N-Q 1 tdf-nq305.txt TEMPLETON DRAGON FUND N-Q PE 3/31/05 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-08874 --------- TEMPLETON DRAGON FUND, INC. -------------------------------------------------- (Exact name of registrant as specified in charter) 500 EAST BROWARD BLVD., SUITE 2100, FORT LAUDERDALE, FL 33394-3091 -------------------------------------------------------------------- (Address of principal executive offices) (Zip code) MURRAY L. SIMPSON, ONE FRANKLIN PARKWAY, SAN MATEO, CA 94403-1906 ------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (954) 527-7500 -------------- Date of fiscal year end: 12/31 ----- Date of reporting period: 3/31/05 -------- ITEM 1. SCHEDULE OF INVESTMENTS. Templeton Dragon Fund, Inc. QUARTERLY STATEMENT OF INVESTMENTS MARCH 31, 2005 -------------------------------------------------------------------------------- CONTENTS Templeton Dragon Fund, Inc. ........................................... 3 Notes to Statement of Investments ..................................... 6 [LOGO OMITTED] FRANKLIN TEMPLETON INVESTMENTS FRANKLIN o TEMPLETON o MUTUAL SERIES Quarterly Statement of Investments | 1 This page intentionally left blank. Templeton Dragon Fund, Inc. STATEMENT OF INVESTMENTS, MARCH 31, 2005 (UNAUDITED)
--------------------------------------------------------------------------------------------------------------------------- COUNTRY SHARES VALUE --------------------------------------------------------------------------------------------------------------------------- COMMON STOCKS 97.3% AIR FREIGHT & LOGISTICS 0.0%C Sinotrans Ltd. .......................... China 1,008,000 $ 290,790 ------------- AIRLINES 0.4% a Air China Ltd. .......................... China 7,486,000 2,711,467 a Air China Ltd., 144A .................... China 1,364,000 494,047 ------------- 3,205,514 ------------- AUTO COMPONENTS 1.6% Cheng Shin Rubber Industry Co. Ltd. ..... Taiwan 9,409,160 11,333,639 ------------- AUTOMOBILES 0.2% a Chongqing Changan Automobile ............ China 905,070 456,048 Kia Motors Corp. ........................ South Korea 98,810 1,359,548 ------------- 1,815,596 ------------- CAPITAL MARKETS 1.2% Yuanta Core Pacific Securities Co. ...... Taiwan 11,591,332 8,480,296 ------------- COMMUNICATIONS EQUIPMENT 0.5% D-Link Corp. ............................ Taiwan 2,979,309 3,706,878 ------------- COMPUTERS & PERIPHERALS 5.9% Acer Inc. ............................... Taiwan 12,232,022 19,218,088 Advantech Co. Ltd. ...................... Taiwan 2,929,282 6,694,226 Asustek Computer Inc. ................... Taiwan 2,883,512 7,962,469 Lenovo Group Ltd., H .................... China 6,024,000 2,046,760 Lite-On Technology Corp. ................ Taiwan 5,776,100 6,215,000 ------------- 42,136,543 ------------- CONSTRUCTION MATERIALS 0.2% Anhui Conch Cement Co. Ltd. ............. China 1,306,000 1,239,113 China Resources Cement .................. China 872,000 206,835 ------------- 1,445,948 ------------- DISTRIBUTORS 2.9% China Resources Enterprise Ltd. ......... China 12,628,000 17,324,247 Test-Rite International Co. Ltd. ........ Taiwan 5,126,125 3,563,199 ------------- 20,887,446 ------------- DIVERSIFIED BANKS 6.5% Chinatrust Financial Holding Co. Ltd. ... Taiwan 6,659,477 7,514,264 HSBC Holdings PLC ....................... United Kingdom 1,376,759 21,888,482 Mega Financial Holdings Co. Ltd. ........ Taiwan 27,217,000 17,536,504 ------------- 46,939,250 ------------- DIVERSIFIED TELECOMMUNICATION SERVICES 0.5% China Telecom Corp. Ltd., H ............. China 10,278,000 3,590,965 ------------- ELECTRIC UTILITIES 8.4% Cheung Kong Infrastructure Holdings Ltd. Hong Kong 11,060,000 31,764,291 Datang International Power Generation Co. Ltd. China 26,502,000 19,198,315 Guangdong Electric Power Development Co Ltd., B China 11,270,600 5,621,247
Quarterly Statement of Investments | 3 Templeton Dragon Fund, Inc. STATEMENT OF INVESTMENTS, MARCH 31, 2005 (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------------------------------------------------- COUNTRY SHARES VALUE --------------------------------------------------------------------------------------------------------------------------- COMMON STOCKS (CONT.) ELECTRIC UTILITIES (CONT.) Huadian Power International Corp. Ltd., H China 3,978,000 $ 1,083,826 Huaneng Power International Inc., H ..... China 3,388,000 2,476,021 ------------- 60,143,700 ------------- ELECTRICAL EQUIPMENT 0.6% Phoenixtec Power Co. Ltd. ............... Taiwan 3,632,945 4,012,775 ------------- ELECTRONIC EQUIPMENT & INSTRUMENTS 2.7% Delta Electronics Inc. .................. Taiwan 11,788,952 19,120,658 ------------- FOOD & STAPLES RETAILING 15.2% Dairy Farm International Holdings Ltd. .. Hong Kong 39,843,978 109,172,500 ------------- FOOD PRODUCTS 1.0% UNI-President Enterprises Corp. ......... Taiwan 16,069,030 7,446,449 ------------- HOTELS RESTAURANTS & LEISURE 2.8% Hong Kong & Shanghai Hotels Ltd. ........ Hong Kong 21,534,000 19,878,940 ------------- HOUSEHOLD DURABLES 1.7% TCL International Holdings Inc. ......... China 48,960,000 12,303,637 ------------- INDUSTRIAL CONGLOMERATES 4.9% Beijing Enterprises Holdings Ltd. ....... China 1,520,000 2,172,974 CITIC Pacific Ltd. ...................... China 7,081,000 20,745,162 a LG Corp. ................................ South Korea 76,000 1,822,506 Shanghai Industrial Holdings Ltd. ....... China 4,954,000 10,480,354 ------------- 35,220,996 ------------- IT SERVICES 0.3% Travelsky Technology Ltd., H ............ China 2,837,000 2,364,333 ------------- LEISURE EQUIPMENT & PRODUCTS 0.2% Premier Image Technology Corp. .......... Taiwan 1,495,000 1,694,011 ------------- MACHINERY 3.4% China International Marine Containers Co. Ltd., B China 7,253,786 21,707,090 Yung Tay Engineering Co. Ltd. ........... Taiwan 5,686,000 3,086,098 ------------- 24,793,188 ------------- METALS & MINING 0.1% Aluminum Corp. of China Ltd., H ......... China 1,028,000 593,119 China Oriental Group Co. Ltd. ........... China 422,000 90,898 ------------- 684,017 ------------- OFFICE ELECTRONICS 0.1% Kinpo Electronics Inc. .................. Taiwan 1,454,000 643,792 ------------- OIL & GAS 9.2% China Petroleum & Chemical Corp., H ..... China 103,150,000 41,659,668 PetroChina Co. Ltd., H .................. China 40,050,000 24,904,641 ------------- 66,564,309 ------------- REAL ESTATE 10.3% Cheung Kong Holdings Ltd. ............... Hong Kong 2,575,000 22,862,990 Hang Lung Group Ltd. .................... Hong Kong 18,177,042 31,812,067
4 | Quarterly Statement of Investments Templeton Dragon Fund, Inc. STATEMENT OF INVESTMENTS, MARCH 31, 2005 (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------------------------------------------------- COUNTRY SHARES VALUE --------------------------------------------------------------------------------------------------------------------------- COMMON STOCKS (CONT.) REAL ESTATE (CONT.) Henderson China Holdings Ltd. ........... Hong Kong 6,956,500 $ 4,236,629 Henderson Investment Ltd. ............... Hong Kong 7,485,000 10,364,577 Hong Kong Land Holdings Ltd. ............ Hong Kong 1,904,000 5,121,760 ------------- 74,398,023 ------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 5.3% Elan Microelectronics Corp. ............. Taiwan 3,517,396 1,948,155 Faraday Technology Corp. ................ Taiwan 432,259 836,914 Samsung Electronics Co. Ltd. ............ South Korea 10,780 5,318,486 Siliconware Precision Industries Co. Ltd. Taiwan 4,340,000 3,767,505 Sunplus Technology Co. Ltd. ............. Taiwan 6,264,390 9,404,737 Taiwan Semiconductor Manufacturing Co. .. Taiwan 10,139,000 16,573,303 ------------- 37,849,100 ------------- TEXTILES APPAREL & LUXURY GOODS 0.9% Tack Fat Group International Ltd. ....... Hong Kong 26,080,000 3,778,523 Tainan Enterprises Co. Ltd. ............. Taiwan 1,846,000 2,463,794 ------------- 6,242,317 ------------- TRANSPORTATION INFRASTRUCTURE 3.0% China Merchants Holdings (International) Co. Ltd. China 3,574,000 7,011,033 Cosco Pacific Ltd. ...................... Hong Kong 6,678,000 14,512,831 ------------- 21,523,864 ------------- WIRELESS TELECOMMUNICATION SERVICES 7.3% China Mobile (Hong Kong) Ltd., fgn. ..... China 13,876,000 45,367,045 Taiwan Cellular Corp. ................... Taiwan 7,047,764 7,158,270 ------------- 52,525,315 ------------- TOTAL COMMON STOCKS (COST $446,704,900) . 700,414,789 ------------- SHORT TERM INVESTMENTS (COST $12,735,596) 1.8% MONEY FUND b Franklin Institutional Fiduciary Trust Money Market Portfolio ................. United States 12,735,596 12,735,596 ------------- TOTAL INVESTMENTS (COST $459,440,496) 99.1% 713,150,385 OTHER ASSETS, LESS LIABILITIES 0.9% ..... 6,542,307 ------------- NET ASSETS 100.0% ....................... $719,692,692 =============
a Non-income producing. b The Franklin Institutional Fiduciary Trust Money Market Portfolio is managed by an affiliate of the Fund's investment manager. c Rounds to less than 0.05% of net assets. Quarterly Statement of Investments | See Notes to Statement of Investments. | 5 Templeton Dragon Fund, Inc. NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) Templeton Dragon Fund, Inc. (the Fund), is registered under the Investment Company Act of 1940 as a closed-end, non-diversified investment company. 1. INCOME TAXES At March 31, 2005 the net unrealized appreciation (depreciation) based on the cost of investments for income tax purposes was as follows: Cost of investments.................................... $460,729,033 ------------- Unrealized appreciation................................ $258,193,848 Unrealized depreciation................................ (5,772,496) ------------- Net unrealized appreciation (depreciation)............. $252,421,352 ============= For information on the Fund's policy regarding valuation of investments and other significant accounting policies, please refer to the Fund's most recent semiannual or annual shareholder report. 6 | Quarterly Statement of Investments ITEM 2. CONTROLS AND PROCEDURES. (a) EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES. The Registrant maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Registrant's filings under the Securities Exchange Act of 1934 and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant's management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant's management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. Within 90 days prior to the filing date of this Quarterly Schedule of Portfolio Holdings on Form N-Q, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant's management, including the Registrant's principal executive officer and the Registrant's principal financial officer, of the effectiveness of the design and operation of the Registrant's disclosure controls and procedures. Based on such evaluation, the Registrant's principal executive officer and principal financial officer concluded that the Registrant's disclosure controls and procedures are effective. (b) CHANGES IN INTERNAL CONTROLS. There have been no significant changes in the Registrant's internal controls or in other factors that could significantly affect the internal controls subsequent to the date of their evaluation in connection with the preparation of this Quarterly Schedule of Portfolio Holdings on Form N-Q. ITEM 3. EXHIBITS. (a) Certifications pursuant to Section 30a-2 of the Investment Company Act of 1940 of Jimmy D. Gambill, Chief Executive Officer - Finance and Administration, and Galen G. Vetter, Chief Financial Officer. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. TEMPLETON DRAGON FUND, INC. By /s/JIMMY D. GAMBILL ----------------------- Jimmy D. Gambill Chief Executive Officer - Finance and Administration Date May 20, 2005 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By /s/JIMMY D. GAMBILL ----------------------- Jimmy D. Gambill Chief Executive Officer - Finance and Administration Date May 20, 2005 By /s/GALEN G. VETTER ------------------------------ Galen G. Vetter Chief Financial Officer Date May 20, 2005