||||||||||
Portion of rental expense which represents interest factor | — | — | — | — | — | |||||||||||||||
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Total Fixed charges | 560 | 508 | 682 | 1588 | 1,831 | |||||||||||||||
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Earnings available for fixed charges: | ||||||||||||||||||||
Pre-tax income from continuing operations | 57,880 | 40,821 | 72,603 | 92,565 | 90,172 | |||||||||||||||
Less: Share of profits from equity-accounted entities | (374 | ) | (173 | ) | (398 | ) | (567 | ) | 27 | |||||||||||
Add: Distributed income of equity investees | 624 | 239 | 147 | 184 | 90 | |||||||||||||||
Add: Fixed charges | 560 | 508 | 682 | 1,588 | 1,831 | |||||||||||||||
Less: Capitalized interest net of amortization | (524 | ) | (202 | ) | (83 | ) | (853 | ) | (1,003 | ) | ||||||||||
Less: Net income – noncontrolling interests | — | — | — | — | — | |||||||||||||||
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Total Earnings available for fixed charges | 58,166 | 41,193 | 72,951 | 92,917 | 91,117 | |||||||||||||||
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Ratio of earnings to fixed charges | 103.87 | 81.09 | 106.97 | 58.51 | 49.76 | |||||||||||||||
