COSCO SHIPPING Development Co., Ltd. — Annual Report 2020

Apr 23, 2021

2020 Report Annual

Financial Shipping Platform Service

Profile Company

known formerly ,")Development SHIPPING COSCO "or" Company "the (.Ltd .,Co Development SHIPPING COSCO Limited Corporation SHIPPING COSCO China of subsidiary a is ,Limited Company Lines Container Shipping China as The .services financial chain-supply integrated in specialized") SHIPPING COSCO "or" SHIPPING COSCO China(" is and ,")PRC "the (China of Republic s'People the ,Shanghai in office head with 1997, in established was Company .million 11,608RMB is Company the of capital registered The .Shanghai and Kong Hong both in listed

industry shipping integrated and industry logistics shipping in advantages the play into bring to aims Company The ,leasing and shipping with cluster industrial develop to; foundation the as finance shipping with resources chain ,functions financial various integrating ,finance with industry combining by platform service financial shipping" stopone "a into develop to and; core the as industries related the for services and investment ,manufacturing container .vision international and advantages differentiated ,mechanism market featuring ,businesses various of synergy and

and fleet container its of capacity shipping the with industry the in players global top the among is Company The container 77 had fleet container s'Company the 2020, December 31 at As .business leasing container its of scale the wood 2; DWT 466,900 of capacity total a with ,vessels cargo bulk 5; TEU 587,500 of capacity total a with ,vessels and; tankers oil and vessels crane heavy ,vessels LNG 90 over; DWT 123,900 of capacity total a with ,carriers pulp the ,businesses leasing industry other of terms In .TEU million 3.78 approximately of containers of inventory an new ,education ,services medical of areas the in businesses leasing financial of development the on focuses Company Universal Shanghai ,business manufacturing container of terms In .equipment industrial and construction ,energy 550,000 of capacity manufacturing annual an attained ,Company the of subsidiary a .,Ltd .,Co Equipment Logistics of advantage good takes ,business service and investment of development the on focuses also Company The .TEU promote to industry service financial the of resources existing the as well as industry shipping the in experience its its of development synergetic the achieve and models business its optimize ,finance and industry of integration the .business finance shipping

creates development and industry aids Finance "of mission the followed and" Excellence "of concept the by Guided ,Integrity "with provider services financial industry outstanding an become to strive will Company the ,"value .values core its as" benefit mutual and proactiveness ,efficiency

Contents

• Information Corporate
• Highlights Financial
• Structure Corporate
• Statement s'Chairman
• Analysis and Discussion Management
• and Supervisors ,Directors of Biographies Management Senior
• Directors of Board the of Report
• Report Governance Corporate
• Committee Supervisory the of Report
• Report' Auditors Independent
• Loss or Profit of Statement Consolidated
• Income Comprehensive of Statement Consolidated
• Position Financial of Statement Consolidated
• Equity in Changes of Statement Consolidated
• Flows Cash of Statement Consolidated
• Statements Financial to Notes
• Summary Financial Year Five

Information Corporate

DIRECTORS DIRECTORS EXECUTIVE

(Chairman (Daxiong Wang .Mr Chong Liu .Mr Hui Xu .Mr

DIRECTORS EXECUTIVE-NON

Jian Huang .Mr Yanfeng Liang .Mr Chi Sing Ip .Mr

EXECUTIVE-NON INDEPENDENT DIRECTORS

Hongping Cai .Mr Yuet Chi Hai .Ms Jack Graeme .Mr Jianzhong Lu .Mr Weihua Zhang .Ms

SUPERVISORS

(Chairman (Hongjun Ye .Mr Mei Zhu .Ms Xiaobo Zhao .Mr

COMMITTEE EXECUTIVE

(Chairman (Daxiong Wang .Mr Chong Liu .Mr Hui Xu .Mr

STRATEGY INVESTMENT COMMITTEE

(Chairman (Daxiong Wang .Mr Chong Liu .Mr Jian Huang .Mr Yanfeng Liang .Mr Chi Sing Ip .Mr Hongping Cai .Mr Yuet Chi Hai .Ms

COMMITTEE CONTROL RISK

(Chairman (Weihua Zhang .Ms Hongping Cai .Mr Jianzhong Lu .Mr

COMMITTEE AUDIT

(Chairman (Jianzhong Lu .Mr Hongping Cai .Mr Jian Huang .Mr

COMMITTEE REMUNERATION

(Chairman (Hongping Cai .Mr Yuet Chi Hai .Ms Jack Graeme .Mr

COMMITTEE NOMINATION

(Chairman (Yuet Chi Hai .Ms Daxiong Wang .Mr Hongping Cai .Mr

ACCOUNTANT CHIEF

Feng Lin .Mr

SECRETARY BOARD

Lei Cai .Mr

SECRETARIES COMPANY JOINT

Lei Cai .Mr Mei Sau Ng .Ms

REPRESENTATIVES AUTHORISED

Daxiong Wang .Mr Lei Cai .Mr

PRC THE IN ADDRESS LEGAL

Center Trade International -538,A Room Zone Trade Free Pilot) Shanghai (China Shanghai PRC The

Information Corporate

BUSINESS OF PLACE PRINCIPAL PRC THE IN

Dadao Binjiang 5299 Area New Pudong Shanghai PRC The

BUSINESS OF PLACE PRINCIPAL KONG HONG IN

Tower Cosco ,F50/ Central Road s'Queen 183 Kong Hong

AUDITOR INTERNATIONAL

Young & Ernst

AUDITOR DOMESTIC

LLP Accountants Public Certified ShineWing

ADVISERS LEGAL

(law Kong Hong to As (Hastings Paul (law PRC to As (Firm Law Grandall

SHARE H KONG HONG TRANSFER AND REGISTRAR OFFICE

Limited Services Investor Kong Hong Computershare Centre Hopewell ,Floor th17 East Road s'Queen 183 Kong Hong

BANKERS PRINCIPAL

China of Bank China of Bank Commerce and Industrial Bank Development China China of Bank Agricultural Bank Merchants China China of Bank Import-Export The .V.N Bank ING Communications of Bank Bank Development Pudong Shanghai Bank Construction China

NUMBER TELEPHONE

6105 6596 (21) 86

NUMBER FAX

6498 6596 (21) 86

WEBSITE COMPANY

com.coscoshipping.development://http

PLACE LISTING SHARE H

Kong Hong of Exchange Stock The of Board Main ("Exchange Stock Kong Hong "the (Limited

DATE LISTING

2004 June 16

ISSUE IN SHARES H OF NUMBER Shares H 3,676,000,000

(SHARES H (LOT BOARD Shares 1,000

EXCHANGE STOCK KONG HONG CODE STOCK

02866

PLACE LISTING SHARE A

Exchange Stock Shanghai

DATE LISTING

2007 December 12

ISSUE IN SHARES A OF NUMBER

Shares A 7,932,125,000

(SHARES A (LOT BOARD

Shares 100

EXCHANGE STOCK SHANGHAI CODE STOCK

601866

of Laws the of 622 Chapter (Ordinance Companies the in defined as company Kong Hong-non registered a is Company The* .,Co Development SHIPPING COSCO "name English the under and name Chinese its under registered is it and) Kong Hong ".Ltd

CHART BY FIGURES FINANCIAL KEY 2019 AND 2020 OF COMPARISON FORM

Results Consolidated

(("HKFRS ("Standards Reporting Financial Kong Hong Under(

	2020	2019	Change
		(Restated(
	000'RMB	000'RMB	%
Revenue	14,421,919	9,665,682	49%
Operating profit	2,033,704	2,116,623	-4%
Profit before income from tax continuing operations	1,760,958	867,602	103%
for Profit year the a from discontinued operation	688,086	1,076,880	-36%
for Profit year the attributable to owners parent of	2,130,271	1,744,733	22%
Basic earnings for year the share per	RMB 0.1556	RMB 0.1285	21%
Gross profit (margin continuing operations (	25%	25%	-2%
Profit margin before income tax
( continuing operations (	12%	9%	36%
Gearing ratio	402%	416%	-4%

Liabilities and Assets Consolidated

(HKFRS Under(

2020	2019	Change
000'RMB	000'RMB	%
146,038,794	144,494,119	1%
108,904,338	114,693,373	-5%
37,134,456	29,800,746	25%
121,668,786	120,286,401	1%
64,867,475	54,271,559	20%
) 27,733,019	24,470,813 (	13%
24,370,008	24,207,718	1%
		) (

Structure Corporate

principal its and Company the of structure shareholding and corporate simplified the shows chart following The 2020: December 31 at as subsidiaries

to 1 Note in contained are Company the of ventures joint and companies associated ,subsidiaries the of Particulars .statements financial consolidated the

Statement s'Chairman

Statement s'Chairman

world the swept pandemic -19COVID the 2020, early In developed Major .hard economy global the hit and pandemic lingering the by affected were economies quickly China ,contrast In .recovery slow saw and resumed and control under pandemic the brought to first the it making ,steadily production and work .recovery achieve and -19COVID of shackle the break resumption gradual the ,year the of half second the In stimulus economic the and production and work of global boosted countries some by adopted policies shipping the ,result a As .extent certain a to trade transportation robust amid rapidly up picked market the for opportunities market good bringing ,demand shipping downstream and upstream the of recovery .chain industry

economy-macro on pressure downward the with Faced ,abroad -19COVID of spread continuous the and ,innovation and reform in persisted Company the ,efficiency and quality of improvement the deepened the against work staff motivated highly had and an saw Company the ,these to Thanks .headwinds growth continuous and landscape business improving .efficiency economic in

of revenue a recorded Company the 2020, In 2019, from 49% of increase an ,billion 14.422RMB parent the of owners to attributable profit net a and 2019. from 22% of increase an ,billion 2.130RMB of 0.1556.RMB to amounted share per earnings basic The

per 0.056RMB of dividend final a proposed Board The .share

OPERATIONS OF REVIEW

coordinated made confidently Company the 2020, In seized ,market the of test the withstand to efforts of strategy the implement to opportunities market to endeavored and ,integration finance-industry shipping of field the in breakthroughs new make to efforts continuous made also Company The .finance new integrate and tap ,models business new explore improve continuously and ,advantages competitive .development quality-high

• T N E M G E S G N I S A E L E H T .I RESULTS WIN-WIN ACHIEVED CHAIN INDUSTRIAL THE IN FINANCE-INDUSTRY ON BASED INTEGRATION
• Leveraged Business Leasing Vessel 1. Expand to Advantages Chain Industrial Areas Business New into

and industry integrate "to continued We with development industry facilitate and finance breakthroughs made and ,"synergy for finance shipping the in services financial extending in partnered Company the 2020, In .chain industry Carriers Specialized SHIPPING COSCO with Industry Heavy SHIPPING COSCO and .Ltd .,Co ("Industry Heavy SHIPPING COSCO (".Ltd .,Co COSCO with cooperated and; vessels purposemulti 10 out lease and manufacture to SHIPPING COSCO and .Ltd .,Co Bulk SHIPPING 16 of lease operating the on Industry Heavy Aluminum serve to designated carriers bulk thus ,Guinea in Limited China of Corporation and fleet leasing s'Company the expanding principal its of development the facilitating managing to addition In .business shipping steadily Company the ,business existing its to extended and markets external developed in ,business lease related-transportation major .drivers growth profit new create to effort an

Business in Innovate to Synergy house-In Exerted Business Leasing Container 2. Models

market in changes significant the with Faced container s'Company the 2020, in environment to synergy house-in on drew business leasing amid expenditure cut and revenue increase the of half first the in headwinds market and development business early through year seized and; containers ground of revitalization the of half second the in opportunities market advantages outstanding the on capitalize to year ,chain industrial its of influence market and ,Meanwhile .returns good achieving thus ,models business in innovated Company the big with cooperation of modes new explored trading container new expanded and ,clients in ,business warehousing mobile and business .assets on returns improve to effort an

on Focused Businesses Leasing Other 3. and Efficiency and Quality Improving Reform SOE Deepening

enhancing to committed is Company The ,deep going by ,specialization by efficiency in returns ensuring and efficiency improving COSCO 2020, In .leasing financial of field the subsidiary a .,Ltd .,Co Leasing SHIPPING introduced successfully ,Company the of major a marking ,investors strategic external mixed and diversification equity in breakthrough its consolidated further This .reform ownership industry the in position competitive superior and transformation realize it helped and SHIPPING COSCO of return investment termlong the enhance will turn in which ,upgrading .Development

MANUFACTURING CONTAINER .II MANAGEMENT IMPROVED SEGMENT MARKET MEET TO CAPABILITIES DEMAND

global the of severity the under 2020, In structural a experienced market the ,pandemic closely Company The .containers of shortage economies pursued ,dynamics market followed management enhanced ,synergy and scale of While .control cost strengthened and ,efficiency achieving and continuity production ensuring exerted Company the ,returns economic good important provide to influence industry its and international for services support logistics the ,meantime the In .circulation dual domestic diversified explore to efforts made Company D&R product strengthening by development fields the in business container expanding and special ,healthcare ,protection environmental of .,etc research scientific and agriculture ,logistics comprehensive its improving to view a with .competitiveness

a convened Company the 2021, January In the approve and consider to meeting board Development SHIPPING COSCO of Proposal" Assets Purchase to Shares Issuing on .Ltd .,Co Party Related and Funds Ancillary Raise and integrate further to aim an with ,"Transaction ,assets manufacturing container s'Group the enhance ,capacity production optimize facilitate and ,capabilities technological .manufacturing and leasing between synergy honor ,advance in ,will transaction The controlling the by made commitment the container acquired inject to 2019 in shareholder in Company the into assets manufacturing the for impetus strong a give and ,years three objectives strategic its achieve to Company a is This .period Plan Year-Five th14 the for capital the of expectations the to response the enhance effectively will and ,market .shareholders of interests

Statement s'Chairman

SERVICES AND INVESTMENT .III DEVELOPED FURTHER SEGMENT FINANCE CHAIN INDUSTRY MODEL INTEGRATION FINANCE-INDUSTRY IN INNOVATED AND

the promoted continuously Company The various in finance chain industry of development of integration the intensifying by sectors-sub shipping the on based resources chain industry in advantages the maximize to business logistics .finance with development industry facilitating introduced and model integration financeindustry in innovated Company the 2020, In ,products create jointly to resources external In .operations optimize and assets manage financial existing its revitalized it ,addition ,finance shipping on concentrated and assets of number a on returns good achieved and stop-one a creating By .projects investment the ,platform service finance chain supply comprehensive more provide can Company its of ability the enhance and solutions financial shipping principal its serve to segment finance .business

E V I T C A N A PROMOTING .IV POLICY DISTRIBUTION DIVIDEND INTERESTS THE SAFEGUARD TO INVESTORS OF

the safeguarding to dedicated is Company The has it ,such As .development sustainable termlong its promoting and investors of interests years consecutive two for dividends cash paid with achievements development its share to completed Company the 2020, In .shareholders share-H and share-A to distribution dividend the of total a distributing by 2019 for investors dividends cash of million 520RMB approximately continue will Company The .shareholders all to stable and active an with investors reward to .policy distribution dividend

K S I R E H T STRENGTHENING .V UNDER SYSTEM MANAGEMENT TO PANDEMIC -19COVID THE CONTROL INTERNAL IMPROVE CAPABILITIES

of impact the to response active an in 2020, In carried Company the ,pandemic -19COVID the related-19-COVID of screening special out control risk compliance strengthened ,risks risk conducted and ,segments business all for investment and finance major on assessment continuously Company the ,Meanwhile .projects of rule the of construction the promoted ,risks compliance legal controlled strictly ,law ,management limit risk implemented effectively improved ,management risk credit reinforced monopoly-anti and compliance sanctions the carried ,systems management compliance contract and investigation contract out the improved and ,management lifecycle as so ,mechanism response emergency major all in capabilities control internal enhance to were segments business all 2020, In .aspects .risks controllable with soundly operating

RESPONSIBILITY SOCIAL PRACTICING .VI SUSTAINABLE PROMOTING AND DEVELOPMENT

severe and complex the with faced 2020, In Company the ,abroad and home at environment shipping in intention original its to adhered development quality-high pursued and finance development circulation dual the on based research scientific tapped Company The .pattern innovation strengthened ,needs medical and manufactured and designed and ,D&R and scientific Antarctic as such containers special medical intelligent and containers expedition green of concept the upheld; containers the improved constantly ,development took and ,system management environmental ;change climate address to measures effective facilitating by responsibility social its honored development social and economic regional to projects assistance targeted supporting and belief firm a With .alleviation poverty with help golden "the is development sustainable that the ,problems global current the solve to" key sustainable of concept the integrates Company and strategy core its into development of development the promotes and ,operations .finance shipping with economy real the

OUTLOOK

,recover gradually will economy global the 2021, In positive its continue steadily will economy s'China and shipping the in balance demand-supply The .growth trade global the and ,improve to expected is market

Statement s'Chairman

market Financial .changes structural see will landscape risk established-well a towards moving is regulation In .policies financial tightening with mechanism control prevention epidemic of normalization the ,future the of policies economic in changes and control and and ,uncertainties new present will economies major .balance new a reach will trade and economy global ,economy new the of momentum sound the ,Currently and ,industries tech-high of advancement ongoing the development circulation dual a of construction the upstream the for opportunities many bring will pattern this In .chain industry shipping the of downstream and by empowered ecosystem finance shipping the ,context .gradually improve to expected is finance chain supply

Year-Five th13 the during made efforts Through has Development SHIPPING COSCO ,period Plan ,business finance shipping its in progress great made Company The .integration finance-industry in especially and leasing combining in breakthroughs new made ,shipping and leasing combining and manufacturing ,shape take platform finance chain supply its saw and .investment finance shipping in achievements marking implement thoroughly will Company the 2021, In the accelerate and concept development new the into fit to pattern development new a of construction ecosystem new a build ,strategy circulation dual the the ,end this To .enterprise class-first a develop and and shipping principal the on focus will Company chain supply integrated an build to business logistics the empower resolutely and ,platform service finance so ,integration finance-industry with business principal achieve and creation value of ability the enhance to as Year-Five th14 the during development quality-high .period Plan

leasing related-industry and shipping of terms In of integration the deepen will Company the ,segment integrate ,influence industry build ,finance and industry platform and professional its leverage and resources capitalize; business external develop to advantages container the of advantages chain industrial the on strengthen to business manufacturing and leasing increase ,manufacturing and leasing between synergy ,containers special and reefer of proportion the and development oriented-market reinforce and of modes new promote; expansion international container the extend and clients big with cooperation .drivers growth profit increase to chain industry leasing

the ,segment manufacturing container of terms In shares issuing of project the promote will Company with ,funds supporting raise and assets purchase to increasing ,capacity production optimizing to view a .synergy maximizing and diversification product industry container the extend will Company The strengthen ,markets into expand actively ,chain management improve ,benchmarking industry speed and ,efficiency and quality enhance ,practices comprehensive enhance to D&R technology up company leading a develop to as so ,competitiveness utilization capacity high a and intelligence high with .rate

the ,segment services and investment of terms In based services finance-industry provide will Company innovative an build ,business shipping principal the on of development the promote ,platform investment ,business principal the empower to funds industrial and ,business finance-industry develop and explore integrated its of advantages the enhance further investment to As .services finance chain supply focus a with ,will Company the ,business management ,"finance with development industry facilitating "on diversified uphold ,allocation asset optimize constantly fields the research and explore ,strategies investment ,innovation technological and transportation major of improve to opportunities investment tap and .returns investment

improve to continue will Company the ,addition In the promote ,infrastructure management risk the management risk comprehensive a of implementation financial for management risk strengthen and ,system the ,meantime the In .business leasing and investment production safety its improve further will Company control and prevention epidemic reinforce and system its for environment safe a create to as so ,measures .operations and production

new a created has 2020 of year extraordinary The the of journey new the and 2021, for point starting COSCO .corner the around is Plan Year-Five th14 intention original its uphold will Development SHIPPING embrace ,mission new its and finance shipping in grasp and ,achievements new secure to innovation excellent an into develop to times the of opportunities with industry shipping the in provider service financial .characteristics SHIPPING COSCO

Chairman Daxiong Wang

China of Republic s'People the ,Shanghai 2021 March 30

Management Analysis and Discussion

ENVIRONMENT OPERATING

in was economy global the 2020, of half first the In the In .pandemic -19COVID the to due doldrums the as up picked trade global ,year the of half second and China in control under well was pandemic the .policies stimulus economic adopted countries some of turnover limited and demand market strong Given market shipping the ,pandemic the under containers .recovery rapid a enjoyed

,recovering gradually is economy global the ,Currently Digital .steadily growing is economy s'China and room huge has and used widely is technology are policies regulatory financial ,Yet .growth for between relations of uncertainty the and ,tightening new a to lead will which ,remains economies major .trade and economy global for landscape

T N E M P O L E V E D E R U T U F COMPANY THE OF STRATEGY

Position Strategic 1.

integrate will Development SHIPPING COSCO including resources related-logistics shipping and ,information ,capital ,source cargo in advantages its leverage fully and equipment the empower and serve to industry shipping the capital the expand ,industry logistics shipping ,ecosystem logistics shipping the of value flow finance industrial excellent an into develop and .characteristics SHIPPING COSCO with operator

Goals Development 2.

the ,industry logistics integrated on focus a With ,manufacturing container develop will Company business leasing shipping and leasing container chain supply shipping and business core the as a with ,business auxiliary as services finance integrated finance-industry pursuing to view .investment by underpinned development container its of advantage the Leveraging explore will Company the ,chain industry flow the integrating Fintech based-container provide and information and capital ,goods of covering services finance chain supply stop-one in ,management risk and financing ,logistics logistics shipping its empower to effort an industry of loyalty the enhance ,ecosystem .customers for value create and customers chain professional ,approaches oriented-market With the ,vision international an and strengths excellent an into grow to aspires Company with industry shipping the in operator financial .characteristics SHIPPING COSCO

Plans Development 3.

leasing container and leasing Shipping) 1( business

the on focuses business leasing vessel The various of lease finance or lease operating bulk dry and vessels container as such ,vessels its on based ,will Company The .vessels cargo level-high a up set gradually ,business existing team financing and investment professional leasing "between synergy the strengthen and and ,trading and leasing ,manufacturing and .enterprise leasing owner ship domestic classfirst a become to as so ,"shipping and leasing optimize will Company the ,term short the In finance-industry of model business current the leading a build and fleet the for integration equipment shipping for platform management shipping on focusing Group the within leasing .equipment port and vessels such assets leasing the increase gradually to is it ,run long the In a out work and business external of proportion COSCO leveraging model business" stop-one" chain industrial full of advantages s'SHIPPING unique a establish to attempt an in ,deployment .industry the in edge competitive

integral an as ,business leasing container The mainly ,chain industry container the of part of trading and leasing container involves its leverage will Company The .kinds various coordination manufacturing-leasing unique container global the in influence and capability cooperation industry-inter strengthen ,industry business extend and ,results win-win for develop to ,chain industry container the along with company leasing leading-world a into ,term short the In .edges competitive unique of guideline the follow will Company the seizing while businesses core consolidating" the strengthen ,"opportunities market reefer and container special on development container smart study ,business container between coordination the improve ,leasing between and" leasing and manufacturing" model dual the promote ,"shipping and leasing" creation value strengthen ,sale and lease of long the In .synergy generate and ,capabilities market seize to strive will Company the ,term ,quality asset enhance actively ,opportunities its improve and ,portfolios contract its optimize of rate the enhance to as so structure capital .return

business manufacturing Container) 2(

the ,manufacturing container of respect In ,collaboration industrial on focus will Company diversified and manufacturing intelligent supply container the guarantee ,development and ,business shipping principal the of security business finance shipping the with coordinate creating while platform finance-industry the of achieve to drive a in ,industry the for value container the of development quality-high will Company The .segment manufacturing improve and assets of integration the promote synergy the improve ,efficiency and quality strengthen ,chain industry container the in the enhance ,manufacturing container dry reefer and container special on development and research the explore ,business container branch and ,containers smart of development containers of equipment peripheral into out of scenarios application the on centering the maintain and improve will We .containers with ,environment operating healthy s'industry class-world a into ourselves develop to aim an strong with company manufacturing container utilization capacity high and edge technological .profitability and

services finance chain Supply) 3(

,demands market uncover will Company The services financial the explore constantly ,chain supply the in opportunities business data control risk of construction the accelerate seize ,enterprises small and medium for model of share market the expand to opportunities ,business factoring commercial international integrated of advantages the into tap effectively small ,factoring ,leasing comprising (services on focus ,)funds industrial and insurance ,loans strive ,industry logistics shipping in customers shipping the of ecology financial the improve to integration smooth for chain supply logistics ,operation capital and finance and industry of services finance chain supply stop-one provide management risk and finance ,logistics covering bargaining improve ,stickiness industry boost to .source cargo of value the enhance and ,power

management Investment) 4(

value strategic to weight equal give will We principal the to adhere ,returns financial and integration at aim ,logistics shipping of business investment utilizing finance and industry of investment on focus continuously ,measures ,portfolios investment optimize ,areas control effectively ,operation asset strengthen increase and portfolios of risks fluctuation the shipping the out smooth to gains investment its maintain will Company The .cycle business capital of use full make and focus investment ,assets quality-high integrate and attract to on based resources and property intellectual and port ,shipping of scenarios application the intelligence provide then and ,industries logistics ,digitalised "the for services injection capital and the of development" intelligent and networked boost to effort an in ,industry logistics shipping .upgrading industry

AND RISKS MAJOR COUNTERMEASURES

Risks Macroeconomic 1.

seismic undergoing is world the ,present At increased with ,pace accelerated an at changes sudden ,triggers risk and sources fluctuation and complicated ,changes perplexing and arduous ,environment surrounding sensitive and development ,reform of tasks onerous and predictable greater and more and ,stabilization As .challenges and risks unpredictable and integrated an into transforms Company the its leverages that platform service financial focus to industry shipping the in experience leasing industrial other and shipping on network business extensive an with ,businesses to exposure broad has it ,abroad and home at domestically both environment macroeconomic macroeconomic the tackle To .globally and kept and built has Company the ,uncertainties management and monitoring risk its improving asset and operation guarantee to system .security

Risk Credit 2.

Company the of risk the to refers risk Credit any from arising losses unexpected suffering its perform to counterparty a of delay or failure unfavorable any from or obligations contractual The .standing credit s'counterparty a of change operating from mainly is risk credit s'Company and production container ,factoring ,lease financial income-fixed in investment and ,sales and established has Company The .products management risk credit sound a implements risk credit annual setting including ,system ,appetite risk s'Company the on based limits of implementation the monitoring dynamically as warnings early giving and limits risk credit a implementing and establishing and ,needed .measures management credit of series

Risk Market 3.

s'Company the of risk the to refers This unfavourable from arising losses unexpected ,rates exchange ,rates interest in movements .etc ,product income-fixed or equity of prices market its improving and up building While Company the ,mechanism management risk management risk market formulated has monitoring quantitative and qualitative ,policy and ,limits risk market determined ,standards and responsibilities management the defined responsible departments for division functional .risk market for

Risk Liquidity Capital 4.

failure s'Company the of risk the to refers This manner timely a in funds sufficient obtain to order in cost reasonable at so do to failure or other fulfill or maturity upon debt repay to such factors on Depending .obligations payment situation risk ,structure business ,strategies as full taking and ,environment market and liquidity on risks other of impact the of account will Company the ,appetite risk overall its and risk and appetite risk liquidity its determine liquidity a up build gradually and ,tolerance Company The .system management limit risk ,assessment regular as such measures take will and firewalls of establishment and monitoring .risk liquidity prevent effectively to test stress

Risk Strategy 5.

actual the that risk the to refers risk Strategy of implementation and selection the of results expected the from deviate may strategy the in uncertainties to due strategy the of goal of environment external and internal the and up set has Company The .Company the for procedures working its improved continually analyze ,identify to management risk strategy makes Company The .risk strategy monitor and consideration full taking after planning strategic its ,environment market as such factors of regularly ,position capital and appetite risk its strengthen to planning strategic the reviews .implementation

wide-Company 6. Risk Concentration

risk or risks individual the that fact The are units business s'Company the of portfolios directly may Company the within concentrated concentration heightened to lead indirectly or Company The .types single of convergence or risk concentration wide-company its set will risk overall its as such factors on based limits assets ,capital of size ,tolerance and appetite investment .g.e (types transaction ,liabilities and ,characteristics counterparty ,).etc classes asset and ,).etc rating credit .g.e (rating risk trading .management limit risk concentration perform

Competition Industry of Risk 7.

Company the which in industry leasing The for known is transformation its after operates leasing ,rent of terms in competition fierce its With .reliability and services customer ,terms strengths differentiated ,system oriented-market will Company the ,vision international and to play full give and finance shipping on focus establish to logistics shipping in advantages its which platform service financial" stop-one "a facilitates ,finance with industry combines seeks and finance with development industry cope to as so ,businesses multiple of synergy .manner active an in competition market with

GROUP THE OF REVIEW FINANCIAL

as 49.2% of increase an representing 2020, for 14,421,919,000RMB of revenue operating recorded Group The amounted operations continuing from tax income before profit total; year last of 9,665,682,000RMB with compared profit; year last of 867,602,000RMB with compared as 103.0% of increase an representing 1,760,958,000,RMB to an representing 2,130,271,000,RMB to amounted year the for Company the of parent the of owners to attributable .year last of 1,744,733,000RMB with compared as 22.1% of increase

:follows as is results segment of Analysis

Cost Revenue Change 2019 2020 Change 2019 2020 Segment (%) (Restated) (%) (Restated( related-industry and Shipping 19.3 4,019,459 4,795,194 19.7 6,472,806 7,750,919 business leasing 64.7 4,582,348 7,548,865 77.4 4,582,700 8,130,266 business manufacturing Container 10.9 39,218 43,494 53.1 124,649 190,821 business service financial and Investment 7.9 (1,438,838) (1,552,621) 9.0 (1,514,473) (1,650,087) amount Offset 50.4 7,202,187 10,834,932 49.2 9,665,682 14,421,919 Total

000'RMB :Unit

AND SHIPPING OF ANALYSIS 1. LEASING RELATED-INDUSTRY BUSINESS

Revenue Operating) 1

of revenue leasing recorded Group The representing 2020, for 7,750,919,000RMB with compared 19.7% of increase an which ,year last of 6,472,806,000RMB of revenue total the of 53.7% for accounted the to due mainly was increase The .Group the during project leasing finance vessel orientedmarket the of expansion further the of impact .year the

related and leasing vessel from Revenue 674,560,000,RMB to amounted business compared as 13.4% of increase an representing which of ,year last of 594,599,000RMB with amounted leasing operating vessel from revenue vessel from revenue and 96,506,000,RMB to approximately to amounted leasing finance 578,054,000.RMB

business leasing container from Revenue representing 4,362,594,000,RMB to amounted with compared as 28.1% of increase an increase The .year last of 3,405,190,000RMB revenue the in increase the to due mainly was the as segment leasing container the from between synergy the leveraged Company proactively to manufacturing and leasing market the seized and market the explore repositioned in shortage of opportunities Europe across routes shipping in containers hand-second of sales accelerate to USA the and of inventory reduce proactively and containers USA the and Europe in containers hand-second .year the during

finance related-industry other from Revenue 2,713,765,000,RMB to amounted leasing compared as 9.7% of increase an representing The .year last of 2,473,017,000RMB with related-industry other from revenue in increase increase the to due mainly was leasing finance attributable leasing finance from revenue in business leasing finance the of growth the to .Period the during

Costs Operating) 2

mainly business leasing the of costs Operating ,containers owned-self of depreciation include returned containers of sale of value carrying net of costs Operating .containers and vessels inleased of costs financing and expiry upon to amounted 2020 for business leasing the of increase an representing 4,795,194,000,RMB of 4,019,459,000RMB with compared as 19.3% .year last

R E N I A T N O C F O ANALYSIS 2. BUSINESS MANUFACTURING

Revenue Operating) 1

manufacturing container s'Group the 2020, In of revenue operating realized business of increase an representing 8,130,266,000,RMB 4,582,700,000RMB with compared as 77.4% the of 56.4% for accounted which ,year last of substantial Such .Group the of revenue total in increase the to due mainly was increase a as containers of price and volume sales both in containers repositioned in shortage of result and USA the and Europe across routes shipping container domestic the in demands buoyant .pandemic -19COVID the by caused market sales container aggregate the ,Period the During of increase an representing ,TEU605,600 was last of TEU402,943 with compared as 50.3% .year

Analysis and Discussion Management

Costs Operating) 2

container the of costs operating The raw of consist mainly business manufacturing and compensation employee ,costs material costs operating The .expenses depreciation 2020, in 7,548,865,000RMB to amounted compared as 64.7% of increase an representing the to due mainly was costs in increase year-onyear Such .year last of 4,582,348,000RMB with materials as such costs production in increase containers of volume sales the as labor and .year the during increased

AND INVESTMENT OF ANALYSIS 3. BUSINESS SERVICE FINANCIAL

Revenue Operating) 1

realized business services financial the 2020, In representing 190,821,000,RMB of revenue with compared as 53.1% of increase an accounting and year last of 124,649,000RMB .revenue total s'Group the of 1.3% for

Costs Operating) 2

e r e w 0 2 0 2 n i s t s o c g n i t a r e p o e h T of increase an representing 43,494,000,RMB of 39,218,000RMB with compared as 10.9% .year last

Income Investment) 3

business investment from income the 2020, In representing 2,225,892,000,RMB was with compared as 26.8% of decrease a Such .year last of 3,038,796,000RMB attributable mainly was income in decrease of value fair the of margin narrowed the to loss or profit through value fair at investments .year last with compared as Group the by held

PROFIT GROSS

of profit gross 2019: (2020 for 3,586,987,000RMB of profit gross recorded Group the ,reasons above the to Due .(2,463,495,000RMB

INVESTMENT SECURITIES SIGNIFICANT

ventures joint and associates in investments equity s'Company the 2020, December 31 ended year the During Bank Everbright China from profits the to attributable mainly was which 1,980,374,000,RMB of profit a generated .Period the for .Ltd .,Co Bank Bohai China and .Ltd .,Co) Group (Containers Marine International China .,Ltd .,Co

Companies Listed Other in Shareholdings 1.

			Shareholding				in Changes		Dividends
			the at	Shareholding	value Book		reserve other		received		Sources
		Investment	of beginning	end the at	end the at	during Gain	the during	from Gain	the during	Accounting	the of
code Stock	name Company	cost	Period the	Period the of	Period the of	Period the	Period	disposal	Period	ledger	shareholding
		RMB(	%) (	%) (	RMB) (	RMB) (	RMB) (	RMB) (	(RMB) (
09668	Bank Bohai China	5,749,379,000	13.67	11.12	9,230,792,000	894,894,000	107,732,000 ( )	–	–	Investment	Purchase
	.Ltd .,Co									associates in
000039/02039	International China	1,313,596,000	22.71	4.69	1,964,084,000	302,789,000	72,088,000 (	219,316,000)	97,634,000	Investment	Purchase
	Containers Marine									associates in
	.Ltd .,Co) Group(
601818	Everbright China	3,398,255,000	1.38	1.34	4,565,752,000	468,470,000	18,759,000 ( )	–	154,936,000	Investment	Purchase
	.Ltd .,Co Bank									associates in
600643	Group AJ Shanghai	25,452,000	0.22	0.22	26,583,000	6,469,000 ( )	–	–	884,000	assets Financial	Purchase
	.Ltd .,Co									value fair at
										through
										loss or profit
000617	Capital CNPC	539,115,000	0.97	0.06	493,270,000	150,841,000 ( )	–	44,299,000	10,812,000	assets Financial	Purchase
	Limited Company									value fair at
										through
600390	Capital Minmetals	1,155,438,000	3.94	3.17	996,139,000	143,572,000 ( )	–	107,337,000	11,274,000	loss or profit assets Financial	Purchase
	.Ltd .,Co									value fair at
										through
										loss or profit
Total		12,181,235,000	/		17,276,620,000 /	1,365,271,000	198,579,000)	370,952,000 (	275,540,000

Enterprises Financial in Shareholdings 2.

		Shareholding				in Changes		Dividends
		the at	Shareholding	value Book		reserve other		received
	Investment	beginning	end the at	of end the at	during Gain	the during	from Gain	during	Accounting	the of Sources
investee of Name	amount	Period the of	Period the of	Period the	Period the	Period	disposal	Period the	ledger	shareholding
	RMB(	%) (	%) (	RMB) (	RMB) (	RMB) (	RMB) (	(RMB) (
Bank .Ltd .,Co Kunlun of	1,077,153,000	3.74	3.74	1,363,118,000	108,833,000	10,827,000 ( )	–	54,614,000	Investment	Purchase
									associates in
Life Shanghai Ltd .,Co Insurance	998,400,000 .	16.00	16.00	1,046,003,000	38,966,000	18,966,000	–	–	Investment	Purchase
									associates in
CIB Management Fund Ltd .,Co	100,000,000 .	10.00	10.00	350,966,000	44,460,000	–	–	10,000,000	Investment	Purchase
									associates in
Haisheng Shanghai Shangshou	125,000,000	25.00	25.00	127,589,000	6,449,000 ( )	–	–	–	Investment	Purchase
Financial .Ltd .,Co Leasing									joint in
									ventures
Enterprise Chinese Elephant	20,000,000	12.50	12.50	22,767,000	3,869,000	–	–	–	Investment	Purchase
Financial Information Services									associates in
Limited Company
Shanghai SHIPPING COSCO	90,000,000	45.00	45.00	92,817,000	1,282,000	–	–	–	Investment	Purchase
Microfinance Limited Company									associates in
COSCO Finance SHIPPING	1,934,677,000	23.38	23.38	2,119,197,000	116,957,000	3,497,000 ( )	–	78,634,000	Investment	Purchase
Limited Company									associates in
COSCO(" ("Finance SHIPPING
Total	4,345,230,000	/		5,112,457,000 /	307,918,000	4,642,000		143,248,000 –

of Name Investee	Exchange	Principal businesses
China Bohai Bank .Ltd .,Co	Hong Kong Stock Exchange	Bank business
Bank Kunlun of .Ltd .,Co	/	Bank business
Shanghai Life Insurance Ltd .,Co	/ .	Insurance business
Fund CIB Management .Ltd .,Co	/	Fund management business
Shanghai Haisheng Shangshou	/	Leasing business
Financial Leasing .Ltd .,Co
Chinese Enterprise Elephant	/	Financial information service
Financial Information Services
Shanghai COSCO SHIPPING	/	Loan extending and
Microfinance Company Limited		other business
COSCO SHIPPING Finance	/	Bank business
Company Limited
China International Marine	Shenzhen Stock Exchange /	Manufacturing sales and
Containers ) Group ( .Ltd .,Co	Hong Kong	of containers
("CIMC("	Stock Exchange
Shanghai Group AJ .Ltd .,Co	Shanghai Stock Exchange	Investment in industries
		other and financial business
China Everbright Bank .Ltd .,Co	Shanghai Stock Exchange	Bank business
Minmetals Capital .Ltd .,Co	Shanghai Stock Exchange	Integrated financial business
CNPC Capital Company Limited	Shenzhen Stock Exchange	Integrated financial business

investments the in investees the of business principal of Summary) a(

Group the of portfolio investment the that expects Company The 2020. in volatile was market stock The interest of movement the ,things other among ,to subject be will) investments major above the including( be will shares individual of value market the ,Moreover .factors macroeconomic and factors market ,rates industry the of prospects the as well as plan development ,results financial' companies relevant by affected and course due in measures appropriate take will Group the ,risks relevant mitigate To .operate they where .conditions market in changes the to response in strategies investment its adjust

Assets Significant of Impairment

the of provisions relevant the with accordance In impairment conducted had Company the ,HKFRSs the of scope the within assets-fixed the for testing December 31 at as statements financial consolidated accordingly provisions impairment made and 2020, truly to order in prudence of principle the on based and conditions financial s'Company the reflect 2020. December 31 at as results operating

impairment for provision made Group the 2020, In of amount aggregate the in assets fixed of provision the) i (comprising mainly 722,793,000,RMB to due made 417,294,000RMB of impairment for lease the of value present discounted estimated the being date commencement lease the at as receivables result a as vessels the of value book the than lower dollar .S.U the of rate exchange the in decline the of certain of method lease the in change the following leasing vessel the to pursuant vessels owned-self 2020 October 30 dated agreement master service provision the) ii (and; Company the by into entered the to due made 270,123,000RMB of impairment for the of containers scrapped of price disposal estimated the of light in value book the than lower being Group and America North in containers scrapped of up piling scrapped of disposal for prospects unfavourable the .market the in containers

TAX INCOME

the 2020, December 31 to 2020 January 1 From the to applicable rate") CIT ("tax income corporate was PRC the in subsidiaries other its and Company 25%.

,regulations CIT new relevant the to Pursuant offshore s'Company the from derived profits the when CIT applicable to subject be shall subsidiaries .subsidiaries offshore such by declared were dividends accordance in rate tax applicable an uses Company The the of profits on CIT pay to regulations relevant with .subsidiaries offshore

AND ADMINISTRATIVE ,SELLING EXPENSES GENERAL

s'Group the 2020, December 31 ended year the For were expenses general and administrative ,selling 16.5% of increase an representing 1,373,487,000,RMB 2019. with compared as

NET ,GAINS OTHER

gains other 2020, December 31 ended year the For a representing 155,593,000,RMB were Group the of 763,642,000RMB approximately of gains in decrease for 919,235,000RMB of gains other with compared as narrowed the to attributable mainly was which 2019, parent the by held securities the of value fair of margin .year last with compared as Company the of

OWNERS TO ATTRIBUTABLE PROFIT year THE FOR PARENT THE OF

parent the of owners to attributable profit the 2020, In 2,130,271,000,RMB was year the for Company the of with compared as 22.1% of increase an representing 2019. for 1,744,733,000RMB

L A I C N A N I F , Y T I D I U Q I L L A T I P A C D N A S E C R U O S E R STRUCTURE

and uidity q i L of nalysis A Borrowings

cash are liquidity of sources principal s'Group The bank term-short and business operating from flow for used mainly is cash s'Group The .borrowings ,loans of repayment ,cost operating of expenses of procurement ,vessels new of construction financial s'Group the of support and ,containers net s'Group the ,Period the During .business leasing As 9,749,088,000.RMB was inflow cash operating bank and cash s'Group the 2020, December 31 at 12,046,801,000.RMB were balances

loans bank total s'Group the 2020, December 31 at As of 92,780,679,000,RMB were borrowings other and one within repayable is 47,252,731,000RMB which mainly are loans bank term-long s'Group The .year the ,containers of procurement the finance to used replenishment and assets lease financial of acquisition .liquidity of

o t d e t n u o m a e l b a y a p s d n o b d e t a n i m o n e d-RMB s'Group the 2020, December 31 at As the from raised proceeds all and 17,559,660,000,RMB and liquidity of replenishment the for used were bonds .loans of repayment the

rates interest fixed at borrowings RMB s'Group The borrowings USD 21,741,271,000.RMB to amounted 518,360,000USD to amounted rates interest fixed at ,(3,382,246,000RMB approximately to equivalent( amounted rates interest floating at borrowings RMB at borrowings USD and 11,999,787,000,RMB to 8,529,997,000USD to amounted rates interest floating .(55,657,375,000RMB approximately to equivalent( USD or RMB in settled are borrowings s'Group The primarily also are equivalents cash and cash its while .USD and RMB in denominated

liquidity regular for needs capital that expected is It internal the by funded be can expenditure capital and The .financing external or Group the of flow cash Group the of flow cash operating the review will Board Group the of intention the is It .time to time from equity of composition appropriate an maintain to capital effective an achieve constantly to debt and .structure

Liabilities Current Net

current net s'Group the 2020, December 31 at As Current 27,733,019,000.RMB to amounted liabilities the of portion current the :include mainly assets 18,296,935,000,RMB of receivables lease finance notes and trade 962,410,000,RMB of inventories and prepayments 2,445,764,000,RMB of receivables factoring 1,054,541,000,RMB of receivables other portion current the 1,083,635,000,RMB of receivables or profit through value fair at assets financial of equivalents cash and cash 654,224,000,RMB of loss of deposits pledged and 12,046,801,000,RMB of :include mainly liabilities Current 590,146,000.RMB payables other 3,100,895,000,RMB of payables trade liabilities contract 4,771,247,000,RMB of accruals and 198,482,000,RMB of payables tax 162,354,000,RMB of of borrowings other and bank of portion current the corporate of portion current the 47,252,731,000,RMB of portion current and 9,272,114,000,RMB of bonds 100,998,000.RMB of liabilities lease

Flows Cash

cash net s'Group the 2020, of year the For was activities operating from generated inflow principally denominated 9,749,088,000,RMB of increase an representing ,USD and RMB in of that with compared as 1,325,023,000RMB cash and Cash 2019. in 8,424,065,000RMB by increased 2020 of end the at balances equivalents the reflecting mainly ,year-on-year 2,411,705,000RMB operating from generated inflow cash net the that fact in used outflow cash net the than more was activities in used outflow cash net the and activities financing

for used mainly was year the during Group the of activities financing in used outflow cash The .activities investing of purposes the for mainly used were proceeds such and bills commercial and loans bank in interest of payment the .containers of construction and purchase and operation term-short

December 31 ended years the for flow cash s'Group the regarding information the provides table following The 2019: December 31 and 2020

RMB :Unit

	2020	2019
cash Net generated from operating activities	9,749,088,000	8,424,065,000
cash Net in used investing activities	) 4,883,807,000	) ( 10,383,969,000 (
cash Net in used financing activities	) 1,971,428,000	) ( 3,715,251,000 (
Impact of exchange rate movement cash on	) 482,148,000 (	61,057,000
Net /increase decrease( cash in) cash and equivalents	2,411,705,000	) 5,614,098,000 (

from enerated G ash C et N Activities Operating

net the 2020, December 31 ended year the For activities operating from generated inflow cash increase an representing 9,749,088,000,RMB was of that with compared as 1,325,023,000RMB of of flow cash ,Overall 2019. for 8,424,065,000RMB positive and stable a maintained activities operating .trend

nvesting I in sed U ash C et N Activities

net the 2020, December 31 ended year the For was activities investing in used outflow cash of decrease a representing 4,883,807,000,RMB of that with compared as 5,500,162,000RMB because mainly was It 2019. for 10,383,969,000RMB revitalization asset in effort its up stepped Group the of amount large a recovered and year the during financial and equity of disposal the from arising capital & Signal Railway China and CIMC as such assets .Limited Corporation Communication

inancing F in Used Cash Net Activities

net the 2020, December 31 ended year the For was activities financing in used outflow cash of decrease a representing 1,971,428,000,RMB net the with compared as 1,743,823,000RMB of activities financing from generated inflow cash 2020, of year the For 2019. for 3,715,251,000RMB and borrowings other and bank new s'Group the 72,009,961,000,RMB to amounted bonds corporate corporate ,borrowings other and bank of repayment principal obligation lease and bonds perpetual ,bonds of payment the 69,450,604,000,RMB to amounted the and 3,644,897,000,RMB to amounted interest debt perpetual in interest and dividend of payment 843,824,000.RMB to amounted

Receivables Notes and Trade

of balance s'Group the 2020, December 31 at As 2,445,764,000,RMB was receivables notes and trade as 1,334,764,000RMB of increase an representing receivables note which of ,year last with compared receivables trade and 371,225,000RMB by increased 963,539,000.RMB by increased

Analysis Ratio Gearing

gearing net s'Company the 2020, December 31 at As was) equity' shareholders over debts net .e.i (ratio ratio gearing Net .year last of 416% than lower 402%, last of that with compared as decrease slight a had .year

Analysis Risk Exchange Foreign

related-shipping s'Group the of costs and Revenues manufacturing container and business leasing a As .USD in denominated or settled are operations to due revenue operating net the on impact the ,result each by offset be can fluctuation rate exchange RMB Group the ,Period the During .extent certain a to other the for 126,820,000RMB of loss exchange an recorded the of fluctuations to due mainly was which Period exchange in increase the; 2020 in rate exchange USD to attributable equity to charged was which difference amounted Company the of parent the of shareholders to continue will Group The 684,783,000.RMB to and RMB of fluctuation rate exchange the monitor the reduce ,currencies settlement international major take and ,fluctuation rate exchange from arising loss foreign s'Group the mitigate to measures appropriate .necessary when risk exchange

Expenditures Capital

s'Group the 2020, December 31 ended year the For ,vessels container of acquisition the on expenditures other and ,containers and construction under vessels ;6,717,118,000RMB to amounted expenditures assets lease finance of acquisition the on expenditures 24,695,677,000.RMB to amounted

Commitments Capital

had Group the 2020, December 31 at As ,property to commitment capital in 7,028,381,000RMB but contracted been had which equipment and plant equity in 423,215,000RMB and ,for provided not .commitment investment

Pledge

and vessels container certain 2020, December 31 at As approximately of value carrying net with containers ,(25,765,286,000RMB 2019: (25,232,185,000RMB 24,367,438,000RMB of receivables lease finance of deposits pledge and) 24,015,141,000RMB 2019:( the of) 237,539,000RMB 2019: (279,603,000RMB and credit bank of grant the for pledged were Group .bonds of issuance

EVENTS SUBSEQUENT

payment the proposed Board the 2021, March 30 On of inclusive (share per 0.056RMB of dividend final a of 2020, December 31 ended year the for) tax applicable calculated 645,596,000RMB approximately totalling number the being ,shares 11,528,497,997 on based 11,608,125,000 of Company the of shares issued of shares A 79,627,003 deducting 2021 March 30 at as to subject is which ,Company the by repurchased the at Company the of shareholders of approval the of") AGM "the (meeting general annual forthcoming .Company the

LIABILITIES CONTINGENT

significant no were there 2020, December 31 at As .Group the for liabilities contingent

BENEFITS AND TRAINING ,EMPLOYEES

7,964 had Group the 2020, December 31 at As Period the for costs staff total the and ,employees social and cost welfare ,remuneration staff including( approximately to amounted) .etc fees insurance labour outsourced including (2,036,763,000RMB .(costs

most the of one as ,management Remuneration value enterprise of form a and incentives effective budget total of basis the on out carried is ,distribution market ,fairness internal ,creation value ,control Based .development sustainable and competition ,management contractualized "of principle the on management senior the ,"compensation differential implemented and introduced has Company the of strengthened and system manager professional the based mechanism restraint and incentive the s'Company The .management performance on the to applicable system remuneration comprehensive ,salaries) 1 (:aspects two of consists mainly employees ,salary performance ,salary title/position including ,benefits) 2 (and; allowances and incentives special provident ,insurance social mandatory including own its and state the by stipulated as fund housing .welfares corporate

resources human s'Company the support To and development talent ,reform management employee its constructed has Company the ,cultivation identification on based it make to system training defined clearly of support the with ,demand of have We .management based-list and responsibilities implementation and content training the enhanced training of effectiveness the improved and ,system and participation training staff ,allocation resource various ,system training the on Based .satisfaction implemented and designed were programmes training ,positions and business of types different address to ,innovation and transformation as such topics covering ,capability management ,development industry and safety ,management risk ,business financial .caliber individual

Analysis and Discussion Management

R O S N O I T I S I U Q AC MATERIAL AND SUBSIDIARIES OF DISPOSALs COMPANIES AFFILIATED

Group the 2020, December 31 ended year the During of disposals or acquisitions material any have not did .companies affiliated and subsidiaries

DIVIDEND

of dividend final a distribute to proposed Board The for) taxes applicable of inclusive (share per 0.056RMB 0.045RMB 2019: (2020 December 31 ended year the shareholders of approval the to subject ,)share per final The .AGM forthcoming the at Company the of ,RMB in declared and denominated be will dividend the of shares H and shares A of holders the to payable respectively ,dollars Kong Hong and RMB in Company .AGM the at approval the after months two within

further disclose ,course due in ,will Company The expected the ,things other among ,including details register of closure of arrangements and timetable the and ,Company the by shares H of members of .dividend final distribute to proposal

Management Senior and Supervisors ,Directors of Biographies

DIRECTORS EXECUTIVE

AGED ,)王大雄 (DAXIONG WANG .MR 60

COSCO of Chairman and Company the of Chairman formerly (.Ltd .,Co Holdings Investment SHIPPING .,Co Holdings) Kong Hong (Shipping China as known director executive-non a as served Wang .Mr ,).Ltd 2014, June to 2004 June from Company the of Captive Shipping COSCO of chairman as concurrently February to 2017 October from .Ltd .,Co Insurance Merchants China of director executive-non a as 2020, Stock Shanghai the on listed (.Ltd .,Co Securities on and 600999 of code stock the under Exchange code stock the under Exchange Stock Kong Hong the executive-non a as 2016, September from) 6099 of on listed (.Ltd .,Co Bank Merchants China of director of code stock the under Exchange Stock Shanghai the under Exchange Stock Kong Hong the on and 600036 He 2016. November from) 3968 of code stock the member a and manager general deputy the as served Shipping China of group leadership Party the of March to 2010 May from Limited Company) Group( Party the of member a ,president vice the as 2014, China of accountant chief the and group leadership 2005 April from Limited Company Group Shipping accountant chief and president vice as 2010, May to from Limited Company Group Shipping China of of president vice as 2005, April to 2004 December 2001 February from Limited Company Shipping China China of accountant chief the as; 2004 December to 2001 to 2000 August from Limited Company Shipping of member and accountant chief the as ,February Limited Company Shipping China of Committee Party chief the as and 2000, August to 1998 January from of accountant chief and department finance the of .Ltd .,Co) Group (Transport Maritime Guangzhou began Wang .Mr 1998. January to 1996 January from he after 1983 in industry shipping the in career his majoring University Maritime Shanghai from graduated degree EMBA an holds Wang .Mr .finance shipping in Economics and Finance of University Shanghai from .accountant senior a is and

50 AGED ,)劉沖 (CHONG LIU .MR

the of manager general and Director Executive Everbright China of director executive-non a ,Company Stock Kong Hong the on listed (.Ltd .,Co Bank on listed and 6818 of code stock the under Exchange of code stock the under Exchange Stock Shanghai the Marine International China of chairman-vice ,)601818 Kong Hong the on listed (Ltd .,Co) Group (Containers and 2039 of code stock the under Exchange Stock the under Exchange Stock Shenzhen the on listed director executive-non a and ,)000039 of code stock listed (.Ltd .,Co Management Asset Cinda China of stock the under Exchange Stock Kong Hong the on deputy the as served previously Liu .Mr ,)1359 of code .,Co Investment Shipping China of manager general chief and .,Ltd .,Co Logistics Shipping China and .Ltd Haisheng) Hainan (Shipping China of accountant management capital of chief the .,Ltd .,Co Shipping ,Limited Company Group Shipping China of division Container Shipping China of accountant chief the Shipping China of manager general and .Ltd .,Co Lines Sun from graduated Liu .Mr .Ltd .,Co Investment a is and ,economics in majoring University Yatsen .accountant senior

58 AGED ,)徐輝 (HUI XU .MR

executive and manager general Deputy ,secretary Party shipping his started Xu .Mr ,Company the of Director executive-non a as appointed was and 1982, in career June to 2005 October from Company the of Director of engineer chief of posts the held Xu .Mr 2013. (Group (Shipping Shanghai of Company Tanker Oil guidance and manager general to assistant ,Company ,Company Shipping Haixing Shanghai of director chief of department technical the of director deputy tanker oil an ,Company Shipping Haixing Shanghai of department technical the of director ,company general deputy ,Company) Group (Shipping Shanghai of group leadership Party the of member and manager Development Shipping China of Company Tanker Oil of member ,manager general deputy ,Limited Company Party and manager general ,group leadership Party the ,Company) Group (Shipping Shanghai of secretary China of secretary Party and manager general and as served He .Ltd .,Co Suppliers Sinopec & Shipping of manager general deputy and secretary Party the August from Limited Company Tanker Shipping China Jimei from graduated Xu .Mr 2016. March to 2015 and ,management ship in majoring College Navigation .engineer chief and engineer political senior a is

DIRECTORS EXECUTIVE-NON

51 AGED ,)黃堅 (JIAN HUANG .MR

Huang .Mr ,Company the of Director executive-Non capital the of manager general the as serving been has Shipping COSCO China of department operation previously He 2016. September since .Ltd Corporation and department financial the at positions held ,companies of number a of department administrative His .experience management related-financial has and Shanghai of director a as serving :includes experience a as 2018, June from Ltd .,Co Bank Commercial Rural Insurance Captive Property Marine COSCO of director Lanhai of director a; 2017 August from .Ltd .,Co Shanghai the on listed (.Ltd .,Co Investment Medical (600896 of code stock the under Exchange Stock China of director executive-non a as 2017, May from Shanghai the on listed (.Ltd .,Co Securities Merchants 600999 of code stock the under Exchange Stock the under Exchange Stock Kong Hong the on and director a as 2012, August from) 6099 of code stock on listed (.Ltd .,Co Technology Shipping COSCO of code stock the under Exchange Stock Shenzhen the ;2019 March to 2017 December from) 002401 of of) work of charge in (manager general deputy as COSCO China of department operations capital the August to February from .Ltd Corporation Shipping finance the of manager general deputy as; 2016 2012 February from Group COSCO of department and officer financial chief the as; 2016 February to COSCO of department finance the of manager general as; 2012 February to 2006 November from Americas the of manager general the and president vice the .Inc) Americas (Logistics COSCO of department finance (.Inc Services Bridge Intermodal as known formerly( worked He 2006. November to 2004 September from chief the was position last the and ,Group COSCO at July from department finance the and office capital of finance the at worked He 2004. September to 1996 .Ltd .,Co Shipping Ocean Shenzhen of department bachelor a obtained He 1996. July to 1993 July from the from auditing in major a with economics of formerly (Business and Economics of University Capital a and) Trade and Finance of Institute Beijing as known Beijing from administration business in degree s'master and 1992 July in respectively Technology of University and accountant an as qualified was He 2002. March May in Finance of Ministry the by accountant senior .respectively 2015 December and 1997

AGED ,)梁岩峰 (YANFENG LIANG .MR 55

chairman ,Company the of Director executive-Non of Committee Party the of secretary deputy and Liang .Mr .,Ltd .,Co Industry Heavy SHIPPING COSCO s'master a with University Tsinghua from graduated business of master executive an and law in degree economist senior a is He .degree) EMBA (administration Technical and Professional Senior the of member a and of Economics for Committee Examination Qualification served previously Liang .Mr .Transport of Ministry the resources human the of manager general deputy the as of management staff of director the and department general the; Company) Group (Shipping Ocean China the and Committee Party of member a ,manager COSCO of Centre Service Talent COSCO of director also He .Company Development Resources Human operations capital of manager general the as served .Company) Group (Shipping Ocean China of division Luzhou of member committee standing the was He China of Party Communist the of Committee Municipal Municipal Luzhou of) temporary (mayor deputy the and general deputy the; Province Sichuan ,Government SHIPPING COSCO of manager general and manager president vice the ,Limited Holdings International Hong (COSCO of Committee Party of member a and Committee Party of secretary; Limited Group) Kong Ocean Dalian of manager general deputy the and manager general the and; Limited Company Shipping COSCO of Committee Party of secretary deputy and .Ltd .,Co Group Shipyard

Management Senior and Supervisors ,Directors of Biographies

67 AGED ,)葉承智 (CHI SING IP .MR

group the ,Company the of Director executive-Non Limited Holdings Port Hutchison of director managing Container International Yantian of chairman the and executive an also is Chi Sing Ip .Mr ,Limited Terminals Management Holdings Port Hutchison of director Port Hutchison of manager-trustee the (Limited .Pte executive-non a ,)Singapore in listed Trust Holdings Limited) International (Overseas Orient of director the under Exchange Stock Kong Hong the on listed( executive-non independent an ,)00316 of code stock company a (.A.S Authority Port Piraeus of director a and) PPA of code stock the under Greece in listed Westports of director executive-non independent-non Malaysia in company listed a (Berhad Holdings founding the was He .)5246 of code stock the under Container Kong Hong the of) 2000-2001 (chairman served and Limited Association Operators Terminal Electronic Tradelink of director executive-non a as Stock Kong Hong the on listed (Limited Commerce external an ,)00536 of code stock the under Exchange Hyundai as known formerly (Ltd .Co NMM of director Korea in listed company a) (.Ltd.,Co Marine Merchant independent an ,)11200 of code stock the under Ports SHIPPING COSCO of director executive-non Exchange Stock Kong Hong the on listed (Limited independent an and) 01199 of code stock the under Energy SHIPPING COSCO of director executive-non Kong Hong the on listed (.Ltd .,Co Transportation from) 1138 of code stock the under Exchange Stock a was Ip .Mr ,Besides 2020. June to 2014 June Council Development Port Kong Hong the of member of years 35 over with 2014 December to 2009 from a holds Ip .Mr .industry shipping the in experience .degree Art of Bachelor

EXECUTIVE-NON INDEPENDENT DIRECTORS

66 AGED ,)蔡洪平 (HONGPING CAI .MR

,Company the of Director executive-non Independent China of director executive-non independent an the on listed (.Ltd Corporation Airlines Eastern of code stock the under Exchange Stock Shanghai Exchange Stock Kong Hong the on and 600115 director external an ,)0670 of code stock the under ,Corporation Industry Machinery National China of Shanghai of director executive-non independent an the on listed (.Ltd .,Co Bank Development Pudong code stock the under Exchange Stock Shanghai .Mr ,Capital AGIC of Chairman and) 600000 of Transportation and Industrial the for worked Cai Government Shanghai the of Committee Management Shanghai Sinopec (Petrochemical Shanghai and Hong the on listed ,Limited Company Petrochemical 338, of code stock the under Exchange Stock Kong stock the under Exchange Stock Shanghai the on listed Stock York New the on listed and 600688 of code 1987 from) SHI of code stock the under Exchange of process entire the in participated and 1991, to Shanghai of shares H of batch first the of listing the .States United the and Kong Hong in Petrochemical the of member a as served he 1996, to 1992 From under Enterprises Chinese for Team Listing Overseas State the of Committee Restructuring Economic the of Committee Joint the of chairman the and Council .China in Companies Share H for Secretaries Board of manager general the was he 1997, to 1996 From He .Asia Peregrine of division banking investment the banking investment the of director joint a as served the 2006, to 1997 from Asia Peregrine of division UBS of division banking investment the of chairman executive the and 2010, to 2006 from Asia in AG region Pacific Asia the in Bank Deutsche of chairman independent an as served Cai .Mr 2015. to 2010 from on listed (.Ltd .,Co Development Minmetals of director of code stock the under Exchange Stock Shanghai the ,Cai .Mr 2019. May to 2015 December from) 600058 degree s'bachelor a of holder a is ,citizen Kong Hong a Shanghai in University Fudan from graduated and .journalism in majoring

66 AGED ,)奚治月 (YUET CHI HAI .MS

,Company the of Director executive-non Independent in experience work of years 30 than more has Hai .Ms the as served has She .industry logistics shipping the 2016. since Limited Holdings Port Hutchison to advisor HIT-COSCO of director managing the as served Hai .Ms director managing the ,Limited) Kong Hong (Terminals ,Limited Terminals Container International Yantian of Holdings Port Hutchison of officer executive chief the Holdings Port Hutchison to advisor the and Trust ,service public in participates also Hai .Ms .Trust Committee Election the of member a being including Special Kong Hong of Executive Chief the for also She .Subsector Transport ,Region Administrative Development Port Kong Hong of member a as served Shenzhen of president the and Group Advisory as awarded was Hai .Ms 2011, In .Association Ports from graduated Hai .Ms .Citizen Honourable Shenzhen of University The and Canada ,Toronto ,University York business in degree s'bachelor a obtaining ,Kong Hong Buddhism in degree s'master a and administration .respectively studies

70 AGED ,JACK GRAEME .MR

the of Director executive-non Independent 'years 40 over has Jack Graeme .Mr ,Company at worked He .auditing and finance in experience a as retired and years 33 for PricewaterhouseCoopers an currently is he ,Company the to addition In .partner Greenbrier The of director executive-non independent and Trust Holdings Port Hutchison .,Inc Companies s'bachelor a holds He .Ltd MediTech China Hutchison the of member fellow a is and ,commerce in degree – Accountants Public Certified of Institute Kong Hong of Institute The of member associate an and Practising .Zealand New and Australia in Accountants Chartered

66 AGED ,)陸建忠 (JIANZHONG LU .MR

,Company the of Director executive-non Independent accounting of department the from graduated Lu .Mr with Economics and Finance of University Shanghai of He 1983. January in economics in degree s'bachelor a same the in finance of field the in career his started Professor Associate an and lecturer a was Lu .Mr .year Maritime Shanghai the at Accounting and Finance of He 1997. August to 1986 September from University the of partner a and accountant certified a as served Zhong PricewaterhouseCoopers of department audit From 2012. June to 1997 September from LLP Tian a as served Lu .Mr 2016, September to 2012 July Accountants Public Certified an'De Shanghai of partner Public Certified Daxin of director marketing the ,LLP Zhongxinghua of partner a and LLP Accountants served has Lu .Mr .LLP Accountants Public Certified Public Certified Hua Da at accountant certified a as an also is Lu .Mr 2016. October since LLP Accountants Hikvision Hangzhou of each of director independent Shenzhen the on listed (.Ltd .,Co Technology Digital ,(002415 of code stock the under Exchange Stock listed (.Ltd .,Co Equipment Power Fengfan Changshu code stock the under Exchange Stock Shanghai the on Engineering International Lehui Ningbo and) 601700 of Stock Shanghai the on listed (.Ltd .,Co Equipment and) 603076 of code stock the under Exchange Technology & Education Only Xinnanyang Shanghai under Exchange Stock Shanghai the on listed (.Ltd .,Co mentor enterprise an ,)600661 of code stock the /(MPACC (Accounting Professional of Master the for Antai of) Maud (programs Auditing of Master the Shanghai of Management and Economics of College the of expert external an and University Tong Jiao Economic the under Group Task Securitization Asset member a is He .Council State the of Center Research .PRC the in Society Jiusan of

Management Senior and Supervisors ,Directors of Biographies

AGED ,)張衛華 (WEIHUA ZHANG .MS 59

,Company the of director executive-non Independent ,Business of Faculty the from graduated Zhang .Ms with Australia in Queensland Southern of University compliance a was She .business in degree s'master a listed (.Ltd .,Co Securities Merchants China at director stock the under Exchange Stock Shanghai the on of board the of chairperson cum) 600999 of code Management Fund Merchants China of supervisors of number a held previously Zhang .Ms .Ltd .,Co president to assistant ,auditor chief including ,positions China of department audit the of manager general and the to assistant and .Ltd .,Co Securities Merchants department business securities the of manager general .Bank Merchants China office head the of

SUPERVISORY OF MEMBERS COMMITTEE

58 AGED ,)葉紅軍 (HONGJUN YE .MR

legal chief the and Company the of Supervisor Corporation SHIPPING COSCO China of consultant Communications Beijing in worked Ye .Mr ,Limited the in served and Executives for Institute Management department the ,head department deputy the ,MOC ,Section Legal the of chief section deputy the and head Section Regulatory Price the of chief section deputy the section the and Department Transport Water the of Transport Water the of Section Regulation the of chief of head the to assistant the as served He .Department and MOC the of Administration Safety Maritime the Management Shipping Domestic the of director the the of Bureau Transportation Waterway the of Division from law in degree s'master a received Ye .Mr .MOT .University Fudan

52 AGED ,)朱媚 (MEI ZHU .MS

work to began Zhu .Ms .Company the of Supervisor Maritime Shanghai from graduated She 1990. July in a obtained and ,degree master a with University Fudan from degree Administration Business of Master the in worked previously has Zhu .Ms .University (Group (Shipping Shanghai of office s'manager general Shipping China of department transport the ,Company .,Co Development Shipping China ,Company) Group( s'director of board the and Company Tanker Oil .Ltd Shipping China of office s'manager general/office General the as tenure her During .Company) Group( the of Principal Vice the and Secretary Branch Party and Company) Group (Shipping China of School Party Cadre Management Group the of dean deputy the posts temporary took she ,tenure her During .College a ,Committee Party Municipal the of member a as deputy the and Committee Standing the of member ,Lincang of Government Municipal the of mayor time-full a as serves she ,Currently .Province Yunnan .Co) Shanghai (SHIPPING COSCO of director outside .,Co Management Seafarer SHIPPING COSCO and .Ltd .Ltd

35 AGED ,)趙小波 (XIAOBO ZHAO .MR

a obtained He .Company the of supervisor Employee the from management financial in degree s'bachelor 2009 July in Studies Political of University Youth China the from economics national in degree s'master a and in Technology and Science for Shanghai of University China of Party Communist the joined He 2013. March 2009. July in working started and 2007 December in had He .accountant senior of title the holds Zhao .Mr ,supervisor senior ,supervisor a as served previously the of manager deputy and manager assistant Shipping China of department management financial Equipment Logistics Universal Shanghai/Investment deputy the as serves currently Zhao .Mr ..Ltd .,Co of department management financial of manager Orient of accountant chief the and Universal Shanghai .(Guangzhou (Containers International

SECRETARY COMPANY JOINT

41 AGED ,)蔡磊 (LEI CAI .MR

successively Cai .Mr ,Company the of Secretary Board the of director assistant an and officer an as served Oil of department shipping the of office commercial Development Shipping China of Company Tanker senior the as 2011, to 2004 from Limited Company (Group (Shipping China of office general the of chief Party s'Group the to secretary the and Company secretary the as 2016, to 2011 from group leadership COSCO China of group leadership Party the to to 2016 January from Limited Corporation Shipping and Board the to secretary the as and 2019, June relations public and securities the of manager general .,Co Development SHIPPING COSCO of department the from graduated Cai .Mr 2019. August from .Ltd University Maritime Shanghai of School Graduate of master a with law commercial and civil in majoring professional judicial national a as qualified is He .laws of title the holds and ,assessor insurance an and .economist intermediate

MANAGEMENT SENIOR

50 AGED ,)明東 (DONG MING .MR

Party the of member a and manager general Deputy career his began Ming .Mr ,Company the of committee Finance COSCO in worked successively and 1994 in ,centre operation asset the at and Limited Company operation capital and department affairs president (Group (Shipping Ocean China of department general the as served He .Company the and Company the and division relations investor the of manager SHIPPING COSCO of representative affairs securities 2008, December to 2005 July from .Ltd .,Co Holdings affairs securities the of manager general the and Company) Group (Shipping Ocean China of division February to 2009 January from SHIPPING COSCO and a and manager general deputy the been has He 2016. Shipping COSCO of Committee Party the of member Ming .Mr 2016, March since .Ltd .,Co Development and Finance of University Central from graduated and finance international in majoring Economics degree s'master a obtained and ,economics investment .economist senior a is He .economics in

Management Senior and Supervisors ,Directors of Biographies

45 AGED ,)林鋒 (FENG LIN .MR

of supervisor a and Company the of accountant Chief .,Co) Group (Containers Marine International China branch the of officer financial a as served Lin .Mr .,Ltd the and .,Ltd .,Co Freight Haixing Shanghai of office financial chief the and officer financial chief deputy of Shanghai in department finance the of officer 1997 July from .Ltd .,Co Carrier Bulk Shipping China director deputy the as served He 2007. December to the and section planning the of director the and (Group (Shipping China of office management budget Group Shipping China as known currently (Company January to 2008 January from) Limited Company Lin .Mr 2018, August to 2014 January From 2014. general deputy the and accountant chief the as served Holdings Investment SHIPPING COSCO of manager Hong (Shipping China as known formerly (Limited .,Co from graduated Lin .Mr .)Limited .,Co Holdings) Kong as known currently (Agriculture of School Shanghai Agriculture of School University Tong Jiao Shanghai ,economics in degree s'bachelor a with) Biology and of title the holds He .banking currency in majoring .accountant

45 AGED ,)杜海英 (HAIYING DU .MS

Du .Ms ,Company the of manager general Deputy director the as served and 1998 in working started Shipping China of department development the of March from .Ltd .,Co Shipping Haisheng) Hainan( principal vice the and 2015, September to 2009 (Group (Shipping China the of School Party the of deputy the as served concurrently has She .Company China of College Cadre Management the of dean 2013. September from Company) Group (Shipping served she 2019, December to 2015 September From of member a and manager general deputy the as .,Co Investment Shipping China of Committee CCP COSCO of manager general the to assistant an .,Ltd deputy the and .Ltd .,Co Development Shipping .,Co Investment Shipping China of manager general the and manager general the to assistant an and .Ltd department business financial the of manager general the and .Ltd .,Co Development SHIPPING COSCO of Investment Shipping China of manager general deputy deputy the as serves she 2020, January Since .Ltd .,Co Development SHIPPING COSCO of manager general College Antai the from graduated Du .Ms .Ltd .,Co Tong Jiao Shanghai ,Management and Economics of a with administration business in majoring ,University title the holds She .administration business of master .economist of

ended year the for statements financial consolidated audited the with together report annual its submits Board The .("Year "the (2020 December 31

OF ANALYSIS GEOGRAPHICAL AND ACTIVITIES PRINCIPAL OPERATIONS

financial consolidated the to 1 Note in out set are subsidiaries its and Group the of activities principal The .statements

4 Note in out set is segments geographical and business by Year the for results operation s'Group the of analysis An .statements financial consolidated the to

RESULTS

page on loss or profit of statement consolidated the in out set are Year the for Group the of results operation The .Report Annual this of 104

REVIEW BUSINESS

for performance s'Group the of analysis an 2020, December 31 ended year the for Group the of review Business the of development business future the on discussion a ,development recent ,metrics financial key using Year the facing uncertainties and risks major potential the of description a and period the after events subsequent ,Group on" Analysis and Discussion Management "and 11 to 6 pages on" Statement s'Chairman "in out set are Group the with compliance its ,performance and policy environmental s'Company The .Report Annual this of 27 to 12 pages and Group the between relationship the and Group the on effects significant have that regulations and laws relevant Governance Corporate "and" Directors of Board the of Report "in out set are suppliers and customers ,employees its .Report Annual this of 93 to 35 pages on" Report

DIVIDENDS

	2020	2019
	000'RMB	000'RMB
Proposed final dividend RMB of per 0.056 ordinary share
2019:( RMB per 0.045 (share	645,596	518,782

forthcoming the at shareholders s'Company the of approval the to subject is Year the for dividend final proposed The .AGM

per) tax applicable including (0.056RMB of dividend final distribute to proposed Board the 2021, March 30 at As approximately of aggregate an with) share per 0.045RMB 2019: (2020 December 31 ended year the for share the being (Company the of shares 11,528,497,997 on based calculated) 518,782,000RMB 2019: (645,596,000RMB shares 11,608,125,000 from Company the by repurchased shares A 79,627,003 deducting after shares of number .(2021 March 30 on Company the by issued

RESERVES

statement consolidated the in out set are Year the during Company the and Group the of reserves the of Movement financial consolidated the to 50 Note and 39 Note ,Report Annual this of 109 to 108 pages on equity in changes of .statements

EQUIPMENT AND PLANT ,PROPERTY

financial consolidated the to 14 Note in out set are equipment and plant ,property in movements the of Details .statements

CAPITAL SHARE

financial consolidated the to 37 Note in out set are Company the of capital share in movements the of Details .statements

RESERVES DISTRIBUTABLE

profits distributable its of out dividends distribute only may Company the ,Law Company PRC the with accordance In the from forward brought losses accumulated the) i (:deducting after tax income after profit s'Company the .e.i( discretionary after balance the ,any if ,and reserve surplus statutory the to allocations the) ii (and; years previous of amount appropriate the determining In .))priorities of order such in funds various into allocated (reserve surplus ,Company the by realized profits distributable the ,things other among ,account into takes Board the ,dividends the of operation normal the satisfying requirements flow cash and needs capital the ,Company the of liquidity the .Company the of development of stage and profitability the ,Company

determining of purpose the for ,")Association of Articles "the (association of articles s'Company the to According tax income after profit its of lesser the is Company the of profit distributable the ,distribution for available profit Financial Kong Hong) ii (and; regulations and standards accounting PRC the) i (:with accordance in calculated .Standards Reporting

,principles above the on based calculated ,Company the of earnings retained the 2020, December 31 at As standards accounting PRC the with accordance in prepared was which ,million 647RMB approximately to amounted .regulations and

RIGHTS EMPTIVE-PRE

to Company the require which exist rights emptive-pre no ,PRC the of laws the and Association of Articles the Under .shareholdings their to proportion in shareholders existing its to offering shares new of proposal submit

SUMMARY FINANCIAL

.Report Annual this of 4 page on out set is Group the of liabilities and assets the of and results the of summary A

THE OF SECURITIES LISTED THE OF REDEMPTION OR SALE ,PURCHASE COMPANY

or sold ,purchased had subsidiaries its of any nor Company the neither 2020, December 31 ended year the During .Company the of securities listed the of any redeemed

DIRECTORS OF EMOLUMENT THE DETERMINING OF BASIS THE

year the for Directors of performance the to reference with Directors of remuneration the determines Company The .results operation with management s'Company linking of principle the on and 2020 December 31 ended

SUPERVISORS AND DIRECTORS

:are Report Annual this of date the at as office held who Supervisors and Directors The

DIRECTORS

DIRECTORS EXECUTIVE

(Chairman (Daxiong Wang .Mr Chong Liu .Mr Hui Xu .Mr

DIRECTORS EXECUTIVE-NON

Jian Huang .Mr Yanfeng Liang .Mr Chi Sing Ip .Mr

DIRECTORS EXECUTIVE-NON INDEPENDENT

Hongping Cai .Mr Yuet Chi Hai .Ms Jack Graeme .Mr Jianzhong Lu .Mr Weihua Zhang .Ms

SUPERVISORS

(Chairman (Hongjun Ye .Mr Mei Zhu .Ms Xiaobo Zhao .Mr

shall Company the of Supervisors and Directors the of service of term the ,Association of Articles the to According .years three be

CONTRACTS SERVICE' SUPERVISORS AND' DIRECTORS

contract service a has term this for Committee Supervisory the of Supervisors and Board the of Directors the of Each Committee Supervisory the and Directors of Board the of sessions sixth the of conclusion the until Company the with .Company the of

year one within Company the by determinable not is which contract service any into enter not did Company The .Supervisor or Director any with) compensation statutory than other (compensation of payment without

,TRANSACTIONS IN INTEREST' SUPERVISORS AND' DIRECTORS CONTRACTS OR ARRANGEMENTS

transactions connected the to limited not but including (Directors of Board the of Report this in disclosed as Save significance of contracts or arrangements ,transactions no ,)below stated transactions connected continuing and Kong Hong of Exchange Stock The on Securities of Listing the Governing Rules the to 16 Appendix in defined as( or are entities connected their or Company the of Supervisor a or Director a which in ,"))Rules Listing "the (Limited .Year the of end the at or Year the during subsisted ,indirectly or directly ,interested materially were

transactions connected the to limited not but including (Directors of Board the of Report this in disclosed as Save of any or Company the which in significance of contracts no ,)below stated transactions connected continuing and its of subsidiary a or) Rules Listing the to 16 Appendix in defined as (shareholders controlling its and subsidiary its .Year the of end the at or Year the during subsisted ,party a was shareholders controlling

transactions connected the to limited not but including (Directors of Board the of Report this in disclosed as Save provided service the to relation in significance of contracts no ,)below stated transactions connected continuing and at or Year the during subsisted ,subsidiaries its or Company the to subsidiaries their or shareholders controlling by .Year the of end the

PROVISION INDEMNITY PERMITTED

the throughout force in was and force in currently is Directors the of benefit the for provision indemnity permitted A of respect in management senior and Directors its for cover insurance appropriate arranged has Company The .Year .activities company with connection in them against brought be may that action legal

SENIOR AND SUPERVISORS ,DIRECTORS OF DETAILS BIOGRAPHICAL MANAGEMENT

this of 34 to 28 pages on out set are management senior and Supervisors ,Directors the of details biographical Brief general department the respectively were Hongjun Ye and Jian Huang 2020, December 31 at As .Report Annual and SHIPPING COSCO China 2020, December 31 at As .SHIPPING COSCO China of adviser legal chief and manager fall would which shares underlying and shares s'Company the in positions short or interests had Shipping China Futures and Securities the of XV Part of 3 and 2 Divisions of provisions the under Company the to disclosed be to .("SFO "the (Ordinance

TO RIGHTS' EXECUTIVES CHIEF AND' SUPERVISORS ,'DIRECTORS DEBENTURES OR SHARES ACQUIRE

Supervisors ,Directors the enable to party a was or is subsidiary its or Company the which to arrangements No the of debentures or in shares of acquisition of means by benefits acquire to Company the of executives chief or .Year the during time any at subsisted corporate body other any or Company

SUPERVISORS ,DIRECTORS OF POSITIONS SHORT OR INTERESTS AND SHARES UNDERLYING ,SHARES IN EXECUTIVES CHIEF AND DEBENTURES

the of) s(executive chief or Supervisors ,Directors the of positions short or interests the 2020, December 31 at As within (corporations associated its of any or Company the of debentures or shares underlying ,shares the in Company Stock Kong Hong the and Company the to notified be to required was which) SFO the of XV Part of meaning the such any which positions short or interests including (SFO the of XV Part of 8 and 7 Divisions to pursuant Exchange which or) SFO the of provisions such under have to deemed or taken is) s(executive chief or Supervisors ,Directors SFO the of 352 Section to pursuant Company the by kept be to required register the in entered be to required was the to pursuant Exchange Stock Kong Hong the and Company the to notified be to required otherwise was which or Company the by adopted") Code Model "the (Issuers Listed of Directors by Transactions Securities for Code Model :follows as were

		of Class		Number of Shares	Approximate percentage of total the number the of relevant of class Shares	Approximate percentage of the issued share capital of
Name	Position	Shares	Capacity	interested	the of Company	the Company
Wang Daxiong	Director	shares A	Beneficial owner	(1 Note( 1,500,000 (L ( (2 Note(	(%) 0.02	(%) 0.01
		shares H	Other	834,677 (L ( Notes( (4 and 3	0.02	0.01
Liu Chong	Director	shares A	Beneficial owner	1,490,100 (L ( (2 Note(	0.02	0.01
		shares H	Other	1,112,903 (L ( Notes( (5 and 3	0.03	0.01

COMPANY THE OF SHARES THE IN INTERESTS

Name	Position	of Class Shares	Capacity	Number of Shares interested (1 Note(	Approximate percentage of total the number the of relevant of class Shares the of Company (%)	Approximate percentage of the issued share capital of the Company (%)
Hui Xu	Director	shares A	Beneficial owner	1,490,100 (L ( (2 Note(	0.02	0.01
		shares H	Other	945,968 (L ( Notes( (6 and 3	0.03	0.01

:Notes

• .shares the in position long means" L "1.
• Incentive Option Share A to pursuant 2020 March 30 on directors the to granted options Share to relate interests Such 2. .Company the of Scheme
• senior ,Supervisor ,Directors executive certain 2016, November 24 dated Company the of announcement the in disclosed As 3. management asset an in ,fund own their with ,invested voluntarily have Company the of employees and management and management senior ,Supervisor ,Directors executive the which to pursuant ,")Plan Management Asset "the (plan of manager the entrusted and Plan Management Asset the of units the to subscribed have Company the of employees of manager The .Shares H the in invest will which ,Plan Management Asset the manage to Plan Management Asset the assets the of investment-re and investment the ,things other among ,for responsible be shall Plan Management Asset the respect in rights relevant other and rights voting the exercise to entitled be shall and Plan Management Asset the under ,Plan Management Asset the in participate not did Company The .Plan Management Asset the under held Shares H the of of scheme benefit employee of type any or scheme option share a constitute not does Plan Management Asset the and H 6,900,000 acquired has and funded fully been has Plan Management Asset the 2017, December 31 at As .Company the .Share H per \$1.749HK of price average an at market the on Shares
• 12.10% approximately holds he which through Plan Management Asset the of participants the of one is Daxiong Wang .Mr 4. Shares H 834,677 the ,Accordingly 2020. December 31 at as Plan Management Asset the of units of number total the of 31 at as Plan Management Asset the in Daxiong Wang .Mr by subscribed units the from derived interests the represent .Shares any hold not does Daxiong Wang .Mr 2020, December 31 at As 2020. December
• 16.13% approximately holds he which through Plan Management Asset the of participants the of one is Chong Liu .Mr 5. H 1,112,903 the ,Accordingly 2020. December 31 at as Plan Management Asset the of units of number total the of 31 at as Plan Management Asset the in Chong Liu .Mr by subscribed units the from derived interests the represent Shares .Shares any hold not does Chong Liu .Mr 2020, December 31 at As 2020. December
• the of 13.71% approximately holds he which through Plan Management Asset the of participants the of one is Hui Xu .Mr 6. represent Shares H 945,968 the ,Accordingly 2020. December 31 at as Plan Management Asset the of units of number total at As 2020. December 31 at as Plan Management Asset the in Hui Xu .Mr by subscribed units the from derived interests the .Shares any hold not does Hui Xu .Mr 2020, December 31

the of) s(executive chief or Supervisors ,Directors the of none 2020, December 31 at as ,above disclosed as Save or Company the of debentures or shares underlying ,shares the in positions short or interests any had Company to notified be to required was which) SFO the of XV Part of meaning the within (corporations associated its of any including (SFO the of XV Part of 8 and 7 Divisions to pursuant Exchange Stock Kong Hong the and Company the have to deemed or taken is) s(executive chief or Supervisors ,Directors such any which positions short or interests the by kept be to required register the in entered be to required was which or) SFO the of provisions such under and Company the to notified be to required otherwise was which or SFO the of 352 Section to pursuant Company .Company the by adopted Code Model the to pursuant Exchange Stock Kong Hong the

SHAREHOLDERS SUBSTANTIAL OF POSITIONS SHORT OR INTERESTS SHARES UNDERLYING OR SHARES THE IN PERSONS OTHER AND

the ,Company the of) s(executive chief or Supervisors ,Directors the of knowledge the to 2020, December 31 at As voting the of more or 5% control or exercise to entitled are who shareholders the of positions short or interests the of) s(executive chief or Supervisor ,Director a than other (persons other or meeting general any at power Company the to notified be to required were which Company the of shares underlying or shares the in) Company short or interests the or ,SFO the of XV Part of 3 and 2 Divisions to pursuant Exchange Stock Kong Hong the and the of 336 Section to pursuant Company the by kept register the in recorded be to required were which positions Exchange Stock Kong Hong the and Company the to notified been have which positions short or interests the or SFO :follows as were

				Approximate percentage of total the number	Approximate percentage of
			Number of	the of relevant	the issued share
	of Class		Shares	of class of Shares	of capital
of Name Shareholder	Shares	Capacity	interested	the Company	the Company
			(1 Note(	(%)	(%)
China Shipping (Group (	shares A	Beneficial	4,410,624,386 (L (	55.60	38.00
Company		owner	(2 Note(
	shares H	of Interest	100,944,000 (L (	2.75	0.87
		controlled	(3 Note(
		corporation
China COSCO SHIPPING	shares A	of Interest	4,410,624,386 (L (	55.60	38.00
Corporation Limited		controlled	(2 Note(
		corporation
	shares A	Beneficial	45,570,789 (L (	0.60	0.41
		owner
	shares H	of Interest	100,944,000 (L (	2.75	0.87
		controlled	(3 Note(
		corporation

:Notes

• .shares the in position long means" L "1.
• .shares of block same the represent Shares A 4,410,624,386 Such 2.
• indirectly an ,Limited Investment Fortune Ocean by held shares of block same the represent Shares H 100,944,000 Such 3. .Shipping China of subsidiary owned-wholly

chief or Supervisors ,Directors than other (person other no 2020, December 31 at as ,above disclosed as Save Company the of shares underlying or shares any in position short or interest any had) Company the of) s(executive of provisions the under Exchange Stock Kong Hong the and Company the to disclosed be to fall would which the by kept register the in recorded positions short or interest any or ,SFO the of XV Part of 3 and 2 Divisions the to notified been have which positions short or interest any or SFO the of 336 Section to pursuant Company .Exchange Stock Kong Hong the and Company

SCHEME INCENTIVE OPTION SHARE A

the at Company the of shareholders the by approved was Scheme Incentive Option Share A the 2020, March 5 On be to options share the of number total The .Company the of meetings class the and meeting general extraordinary (options share reserved 8,847,445 of inclusive (88,474,448 is Scheme Incentive Option Share A the under granted of 0.7622% approximately representing ,shares A 88,474,448 are thereto relation in shares A underlying the and A The .Company the of capital share A then the of 1.1154% and Company the of capital share issued total then the 2020. March 5 from as years 10 for effective be shall Scheme Incentive Option Share

establishment the facilitate ,things other among ,to is Scheme Incentive Option Share A the of purpose The core and management senior the incentivize and Company the of systems incentive the of improvement and and shareholders the ,Company the of interests the tying thereby ,Group the of personnel business and management .Company the of targets development the of achievement the facilitating and together management the

124 to granted were options share 78,220,771 of aggregate an ,")Grant of Date "the (2020 March 30 On management core 115 and Company the of management senior and directors nine comprises which ,participants Date the before immediately day trading the on shares A of price closing The .Group the of personnel business and .Share A per 2.00RMB was Grant of

exercise the and Grant of Date the from years two is Scheme Incentive Option Share A the of period vesting The price exercise The .Grant of Date the from commencing years seven of term a be shall options share the of period dividend-ex or right-ex of occurrence the upon adjusted be shall which ,share A per 2.52RMB is options share the of share each ,exercise of conditions the of satisfaction the to Subject .options share the of exercise the before events .price exercise the at share A one acquire to participant the entitles option

Option Share A the under granted options share the ,exercise of conditions the of satisfaction the to Subject with accordance in period vesting the of expiration the after tranches three in exercisable be will Scheme Incentive :arrangement following the

		Proportion of share options exercisable the to total number of share options
Exercise period	Duration	granted
First exercise period	Commencing on first the trading day the after expiration of the month24- period from Date the Grant of and ending on last the trading day the of month36- period from Date the .Grant of	1/3
Second exercise period	Commencing on first the trading day the after expiration of the month36- period from Date the Grant of and ending on last the trading day the of month48- period from Date the .Grant of	1/3
Third exercise period	Commencing on first the trading day the after expiration of the month48- period from Date the Grant of and ending on last the trading day the of month84- period from Date the .Grant of	1/3

ended year the during Scheme Incentive Option Share A the under granted options share the of movement of Details :follows as were 2020 December 31

			of Number	options share
Category	Outstanding at as 2020 January 1	Granted during year the	Exercised during year the	Cancelled during year the	during Lapsed year the	Outstanding as at December 31 2020	of Percentage issued total A capital share of Company the	of Percentage issued total capital share of Company the
							(%)	(%)
Directors
Daxiong Wang	A/N	1,500,000	0	0	0	1,500,000	0.0189	0.0129
Chong Liu	A/N	1,490,100	0	0	0	1,490,100	0.0188	0.0128
Hui Xu	A/N	1,490,100	0	0	0	1,490,100	0.0188	0.0128
Senior management
of Company the	A/N	6,662,300	0	0	0	6,662,300	0.0840	0.0574
core Other management and
business personnel
Group the of	A/N	67,078,211	0	0	0	67,078,211	0.8457	0.5779
Total	A/N	78,220,711	0	0	0	78,220,711	0.9861	0.6738

.options share the of value fair the determine to model pricing option Scholes-Black the selected has Company The option share each of value fair the ,Grant of Date the at as ,Company the by calculation preliminary the on Based approximately is granted options share 78,220,711 the of value fair aggregate the and 0.32,RMB is granted .statements financial consolidated the to 38 Note in out set are which of details further 25,031,000,RMB

SHAREHOLDERS SUBSTANTIAL THE OF EMPLOYEES AND DIRECTORS

or/and SHIPPING COSCO of employees or directors the are Company the of Supervisors and Directors Certain and SHIPPING COSCO and ,)Report Annual this of 34 to 28 pages on out set are which of details (Shipping China the to disclosed be to fall which Company the of shares underlying and shares the in interests have Shipping China .SFO the of XV Part of 3 and 2 Divisions of provisions the under Company

FLOAT PUBLIC OF SUFFICIENCY

the at as ,Directors the to known also and Company the of knowledge the within is that information public on Based as shares issued s'Company the of 25% than more of float public sufficient was there ,Report Annual this of date .Rules Listing the under required

CONTRACTS MANAGEMENT

or Supervisors or Directors any with contracts service the than other (subsisted and into entered were contracts No whole the of administration and management the ,which to pursuant and ,)Company the of staff time-full the of any .corporates body or firms ,individuals any by undertaken were Company the of business the of part substantial any or

SUPPLIERS AND CUSTOMERS MAJOR

largest five its to services and goods its of 48% aggregate in sold Group the 2020, December 31 ended year the For .customer largest its to 31% including ,Year the during customers

largest five its from services and goods its of 30% than less aggregate in purchased Group the ,Year the During .suppliers

issued total the of 39.28% holding indirectly Company the of shareholder controlling the ,SHIPPING COSCO China .customers largest five s'Company the of one in interested beneficially is ,Company the of capital share

of knowledge the to who (shareholders any or associates close their ,Directors the of none ,above disclosed as Save the or customers largest five the in interest has) Company the of shares issued the of 5% than more owns Board the .Group the of suppliers largest five

AGREEMENT LINKED-EQUITY

.Year the during subsisted or Group the by into entered were agreements linked-equity No

DONATIONS CHARITABLE

during Group the by made 10,922,600RMB approximately of amount total a with donation charitable a was There .Year the

STAKEHOLDERS KEY WITH RELATIONSHIP

EMPLOYEES WITH RELATIONSHIP

中華人民共 (《China of Republic s'People the of Law Labour the to adheres strictly Development SHIPPING COSCO and》) 中華人民共和國勞動合同法 (《China of Republic s'People the of Law Contract Labour the and》) 和國勞動法 Company the ,Meanwhile .employees its of interests and rights legal the safeguard to ,regulations and laws other management resources human its upon improvements made and established have units business direct its and .Development SHIPPING COSCO of demand transformation strategic the match to order in ,system

various Through .structure talent its of optimization the to importance attaches Development SHIPPING COSCO talent enhancing and system promotion and training staff its perfecting ,talents end-high attracting including means the for suited-well team talent a building in effort no spares Development SHIPPING COSCO ,management resources .strategy development s'Company

,staff its of health occupational the on eye keen a keeps units business direct its and Development SHIPPING COSCO Management Safety Occupational the including ,regulations formulating by safeguarding been has it which for of Control and Prevention on Regulations and System Management Claim Compensation Injury Work ,System the ,services financial providing Besides .system management care health a building and ,Diseases Occupational Company the 2016, In .security their ensure to crew assigned the of safety and health the administers also Company Society Classification China by certified system management integrated" one-in-four "of review annual the passed .management energy and security and health occupational ,environment ,quality on

a has Development SHIPPING COSCO .industry financial the in competition of core the is competition Talent talent a up set has Company The .transformation business its to due talents financial level-high for demand high appealing highly a built and scheme incentive talent its perfected ,talents end-high attract to programme recruitment .elites industry together brings that platform

COSCO ,period transformation its during Company the of demand development business the accommodate better To Staff formulating Through .system training differentiated and tiered-multi a establishes Development SHIPPING importing and sessions communication internal and training scheduled-non organizing ,System Management Training professional elevating and vision industry expanding to dedicated is Company the ,resources training external .staff the of qualities

CUSTOMERS WITH RELATIONSHIP

to Due .level next the to services its bring to seeks constantly and customers its serve to dedicated fully is Group The online multiple provide to continue we ,experience service overall the in communication customer of essentiality the .customers all to services and responses deliver to order in channels communication offline and

,customers major s'Company the with relationships cooperative and healthy ,standing-long maintains Group The between Settlement .customers other with terms credit consistent shares and terms commercial normal to adheres into taking ,Group The .contract the in terms payment on based conducted is customers major and Group the provisions debt bad on based receivables loan of balance for provides ,amount recoverable on judgment the account an on customers major of information the assesses and monitors Group The .profile risk credit similar with classified .customers major with relationship and communication boosts which ,basis timely and going-on

SUPPLIERS WITH RELATIONSHIP

has and ,integrity high and quality high of standard a applying been has Group the ,suppliers selecting of terms In improve to Aiming .just and fair ,open remains process purchase the that ensure to systems relevant established the of sustainability the measure to Group the by utilized are guidelines and assessment critical ,quality purchase Group the of departments Relevant .influences environmental and safety and health ,labor of terms in suppliers efficient more a in suppliers the manage to order in regularly suppliers the on assessments performance conduct .suppliers the with relationship and communication boosts which ,supplier in risks potential reduce and manner

PERFORMANCE AND POLICY ENVIRONMENTAL

incorporates Development SHIPPING COSCO ,consensus global a become has development carbon-low and green As potential the with deal to measures active taking by operation overall its into development green of concept the the facilitate to influence and advantages its leverages and ,operations business its of impact environmental .construction civilization ecological of goal the of achievement the and industry the of development sustainable

SYSTEM MANAGEMENT ENVIRONMENT OF OPTIMIZATION

the ,hand one the On .system management environment its improves continually Development SHIPPING COSCO 中華人 (《China of Republic s'People the of Law Prevention Pollution Atmospheric the to adheres strictly Company 中華人民共 (《China of Republic s'People the of Law Promotion Production Clean and》) 民共和國大氣污染防治法 other the on; regulations and laws protection environment industrial and national other and》) 和國清潔生產促進法 environment improve to units business direct and departments business its organizes actively Company the ,hand .systems and regulations management

,"Management Emission Exhaust on Regulations ","Discharge Wastewater on Regulations "formulated Company The Management Waste Vessel ","Management Prevention Pollution Environment Waste Solid on Regulations" Treatment on Regulations "and" Cabin the in Oil Residual and Sewage Oily of Treatment on Regulations ","Plan formulated also Company The .environment the on emissions of impact the minimize to" Sewage Domestic of Reduction Emission and Conservation Energy ",pollution noise minimize to" Management Noise on Regulations" and" Accidents Pollution Environmental for Plan Contingency ",usage resource manage to" System Management for management advance provide to" Management and Evaluation ,Identification for Procedures Management" .risks environmental potential

on Regulations "improving By .offices to lines production from management environmental extends Company The the ,policies office green other and" Offices in Conservation Energy on Regulations ","Offices in Wastes of Disposal forging for foundation systematic a laying ,offices in wastes of disposal and energy of use the manages Company .atmosphere office green

ENERGY CLEAN OF DEVELOPMENT THE SUPPORT

sustainable and safe ,efficient ,clean into exploration accelerate to efforts our in essential is energy clean Developing COSCO .quality air improving and consumption energy reducing in role important an plays also It .resources such energy clean by generation power of development the in engaging deeply been has Development SHIPPING facilities and technologies green of upgrade the support to power wind and power hydroelectric ,photovoltaics as ,services leasing finance professional its with projects energy of construction the promote and enterprises among .industry energy clean the of expansion and development continuous the facilitating

CONTAINERS OF MANUFACTURE GREEN OF PROMOTION

Issued System Manufacturing Green of Construction of Commencement the Regarding Notice the to According 工業和信息化部辦公廳關於開展綠 (《Technology Information and Industry of Ministry the of Office General the by be shall recycling and carbon low ,efficient ,clean is that system manufacturing green a ,》)色製造體系建設的通知 .enterprises green into enterprises manufacturing transforming and upgrading for benchmark the as established By .containers of manufacturer green a into itself forging proactively been has Development SHIPPING COSCO from process whole the into emission carbon minimizing and manufacturing green of concepts the incorporating container its in efficiency higher achieved Company the ,wastes of disposal to production ,procurement material raw .business manufacturing

WHICH REGULATIONS AND LAWS APPLICABLE WITH COMPLIANCE GROUP THE ON IMPACT SIGNIFICANT A HAVE

,leasing industry other and shipping in engaged principally is Group the ,restruction asset material the After subsidiaries its and Company the of businesses The .businesses services and investment and manufacturing container the ,China of Republic s'People the of Laws Company the as such regulations and laws of number a to subject are of Notice ,China of Republic s'People the of Law Contract the ,China of Republic s'People the of Law Securities Undertaking Concerning Issues Relevant on Taxation of Administration State the and Commerce of Ministry the the of Interpretation ,》)國家稅務總局關於從事融資租賃業務有關問題的通知、商務部 (《Business Lease Financing over Disputes Involving Cases of Trial the in Law of Application the concerning Issues on Court s'People Supreme for Measures ,》)最高人民法院關於審理融資租賃合同糾紛案件適用法律問題的解釋 (《Contracts Leasing Financial the on Provisions ,》)企業集團財務公司管理辦法 (《Groups Enterprise of Companies Finance of Administration the and polices ,rules applicable other and》) 保險經紀機構監管規定 (《Institutions Brokerage Insurance of Supervision in compliance of procedure the has Group The .regulations and laws these on based documents legal normative those particular in and ,documents legal normative and regulations ,laws applicable with compliance ensure to place .services financial integrated and investment ,leasing as such businesses principal its on effects material have would and rules ,laws applicable in change any of teams operating and employees relevant the notify will Group The .time to time from businesses principal its to relating documents legal normative

the .g.e (Group the to apply also regulations and laws applicable other under requirements certain ,addition In 上海證券交 (《Exchange Stock Shanghai the of Rules Listing Stock the ,China of Republic s'People the of Law Labour the ,Limited Kong Hong of Exchange Stock The on Securities of Listing the Governing Rules the ,》)易所股票上市規則 Laws the of 57 .Cap (Ordinance Employment the and) Kong Hong of Laws the of 622 Cap (Ordinance Companies processes with accordance in aspects different to resources its allocate to strived has Group The .))Kong Hong of supervising and training by requirements these with compliance its ensured and ,approval and control internal of incur will and resources internal substantial requires measures these of Implementation .units business different over laws applicable with compliance on emphasis particular put has Group the ,Nevertheless .costs operating additional .regulations and

TRANSACTIONS CONNECTED

:transactions connected following the into entered Company the 2020, December 31 ended year the During

FINANCE SHIPPING COSCO IN INCREASE CAPITAL) 1(

:transaction the of description and parties ,Date•

Finance SHIPPING COSCO of shareholders existing other the and Company the 2020, April 24 On including (shareholders existing the which to pursuant ,agreement increase capital a into entered by Finance SHIPPING COSCO of capital registered the increase to agreed have) Company the capital the of completion Upon .shareholding respective their to proportion in 3,200,000,000RMB 2,800,000,000RMB from increased be will Finance SHIPPING COSCO of capital registered the ,increase remain will Finance SHIPPING COSCO in Company the of shareholding the while 6,000,000,000RMB to 23.384%. at unchanged

:transaction the to parties the of relationship Connected•

the of capital share issued total the of 38.41% approximately representing ,shares A 4,458,195,175 100,944,000 and ,SHIPPING COSCO of subsidiary owned-wholly a ,Shipping China by held is ,Company is ,Company the of capital share issued total the of 0.87% approximately representing ,shares H .SHIPPING COSCO of subsidiary owned-wholly indirect an ,Limited Investment Fortune Ocean by held voting the over control exercise to entitled are or control associates its and SHIPPING COSCO ,Therefore approximately representing ,shares H 100,944,000 and shares A 4,458,195,175 of respect in rights indirect an is SHIPPING COSCO ,Accordingly .Company the of capital share issued total the of 39.28% ,Therefore .Company the of person connected a therefore and Company the of shareholder controlling Company the of transaction connected a constitutes Finance SHIPPING COSCO in increase capital the .Rules Listing the under

:terms other and consideration Total•

SHIPPING COSCO to shareholders existing the by payable contribution capital of amount aggregate The 3,200,000,000.RMB is agreement increase capital the under increase capital the for Finance

:transaction the in party connected the of interests the of nature the and transaction the of Purpose•

its develop further to Finance SHIPPING COSCO for capital additional provide will increase capital The participating By .value' shareholders maximising thereby ,profitability overall its enhance and business of shareholder largest second the as remain to continue will Company the ,increase capital the in .Finance SHIPPING COSCO from returns investment steady its maintain and Finance SHIPPING COSCO

were thereunder contemplated transactions the and agreement increase capital the of terms The the of are Directors The .shareholders existing the among negotiations length s'arm after agreed not are thereunder contemplated transactions the and agreement increase capital the while that view agreement increase capital the ,Group the of business of course usual and ordinary the in conducted and fair are which terms commercial normal on are thereunder contemplated transactions the and .whole a as shareholders the and Company the of interests the in are and ,reasonable

announcement s'Company the to refer please ,transaction above the to relating information further For 2020. April 24 dated

SHIPBUILDING AND AGREEMENTS NOVATION AND ASSIGNMENT) 2( CONTRACTS

:transaction the of description and parties ,Date•

2020: October 21 On

• Pulp Fleet Oriental and") HK COSCOL (".Ltd .,Co Development & Investment) HK (COSCOL) I( to pursuant ,agreement of memoranda into entered") 01 Pulp Fleet Oriental ("Limited 01 ,rights all over take to agrees 01 Pulp Fleet Oriental and transfer to agrees HK COSCOL which aggregate the at contracts shipbuilding existing the under liabilities and responsibilities assessment aggregate the on based determined was which (\$20,560,000US of consideration and \$62,000,000US of construction under vessels purpose-multi DWT 62,000 two the of price ;contracts shipbuilding existing the under instalment unpaid the
• of deeds into entered Industry Heavy SHIPPING COSCO and 01 Pulp Fleet Oriental ,HK COSCOL) II( the with accordance in contracts shipbuilding existing the of novation the to relation in novation ;agreement of memoranda
• contracts shipbuilding into entered Industry Heavy SHIPPING COSCO and 01 Pulp Fleet Oriental) III( the at vessels purpose-multi Kong Hong DWT 62,000 four of construction the to relation in and; \$134,720,000US of price contract aggregate
• COSCO and") Hainan Development CS (".Ltd .,Co) Hainan (Development SHIPPING COSCO) IV( construction the to relation in contracts shipbuilding into entered Industry Heavy SHIPPING of price contract aggregate the at vessels purpose-multi PRC DWT 62,000 four of 1,072,000,000.RMB
• :transaction the to parties the of relationship Connected•

of capital share issued total the of 38.41% approximately representing ,shares A 4,458,195,175 and ,SHIPPING COSCO of subsidiary owned-wholly a ,Shipping China by held are ,Company the the of capital share issued total the of 0.87% approximately representing ,shares H 100,944,000 of subsidiary owned-wholly indirect an ,Limited Investment Fortune Ocean by held are ,Company exercise to entitled are or control associates its and SHIPPING COSCO ,Therefore .SHIPPING COSCO ,shares H 100,944,000 and shares A 4,458,195,175 of respect in rights voting the over control ,Accordingly .Company the of capital share issued total the of 39.28% approximately representing connected a therefore and Company the of shareholder controlling indirect an is SHIPPING COSCO .Company the of person

COSCO and SHIPPING COSCO of subsidiary owned-wholly a is Industry Heavy SHIPPING COSCO As .Ltd .,Co Carriers Specialized SHIPPING COSCO of shareholder controlling indirect the is SHIPPING COSCO of subsidiary owned-wholly a is HK COSCOL and ,")Carriers Specialized SHIPPING COSCO(" associate an is HK COSCOL and Industry Heavy SHIPPING COSCO of each ,Carriers Specialized SHIPPING assignment the ,Accordingly .Company the of person connected a therefore and SHIPPING COSCO of thereunder contemplated transactions the and contracts shipbuilding the and agreements novation and .Company the of transactions connected constitute

:terms other and consideration Total•

the) i (of amount the be shall agreement of memoranda the of each under payable price purchase The the under instalment fifth unpaid the of amount the) ii (less; \$31,000,000US being ,price assessment delivery upon payable be will which \$20,720,000,US being ,contracts shipbuilding existing respective .contracts shipbuilding existing the under construction under vessels purpose-multi DWT 62,000 the of

is agreement of memoranda two the under payable price purchase aggregate the ,Accordingly and HK COSCOL between negotiation length s'arm after determined was which \$20,560,000,US Appraisal Orient Shanghai by issued report assessment the to reference with 01 Pulp Fleet Oriental .contracts shipbuilding existing the under instalment unpaid the and ,valuer independent an .,Ltd .,Co \$62,000,000,US was 2020 August 31 of date benchmark the at as construction under vessels purposemulti DWT 62,000 two the of price assessment aggregate the ,report assessment the to According .vessels the replacing of cost the calculating by approach cost the on based determined was which

be will agreement of memoranda the under 01 Pulp Fleet Oriental by payable price purchase The .Group the of resources internal the by funded

is vessels purpose-multi Kong Hong DWT 62,000 four the for price contract aggregate The vessels purpose-multi PRC DWT 62,000 four the for price contract aggregate the and \$134,720,000US accordance in adjustments to subject ,)tax added-value applicable of inclusive (1,072,000,000RMB is .contracts shipbuilding the of terms the with

01, Pulp Fleet Oriental between negotiation length s'arm after determined was price contract The tender of result the to reference with Industry Heavy SHIPPING COSCO and Hainan Development CS SHIPPING COSCO ",collectively (subsidiaries its and Carriers Specialized SHIPPING COSCO by conducted vessels purpose-multi Kong Hong DWT 62,000 the of construction the for") Group Carriers Specialized were shipbuilders party third independent two where ,vessels purpose-multi PRC DWT 62,000 the and its on based tenderer successful the as selected was Industry Heavy SHIPPING COSCO and involved .delivery and price to as terms competitive

PRC DWT 62,000 the and vessels purpose-multi Kong Hong DWT 62,000 the of price contract The 10% 10%, 5%, 5%, approximately being ,instalments five in payable be shall vessels purpose-multi .respectively ,construction their of stages relevant the at ,price contract the of 70% and

the under Hainan Development CS and 01 Pulp Fleet Oriental by payable price contract The the of financing debt external or/and resources internal the by funded be will contracts shipbuilding .Group

:transaction the in party connected the of interests the of nature the and transaction the of Purpose•

,activities business leasing related-industry and shipping in engaged principally is Group The .services financial and investment of provision and containers of manufacturing

become to attempt an in run long the in business leasing vessel its develop to strives Group the As with provider service financial chain supply integrated class-first s'world the and leading s'China and agreements novation and assignment the of into entering the ,features logistics shipping distinct proportion the increase and business leasing vessel the of scale the expand will contracts shipbuilding the between vessels the of party charter time proposed The .Group the of vessels owned-self the of also will vessels the of delivery following Group Carriers Specialized SHIPPING COSCO the and Group .Group the for stream income stable a provide

be to vessels purpose-multi DWT 62,000 the of delivery the after immediately that proposed is It COSCO the ,contracts shipbuilding the and contracts shipbuilding existing the under constructed the from vessels purpose-multi DWT 62,000 the in-charter will Group Carriers Specialized SHIPPING in party charter time the of term proposed The .agreement charter vessel master a to pursuant Group the of hire and use the for fees the and years 15 is vessels purpose-multi DWT 62,000 the of respect costs and price construction the to reference with determined were vessels purpose-multi DWT 62,000 the and principles pricing general the with accordance in and vessels purpose-multi DWT 62,000 the of the by approved agreement charter vessel master the under procedures determination pricing general December 23 dated Company the of meeting general extraordinary the at shareholders independent purpose-multi DWT 62,000 the of each of hire and use its for HK COSCOL by payable fees The 2019. each of hire and use the for fees The .rata pro day per \$11,530US be shall construction under vessels purpose-multi PRC DWT 62,000 the of each and vessels purpose-multi Kong Hong DWT 62,000 the of .respectively ,rata pro day per 97,480RMB and rata pro day per \$12,480US be to proposed are vessels

contracts shipbuilding the and agreements novation and assignment the that consider Directors The normal on are and Group the of business of course usual and ordinary the in into entered were shipbuilding the and agreements novation and assignment the of terms the that and ,terms commercial .whole a as shareholders the and Company the of interests the in and reasonable and fair are contracts

announcement s'Company the to refer please ,transaction above the to relating information further For 2020. October 30 dated circular and 2020 October 21 dated

AGREEMENT MASTER SERVICE LEASING VESSEL) 3(

:transaction the of description and parties ,Date•

agreement framework lease assets the to pursuant into entered leases existing the of terms the As and) lessor the as (Company the 2020, October 30 on ,expire to due are vessels 74 the of respect in vessel the into entered) lessee the as") (Lines SHIPPING COSCO (".Ltd .,Co Lines SHIPPING COSCO associates its or/and subsidiaries its ,Company the ,which to pursuant ,agreement master service leasing COSCO to services leasing vessel provide to agreed have") Group Development CS ",collectively( ,("Group Lines SHIPPING COSCO ",collectively (associates its or/and subsidiaries its ,Lines SHIPPING .charter bareboat under Group Lines SHIPPING COSCO the to chartered be will vessels 74 the whereby

to agreed has Group Development CS the ,agreement master service leasing vessel the to Pursuant commencing term a for charter bareboat under Group Lines SHIPPING COSCO the to vessels 74 charter .year 25 is vessels the of age the which on date the on ending and 2021 January 1 from

:transaction the to parties the of relationship Connected•

the of capital share issued total the of 38.41% approximately representing ,shares A 4,458,195,175 100,944,000 and ,SHIPPING COSCO of subsidiary owned-wholly a ,Shipping China by held is ,Company is ,Company the of capital share issued total the of 0.87% approximately representing ,Shares H .SHIPPING COSCO of subsidiary owned-wholly indirect an ,Limited Investment Fortune Ocean by held voting the over control exercise to entitled are or control associates its and SHIPPING COSCO ,Therefore approximately representing ,shares H 100,944,000 and shares A 4,458,195,175 of respect in rights indirect an is SHIPPING COSCO ,Accordingly .Company the of capital share issued total the of 39.28% COSCO As .Company the of person connected a therefore and Company the of shareholder controlling COSCO (".Ltd .,Co Holdings SHIPPING COSCO of shareholder controlling indirect the is SHIPPING SHIPPING COSCO of subsidiary owned-wholly a is Lines SHIPPING COSCO and") Holdings SHIPPING person connected a therefore and SHIPPING COSCO of associate an is Lines SHIPPING COSCO ,Holdings connected a constitutes agreement master service leasing vessel the ,Accordingly .Company the of .Rules Listing the under Company the of transaction

:terms other and consideration Total•

thereunder leasing vessel the for price the ,agreement master service leasing vessel the to Pursuant market fair the determining of purpose the For .price market fair the on based determined be shall shipping independent an .,Ltd Consultants Shipping Drewry appointed jointly have parties the ,price the of fee charter the on recommendation its provide and assessment an conduct to ,consultant under) vessels in-leased four and vessels owned-self 70 including (vessels 74 the of charters bareboat the ,price market fair abovementioned the on Based .agreement master service leasing vessel the the to Group Lines SHIPPING COSCO the by payable payments lease aggregate the that agreed parties \$4,618,343,445,US be shall agreement master service leasing vessel the under Group Development CS charterparty relevant the of terms specific the with accordance in instalments by payable be shall which .years 20 of period the during vessels the of

:transaction the in parties connected the of interests the of nature the and transaction the of Purpose•

manufacturing ,businesses leasing related-industry and shipping in engaged principally is Group The the ,platform financing shipping a As .services financial and investment of provision and containers of .industry shipping the in advantages its to play full give and resources premium integrate will Group s'China become to attempt an in businesses financial various for pursued be will development Synergic distinct with provider service financial chain supply integrated class-first s'world the and leading Holdings SHIPPING COSCO the to leased being currently are vessels 74 The .features logistics shipping service leasing vessel the of into entering The .agreement framework lease asset the under Group SHIPPING COSCO the to vessels 74 the lease to continue to Group to enable will agreement master of life remaining the over Group the for stream income stable a securing thereby ,Group Holdings with line in also is agreement master service leasing vessel the under leasing vessel The .vessels the The .Group the of businesses leasing related-industry and shipping the of development strategic the ordinary the in into entered was agreement master service leasing vessel the that consider Directors terms the that and ,terms commercial normal on are and Group the of business of course usual and the of interests the in and reasonable and fair are agreement master service leasing vessel the of .whole a as shareholders the and Company

announcement s'Company the to refer please ,transaction above the to relating information further For 2020. November 20 dated circular and 2020 October 30 dated

AGREEMENTS NOVATION AND ASSIGNMENT) 4(

:transaction the of description and parties ,Date•

Original "the (construction under carriers bulk 16 of buyers original the) i (2020: November 27 On 遠海運散貨運 (.Ltd .,Co Bulk SHIPPING COSCO of subsidiary owned-wholly indirect an each ,"Buyers 東方富利國際有限公 (.Ltd .,Co International Fleet Oriental and")) Bulk SHIPPING COSCO) ("輸有限公司 into entered ,Company the of subsidiary owned-wholly indirect and ,")International Fleet Oriental) ("司 Buyers Original the ,thereof terms the to subject and which to pursuant ,agreement of memoranda the and responsibilities ,rights the all over take to agree International Fleet Oriental and transfer to agree the at construction under carriers bulk 16 the of respect in contracts shipbuilding the under liabilities International Fleet Oriental ,Buyers Original the) ii (and; \$326,628,000US of consideration aggregate shipbuilding the of novation the to relation in novation of deeds the into entered ,sellers the and .agreement of memoranda the with accordance in contracts

Buyers Original the ,thereof terms the to subject and agreement of memoranda the to Pursuant and responsibilities ,rights the all over take to agree International Fleet Oriental and transfer to agree .construction under carriers bulk 16 the of respect in contracts shipbuilding the under liabilities

with that agree parties the ,thereof terms the to subject and novation of deeds the to Pursuant novated be shall contracts shipbuilding the ,novation of deeds the of date effective the from effect substitute shall International Fleet Oriental and ,International Fleet Oriental to Buyers Original the by shall contracts shipbuilding the that and contracts shipbuilding the to party as Buyers Original the named been had International Fleet Oriental if as respects all in treated and construed be henceforth .Buyers Original the of instead buyer the as therein

:transaction the to parties the of relationship Connected•

the of capital share issued total the of 0.41% approximately representing ,shares A 47,570,789 38.00% approximately representing ,shares A 4,410,624,386 ,SHIPPING COSCO by held are ,Company owned-wholly a ,Shipping China by held are ,Company the of capital share issued total the of the of 0.87% approximately representing ,shares H 100,944,000 and ,SHIPPING COSCO of subsidiary indirect an ,Limited Investment Fortune Ocean by held are ,Company the of capital share issued total control associates its and SHIPPING COSCO ,Therefore .SHIPPING COSCO of subsidiary owned-wholly and shares A 4,458,195,175 of respect in rights voting the over control exercise to entitled are or the of capital share issued total the of 39.28% approximately representing ,shares H 100,944,000 and Company the of shareholder controlling indirect an is SHIPPING COSCO ,Accordingly .Company subsidiary owned-wholly a is Bulk SHIPPING COSCO As .Company the of person connected a therefore of subsidiary owned-wholly indirect an is Buyers Original the of each and ,SHIPPING COSCO of therefore and SHIPPING COSCO of associate an is Buyers Original the of each ,Bulk SHIPPING COSCO the and agreements novation and assignment the ,Accordingly .Company the of person connected a .Company the of transactions connected constitute also thereunder contemplated transactions

:terms other and consideration Total•

(i (of amount the be shall agreement of memoranda the of each under payable price purchase The respective the under instalment fifth unpaid the of amount the) ii (less; price assessment relevant the delivery upon payable be will which ,)Price contract subtracted/added excluding (contracts shipbuilding /added relevant the) iii (less; contracts shipbuilding the under construction under carriers bulk the of .(any if (price contract subtracted

\$326,628,000,US is agreement of memoranda the under payable price purchase aggregate The the to reference with parties the between negotiation length s'arm after determined was which ,(中通誠資產評估有限公司 (.Ltd .,Co Appraisal Assets Cheng Tong China by issued reports assessment the to According .contracts shipbuilding the under instalments unpaid the and ,valuer independent an 2020 September 30 of date benchmark the at as prices assessment aggregate the ,reports assessment payable price purchase The .approach cost the on based determined was which \$845,760,000,US were internal the by funded be will agreement of memoranda the under International Fleet Oriental by .Group the of financing debt external or/and Group the of resources

:transaction the in parties connected the of interests the of nature the and transaction the of Purpose•

of manufacturing ,businesses leasing related-industry and shipping in engaged principally is Group The .services financial and investment of provision and containers

and assignment the to pursuant Group the by construction under carriers bulk the of acquisition The Group the by construction under carriers bulk the of leasing subsequent the and agreements novation arrangements lease operating overall the of parcel and part are ,Group Bulk SHIPPING COSCO the to .Group Bulk SHIPPING COSCO the and Group the between

become to attempt an in run long the in business leasing vessel its develop to strives Group the As with provider service financial chain supply integrated class-first s'world the and leading s'China will agreements novation and assignment the of into entering the ,features logistics shipping distinct vessels owned-self the of proportion the increase and business leasing vessel the of scale the expand COSCO the and Group the between vessels the of party charter time proposed The .Group the of the for stream income stable a provide also will vessels the of delivery following Group Bulk SHIPPING .Group

in into entered were agreements novation and assignment the that consider therefore Directors The that and ,terms commercial normal on are and Group the of business of course usual and ordinary the of interests the in and reasonable and fair are agreements novation and assignment the of terms the .whole a as shareholders the and Company the

announcement s'Company the to refer please ,transaction above the to relating information further For 2020. December 3 dated circular and 2020 November 27 dated

TRANSACTIONS CONNECTED CONTINUING

and announced were which caps annual relevant following the had Company the 2020, December 31 at As December 31 at as figures annual actual The .meeting general s'Company the at approved and revised subsequently terms ,defined otherwise Unless .below out set also are transactions connected continuing those to relation in 2020 May 6 dated announcements s'Company the in defined as meanings same the have shall table following the in used 2019. October 31 and 2019

		Signing of date the transaction and effective					Transaction amount
.No	Continuing connected transactions	after period renewal every years three	and Parties connected relationship	of Nature transaction	Pricing terms	ended Year December 31 2018 000'RMB	ended Year December 31 2019 000'RMB	ended Year 31 December 2020 000'RMB
A 1	Revenue from COSCO China Services provided the by under Group Master the Operating Lease Services Agreement	SHIPPING January 1 2020 December 31 2022	The Company China and COSCO 1SHIPPING	Operating services lease	;3prices State) i( prescribed- ) ii( there where state no is r p p d e b i r c s e n e h t , e c i r according relevant to market based and 4 prices the on principle fairness of and reasonableness ; where) iii (or there market no is then ,price according the to contracted 5.price	1,268,993	1,221,094	1,096,610
2	Products services and provided Group the by under Master the Containers Services Agreement	January 1 2020 December 31 2022	The Company China and COSCO 1SHIPPING	Manufacture containers of	;3prices State) i( prescribed- ) ii( there where state no is r p p d e b i r c s e n e h t , e c i r according relevant to market based and 4 prices the on principle fairness of and reasonableness ; where) iii (or there market no is then ,price according the to contracted 5.price	3,799,172	1,251,341	1,485,315

		Signing of date the transaction					Transaction amount
.No	Continuing connected transactions	and effective after period renewal every years three	and Parties connected relationship	of Nature transaction	Pricing terms	ended Year December 31 2018 000'RMB	ended Year December 31 2019 000'RMB	ended Year 31 December 2020 000'RMB
3	Service provided the by under Group Master the Finance Lease Services Agreement	January 1 2020 December 31 2022	The Company China and COSCO 1SHIPPING	lease Finance	;3prices State) i ( prescribed- ) ii( there where state no is r p p d e b i r c s e n e h t , e c i r according relevant to market based and 4 prices the on principle fairness of and reasonableness ; where) iii (or there market no is then ,price according the to contracted 5.price	7,291	60,783	25,326
4	Service provided by Group the the under Master Vessel Charter Agreement	January 1 2020 December 31 2022	The Company China and COSCO 1SHIPPING	of Charter vessels	;3prices State) i( prescribed- ) ii( there where state no is r p p d e b i r c s e n e h t , e c i r according relevant to market based and 4 prices the on principle fairness of and reasonableness ; where) iii (or there market no is then ,price according the to contracted 5.price	4,847,262	4,603,814	4,557,464
5	Services provided by Group the the under Master Factoring Services Agreement	January 1 2020 December 31 2022	The Company China and COSCO 1SHIPPING	Factoring services	;3prices State) i( prescribed- ) ii( there where state no is r p p d e b i r c s e n e h t , e c i r according relevant to market based and 4 prices the on principle fairness of and reasonableness ; where) iii (or there market no is then ,price according the to contracted 5.price	88,564	555,660	561,572

		Signing of date the transaction and effective					Transaction amount
.No	Continuing connected transactions	after period renewal every years three	and Parties connected relationship	of Nature transaction	Pricing terms	ended Year December 31 2018 000'RMB	ended Year December 31 2019 000'RMB	ended Year 31 December 2020 000'RMB
6	Services provided the by under Group Master the Insurance Brokerage Services Agreement	January 1 2020 December 31 2022	The Company China and COSCO 1SHIPPING	Insurance brokerage services	;3prices State) i( prescribed- ) ii( there where state no is r p p d e b i r c s e n e h t , e c i r according relevant to market based and 4 the on prices principle fairness of and reasonableness ; where) iii (or there market no is then ,price according the to contracted 5.price	24,871	27,158	23,096
B	Revenue COSCO from	SHIPPING Investment
7	Management services provided COSCO by SHIPPING Development the under Management Services Agreement	January 1 2020 December 31 2022	The ,Company China COSCO and 1 SHIPPING COSCO SHIPPING Investment	Management services	6fee Fixed) i( management 7fee income floating plus	18,868	20,000	30,000
8	Entrustment services by provided Shanghai l a s r e v i n U s c i t s i g o L Equipment .Ltd .,Co the under Entrustment Agreement	May 6 2019 December 31 2021	Shanghai Universal Logistics Equipment .,Co CS and .Ltd 2Financial	Management services	8fee Fixed) i( management	–	4,027	9,665

		Signing of date the transaction					Transaction amount
.No	Continuing connected transactions	and effective after period renewal every years three	and Parties connected relationship	of Nature transaction	Pricing terms	ended Year December 31 2018 000'RMB	ended Year December 31 2019 000'RMB	ended Year 31 December 2020 000'RMB
C	Expenditure to COSCO China	SHIPPING
9	Services provided to Group the the under Master Vessel Services Agreement	January 1 2020 December 31 2022	The Company China and COSCO 1SHIPPING	Vessel services	;3prices State) i( prescribed- ) ii( there where state no is r p p d e b i r c s e n e h t , e c i r according relevant to market based and 4 prices the on principle fairness of and reasonableness ; where) iii (or there market no is then ,price according the to contracted 5.price	810,445	1,233,933	1,359,593
10	Products and services to provided Group the h t r e d n u r e t s a M e r e n i a t n o C s e c i v r e S s Agreement	January 1 2020 December 31 2022	The Company China and COSCO 1SHIPPING	Container management services	;3prices State) i( prescribed- ) ii( there where state no is r p p d e b i r c s e n e h t , e c i r according relevant to market based and 4 prices the on principle fairness of and reasonableness ; where) iii (or there market no is then ,price according the to contracted 5.price	559,937	1,020,296	6,721,472
11	Services provided to Group the the under Master General Services Agreement	January 1 2020 December 31 2022	The Company China and COSCO 1SHIPPING	General services	;3prices State) i( prescribed- ) ii( there where state no is r p p d e b i r c s e n e h t , e c i r according relevant to market based and 4 prices the on principle fairness of and reasonableness ; where) iii (or there market no is then ,price according the to contracted 5.price	27,167	46,238	71,289

		Signing of date the transaction
.No	Continuing connected transactions	and effective after period renewal every years three	and Parties connected relationship	of Nature transaction	Pricing terms	ended Year December 31 2018 000'RMB	Transaction amount ended Year December 31 2019 000'RMB	ended Year 31 December 2020 000'RMB
	Lease 12 properties of the to under Group Master the Tenancy Agreement	January 1 2020 December 31 2022	The Company China and COSCO 1SHIPPING	Property leasing services	;3prices State) i( prescribed- ) ii( there where state no is r p p d e b i r c s e n e h t , e c i r according relevant to market based and 4 the on prices principle fairness of and reasonableness ; where) iii (or there market no is then ,price according the to contracted 5.price	21,776	38,444	133,608
D 13	Expenditure COSCO to e c n a r u s n I s e c i v r e s to provided Group the the under Insurance Services Agreement	SHIPPING Insurance January 1 2020 December 31 2022	The Company COSCO and SHIPPING 2Insurance	Insurance services	Not than higher fee) i (: charged any by independent third for party same the type insurance of ;services ) ii (or charged fee any by independent third for party the type same insurance of .services	36,258	93,561	36,521
E 14	Financial Transactions m i x a m e h T y l i a d m u outstanding balance deposits of including ( accrued interest and handling be to) fee by placed Group the COSCO at SHIPPING u e c n a n i F e h t r e d n Master COSCO SHIPPING Finance Financial Services Agreement	COSCO with SHIPPING January 1 2020 December 31 2022	Finance The Company COSCO and SHIPPING 2Finance	Deposit services	Interest not rate or ,lower more thus favourable if ( applicable than ,) the) i (: deposit benchmark interest rate the by set from PBOC time under time to same the deposit conditions (ii (or; interest the rate charged y b d n i r o j a m t n e d n e p e commercial banks the in service place adjacent or areas same the for of type deposit .services	11,131,949	11,762,747	11,200,915

:Notes

• Listing the in defined as (shareholders controlling indirect are associates its or/and subsidiaries its ,SHIPPING COSCO China ¹ .Company the of persons connected are which ,Company the of) Rules
• of persons connected are which ,SHIPPING COSCO China of) Rules Listing the in defined as (associates are companies Such ² .Company the
• other and regulations ,laws relevant the by set services and products such providing for price the Representing ³ .government PRC the of departments relevant the by issued documents regulatory governmental
• the in parties third independent from provided are services of type comparable or same the which at price the Representing ⁴ .business of course ordinary the in terms commercial normal on area same
• profit a plus services or products of type comparable or same the providing in incurred cost relevant the Representing ⁵ .thereof 12.25% to 0% from ranging margin
• .year per 20,000,000RMB is fee management fixed The ⁶
• .equities target the of value asset net the on return of rate benchmark a to reference by calculated is income variable The ⁷
• .year per 10,245,000RMB is fee management fixed The ⁸

COSCO by provided services financial the excluding (transactions connected continuing above the for reasons The relevant the in party connected the of interests the of extent and nature the and ,)Group the to Finance SHIPPING :follows as are transactions connected continuing

COSCO the and Group the of members the between relationship business close and established long the to Due and Group the between into entered be to continue will and been have transactions of number a ,Group SHIPPING of business core the to essential collectively and significant individually are which ,Group SHIPPING COSCO the connected continuing the of renewal the ,addition In .Group the to beneficial be to continue will and ,Group the the facilitate will and Company the of strategy business the with line in is Agreements the under transactions .industry logistic the for platform services financial a building of target strategic its achieve to Company

shipping large and enterprises owned-state key are SHIPPING COSCO China and Shipping China as ,addition In most (persons connected relevant the and ,countries and sectors ,regions different across operate that conglomerates transportation marine known-well are) SHIPPING COSCO China or/and Shipping China of associates are them of service and experience good developed have and industry shipping in competency outstanding with corporations The .above out set transactions connected continuing the under services and products the of respect in systems fully to Group the enables persons connected other and SHIPPING COSCO China ,Shipping China with cooperation .performance operating better achieve to advantages their on leverage

connected continuing the to relation in persons connected relevant the by provided conditions and terms the ,Finally third independent by provided those than Group the to favourable more generally are above out set transactions .parties third independent to persons connected relevant the by provided those or ,Group the to parties

and ,Group the to services financial provides Finance SHIPPING COSCO which under transactions the for reasons The are transactions connected continuing relevant the in party connected the of interests the of extent and nature the :follows as

provided services financial other and services settlement ,services loan ,services deposit of conditions and terms The to favourable more generally are Agreement Services Financial Master the under Finance SHIPPING COSCO by to Finance SHIPPING COSCO by provided those or ,parties third independent by provided those than Group the Agreement Services Financial Master the under restricted not is Group the ,Furthermore .parties third independent criteria Its .needs service financial its satisfy to institution financial or bank any ,choose may fact in and ,approach to obliged not is but ,may Group the ,Therefore .services of quality and costs on made be could choice the making in financial other and services settlement ,services loan ,services deposit s'Finance SHIPPING COSCO use to continue ,to Financial Master the under afforded flexibility such Having .competitive is provided quality service the if services .position flow cash and capital current its manage better to able is Group the ,Agreement Services

loan ,services deposit efficient more provide mainly will Finance SHIPPING COSCO that expected also is it ,addition In SHIPPING COSCO As .banks party-third independent to compared as ,Group the to services settlement and services efficient more a in Group the by required funds provide to able is it ,business s'Group the with familiar is Finance and transformation business s'Group the of view In .banks party-third independent to compared as way timely and which ,Finance SHIPPING COSCO from assistance financial obtain to hopes Group the ,funds for demand strong its .costs financing its lower and channels financing s'Group the broaden help may

refer please ,transactions connected continuing and transactions connected above the regarding details further For connected the disclosed has it that confirmed Company The .statements financial consolidated the to 44 Note to and" transaction connected "of definitions the to pursuant transactions connected continuing and transactions the to pursuant and Rules Listing the of A14 Chapter of) be may case the as" (transaction connected continuing" .Rules Listing the of A14 Chapter of requirements disclosure

the to 44 Note to refer please ,parties related with transaction significant s'Group the about information further For fall parties related with transaction significant the that confirms Company The .statements financial consolidated continuing "and" transaction connected "to relation in Rules Listing the of A14 Chapter under definitions the within under requirements disclosure the met and) be may case the as (A14 Chapter in out set as" transaction connected .Rules Listing the under A14 Chapter

PROCEDURES CONTROL INTERNAL

Group the ,Group the of agreements framework transaction connected continuing the of terms the to Pursuant specific the of each for agreements implementation separate into enter ,necessary as and time to time from ,may .Group the of agreements framework transaction connected continuing the under contemplated transactions

particular the for conditions relevant other and terms specific the out set shall agreement implementation Each and fees ,parties the of coordination ,parties the of benefits and rights to limited not but including ,transaction and execution Any .liabilities of exclusion and agreement of breach ,information of use ,payments ,expenses transaction connected continuing relevant the contravene not shall agreements implementation such of amendments .agreements framework

the to pursuant Directors executive-non independent and auditors the by review annual the to addition In control internal following the implemented has Company the ,Rules Listing the of A14 Chapter of requirements those than favourable less no are parties connected relevant the by offered terms the that ensure to procedures the of transactions connected continuing the and) be may case the as (parties third independent from or to available transaction connected continuing respective the under policy pricing the with accordance in conducted are Group :agreements framework

• which Transactions Connected of Management for Methods the implemented and prepared has Company the) i( the ,transactions connected of identification and for requirements relevant the ,things other among ,out sets reporting ,transactions connected of management and conduct the in departments relevant of responsibilities laws applicable with Group the of compliance ensuring to view a with ,monitoring ongoing and procedures ;transactions connected to relation in) Rules Listing the including (regulations and
• transaction connected continuing the to pursuant agreements implementation any into entering before) ii( review will Company the of departments relevant the of executives relevant the ,agreements framework operating parties third independent two least at by offered terms relevant other and prices contemporaneous the that ensure and ,transaction relevant the of commencement the before area nearby or same the at by offered those to comparable and reasonable and fair are persons connected relevant the by offered terms to favourable more are parties third independent by made offers the where case In .parties third independent ;parties third independent the of offers those up take would Company the ,Company the
• connected continuing the to pursuant agreements implementation the of into entering the following) iii( under transactions the of pricing the examine regularly will Company the ,agreements framework transaction accordance in conducted are they that ensure to agreements framework transaction connected continuing the purchase the for Company the of records transaction the reviewing including ,thereof terms pricing the with ;be may case the as ,parties third independent from or to services or goods similar of provision or

• continuing the under transactions the in issues any discuss to meetings convene regularly will Company the) iv( ;improvement for recommendations and agreements framework transaction connected

• continuing respective the under incurred amounts transaction the summarise regularly will Company the) v( other among ,out sets which reports periodic submit and agreements framework transaction connected annual applicable the and amounts transaction future estimated the ,amounts transaction historical the ,things of 80% reach incurred amount transaction aforementioned the If .Company the of management the to ,caps .Company the of management the to made be will reporting immediate ,cap annual applicable respective the of status the of informed be can Company the of departments relevant the and management the ,so doing In within conducted be can transactions the that such manner timely a in transactions connected continuing the ;caps annual applicable the

• continues Company the that event the in exceeded be may caps annual existing the that anticipated is it if) vi( the to report shall departments business relevant the ,transactions connected continuing the conduct to appropriate all take then will Company the ,advance in months two least at Company the of management Listing the of requirements relevant the with accordance in caps annual relevant the revise to advance in steps connected continuing relevant the conducting further from refrain will Company the ,necessary if and Rules and; approved are caps annual revised the until transactions
• relevant the of process the inspect and review periodically will Company the of department supervision the) vii( .transactions connected continuing

internal sufficient established has Company the that consider Directors the ,procedures above the implementing By on be will agreements transaction connected continuing the of each of basis pricing the ensure to measures control the of policy pricing the with accordance in ,reasonable and fair ,)Group the to better or (terms commercial normal .whole a as Shareholders its and Company the of interests the in and Company

collect also will Company the of) department securities and department finance as such (departments relevant The caps annual the ensure to basis quarterly a on agreements transaction connected continuing the of each of statistics .exceeded not are announced as or Shareholders independent the by approved

,Jack Graeme .Mr ,Yuet Chi Hai .Ms ,Hongping Cai .Mr ,Company the of Directors executive-non independent The confirmed and transactions connected continuing above the reviewed have Weihua Zhang .Ms and Jianzhong Lu .Mr :into entered been have transactions these that

• ;Company the of business of course usual and ordinary the in) 1(
• the whether judge to transactions comparable sufficient not are there if ,or terms commercial normal on) 2( the to favourable less no terms on ,terms commercial normal on are transactions connected continuing above and; parties third independent) be may case the as (from or to available terms than Company
• these and transactions connected continuing above the of terms agreement relevant the with accordance in) 3( .whole a as Company the of shareholders the of interests the in and reasonable and fair are terms transaction

has ,Company the of auditor international the ,Young & Ernst ,Rules Listing the of .56A14 Rule of purpose the For come has nothing that above disclosed transactions connected continuing the regarding Company the to confirmed :that believe to them causes that attention s'auditor the to

• of Board s'Company the by approved been not have transactions connected continuing disclosed the 1. ;Directors
• the of policies pricing the with accordance in ,respects material all in ,conducted not were transactions the 2. ;Company
• agreements relevant the with accordance in ,respects material all in ,conducted not were transactions the 3. and; transactions such governing
• amount cap annual aggregate maximum relevant the exceeded have transactions connected continuing the 4. continuing disclosed the of each of respect in Company the of announcements previous the in disclosed .transactions connected

DIRECTORS EXECUTIVE-NON INDEPENDENT

as independence her/his of confirmation annual an made has Directors executive-non independent the of Each been have Directors executive-non independent the all that view the of is Company The .Rules Listing the by required in independent are and Rules Listing the in out set as requirements guidelines independence the with compliance in .guidelines the of provisions the with accordance

SCHEME PENSION

the to 2.4 Note in out set are 2020 December 31 ended year the for scheme pension s'Group the of Details .statements financial consolidated

DEPOSITS TIME OVERDUE AND DEPOSITS DESIGNATED

the in institution financial any with deposits designated any placed not had Group the 2020, December 31 at As .Year the during maturity upon deposits time any collect to failed it had nor ,PRC

EXEMPTION AND RELIEF TAX

by exemption or relief tax any to entitled are Company the of securities of holders that aware not is Company The .securities such of holding their of reason

PRACTICES GOVERNANCE CORPORATE

the on Information .practices governance corporate of standard high a maintaining to committed is Company The pages on" Report Governance Corporate "the in out set is Company the by adopted practices governance corporate 93. to 68

COMMITTEE AUDIT

Lu .Mr namely ,Directors executive-non independent two of comprised is Company the of committee audit The results final s'Group The .Jian Huang .Mr namely ,Director executive-non one and ,Hongping Cai .Mr and Jianzhong .committee audit the by reviewed been have 2020 December 31 ended year the for

AUDITOR

:follows as is years three past the in Company the by appointed Auditor

Young & Ernst 2020: and 2019 2018,

,and retire will who Young & Ernst by audited been have Report Annual this in out set statements financial The .meeting general annual forthcoming the at appointment-re for itself offer ,eligible being

Board the of order By

Daxiong Wang Chairman

China of Republic s'People the ,Shanghai 2021 March 30

a as governance corporate views and standards governance corporate enhance to strived always has Group The with comply to management senior and Directors all of commitment the of reflection a and creation value of part all of interests the maximize to aim we and shareholders for maintained is Transparency .governance corporate .shareholders

all with complied has Company the that confirms Board the ,Report Governance Corporate this in disclosed as Save year the during Rules Listing the of 14 Appendix in out set as Code Governance Corporate the of provisions code 2020. December 31 ended

that ensure to Group the of practices governance corporate the review consistently to continue will Company The of trends latest the with comply to continuously made be also will Improvements .implemented thoroughly are they .future the in Code Governance Corporate the to amendments new any including ,governance corporate

DIRECTORS OF BOARD .A

BOARD THE OF SESSION SIXTH THE OF COMPOSITION 1.

:include Board the of session sixth the of members current The

DIRECTORS Directors Executive (Chairman (Daxiong Wang .Mr Chong Liu .Mr Hui Xu .Mr

Directors executive-Non Jian Huang .Mr Yanfeng Liang .Mr Chi Sing Ip .Mr

Directors executive-non Independent Hongping Cai .Mr Yuet Chi Hai .Ms Jack Graeme .Mr Jianzhong Lu .Mr Weihua Zhang .Ms

s'Company the on shown is) biographies brief and duties ,names including (Directors current of list The family ,business ,financial including (relationship no is There .com.coscoshipping.development://http :website the and Chairman the among especially ,members Board the among)) s(relationship relevant/material other or .Manager General

least at representing and (Directors executive-non independent three least at had Board the 2020, In one whom of ,Rules Listing the of requirement the with accordance in) members Board the of third-one Each .expertise management financial related or accounting or qualifications professional appropriate had accordance in Company the to independence her/his confirmed-re has Director executive-non independent are they that considers Company the ,confirmation their on Based .Rules Listing the of requirement the with .independent

MANAGEMENT AND BOARD THE OF RESPONSIBILITIES 2.

enhancing of aim the with Group the of affairs and businesses the managing for responsible is Board The ,performance s'Group the of assessment comprehensible and clear ,balanced a presenting; value shareholder announcements sensitive price other ,reports interim and annual the in out set as prospects and position to reporting and; Rules Listing the of requirement the to pursuant disclosed information financial other and .requirements statutory per as disclosed be to required is which information any regulators

:include duties Other .Group the and Company the to duties statutory and fiduciary owes Board The management and corporate establishing and ,Group the of policies and strategy general the formulating of objectives strategic the with accordance in policies management risk and measures operational major ,goals expenditure approving and; performance financial and operational the monitoring and supervising; Group the or corporate ,assets of disposals and acquisitions major ,investments key ,spending capital key and budget .matters management and consent finance major ,reorganization financial

to report to and ,Group the manage to management the to obligation and authority delegates also Board The .Group the of management business day-to-day the on Board the

Strategy Investment the ,Committee Remuneration the ,Committee Audit the up set has Board The Committee Executive the and Committee Control Risk the ,Committee Nomination the ,Committee ,Committee Audit the of duties and composition the for paragraphs following the to refer Please .successively Risk the ,Committee Nomination the ,Committee Strategy Investment the ,Committee Remuneration the the to recommendations make should committee Each .Committee Executive the and Committee Control the by determined ultimately be should recommendations such; duties own its with accordance in Board .reference of terms s'committee each in clearly prescribed unless ,Board

Rules Listing the to relation in developments latest the regarding information provides Secretary Company The Company the that confirms Company The .Directors all for requirements regulatory applicable other and the require may Director Any .Year the during training professional of hours 15 over attended had Secretary the assist to Company the of expense the at advice professional independent arrange to Secretary Company .effectively Company the to duties their/her/his performing in) s(Director

FUNCTION GOVERNANCE CORPORATE 3.

the and Group the of policies governance corporate of formulation the for responsible is Board The :duties governance corporate following the of performance

• ;governance corporate on practices and policies s'Group the review and formulate to) 1(
• and Directors the of development professional continuing and training the monitor and review to) 2( ;management senior
• regulatory and legal with compliance on practices and policies s'Group the monitor and review to) 3( ;requirements
• and; employees and Directors of conduct of code the monitor and review ,formulate to) 4(
• the in disclosures and Code Governance Corporate the with compliance s'Group the review to) 5( .Report Governance Corporate

reviewing ,Policy Diversity Board the through duties governance corporate its performed Board the 2020, In management senior and Directors the of development professional continuing and training the monitoring and improving into effort great put also It .practices other and ,regulations and laws relevant with compliance and .practices governance corporate s'Group the

MANAGER GENERAL AND OFFICER EXECUTIVE CHIEF ,CHAIRMAN 4.

the of Manager General the and Chairman the as served Chong Liu .Mr and Daxiong Wang .Mr 2020, In the of Officer Executive Chief the as resigned Daxiong Wang .Mr 2020, April 25 On .respectively Company by required As 2020. December 31 at as vacant remained Officer Executive Chief of office the and ,Company their perform Manager General the and Officer Executive Chief the ,Chairman the ,Association of Articles the ,decisions the of implementation the organizing for responsible is Officer Executive Chief The .separately duties and ,Committee Supervisory the and Board the of plans development and policies ,approaches ,resolutions and budgets ,plans business annual s'Company the of implementation the organizing; Board the to reporting s'Company the formulating; relations external and internal s'Company the coordinating; plans investment ;systems management basic s'Company the devising; plans establishment department management internal to reports other and reports work annual submitting; regulations and rules basic s'Company the up drawing subject not is dismissal or employment whose personnel management dismissing or employing; Board the convening the proposing; remuneration and assessment their determining and Board the of approval the to and Association of Articles the by authorized as duties other and; Board the of meetings extraordinary of the of management operations daily the implementing for responsible is Manager General The .Board the operations daily the coordinating; Company the of meetings analysis performance daily convening; Company and internal s'Company the coordinating in Officer Executive Chief the assisting; subsidiaries of management the of plans business annual and policies operational ,plans development annual drafting; relations external of regulations and rules specific drafting; Company the of systems management basic the drafting; Company all approving and reviewing; Company the of department each of operation the coordinating; Company the of punishments and rewards ,benefits ,salaries the up drawing; Company the of costs and expenses budgeted staff and development business; dismissal and engagement their determining and employees s'Company the .Officer Executive Chief the by authorized as duties other and; Company the of training

Chief and Chairman of roles the ,Code Governance Corporate the of .2.1A provision code to Pursuant Wang .Mr .individual same the by performed be not should and separate be should Officer Executive 31 at As 2020. April 25 from effect with Company the of Officer Executive Chief the as resigned Daxiong in made are Company the of decisions major all ,Currently .vacant remained position the 2020, December senior as well as) Directors executive-non independent the including (Board the of members with consultation the ensure to Board the for place in safeguards and power of balances adequate are There .management .Company the in power of balance appropriate

DIRECTORS OF DEVELOPMENT PROFESSIONAL CONTINUING AND TRAINING 5.

Directors appointed Newly) 1(

legal the cover which materials training of set a receive will Director appointed newly Each of securities in dealings the governing rules ,responsibilities legal specific ,Directors of responsibilities connected ,transactions disclosable ,information price share sensitive of disclosure ,company listed a interests of disclosure and Code Governance Corporate ,responsibilities continuing other ,transactions the under duties her/his understands fully Director appointed newly each ensure to SFO the under such attended Directors appointed newly all 2020, In .requirements regulatory other and Rules Listing .training

for versions updated or amended their or regulations and laws relevant provides Company The) 2( continuing the with comply to order In .purposes learning for basis irregular an on Directors its attended Directors the ,Code Governance Corporate the under requirement development professional .Year the during Directors of duties and functions the regarding trainings the

development professional continuing the with comply to order in ,records s'Company the to According in trainings following the received Directors the ,Code Governance Corporate the under requirement 2020:

	Reading written
	materials regarding	Attending related
	updates the on	risk management and
	Board practices and	strategy / business /
	development , corporate	industry specific
	governance and	briefings , seminars
Director	regulations	or training
Executive Directors
Wang Daxiong	✓	✓
Liu Chong	✓	✓
Hui Xu	✓	✓
-Non executive Directors
Feng (1)Boming	✓	✓
Ip (1)Chi Sing	✓	✓
Huang Jian	✓	✓
Liang Yanfeng	✓	✓
Independent -non executive Directors
Hai Yuet Chi	✓	✓
Graeme Jack	✓	✓
Cai Hongping	✓	✓
Lu Jianzhong	✓	✓
Zhang Weihua	✓	✓

:Note

• work to due 2020 October 29 from effect with Director executive-non a as resigned Boming Feng .Mr 1. and 2020, October 29 from effect with Director executive-non a as appointed was Chi Sing Ip .Mr; reasons .trainings and meetings above the in participated had
• for Company the of operation and production the about information latest provides Company The) 3( questions the to replies and meetings Board physical ,reports operation monthly through Directors the .duties their perform can Directors the that so ,Directors the by raised

MEETINGS BOARD 6.

independent the with meetings had also Chairman The .year a times four least at meets Board The and Securities The .issues consider to ,Directors other the of presence the without ,Directors executive-non considered be to items of agenda official an provide would Company the of Department Relations Public before days 14 least at given be would Notice .meeting Board any before Board the by determined and Board the at discussion for agenda the in matters related include may Directors .meeting Board regular each Board each for agenda an preparing in Company the of Chairman the assists Secretary Company The .meeting in regulations and requirements statutory applicable with accordance in prepared is it ensures and meeting days 3 least at Directors all to sent be would papers Board and agenda ultimate The .meeting the to relation the by considered be to resolution any in interest conflicting a with Director Any .meeting Board the before .resolution such on voting from abstain should Board

:follows as out set is Director each of record Attendance 2020. during meetings Board 21 held Board The

					Attendance at
			Attendance	Board at Meetings		to Unable in attend for person	general	(1)meetings
	Board		Meetings	Meetings		two	Annual	Extraordinary
	meetings	Meetings	attended	attended		consecutive	general	general
	attend to	attended	through	of way by	Attendance	Board	meeting	meetings
Name Director of	year this	person in	proxy	telecommunication	rate	meetings	attended	attended
					(%)
Executive Directors
Wang Daxiong	21	21	0	19	100	No	0/1	0/6
Chong Liu	21	21	0	19	100	No	1/1	6/6
Hui Xu	21	21	0	19	100	No	0/1	0/6
executive-Non Directors
Jian Huang	21	21	0	19	100	No	0/1	0/6
) 2(Boming Feng	16	15	1	14	100	No	0/1	0/6
Liang Yanfeng	21	21	0	19	100	No	0/1	0/6
) 3(Chi Sing Ip	5	5	0	5	100	No	0/1	0/6
Independent
executive-non Directors
Yuet Chi Hai	21	21	0	19	100	No	0/1	0/6
Jack Graeme	21	21	0	19	100	No	0/1	0/6
Hongping Cai	21	21	0	19	100	No	0/1	0/6
Jianzhong Lu	21	21	0	19	100	No	0/1	0/6
Zhang Weihua	21	21	0	19	100	No	0/1	0/6

Meetings General and Meetings Board at Directors of Attendance

:Notes

• of number/Directors by attended meetings of number actual the represents attended meetings of number The 1. .attend to entitled are Directors meetings general
• .reasons work to due 2020 October 29 from effect with Director executive-non a as resigned Boming Feng .Mr 2.
• 1. October 29 from effect with Director executive-non a as appointed was Chi Sing Ip .Mr 3.

INFORMATION TO ACCESS AND OF SUPPLY 7.

of information other and documents relevant the to access have to entitled are Company the of Directors All .decisions informed make to order in Secretary Company the from Board the

DIRECTORS OF RESIGNATION AND APPOINTMENT 8.

the to Directors new appoints Company The .regularly composition and size ,structure its reviews Board The .procedures transparent and out-thought well ,formal with accordance in Board

make and Directors the of resignation and appointment the review to 2020 in meeting one held Board The each of record Attendance 100%. was Directors the of rate attendance the and ,thereon recommendations :follows as out set is Director

Directors Executive

	Number of
Director	meetings attended	Attendance rate
Wang Daxiong	1	100%
Liu Chong	1	100%
Hui Xu	1	100%

Directors executive-Non

	Number of
Director	meetings attended	Attendance rate
Feng Boming	1	100%
Huang Jian	1	100%
Liang Yanfeng	1	100%
Ip Chi Sing	A/N	A/N

Directors executive-non Independent

	Number of
Director	meetings attended	Attendance rate
Hai Yuet Chi	1	100%
Graeme Jack	1	100%
Cai Hongping	1	100%
Lu Jianzhong	1	100%
Zhang Weihua	1	100%

COMMITTEES BOARD 9.

Committee Audit) 1(

and Jianzhong Lu .Mr of consists currently Board the of Committee Audit the of session sixth The a is who ,Jian Huang .Mr and ,Directors executive-non independent are who ,Hongping Cai .Mr .Committee Audit the of Chairman the is Jianzhong Lu .Mr .Director executive-non

annual ,reports financial the of integrity the oversee to are Committee Audit the of duties primary The .control financial its review to and ,Group the of reports interim and

the with meetings nine convened Board the of Committee Audit the ,period reporting the During 100%. of rate attendance average

:follows as held were meetings regular Four

• with convened was Board the of Committee Audit the of session sixth the of meeting fifth The 1. and considered were proposals following the which at 2020, March 26 on presence physical :vote unanimous a by passed
• ;2019-2020 for audit internal s'Company the regarding Proposal) 1(
• ;2019 for report financial s'Company the regarding Proposal) 2(
• internal and auditors overseas and domestic of reappointment the regarding Proposal) 3( and; 2020 for Company the of auditors control
• the of Committee Audit the by duties of discharge the on report the regarding Proposal) 4( ;2019 in Board
• by convened was Board the of Committee Audit the of session sixth the of meeting seventh The 2. the Regarding Proposal the which at 2020, April 28 on correspondence written through voting ;vote unanimous a by passed was 2020 of Quarter First the for Report s'Company

• with held was Board the of Committee Audit the of session sixth the of meeting eighth The 3. Financial s'Company the Regarding Proposal the which at 2020, August 27 on presence physical and; vote unanimous a by passed and considered was 2020 of Half First the for Report

• by convened was Board the of Committee Audit the of session sixth the of meeting tenth The 4. were proposals following the which at 2020, October 29 on correspondence through voting :vote unanimous a by passed

• .,Co Lines SHIPPING COSCO to Vessels and Containers of Leasing the Regarding Proposal) 1( and); 中遠海運集裝箱運輸有限公司 (.Ltd
• 1. of Quarter Third the for Report s'Company the Regarding Proposal) 2(

:follows as held were meetings extraordinary Five

• convened was Board the of Committee Audit the of session sixth the of meeting sixth The 1. Increase the Regarding Proposal the which at 2020, April 23 on correspondence written through ;passed and considered was .Ltd .,Co Finance SHIPPING COSCO of Capital in
• through held was Board the of Committee Audit the of session sixth the of meeting ninth The 2. considered were proposals following the which at 2020, October 19 on correspondence written :passed and
• from Construction under Ships Pulp purpose-Multi 2 of Transfer the Regarding Proposal) 1( and; Specialized SHIPPING COSCO
• COSCO from Ships Pulp purpose-Multi New 8 of Ordering the Regarding Proposal) 2( ;Industry Heavy SHIPPING
• convened was Board the of Committee Audit the of session sixth the of meeting eleventh The 3. Regarding Proposal the which at 2020, November 19 on correspondence written through the under 2020-2022 for Transactions Connected Daily the on Caps Annual the Adjusting ;passed and considered was Services Factoring on Agreement General
• through held was Board the of Committee Audit the of session sixth the of meeting twelfth The 4. and considered were proposals following the which at 2020, November 24 on presence physical :passed
• and; 2020 for Plan Audit Overseas s'Company the Regarding Proposal) 1(
• ;2020 for Plan Audit Domestic s'Company the regarding Proposal) 2(
• convened was Board the of Committee Audit the of session sixth the of meeting thirteenth The 5. the Regarding Proposal the which at 2020, November 26 on correspondence written through SHIPPING COSCO from Construction under Each DWT 21,000 of Carriers Bulk 16 of Transfer .passed and considered was) 中遠海散 (Bulk

	Number of Meetings attended / number
Director	of meetings held	Attendance rate
sixth The session the of Audit Committee of
Board the
Lu Jianzhong ( independent -non executive (Director
( Chairman (	9/9	100%
Cai Hongping ( independent -non executive (Director	9/9	100%
Huang -non (Jian executive (Director	9/9	100%

:follows as out set is Committee Audit the of member each of record Attendance

Committee Remuneration) 2(

consists currently Company the of Board the of Committee Remuneration the of session sixth The executive-non independent are who ,Jack Graeme .Mr and Hongping Cai .Mr ,Yuet Chi Hai .Ms of .Committee Remuneration the of Chairman the is Hongping Cai .Mr .Directors

the on Board the to recommendations make to are Committee Remuneration the of duties primary The and management senior and Supervisors ,Directors all for structure and policy remuneration s'Company remuneration such on policy developing for procedure transparent and formal a of establishment the on packages remuneration specific determine to Board the by responsibility delegated the have to; policy benefits including ,Company the in positions holding management senior and Supervisors ,Directors of or loss for payable compensation any including (payments compensation and rights pension ,kind in remuneration the on Board the to recommendations make and ,)appointment or office of termination by paid salaries as such factors consider will Committee Remuneration the (Directors executive-non of conditions employment ,Directors the of responsibilities and commitment time ,companies comparable approve and review to); remuneration based-performance of desirability and Group the in elsewhere Board the by passed objectives and goals corporate to reference with remuneration based-performance Supervisors ,Directors executive to payable compensation the approve and review to; time to time from ensure to appointment or office of termination or loss any with connection in management senior and such that and terms contractual relevant with accordance in determined is compensation such that the on burden heavy overly an impose not does and reasonable and fair otherwise is compensation of removal or dismissal to relating arrangements compensation approve and review to; Company accordance in determined are arrangements such that ensure to misconduct for Supervisors or Directors and reasonable otherwise is payment compensation such that and terms contractual relevant with in involved is associates her/his of any or Supervisor or Director no that ensure to and; appropriate .remuneration own her/his determining

average an with 2020, in held were Board the of Committee Remuneration the of meetings Four the of Remuneration Annual of Determination the Regarding Proposal The 100%. of rate attendance second the at considered was 2018 for .,Ltd .,Co Development Shipping COSCO of Management Regarding Proposal the; Board the of Committee Remuneration the of session sixth the of meeting Development Shipping COSCO of Summary and) Draft Revised (Scheme Incentive Option Share the Option Share the Appraising and Implementing of Measures the Regarding Proposal the and .Ltd .,Co third the at considered were) Revised (.Ltd .,Co Development Shipping COSCO of Scheme Incentive the Regarding Proposal the; Board the of Committee Remuneration the of session sixth the of meeting fourth the at considered was 2020 for Company the of Supervisors and Directors the of Remuneration Regarding Proposal the and; Board the of Committee Remuneration the of session sixth the of meeting .,Co Development Shipping COSCO of Management the of Remuneration Annual of Determination the Committee Remuneration the of session sixth the of meeting fifth the at considered was 2019 for .,Ltd .Board the of

Number of meeting attended / number
of meetings held	Attendance rate
4/4	100%
4/4	100%
4/4	100%

:follows as out set is Committee Remuneration the of member each of record Attendance

Committee Strategy Investment) 3(

consists currently Company the of Board the of Committee Strategy Investment the of session sixth The Jian Huang .Mr ,Chi Sing Ip .Mr ,Directors executive are who ,Chong Liu .Mr and Daxiong Wang .Mr of ,Yuet Chi Hai .Ms and Hongping Cai .Mr and ,Directors executive-non are who ,Yanfeng Liang .Mr and the is ,Company the of Chairman ,Daxiong Wang .Mr .Directors executive-non independent are who .Committee Strategy Investment the of Chairman

recommendations make and consider to are Committee Strategy Investment the of duties primary The financing and investment material on and development term-long s'Group the for plan strategic the on s'Board the to subject are which projects operation asset and operation capital material and proposals .Association of Articles the by required as approval

meeting one convened Board the of Committee Strategy Investment the ,period reporting the During 2020 the Regarding Proposal the 2020, February 24 On 100%. of rate attendance average the with passed and considered was Development SHIPPING COSCO of Plan Disposal Asset and Plan Investment was and ,Board the of Committee Strategy Investment the of session sixth the of meeting first the at .approval for Board the to recommended

	Number of meeting attended / number
Director	of meeting held	Attendance rate
sixth The session the of Investment
Strategy Committee of Board the
Wang (Daxiong executive Director ) ( Chairman (	1/1	100%
Liu (Chong executive (Director	1/1	100%
Sing Ip -non (Chi executive Director ) 1)(	A/N	A/N
Feng Boming -non ( executive Director (1)(	1/1	100%
Huang -non (Jian executive (Director	1/1	100%
Liang Yanfeng -non ( executive (Director	1/1	100%
Cai Hongping ( independent -non executive (Director	1/1	100%
Chi Hai (Yuet independent -non executive (Director	1/1	100%

:Note

29 from effect with Committee Strategy Investment the of Chairman the as resigned Boming Feng .Mr 1. the of Chairman the as appointed officially was Chi Sing Ip .Mr; reasons work to due 2020 October 2020. October 30 from effect with Committee Strategy Investment

Committee Nomination) 4(

and Yuet Chi Hai .Ms of consists currently Board the of Committee Nomination the of session sixth The an is who ,Daxiong Wang .Mr and ,Directors executive-non independent are who ,Hongping Cai .Mr .Committee Nomination the of Chairman the is Yuet Chi Hai .Ms .Director executive

the on Board the to recommendations make to are Committee Nomination the of duties primary The accordance in management senior of composition the and Board the of composition and headcount make and consider to; structure shareholding and size asset ,activities business s'Company the with members and Directors selecting for procedures and criteria the on Board the to recommendations candidates the of qualifications the on recommendations make and review to; management senior of independent of independence the assess to and; management senior of members and Directors of and selecting for criteria and procedures s'Committee Nomination The .Directors executive-non standards high satisfy to designed are members Board of appointment for recommendations making consider shall Committee Nomination the ,candidates suitable identifying In .governance corporate of the of diversity the of benefits the to regard due with and criteria objective against merit on candidates proposed a of suitability the assessing in Committee Nomination the by considered factors The .Board and knowledge professional ,accomplishments) ii; (integrity for reputation) i (:include candidate Group the of business the to commitment) iii; (Group the to relevant be may which experience industry individual the that experience and skills ,perspectives) iv; (attention and interest ,time of respect in ,gender to limited not but including ,aspects of number a in diversity) v; (Board the to contribute can of length and knowledge ,skills ,experience professional ,background educational and cultural ,age (vii (and; Group the of objectives term-long and considerations planning succession Board) vi; (service candidate such of independence the ,Director executive-non independent for candidate a of case the in .Rules Listing the of 3.13 Rule in out set as requirements the ,things other among ,to reference with every that ensure to requirements s'Exchange Stock Kong Hong the exceed or meet processes These standard a demonstrate to able is and integrity and experience ,character requisite the has Director the where that and ,issuer listed a of director a as position his with commensurate competence of Rule of requirements the ,consideration under is Directors executive-non independent of nomination .satisfied are Rules Listing the of 3.13

has Committee Nomination The .Policy Diversity Board the passed Board the 2013, August 28 On Nomination the for Rules Working the in out set is which ,Policy Diversity Board the formulated the determining when :include contents main The .Company the of Board the of Committee among ,of terms in diversity Board the consider will Company the ,Board the of composition ,skills ,experience professional ,background educational and cultural ,age ,gender ,things other Board the determining in factors these of account into taking The .service of term and knowledge more a in results and ,Company the of standard management enhanced the to contributes diversity the of appointments All .process making-decision and composition Board balanced and comprehensive taking ,criteria objective against considered be will candidates and ,meritocracy on based are Directors based determined be will candidates of selection final The .diversity board of benefits the account into with line in basically is Board the of composition The .Board the to contribution and merits their on Sixth the of Composition "headed section the under out set are which of details ,principle diversity the on out set Directors of biographies The ."Report Governance Corporate "the in" Board the of Session of qualifications and experience ,knowledge professional ,skills diverse the out set also 34 to 28 pages Board the implementing for objectives measurable any set not has Board the ,Currently .Directors the .Policy Diversity

the with meetings four convened Board the of Committee Nomination the ,period reporting the During General Deputy the of appointment-Re the Regarding Proposal The 100%. of rate attendance average Nomination the of session sixth the of meeting first the at considered was Company the of Manager was Company the of Secretary Board of Change the Regarding Proposal the; Board the of Committee ;Board the of Committee Nomination the of session sixth the of meeting second the at considered was Company the of Personnel Management Senior of appointment-Re the Regarding Proposal the and; Board the of Committee Nomination the of session sixth the of meeting third the at considered Company the of Director executive-Non a as Chi Sing Ip .Mr of Election the Regarding Proposal the .Board the of Committee Nomination the of session sixth the of meeting fourth the at considered was

.review further for Board the to submitted be to agreed were above mentioned proposals All :follows as out set is Committee Nomination the of member each of record Attendance

	Number of meetings attended / number
Director	of meetings held	Attendance rate
sixth The session the of Nomination
Committee of Board the
Chi Hai (Yuet independent -non executive (Director
( Chairman (	4/4	100%
Cai Hongping ( independent -non executive (Director	4/4	100%
Wang (Daxiong executive (Director	4/4	100%

Committee Control Risk) 5(

.Ms of consists currently Company the of Board the of Committee Control Risk the of session sixth The .Directors executive-non independent are who ,Jianzhong Lu .Mr and Hongping Cai .Mr ,Weihua Zhang .Committee Control Risk the of Chairman the is Weihua Zhang .Ms

internal for plans work s'Group the consider to are Committee Control Risk the of duties primary The ;systems control internal and management risk s'Group the review and management risk and control responsibilities their for proposals and departments management risk of establishment the consider to the consider to; systems control internal and management risk the in responsibilities the review and risk the discuss and management risk and control internal on regulations and rules basic s'Group has management that ensure to management the with systems control internal and management and reports evaluation control internal consider to; system effective an establish to duty its performed matters to regard with auditors external with communicate and Group the of reports management risk and management risk on findings investigation major review to; audit and control internal concerning as or initiative own its on findings these to response s'management the and matters control internal Listing the ,regulations and laws by delegated as duties other perform to and; Board the by appointed .Board the and Rules

	of Date		Voting
.No	meeting	of Name meeting	method		Proposal
26 1.	March 2020	The second meeting of sixth the session the of Risk Control Committee of Board the	Physical presence	To 1.	review the proposal regarding 0 2 e h t t n i 9 1 c l a n r e l o r t n o construction report the of Company
				To 2.	review the proposal regarding 2019 the -self evaluation report on internal control the of Company
27 2.	August 2020	third The meeting of sixth the session the of Risk Control Committee of Board the	Physical presence	To 1.	review the proposal regarding 2020 the interim internal control construction report the of Company
				To 2.	review the proposal regarding the 2020 interim comprehensive risk management report the of Company

average the with meetings two convened Committee Control Risk the ,period reporting the During 100%. of rate attendance

for Board the to submitted were them of some and approved were above mentioned proposals All :follows as out set is Committee Control Risk the of member each of rate Attendance .review further

	Number of meetings attended / number
Director	of meetings held	Attendance rate
sixth The of session Risk the Control
Committee of Board the
Zhang (Weihua independent -non executive (Director
( Chairman (	2/2	100%
Cai Hongping ( independent -non executive (Director	2/2	100%
Lu Jianzhong ( independent -non executive (Director	2/2	100%

Committee Executive) 6(

Liu .Mr ,Daxiong Wang .Mr of consists Board the of Committee Executive the of session sixth The ,Company the of Chairman ,Daxiong Wang .Mr .Directors executive are who ,Hui Xu .Mr and Chong .Committee Executive the of Chairman the as serves

to relating matters decide and consider to are Committee Executive the of duties primary The of behalf on expenses of amount certain a involve which Company the of management operations decisions the implement and coordinate to; meetings Board the of adjournments the during Board the the in Company the of affairs the over power disposal special the exercise to; Board the by approved perform to and; thereafter meeting general the and Board the to report and majeure force of event .Board the by delegated or Association of Articles the by provided as duties other

average the with meetings two convened Committee Executive the ,period reporting the During 100%. of rate attendance

	Number of meetings attended / number
Director	of meetings held	Attendance rate
sixth The session the of Executive
Committee of Board the
Wang (Daxiong executive Director ) ( Chairman (	2/2	100%
Liu (Chong executive (Director	2/2	100%
(Hui Xu executive (Director	2/2	100%

SUPERVISORS AND DIRECTORS BY TRANSACTIONS SECURITIES 10.

in out set as Code Model the than exacting less no terms on conduct of code a adopted has Company The and Supervisors ,Directors by transactions securities for standards the as Rules Listing the to 10 Appendix ,Supervisors and Directors all with enquiries specific made having ,confirms Company The .employees relevant the with complied have Supervisors and Directors its 2020, December 31 ended year the during that The .Code Model the in out set as Supervisors and Directors by transactions securities to relating requirements .employees relevant by guidelines these with compliance-non any of aware not is Company

MANAGEMENT KEY AND DIRECTORS OF REMUNERATION ANNUAL 11.

to according determined is Company the of personnel management key and Directors the of Remuneration .Company the of structure and policy remuneration the

the into divided is personnel management key of remuneration the 2020, December 31 ended year the For :grades following

Basic annual salary grade	of .No people
HKD 1,000,000 and (below approximately RMB 841,640 and (below	7
HKD 1,000,001 HKD to 1,500,000 ( approximately RMB 841,641 RMB to 1,262,460 (	6

8 Note in out set are 2020 December 31 ended year the for Directors of remuneration annual the of Details .statements financial consolidated the to

SIXTH THE OF DIRECTORS EXECUTIVE-NON FOR OFFICE OF TERM THE 12. BOARD THE OF SESSION

-Non executive Director	of Term office commencement date	of Term office expiration date
Feng Boming	20 August 2019	upon expiration of term the office of 29 on October 2020
Huang Jian	20 August 2019	the until conclusion of sixth the session of Board the
Liang Yanfeng	20 August 2019	the until conclusion of sixth the session of Board the
Ip Chi Sing	29 October 2020	the until conclusion of sixth the session of Board the

AUDITING AND ACCOUNTABILITY .B

AUDITORS EXTERNAL 1.

and domestic external the as appointed were Young & Ernst and Accountants Public Certified ShineWing until ,respectively ,shareholders the by meeting general annual 2019 the at Company the of auditors overseas .meeting general annual next the of conclusion the

related and service auditing its for remuneration as 8,250,000RMB Young & Ernst paid has Company The Accountants Public Certified ShineWing paid has Company The 2020. year the for provided service The 2020. year the for provided service related and service auditing its for remuneration as 5,280,000RMB internal its for remuneration as 920,000RMB Accountants Public Certified ShineWing paid has Company 2020. year the for provided service auditing and control

AUDITORS AND DIRECTORS THE OF ACKNOWLEDGEMENT 2.

31 ended year the for accounts annual the preparing for responsibility their confirmed have Directors All as responsibilities reporting its confirmed has ,Company the of auditor the ,Young & Ernst 2020. December 2020. December 31 ended year the for statements financial the in report s'auditor the in out set

CONTROL RISK AND CONTROL INTERNAL .C

RISKS SIGNIFICANT MANAGING AND ASSESSING ,IDENTIFYING OF PROCESS

,types the ascertain to guidelines or process ,system identification risk the established has Group The the ,principle this on Based .reporting of path the and risks of frequency and accountability identification ascertained Group The .assessment risk for approaches quantitative and qualitative adopted has Group risk selected also It .conditions and strategies development its to according management risk of focus the risks significant monitor to continued Group The .solutions management risk formulate to tools management .plans contingency and mechanism management risk a establishing by

MANAGEMENT RISK THE OF EFFECTIVENESS THE REVIEWING OF PROCESS INTERNAL MATERIAL RESOLVING AND SYSTEMS CONTROL INTERNAL AND DEFECTS CONTROL

down-top vertical a establishing by system management risk layer-three the strengthened has Group The which ,system defense line-three a established has Group The .system approval up-bottom and delegation .horizontally departments different among appraisal-self and response ,assessment ,identification risk includes and guidance ,coordination ,organization entire the for responsible be shall department management risk The the ,Meanwhile .supervision and audit regular for responsible be shall department audit the while ,supervision prepare and basis regular a on control internal of effectiveness the of assessment an out carry shall Group timely a in deficiencies the address and identify can it that so report assessment control internal annual an .manner

INSIDE OF DISSEMINATION AND HANDLING THE FOR PROCEDURES MEASURES CONTROL INTERNAL AND INFORMATION

accordance in information inside disseminate and handle to process stringent a established has Group The for efforts' Groups the up step To .SFO the and Rules Listing the under requirements relevant with for System Filing and Registration the formulated has Company the ,information inside of confidentiality and information inside of scope and definition the specifies which ,Information Inside Possess Who Persons agreements confidentiality into entered also has Group The .filing and registration of process the ascertains .information inside possess who persons the with

SYSTEMS CONTROL RISK AND CONTROL INTERNAL THE OF REVIEW

control risk and control internal s'Group the of effectiveness the reviewing for responsible is Board The the eliminate than rather manage to designed are systems control risk and control internal The .systems assurance absolute not but reasonable provide only can and ,objectives business achieve to failure of risk the of effectiveness the reviewed and assessed has Board The .loss or misstatement material any against senior the ,Committee Audit the ,Committee Control Risk the with discussion through system control internal external and department management risk and compliance legal the ,team audit internal the ,management compliance legal and team audit internal The .team audit internal the from reports the on based and auditors regular a on plans audit their with accordance in controls key all review department management risk and They .functions management risk as well as controls compliance and operational ,financial including ,basis of control internal the improving for recommendations provide and Board the to findings the report also the by given recommendations the considered has Board the of Committee Control Risk The .Company the .Board the of Committee Control Risk the of meetings the at auditors external

assesses Board The .annually-semi system control internal s'Group the of effectiveness the reviews Board The Risk the by evaluation the to reference with systems control risk and control internal the of effectiveness the legal the ,team audit internal the as well as management the ,Committee Audit the ,Committee Control by made be also will review annual An .auditors external and department management risk and compliance budget and programmes training ,experience and qualifications staff ,resources of adequacy the considering .function reporting financial and accounting s'Company the of

internal s'Group the of effectiveness the reviewed has Board the 2020, December 31 ended year the For the ,Board the of Committee Audit the by evaluation the to reference with systems control risk and control that opinion the of is Board The .team audit internal the and management senior the ,Committee Control Risk reporting financial-non and reporting financial for Group the of systems control risk and control internal the .adequate and effective are

RIGHTS SHAREHOLDER .D

BY CONVENED MEETINGS GENERAL EXTRAORDINARY FOR PROCEDURES 1. SHAREHOLDERS

following the to according meeting general extraordinary an of convening the demand shall Shareholders :procedures

• be shall shares s'Company the of 10% than more holding collectively or individually Shareholders) 1( that provided ,meeting general extraordinary an of convening the Board the to propose to entitled administrative ,laws the with accordance in ,shall Board The .writing in made be shall proposal such or agreement its stating reply written a furnish ,Association of Articles the and regulations receiving after days 10 within meeting general extraordinary the of convening the to disagreement shares number the on based calculated is held shares of number aforementioned The .proposal such .proposal written the of submission of date the on shareholder the by held
• not does or meeting general extraordinary an convene to agree not does Board the that event the In) 2( collectively or individually shareholders ,proposal such receiving after days 10 within reply any furnish Supervisory the to propose to entitled be shall shares s'Company the of 10% than more holding be shall proposal such that provided ,meeting general extraordinary the of convening the Committee .writing in made
• specified the within meeting general the of notice the issue to Committee Supervisory the of Failure) 3( general a over preside and convene to Committee Supervisory the of failure deemed be shall period shares s'Company the of 10% than more holding collectively or individually shareholders and ,meeting The .basis unilateral a on meeting the over preside and convene may more or days consecutive 90 for by meeting general a convening for those to similar be should meeting the convening for procedures .Company the of location the at be also should meeting the of venue The .possible as far as Board the
• /he ,themselves/herself/himself by meeting general the convene to) s(decide) s(shareholder the Where) 4( the of office dispatched the to report shall and ,Board the to notice written a out send shall they/she (s(shareholder convening The .located is Company the where place the at exchange stock the and CSRC the at exchange stock the and CSRC the of office dispatched the to evidence relevant submit shall the and meeting general of notice the of issuance the upon located is Company the where place .meeting general the of resolutions the of announcement
• general a to relating matters to respect with cooperate shall Board the to Secretary the and Board The) 5( the provide shall Board The .discretion own their/her/his at) s(shareholder the by convened meeting .date registration share the of as members of register
• be shall discretion own their at shareholders by convened meeting general a on expenses Necessary) 6( defaulting the to Company the by payable monies the from deducted and Company the by borne .Directors

MEETINGS GENERAL AT MOTIONS PROPOSING FOR PROCEDURES 2.

the of 3% than more holding jointly or severally shareholders ,Company the of meetings general At or 3% holding jointly or severally Shareholders .Company the to motions propose may shares s'Company before days 10 convener the to writing in motions extraordinary submit may shares s'Company the of more meeting general of notice supplementary a issue shall convener The .convened is meeting general the extraordinary the of particulars the announce to motions extraordinary such of receipt upon days two within .motions

FOR INDIVIDUAL AN RECOMMEND TO SHAREHOLDERS FOR PROCEDURES 3. DIRECTOR A FOR ELECTION

at Director of position the for elections in participate can requirements fulfill who nominees Shareholder of Articles the to According .meeting general extraordinary and meeting general annual s'Company the :Association

• general at resolved be to resolution a as submitted be shall Directors for candidates of list The) 1( ,Board the by nominated be shall Directors independent than other Directors for Candidates .meetings total the of 3% than more holding jointly or severally) s(shareholder or ,Committee Supervisory the of meeting general a at elected be shall and ,Company the of rights voting with shares of number Supervisory the ,Board the by nominated be shall Directors independent for Candidates .Company the shares of number total the of 1% than more holding jointly or severally) s(shareholder or ,Committee .Company the of meeting general a at elected be shall and ,Company the of rights voting with
• clear' candidates the and Directors for nominated candidates of intent the of notice written A) 2( of date the after Company the to delivered be shall nomination of acceptance their of indication seven least at and elected be to is Director a which at meeting general the of notice the of delivery .days seven than shorter be not shall period notice the and ,meeting such of date the before days
• general the at voting cumulative by resolved be shall Directors for election the of respect in Resolutions) 3( .meeting
• Appointed .manner timely a in results voting meeting general the announce shall Company The) 4( .Company the with contracts appointment into enter shall Directors

OF BOARD THE TO INQUIRIES MAKE TO SHAREHOLDERS FOR PROCEDURES 4. DIRECTORS

the through Directors of Board the to writing in questions and inquiries their submit can Shareholders :methods following the through contacted be can Secretary Company The .time any at Secretary Company

PRC the ,Shanghai ,Dadao Binjiang 5299 ,F5/

200127 :code Postal

com.coscoshipping@ir :Email

.meetings general s'Company the at Board the to inquiries make also can Shareholders

INVESTOR AND SHAREHOLDERS WITH COMMUNICATION .E RELATIONS

the to related information All .shareholders with communication on emphasis particular puts Company The report annual s'Company the in provided is Group the of development and ,strategies business ,business each and meeting general annual the attend to shareholders encourages Company The .report interim and management the with forums communication valuable as serve should which ,meeting general extraordinary .other each for and

The .investors with communication and relations investor enhances and promotes actively Company The related issues for responsible relations investor for post management dedicated a up set has Company the ,conferences telephone ,shows road ,promotions results utilizes Company The .relations investor to securities and investors with communication and ties the strengthen to visits investor and website s'Company .investors among Company the of awareness raise constantly to as well as analysts

the on Group the about information latest the obtain can public the of members and investors ,Shareholders .website s'Company

the ,Company the of distribution dividends cash of transparency the enhance and standardize to order In ninth the at approved and considered was Association of Articles the to Amendments Regarding Resolution in meeting general extraordinary fourth the and Company the of Board the of session fifth the of meeting Listed of Association of Articles the on Guidance ,Law Securities ,Law Company the with accordance in 2016 of Implementation Further Regarding Notice ,))修訂2014》(上市公司章程指引) (《2014 in revised (Companies Listed ,》)關於進一步落實上市公司現金分紅有關事項的通知 (《Companies Listed of Distribution Dividend Cash 上市公司監管指 (《Companies Listed of Distribution Dividends Cash – 3 .No Guidance Regulatory Companies on based and documents normative and regulations ,laws relevant other and》) 上市公司現金分紅-號3引第 distribution profit the ,Association of Articles amended the to Pursuant .Company the of situation actual the :follows as is Company the of policy

• :forms following the in dividends the distribute may Company The 1.
• and; cash) 1(
• .shares) 2(
• :follows as are Company the of policy distribution profit the of principles basic The 2.
• its to dividend distribute and investors to return of account full take shall Company the) 1( concerned year the in realized profit distributable the to proportion in year each shareholders consolidated the and statements financial the in stated as amounts the of lower the being( ;(company parent the of statements financial
• maintain ,shareholders its to return reasonable creating in emphasis an place shall Company the) 2( the for businesses its operate and ,policy distribution profit its of stability and continuity the sustainable the and shareholders its all of interest entire the ,Company the of interest term-long the exceed neither shall distribution profit s'Company the; Company the of development and; operation ongoing its undermine nor profit distributable accumulated of amount
• .cash in distribution dividend to priority give shall Company the) 3(
• :follows as specified is Company the of policy distribution profit The 3.
• distribution Profit) 1(

and cash both of combination a in ,shares in ,cash in dividends distribute may Company The priority give shall Company The .regulations and laws by permitted as otherwise or shares principles distribution profit the of adherence the to Subject .cash in distribution dividend to may Board The .year each profit distribute principle in shall Company the ,conditions-pre and capital and profitability s'Company the to reference with distribution profit interim propose .requirements

Company the of dividend cash of proportions and conditions Specific) 2(

the by dividends cash distributing in time same the at met be shall conditions following The :Company

concerned year the in realized profit distributable the and profit makes Company the If .i are) reserve the withdraws and losses the covers Company the after tax after profits .e.i( adequate with) company parent the of statements financial the to according (positive not shall it that provided cash in dividend distribute may Company the ,liquidity .Company the of operation ongoing subsequent the undermine

• financial the for report audit unqualified standard a issued had auditors External .ii .concerned year the for Company the of statements
• such no is there and satisfied are operation normal s'Company the for needs capital The .iii .proceeds raised by funded projects excluding ,expenditure cash significant as event

,acquisition asset ,investment external proposed the to refers expenditure cash significant Such expenditure accumulated with Company the by equipment of acquisition or debts of repayment assets net audited latest the of 30% exceeding or to amounting months 12 following the within .Company the of

cash distributing when follows as out set proportions the with comply shall Company The :dividends

well as ,regulations and laws relevant and Law Company the of provisions the to Pursuant are distribution dividend cash for conditions the that provided ,Association of Articles the as the of development sustainable and operation normal the with consistent are and satisfied three coming the of each for made be to cash of form the in distributed dividends ,Company on ,concerned year the for realized profit distributable the of 10% than less be not shall years profits accumulated the ,addition In .expected are outlays cash imminent no that condition the 30% than less be not shall concerned years consecutive three the for cash in distributed be to specific The .period same the for Company the of profit distributable annual average the of s'Company the on based Board the by determined be shall year each for proportion distribution for meeting general the to submitted and CSRC the of rules relevant and conditions operating .approval and consideration

,features industry its including ,consideration into factors various take shall Board The substantial any has it whether as well as profitability and model business ,stages development a propose to circumstances following the differentiate and ,arrangements expenditure capital the in stipulated procedures the to pursuant distribution dividend cash for policy differentiated :Association of Articles

• expenditure capital substantial no with stage developed a in is Company the Where) 1( of 80% than less be not shall cash of form the in distributed dividend the ,arrangements ;distribution profit the
• expenditure capital substantial with stage developed a in is Company the Where) 2( of 40% than less be not shall cash of form the in distributed dividend the ,arrangements and; distribution profit the
• expenditure capital substantial with stage developing a in is Company the Where) 3( 20% than less be not shall cash of form the in distributed dividend the ,arrangements s'Company the distinguish to difficult is it that case the In .distribution profit the of ,arrangements expenditure capital significant has Company the but stage development .provisions preceding the to pursuant with dealt be may distribution profit the

OF ARTICLES S'COMPANY THE TO CHANGES MATERIAL .F ASSOCIATION

ASSOCIATION OF ARTICLES THE TO AMENDMENTS

.Association of Articles the to amendment any make not did Company the 2020, During

SECRETARY COMPANY .G

Hong TMF (Mei Sau Ng .Ms .Company the of secretaries company joint are Mei Sau Ng .Ms and Lei Cai .Mr the of one is ,Board the to secretary ,Lei Cai .Mr .secretaries company joint our of one is) Limited Kong Rule to Pursuant .Mei Sau Ng .Ms and Exchange Stock Kong Hong the with persons contact main s'Company 15 than more attended Mei Sau Ng .Ms and Lei Cai .Mr 2020, December 31 at as ,Rules Listing the of 3.29 .training professional relevant of hours

COSCO of Association of Articles the ,Law Securities ,Law Company the of regulations the with accordance In Supervisory the of procedures of rules the and") Company "the ,hereinafter (.Ltd .,Co Development SHIPPING ,shareholders all to responsibility of spirit the upheld Company the of Committee Supervisory the ,Committee thus ,manner effective and proactive a in work commenced and obligations supervisory its out carried faithfully .Company the of shareholders the of interests legitimate the safeguarding

COMMITTEE SUPERVISORY THE OF STATUS WORKING .I

,meetings manager general attended Company the of Committee Supervisory the ,period reporting the During regulations the to according Company the examined and Company the of meetings general ,meetings Board the on inspection and monitoring thorough conducting ,Company the of Association of Articles the of and Company the of Board the of status the as well as ,Company the of status financial and status operating .obligations their out carrying management its

Name of meeting	Convening time	Convening method	Attendance of Supervisors	Subject
Fifth meeting the of sixth session the of Supervisory Committee	January 22 2020	Written correspondence	All	1.	Proposal Regarding the Share Option Incentive Scheme Revised ( Draft its and) Summary COSCO of SHIPPING Development .Ltd .,Co
				2.	Proposal Regarding the Measures o f v E e h t r n o i t a u l a e h t f o Implementation the of Share Option Incentive Scheme COSCO of Shipping Development .Ltd .,Co
Sixth meeting the of sixth session the of	March 27 2020	Physical presence	All	1.	Proposal Regarding the Company s' Management Work Report 2019 for
Supervisory Committee				2.	Proposal Regarding the Company s' Financial Report 2019 for
				3.	Proposal Regarding the Company s' Profit Distribution 2019 for
				4.	roposal P Regarding Full the ,Text Highlights the and Results Announcement the of Company s' 2019 Annual Report

:meetings seven convened Committee Supervisory the ,period reporting the During

Name of meeting	Convening time	Convening method	Attendance of Supervisors	Subject
				5.	Proposal Regarding the Company s' Internal Control Assessment Report 2019 for
				6.	Proposal Regarding the Company s' Report f o p u S e h t y r o s i v r e Committee 2019 for
Seventh meeting the of sixth session the of Supervisory Committee	March 30 2020	Written correspondence	All	1.	Proposal Regarding the Adjustment the of Participants of Share the Option Incentive Scheme the and Amount Interests of Granted
				2.	Proposal Regarding the of Grant Share to Options Participants under Share the Option Incentive Scheme
Eighth of meeting sixth the session the of Supervisory Committee	April 29 2020	Written correspondence	All	1.	Proposal Regarding the Company s' Report First the for Quarter 2020 of
Ninth of meeting sixth the session the of Supervisory Committee	August 28 2020	Physical presence	All	1.	Proposal Regarding Consideration the of Company s' Management Work for Report First the of Half 2020
				2.	Proposal Regarding the Company s' Financial Report First the for of Half 2020
				3.	Proposal Regarding Consideration the of Company Interim s' of Report and 2020 Interim the Results report

Name of meeting	Convening time	Convening method	Attendance of Supervisors	Subject
Tenth meeting the of sixth session the of	12 October 2020	Written correspondence	All	1.	P l a s o p o r d r a g e R e h t g n i Restructuring the of Plan Company
Supervisory Committee				2.	Proposal Regarding the Signing of Agreements related the to Restructuring
				3.	Proposal Regarding the Major Assets Disposal (Report of) Draft COSCO SHIPPING Development .,Co its and .Ltd Summary
				4.	Proposal Regarding the Compliance of Relevant and Laws Regulations Requirement the for Restructuring
				5.	Proposal Regarding the Explanation n o o C e h t n e t e l p m d n a s s e Compliance of Performing Legal the Procedures the for Restructuring and Validity the the of Submission Legal of Documents
				6.	Proposal Regarding the Compliance of Article the the of 4 Regulations in Relation to Regulating Issues Arising from Material Assets Reorganisation Listed of Companies the for Restructuring
				7.	Proposal Regarding the Compliance f o r A e h t 1 1 e l c i t e h t f o Administrative Measures the for Major Asset Restructuring Listed of Companies the for Restructuring
				8.	Proposal Regarding the Approval the of Review Reports the and Valuation Reports Related the to Restructuring

Name of meeting	Convening time	Convening method	Attendance of Supervisors	Subject
				9.	P l a s o p o r d r a g e R e h t g n i Independence the of Valuation ,Agency Reasonableness the of Assumptions the of Valuation , Correlation between the Approach and Purpose the of Valuation and of Fairness Basis the the of Consideration
				10.	Proposal in relation the to Shareholders Return' Plan the for Coming Years Three 2020 ( (2022 to the of Company
				11.	Proposal Regarding the Remedial Measures relation in Dilution to on Current Returns and Replenished Returns the for Restructuring
				12.	Proposal Regarding the Accepting the Resignation of Hao .Mr Wenyi a as Shareholder Representative Supervisor the of Company
				13.	Proposal Regarding the Election of Zhu .Ms a as Mei Shareholder Representative Supervisor the of Company
Eleventh meeting of sixth the session the of Supervisory Committee	30 October 2020	Written correspondence	All	1.	Proposal Regarding the Company s' for Report Third the Quarter of 2020

OPINIONS INDEPENDENT .II Y R O S I V R E P U S E H T F O COMMITTEE

COMPLIANCE IN OPERATION 1. LAWS WITH

the of management the and Board The operation to adhered strictly Company Company the with accordance in compliance Association of Articles ,Law Securities the ,Law and laws applicable and Company the of are shares s'Company the where regulations not did Committee Supervisory The .listed Board the of members the by act any find Company the of management senior the and might that duties their of performance in Articles the and regulations ,laws the breach the impair or Company the of Association of reporting the during Company the of interest .period

POSITION FINANCIAL OF REVIEW 2.

for Company the of statements financial The view fair a gave and ,reliable and true are 2020 of results operating and position financial the of .Company the

PROCEEDS THE OF USE ACTUAL 3.

or proceed any apply not did Company The any to periods previous in raised proceed .period reporting the during project current

DISPOSALS AND ACQUISITION 4. PARTY RELATED AND ASSETS OF TRANSACTIONS

of disposals and acquisitions for prices The the of period reporting the during assets was trading insider no and fair were Company the to adhered strictly Company The .found conducting in" open and just ,fair "of principles related These .transactions party related the commercial normal on were transactions party laws with accordance in conducted and terms interest of infringement no and ,regulations and .found was Company the of

Company the of Committee Supervisory The the ,Law Company the to adhere strictly shall the of Association of Articles ,Law Securities in regulations and laws other and Company duties supervisory its of performance diligent Company the of interests legal of protection for .whole a as Shareholders the and

Committee Supervisory .Ltd .,Co Development SHIPPING COSCO 2021 March 30

report s'auditor Independent .Ltd .,Co Development SHIPPING COSCO of shareholders the To (liability limited with China of Republic s'People the in Established(

Opinion

("Company "the (.Ltd .,Co Development SHIPPING COSCO of statements financial consolidated the audited have We financial of statement consolidated the comprise which 230, to 104 pages on out set") Group "the (subsidiaries its and of statement consolidated the ,loss or profit of statement consolidated the and 2020, December 31 at as position cash of statement consolidated the and equity in changes of statement consolidated the ,income comprehensive significant of summary a including ,statements financial consolidated the to notes and ,ended then year the for flows .policies accounting

position financial consolidated the of view fair and true a give statements financial consolidated the ,opinion our In flows cash consolidated its and performance financial consolidated its of and 2020, December 31 at as Group the of Hong the by issued") HKFRSs ("Standards Reporting Financial Kong Hong with accordance in ended then year the for the with compliance in prepared properly been have and") HKICPA ("Accountants Public Certified of Institute Kong .Ordinance Companies Kong Hong the of requirements disclosure

opinion for Basis

.HKICPA the by issued") HKSAs ("Auditing on Standards Kong Hong with accordance in audit our conducted We of audit the for responsibilities s'Auditor the in described further are standards those under responsibilities Our with accordance in Group the of independent are We .report our of section statements financial consolidated the ethical other our fulfilled have we and ,")Code "the (Accountants Professional for Ethics of Code s'HKICPA the and sufficient is obtained have we evidence audit the that believe We .Code the with accordance in responsibilities .opinion our for basis a provide to appropriate

matters audit Key

of audit our in significance most of were ,judgement professional our in ,that matters those are matters audit Key audit our of context the in addressed were matters These .period current the of statements financial consolidated the a provide not do we and ,thereon opinion our forming in and ,whole a as statements financial consolidated the of is matter the addressed audit our how of description our ,below matter each For .matters these on opinion separate .context that in provided

financial consolidated the of audit the for responsibilities s'Auditor the in described responsibilities the fulfilled have We performance the included audit our ,Accordingly .matters these to relation in including ,report our of section statements financial consolidated the of misstatement material of risks the of assessment our to respond to designed procedures of ,below matters the address to performed procedures the including ,procedures audit our of results The .statements .statements financial consolidated accompanying the on opinion audit our for basis the provide

matter audit key the addressed audit our How matter audit Key

leases of Classification

the of parts significant are lessor as services leasing The 53.7% represented which ,business principal s'Group of determination The .Group the of revenue total of operating or lease finance as classification lease the the at judgements management significant involves lease of evaluation an includes which ,lease each of inception The .arrangements the of conditions and terms the all on impact material a have then will classification lease .transaction lease each of accounting subsequent the key a as regarded is leases of classification the ,Thus .matter audit

accounting significant and policy accounting s'Group The the and leases of classification the regarding judgements note 2.4, note in detailed are leases of disclosures related .statements financial the to 42 note and 21 note 3,

receivables lease finance for") ECLs ("losses credit Expected

receivables lease finance of ECLs estimates Group The their to extend will and months twelve next the within is risk credit in increase significant any if lives remaining receivables lease finance of amount carrying The .tracked which 45,865,744,000RMB was 2020 December 31 at as estimation The .statements financial the to material was ,judgements management significant involves ECLs for ,index industry including ,assumptions and estimates and risks credit' customers ,indicators macroeconomic .etc ,records payment historic

accounting significant ,policy accounting s'Group The disclosures related the and estimates and judgements detailed are receivables lease finance for ECLs regarding financial the to 47 note and 21 note 3, note 2.4, note in .statements

:others among ,included procedures audit Our

• operating the tested and design the evaluated• s'Group the over controls internal of effectiveness and; classification lease of determination
• leasing selected the of terms key the reviewed• judgements s'management evaluated ,contracts the of classification the determining when applied of accounting subsequent the examined and leases the of classification the on based transactions lease .leases

:others among ,included procedures audit Our

• operating the tested and design the evaluated• s'Group the over controls internal of effectiveness ;assessment credit of processes
• samples selected the of grading credit the reviewed• applied judgements s'management assessed and credit in increase significant the determining when ;risk
• estimates and assumptions s'management evaluated• probability including mainly ,calculation the in used internal against ,default given loss and default of external and experience loss credit historical and; information
• lease finance of provision ECL the recalculated• .receivables

Report Annual the in included information Other

information the comprises information other The .information other the for responsible are Company the of directors The .thereon report s'auditor our and statements financial consolidated the than other ,Report Annual the in included

any express not do we and information other the cover not does statements financial consolidated the on opinion Our .thereon conclusion assurance of form

information other the read to is responsibility our ,statements financial consolidated the of audit our with connection In financial consolidated the with inconsistent materially is information other the whether consider ,so doing in ,and the on based ,If .misstated materially be to appears otherwise or audit the in obtained knowledge our or statements required are we ,information other this of misstatement material a is there that conclude we ,performed have we work .regard this in report to nothing have We .fact that report to

consolidated the for directors the of Responsibilities statements financial

a give that statements financial consolidated the of preparation the for responsible are Company the of directors The Kong Hong the of requirements disclosure the and HKICPA the by issued HKFRSs with accordance in view fair and true preparation the enable to necessary is determine directors the as control internal such for and ,Ordinance Companies .error or fraud to due whether ,misstatement material from free are that statements financial consolidated of

the assessing for responsible are Company the of directors the ,statements financial consolidated the preparing In using and concern going to related matters ,applicable as ,disclosing ,concern going a as continue to ability s'Group to or Group the liquidate to intend either Company the of directors the unless accounting of basis concern going the .so do to but alternative realistic no have or operations cease

overseeing for responsibilities their discharging in Committee Audit the by assisted are Company the of directors The .process reporting financial s'Group the

consolidated the of audit the for responsibilities s'Auditor statements financial

whole a as statements financial consolidated the whether about assurance reasonable obtain to are objectives Our includes that report s'auditor an issue to and ,error or fraud to due whether ,misstatement material from free are responsibility assume not do We .purpose other no for and ,body a as ,you to solely made is report Our .opinion our .report this of contents the for person other any to liability accept or towards

with accordance in conducted audit an that guarantee a not is but ,assurance of level high a is assurance Reasonable are and error or fraud from arise can Misstatements .exists it when misstatement material a detect always will HKSAs economic the influence to expected be reasonably could they ,aggregate the in or individually ,if material considered .statements financial consolidated these of basis the on taken users of decisions

scepticism professional maintain and judgement professional exercise we ,HKSAs with accordance in audit an of part As :also We .audit the throughout

• to due whether ,statements financial consolidated the of misstatement material of risks the assess and Identify• is that evidence audit obtain and ,risks those to responsive procedures audit perform and design ,error or fraud misstatement material a detecting not of risk The .opinion our for basis a provide to appropriate and sufficient intentional ,forgery ,collusion involve may fraud as ,error from resulting one for than higher is fraud from resulting .control internal of override the or ,misrepresentations ,omissions
• are that procedures audit design to order in audit the to relevant control internal of understanding an Obtain• the of effectiveness the on opinion an expressing of purpose the for not but ,circumstances the in appropriate .control internal s'Group
• and estimates accounting of reasonableness the and used policies accounting of appropriateness the Evaluate• .directors the by made disclosures related
• on based ,and accounting of basis concern going the of use' directors the of appropriateness the on Conclude• cast may that conditions or events to related exists uncertainty material a whether ,obtained evidence audit the uncertainty material a that conclude we If .concern going a as continue to ability s'Group the on doubt significant consolidated the in disclosures related the to report s'auditor our in attention draw to required are we ,exists on based are conclusions Our .opinion our modify to ,inadequate are disclosures such if ,or statements financial may conditions or events future ,However .report s'auditor our of date the to up obtained evidence audit the .concern going a as continue to cease to Group the cause

consolidated the of audit the for responsibilities s'Auditor (continued (statements financial

• the including ,statements financial consolidated the of content and structure ,presentation overall the Evaluate• events and transactions underlying the represent statements financial consolidated the whether and ,disclosures .presentation fair achieves that manner a in
• business or entities the of information financial the regarding evidence audit appropriate sufficient Obtain• responsible are We .statements financial consolidated the on opinion an express to Group the within activities audit our for responsible solely remain We .audit group the of performance and supervision ,direction the for .opinion

audit the of timing and scope planned the ,matters other among ,regarding Committee Audit the with communicate We .audit our during identify we that control internal in deficiencies significant any including ,findings audit significant and

requirements ethical relevant with complied have we that statement a with Committee Audit the provide also We be reasonably may that matters other and relationships all them with communicate to and independence regarding .applied safeguards or threats eliminate to taken actions ,applicable where and ,independence our on bear to thought

significance most of were that matters those determine we ,Committee Audit the with communicated matters the From We .matters audit key the therefore are and period current the of statements financial consolidated the of audit the in or matter the about disclosure public precludes regulation or law unless report s'auditor our in matters these describe because report our in communicated be not should matter a that determine we ,circumstances rare extremely in ,when such of benefits interest public the outweigh to expected be reasonably would so doing of consequences adverse the .communication

.Wai Lung Shun is report s'auditor independent this in resulting audit the on partner engagement The

Young & Ernst Accountants Public Certified

Kong Hong 2021 March 30

Loss or Profit of Statement Consolidated

2020 December 31 ended year the For

	Notes	For year the ended 31 December 2020 000'RMB	For year the ended 31 December 2019 000'RMB (Restated(
CONTINUING OPERATIONS
REVENUE	5.1	14,421,919	9,665,682
Cost sales of		) 10,834,932 (	) (7,202,187
Gross profit		3,586,987	2,463,495
Other income	5.2	286,950	330,133
Other net ,gains	5.3	155,593	919,235
,Selling administrative and general expenses		) 1,373,487 (	) (1,178,677
Expected credit losses		(622,339)	(417,563)
Finance costs	7	) 2,253,120 (	) (3,540,784
of Share of profits associates		1,985,148	2,292,840
Share losses of joint of ventures		(4,774)	(1,077)
PROFIT BEFORE TAX FROM CONTINUING OPERATIONS	6	1,760,958	867,602
tax Income expense	10	(318,773)	(199,749)
PROFIT FOR YEAR THE FROM CONTINUING OPERATIONS		1,442,185	667,853
DISCONTINUED OPERATION
for Profit year the a from discontinued operation	11	688,086	1,076,880
PROFIT FOR YEAR THE		2,130,271	1,744,733
Attributable :to
Owners of parent the		2,130,271	1,744,733
-Non controlling interests		–	–
		2,130,271	1,744,733
EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS THE OF (PARENT expressed RMB in (share per	13
and Basic diluted
For– for profit year the		0.1556	0.1285
– profit For from continuing operations		0.0964	0.0355

Income Comprehensive of Statement Consolidated

2020 December 31 ended year the For

	For year the ended	For year the ended
	31 December 2020	31 December 2019
	000'RMB	000'RMB
PROFIT FOR YEAR THE	2,130,271	1,744,733
OTHER COMPREHENSIVE INCOME
Other comprehensive income that be may reclassified profit to loss or
in subsequent :periods
:Associates
Share other of comprehensive loss ( income/)	(173,894)	302,336
Reclassification profit to loss or	(168,459)	–
	(342,353)	302,336
Share other of comprehensive loss joint of ventures	(12)	(59)
Effective portion of flow cash hedges	(11,751)	(30,084)
Exchange differences on translation of foreign operations	684,783	(187,211)
other Net comprehensive income that be may reclassified to
profit in loss or subsequent periods	330,667	84,982
Other comprehensive loss ( income/) may that be not reclassified to
profit in loss or subsequent :periods
Share other of comprehensive )loss ( of income/ associates	(13,390)	51,295
other Net comprehensive loss ( income/) may that be not reclassified to
profit in loss or subsequent periods	(13,390)	51,295
OTHER COMPREHENSIVE INCOME THE FOR NET ,YEAR TAX OF	317,277	136,277
TOTAL COMPREHENSIVE INCOME THE FOR YEAR	2,447,548	1,881,010
Attributable :to
Owners the of parent	2,447,548	1,881,010
-Non controlling interests	–	–
	2,447,548	1,881,010

Position Financial of Statement Consolidated

2020 December 31

		31 December	31 December
		2020	2019
	Notes	000'RMB	000'RMB
-NON CURRENT ASSETS
Property plant , and equipment	14	55,324,708	56,818,972
Investment properties	15	98,144	105,547
Right use-of- assets	16	222,407	274,620
Intangible assets	17	39,256	27,174
Investments joint in ventures	18	180,727	188,827
Investments in associates	19	20,841,847	25,665,387
Financial at assets value fair through profit loss or	20	3,932,754	4,266,308
Finance lease receivables	21	27,568,809	26,623,268
Factoring receivables	22	365,032	428,409
Derivative financial instruments	23	–	569
Deferred assets tax	24	284,670	243,651
Other long term prepayments		45,984	50,641
non Total current- assets		108,904,338	114,693,373
CURRENT ASSETS
Inventories	25	962,410	881,129
Trade and notes receivables	26	2,445,764	1,111,000
Prepayments and other receivables	27	1,054,541	458,969
Financial at assets value fair through profit loss or	20	654,224	490,967
Finance lease receivables	21	18,296,935	15,532,797
Factoring receivables	22	1,083,635	1,123,489
Derivative financial instruments	23	–	960
Pledged deposits	28	590,146	566,339
Cash cash and equivalents	29	12,046,801	9,635,096
Total current assets		37,134,456	29,800,746
Total assets		146,038,794	144,494,119

(continued (Position Financial of Statement Consolidated

2020 December 31

		31 December	31 December
		2020	2019
	Notes	000'RMB	000'RMB
CURRENT LIABILITIES
Trade payables	30	3,100,895	2,553,700
Other payables and accruals	31	4,771,247	3,658,271
Contract liabilities	32	162,354	150,194
Derivative financial instruments	23	8,654	3,445
and Bank other borrowings	33	47,252,731	43,066,519
Corporate bonds	34	9,272,114	4,273,467
Lease liabilities	35	100,998	391,082
Tax payable		198,482	174,881
Total current liabilities		64,867,475	54,271,559
NET CURRENT LIABILITIES		) 27,733,019	) ( 24,470,813 (
TOTAL ASSETS LESS CURRENT LIABILITIES		81,171,319	90,222,560
-NON CURRENT LIABILITIES and Bank other borrowings	33	45,527,948	54,853,209
Corporate bonds	34	8,287,546	8,271,400
Lease liabilities	35	53,858	148,648
Derivative financial instruments	23	12,285	8,590
Deferred tax liabilities	24	104,888	350,975
Government grants	36	9,934	11,484
Other term long payables		2,804,852	2,370,536
non Total current- liabilities		56,801,311	66,014,842
Net assets		24,370,008	24,207,718
EQUITY
Share capital	37	11,608,125	11,608,125
Treasury shares	37	) (233,428	(233,428)
Special reserves	39	1,360	1,606
Other reserves		) 2,722,662	) ( 2,338,187 (
Other equity instruments	40	6,000,000	7,000,000
Retained profits		12,206,348	10,976,614
Other comprehensive loss		) 2,489,735	) ( 2,807,012 (
Total equity		24,370,008	24,207,718

Chong Liu Daxiong Wang

Director Director

Equity in Changes of Statement Consolidated

2020 December 31 ended year the For

								other of comprehensive Share
								income
					equity Other	option Share	capital Other	equity the using	hedge flow Cash	fluctuation Exchange		Surplus
	Notes	capital Share 000 ' RMB	premium Share ) a( 000 ' RMB	shares Treasury 000 ' RMB	instruments 000 ' RMB	reserve ) a( 000 ' RMB	reserves ) a( 000 ' RMB	) b( 000 method ' RMB	reserve ) b( 000 ' RMB	reserve ) b( 000 ' RMB	reserves Special 000 ' RMB	(reserves ) c)(a 000 ' RMB	profits Retained 000 ' RMB	equity Total 000 ' RMB
		) 37 note (		) 37 note (	) 40 note (	) 38 note (					) 39 note (
2020 January 1 At		11,608,125	17,009,944	) 233,428 (	7,000,000	–	) 20,894,013 (	491,737	) 10,909 (	) 3,287,840 (	1,606	1,545,882	10,976,614	24,207,718
year the for Profit		–	–	–	–	–	–	–	–	–	–	–	2,130,271	2,130,271
:year the for income comprehensive Other
associates of loss comprehensive other of Share		–	–	–	–	–	–	( 355,743 )	–	–	–	–	–	( 355,743 )
ventures joint of loss comprehensive other of Share		–	–	–	–	–	–	(12)	–	–	–	–	–	(12)
hedging of value fair in changes of portion Effective
tax of net , instruments		–	–	–	–	–	–	–	( 11,751 )	–	–	–	–	( 11,751 )
foreign of translation on differences Exchange
operations		–	–	–	–	–	–	–	–	684,783	–	–	–	684,783
the for income comprehensive Total								( 355,755 )	( 11,751 )	684,783			2,130,271	2,447,548
year		–	–	–	–	–	–				–	–
arrangements option share settled - Equity	38	–	–	–	–	5,528	–	–	–	–	–	–	–	5,528
instruments equity other of Repayment	40	–	–	–	( 1,000,000 )	–	–	–	–	–	–	–	–	( 1,000,000 )
method equity the using reserves capital other of Share		–	–	–	–	–	( 6,314 )	–	–	–	–	–	–	( 6,314 )
method equity the using reserves capital other of Share
disposal upon loss or profit to reclassified		–	–	–	–	–	( 184,030 )	–	–	–	–	–	–	( 184,030 )
method equity the using effect Dilution		–	–	–	–	–	( 261,059 )	–	–	–	–	–	–	( 261,059 )
declared Dividends	12	–	–	–	–	–	–	–	–	–	–	–	( 518,782 )	( 518,782 )
instruments equity other the of holders to Dividends		–	–	–	–	–	–	–	–	–	–	–	( 320,601 )	( 320,601 )
profits retained from Transfer		–	–	–	–	–	–	–	–	–	28,882	61,400	( 90,282 )	–
funds reserve of Utilisation		–	–	–	–	–	–	–	–	–	( 29,128 )	–	29,128	–
2020 December 31 At		11,608,125	17,009,944	( 233,428 )	6,000,000	5,528	( 21,345,416 )	135,982	( 22,660 )	( 2,603,057 )	1,360	1,607,282	12,206,348	24,370,008

(continued (Equity in Changes of Statement Consolidated

2020 December 31 ended year the For

position	financial of	statement	consolidated	the in )	2,807,012,000	RMB 2019:	( 2,489,735,000	RMB	of loss	comprehensive	other	consolidated the	comprise accounts These )	b(
	position financial	of	statement	consolidated	the in )	2,338,187,000	RMB 2019: (	2,722,662,000	RMB of	reserves	other	consolidated the	comprise accounts These )	a(
24,207,718	10,976,614	1,545,882	1,606	( 3,287,840 )	( 10,909 )	491,737	( 20,894,013 )	7,000,000	( 233,428 )	17,009,944	11,608,125		2019 December 31 At
–	29,655	–	( 29,655 )	–	–	–	–	–	–	–	–		funds reserve of Utilisation
–	( 165,502 )	– 134,241	– 31,261	– –	– –	– –	– –	– –	– –	– –	– –		profits retained from Transfer
( 337,049 )	( 337,049 )												equity other the of holders instruments to Dividends
( 380,440 )	( 380,440 )	–	–	–	–	–	–	–	–	–	–	12	declared Dividends
307,506	–	–	–	–	–	–	307,506	–	–	–	–		the using reserves capital method other of equity Share
–	–	–	–	–	–	–	–	–	66,777	8,223	( 75,000 )	37	shares treasury of Cancellation
( 5,000,000 300,205 )	– –	– –	– –	– –	– –	– –	– –	5,000,000 –	( – 300,205 )	– –	– –	40 37	instruments shares equity of other Repurchase of Issue
1,881,010	1,744,733	–	–	( 187,211 )	( 30,084 )	353,572	–	–	–	–	–		year the for income comprehensive Total
( 187,211 )	–	–	–	( 187,211 )	–	–	–	–	–	–	–		of translation on differences operations Exchange foreign
( 30,084 )	–	–	–	–	( 30,084 )	–	–	–	–	–	–		of value fair tax in of changes net , instruments of portion hedging Effective
(59)	–	–	–	–	–	(59)	–	–	–	–	–		ventures joint
353,631	–	–	–	–	–	353,631	–	–	–	–	–		of loss comprehensive associates other of Share of
													: year income the for comprehensive income comprehensive other of Share Other
1,744,733	1,744,733	–	–	–	–	–	–	–	–	–	–		year the for Profit
18,036,896	10,085,217	1,411,641	–	( 3,100,629 )	19,175	138,165	( 21,201,519 )	2,000,000	–	17,001,721	11,683,125		2019 January 1 At
equity 000 ' RMB	profits 000 ' RMB	(c)(a 000 ' ( RMB	(39 reserves 000 note ' RMB (	(b( 000 reserve ' RMB	(b( 000 reserve ' RMB	(b( 000 method ' RMB	(a( 000 reserves ' RMB	) instruments 000 40 note ' RMB (	) shares 000 37 note ' RMB (	(a( 000 premium ' RMB	) 000 capital 37 note ' RMB (	Notes
Total	Retained	Surplus reserves	Special	Exchange fluctuation	flow hedge Cash	using equity income the	Other capital	Other equity	Treasury	Share	Share
						other comprehensive
						of Share

.shares bonus issue to or losses' years prior offset to utilised be can fund reserve surplus statutory The .optional is

Flows Cash of Statement Consolidated

2020 December 31 ended year the For

	Notes	For year the ended 31 December 2020 000'RMB	For year the ended 31 December 2019 000'RMB
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations		10,043,584	8,740,674
Income paid tax		(294,496)	(316,609)
Net flows cash generated from operating activities	(b(41	9,749,088	8,424,065
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received		145,385	187,544
Dividends received from associates		397,468	921,424
Dividends received joint from ventures		3,314	3,345
Purchases of items of ,property and plant equipment		) 6,696,879 (	) (2,828,747
Proceeds from disposal of items of ,property and plant equipment		132,351	202,994
Purchases of intangible assets		(20,239)	(14,259)
Proceeds from of disposal intangible assets		497	–
Purchases of investments an in associate		(748,288)	(5,041)
Proceeds from disposal of investments in associates		6,313,139	6,618
Purchases of financial at assets value fair through profit loss or		) 2,125,159 (	(826,931)
Proceeds from of disposal financial at assets value fair
through profit loss or		2,321,658	237,125
Increase finance in lease receivables		) 4,953,135 (	) (7,781,238
Decrease increase(/ in) factoring receivables		126,270	(718,126)
Decrease pledged in deposits		29,181	9,560
Increase other in term long payables		190,630	221,763
Net flows cash in used investing activities		) 4,883,807 (	) 10,383,969 (

(continued (Flows Cash of Statement Consolidated

2020 December 31 ended year the For

		For year the ended	For year the ended
		31 December 2020	31 December 2019
	Notes	000'RMB	000'RMB
CASH FLOWS FROM FINANCING ACTIVITIES
Repurchase shares of	37	–	(300,205)
Proceeds issue from other of equity instruments	40	–	5,000,000
Repayment other of equity instruments	40	) 1,000,000 (	–
bank New other and borrowings		51,966,415	52,918,431
Repayment bank of other and borrowings		) 53,030,981 (	) 62,361,298 (
New corporate bonds		20,043,546	15,280,000
Repayment of corporate bonds		) 15,028,753 (	) (8,748,833
Payment of principal portion lease of liabilities		(390,870)	(531,649)
Interest paid		) 3,644,897 (	) (4,844,875
Dividends to paid of owners parent the		(518,140)	(381,727)
Dividends to paid of holders other the equity instruments		(325,684)	(105,606)
Increase( decrease/) pledged in deposits		(42,064)	360,511
Net flows cash in used financing activities		) 1,971,428 (	) (3,715,251
NET INCREASE (/ DECREASE CASH IN) AND CASH EQUIVALENTS		2,893,853	) (5,675,155
Cash cash and equivalents at beginning year of		9,635,096	15,249,194
Effect foreign of exchange rate changes net ,		(482,148)	61,057
CASH AND CASH EQUIVALENTS END AT YEAR OF	29	12,046,801	9,635,096

2020 December 31

INFORMATION GROUP AND CORPORATE 1.

liability limited with company stock joint a is") Company "the (.Ltd .,Co Development SHIPPING COSCO is office registered s'Company the of address The .")PRC "the (China of Republic s'People the in established .PRC the ,Shanghai ,Zone Trade Free Pilot) Shanghai (China ,Center Trade International -538,A Room

:follows as were Group the of activities principal the ,year the During

• ;leasing financial and leasing Operating) a(
• ;containers of sale and Manufacture) b(
• and; services brokerage insurance and financial of Provision) c(
• .investment Equity) d(

the of company holding ultimate the and company holding immediate the ,directors the of opinion the In ,Limited Corporation Shipping COSCO China and Limited Company Group Shipping China are Company .PRC the in established both ,respectively

2020 December 31

(continued (INFORMATION GROUP AND CORPORATE 1.

subsidiaries about Information

:follows as are subsidiaries principal s'Company the of Particulars

	of Place incorporation / registration and	Issued /ordinary registered	Percentage equity the to	of attributable Company
Name	business	capital share	Direct	Indirect	Principal activities
COSCO SHIPPING Development Hong ( .,Co) Kong .Ltd	Kong Hong	HK \$1,000,000, US \$1,777,558,800 and RMB 2,900,000,000	100%	–	Vessel chartering and container leasing
CSCL Shipping Star .Ltd .,Co	Kong Hong	\$10,000HK	–	100%	Vessel chartering
Venus CSCL Shipping .Ltd .,Co	Kong Hong	\$10,000HK	–	100%	Vessel chartering
Jupiter CSCL Shipping .Ltd .,Co	Kong Hong	\$10,000HK	–	100%	Vessel chartering
Mercury CSCL Shipping .Ltd .,Co	Kong Hong	\$10,000HK	–	100%	Vessel chartering
Mars CSCL Shipping .Ltd .,Co	Kong Hong	\$10,000HK	–	100%	Vessel chartering
Saturn CSCL Shipping .Ltd .,Co	Kong Hong	\$10,000HK	–	100%	Vessel chartering
Uranus CSCL Shipping .Ltd .,Co	Kong Hong	\$10,000HK	–	100%	Vessel chartering
CSCL Neptune Shipping .Ltd .,Co	Kong Hong	\$10,000HK	–	100%	Vessel chartering
Bohai CSCL Shipping Sea .Ltd .,Co	Kong Hong	\$10,000HK	–	100%	Vessel chartering
Yellow CSCL Shipping Sea .Ltd .,Co	Kong Hong	\$10,000HK	–	100%	Vessel chartering
CSCL China East Shipping Sea .Ltd .,Co	Kong Hong	\$10,000HK	–	100%	Vessel chartering
CSCL China South Shipping Sea .Ltd .,Co	Kong Hong	\$10,000HK	–	100%	Vessel chartering
Spring CSCL Shipping .Ltd .,Co	Kong Hong	\$10,000HK	–	100%	Vessel chartering
Summer CSCL Shipping .Ltd .,Co	Kong Hong	\$10,000HK	–	100%	Vessel chartering
Autumn CSCL Shipping .Ltd .,Co	Kong Hong	\$10,000HK	–	100%	Vessel chartering
Winter CSCL Shipping Ltd .,Co	Kong Hong	\$10,000HK	–	100%	Vessel chartering

2020 December 31

(continued (INFORMATION GROUP AND CORPORATE 1.

(continued (subsidiaries about Information

	of Place incorporation / registration and	Issued /ordinary registered	Percentage equity the to	of attributable Company
Name	business	capital share	Direct	Indirect	Principal activities
Globe CSCL Shipping .Ltd .,Co	Kong Hong	\$10,000HK	–	100%	Vessel chartering
CSCL Ocean Pacific Shipping .Ltd .,Co	Kong Hong	\$10,000HK	–	100%	Vessel chartering
CSCL Ocean Indian Shipping .Ltd .,Co	Kong Hong	\$10,000HK	–	100%	Vessel chartering
Atlantic CSCL Ocean Shipping .Ltd .,Co	Kong Hong	\$10,000HK	–	100%	Vessel chartering
CSCL Ocean Arctic Shipping .Ltd .,Co	Kong Hong	\$10,000HK	–	100%	Vessel chartering
Helen Insurance Brokers Limited	Kong Hong	HK \$3,000,000	–	100%	Provision insurance of brokerage services
COSCO SHIPPING Development ( Ltd .,Co) Asia	Virgin British Islands ("BVI ("	US \$514,465,000	–	100%	Vessel chartering and container leasing
Arisa Navigation Company Limited	Cyprus	1,000CYP	–	100%	Vessel chartering
YangshanA Shipping Company Limited	BVI	\$50,000US	–	100%	Vessel chartering
YangshanB Shipping Company Limited	BVI	\$50,000US	–	100%	Vessel chartering
YangshanC Shipping Company Limited	BVI	\$50,000US	–	100%	Vessel chartering
YangshanD Shipping Company Limited	BVI	\$50,000US	–	100%	Vessel chartering
Fleet Oriental International .Ltd .,Co	Kong Hong	HK \$140,000,000	–	100%	Investment holding
Oriental LNG Fleet Limited 01	BVI	\$1US	–	100%	Financial leasing
Oriental LNG Fleet Limited 02	Marshall Islands ("Marshall("	\$1US	–	100%	Financial leasing
Oriental HLCV Fleet Limited 01	BVI	\$1US	–	100%	Financial leasing
Oriental HLCV Fleet Limited 02	BVI	\$1US	–	100%	Financial leasing
Oriental HLCV Fleet Limited 03	BVI	\$1US	–	100%	Financial leasing

2020 December 31

(continued (INFORMATION GROUP AND CORPORATE 1.

(continued (subsidiaries about Information

	of Place incorporation / registration and	Issued /ordinary registered	Percentage equity the to	of attributable Company
Name	business	capital share	Direct	Indirect	Principal activities
Oriental HLCV Fleet Limited 04	BVI	\$1US	–	100%	Financial leasing
Oriental HLCV Fleet Limited 05	Marshall	\$1US	–	100%	Financial leasing
Oriental HLCV Fleet Limited 06	Marshall	\$1US	–	100%	Financial leasing
Oriental Bulk Fleet Limited 01	Marshall	\$1US	–	100%	Financial leasing
Oriental Bulk Fleet Limited 02	Marshall	\$1US	–	100%	Financial leasing
Oriental Bulk Fleet Limited 03	Marshall	\$1US	–	100%	Financial leasing
Oriental Bulk Fleet Limited 04	Marshall	\$1US	–	100%	Financial leasing
Oriental Bulk Fleet Limited 05	Liberia	\$1US	–	100%	Financial leasing
Oriental Bulk Fleet Limited 06	Liberia	\$1US	–	100%	Financial leasing
Oriental Bulk Fleet Limited 07	Liberia	\$1US	–	100%	Financial leasing
Oriental Bulk Fleet Limited 08	Liberia	\$1US	–	100%	Financial leasing
Oriental Bulk Fleet Limited 09	Liberia	\$1US	–	100%	Financial leasing
Oriental Bulk Fleet Limited 10	Liberia	\$1US	–	100%	Financial leasing
Oriental Bulk Fleet Limited 11	Liberia	\$1US	–	100%	Financial leasing
Oriental Bulk Fleet Limited 12	Liberia	\$1US	–	100%	Financial leasing
Oriental Bulk Fleet Limited 18	Kong Hong	\$1US	–	100%	Financial leasing
Fleet Oriental Chemical Limited 01	BVI	\$1US	–	100%	Financial leasing
Oriental Cruise Fleet Limited 01	Marshall	\$1US	–	100%	Financial leasing
Oriental Tanker Fleet Limited 01	BVI	\$1US	–	100%	Financial leasing

2020 December 31

(continued (INFORMATION GROUP AND CORPORATE 1.

(continued (subsidiaries about Information

	of Place incorporation / registration and	Issued /ordinary registered	Percentage equity the to	of attributable Company
Name	business	capital share	Direct	Indirect	Principal activities
Oriental Tanker Fleet Limited 02	BVI	\$1US	–	100%	Financial leasing
Oriental Tanker Fleet Limited 03	Marshall	\$1US	–	100%	Financial leasing
Oriental Tanker Fleet Limited 04	Marshall	\$1US	–	100%	Financial leasing
Oriental Tanker Fleet Limited 05	Marshall	\$1US	–	100%	Financial leasing
Oriental Tanker Fleet Limited 06	Marshall	\$1US	–	100%	Financial leasing
Oriental Tanker Fleet Limited 07	Marshall	\$1US	–	100%	Financial leasing
Oriental Tanker Fleet Limited 08	Marshall	\$1US	–	100%	Financial leasing
Oriental Tanker Fleet Limited 09	Marshall	\$1US	–	100%	Financial leasing
Oriental Tanker Fleet Limited 10	Marshall	\$1US	–	100%	Financial leasing
Oriental Tanker Fleet Limited 11	Marshall	\$1US	–	100%	Financial leasing
Oriental Tanker Fleet Limited 12	Marshall	\$1US	–	100%	Financial leasing
Oriental Tanker Fleet Limited 13	Marshall	\$1US	–	100%	Financial leasing
Oriental Tanker Fleet Limited 14	Liberia	\$1US	–	100%	Financial leasing
Oriental Tanker Fleet Limited 15	Liberia	\$1US	–	100%	Financial leasing
Oriental Tanker Fleet Limited 17	Marshall	\$1US	–	100%	Financial leasing
Oriental Tanker Fleet Limited 18	Marshall	\$1US	–	100%	Financial leasing
Oriental Tanker Fleet Limited 19	Liberia	\$1US	–	100%	Financial leasing

2020 December 31

(continued (INFORMATION GROUP AND CORPORATE 1.

(continued (subsidiaries about Information

	of Place incorporation / registration and	Issued /ordinary registered	Percentage equity the to	of attributable Company
Name	business	capital share	Direct	Indirect	Principal activities
Fleet Oriental Limited 01GC	Liberia	\$1US	–	100%	Financial leasing
Fleet Oriental Limited 02GC	Liberia	\$1US	–	100%	Financial leasing
Fleet Oriental Limited 03GC	Liberia	\$1US	–	100%	Financial leasing
Fleet Oriental Limited 04GC	Liberia	\$1US	–	100%	Financial leasing
Fleet Oriental Container Limited 01	Liberia	\$1US	–	100%	Financial leasing
Fleet Oriental Container Limited 02	Liberia	\$1US	–	100%	Financial leasing
Oriental Pulp Fleet Limited 01	Kong Hong	\$1US	–	100%	Financial leasing
Bulk Flourish Fleet Company Limited	Kong Hong	\$1US	–	100%	Vessel chartering
Oriental Asset Fleet Management Limited	Kong Hong	\$10,000HK	–	100%	of Provision management service
Florens Tianjin ( Finance) Leasing .Ltd .,Co	PRC	US \$50,000,000	–	100%	Financial leasing
Florens Container Investment .Ltd) SPV (	BVI	US \$435,000,001	–	100%	Container leasing
Asset Florens Management Singapore ( .PTE) Limited	Singapore	10,000SGD	–	100%	Provision container of management services
Fang Dong International Asset Management Limited	Kong Hong	\$3HK	–	100%	of Provision management service
Fang Dong International Container Limited	BVI	\$50,000US	–	100%	Investment holding
Florens International Limited	BVI	US \$1,833,966,965	–	100%	Investment holding

2020 December 31

(continued (INFORMATION GROUP AND CORPORATE 1.

(continued (subsidiaries about Information

	of Place incorporation / registration and	Issued /ordinary registered	Percentage equity the to	of attributable Company
Name	business	capital share	Direct	Indirect	Principal activities
Florens China ( Company) Limited	PRC	US \$12,800,000	–	100%	Container leasing
Florens Maritime Limited	Bermuda	\$12,000US	–	100%	Container leasing
Florens Container Corporation .A.S	Panama	US \$578,726,783.2	–	100%	Container leasing
Asset Florens Management Company Limited	Kong Hong	\$100HK	–	100%	Provision container of management services
Asset Florens Management Deutschland ( GmbH)	Deutschland	25,564.6EUR	–	100%	Provision container of management services
Asset Florens Management .L.R.S) Italy (	Italy	10,400EUR	–	100%	Provision container of management services
Asset Florens Management .Ltd ,)USA (	States United	\$1US	–	100%	Provision container of management services
Florens Container ) 2002 (.Inc ,	States United	\$1US	–	Sale 100%	containers of
Fairbreeze Shipping Company Limited	Kong Hong	\$500,000HK	–	100%	Property investment
Honour Long Investments Limited	BVI	\$1US	–	100%	Investment holding
COSCO Container Industry .Ltd .,Co	BVI	\$1US	–	100%	Investment holding
COSCO SHIPPING Leasing .Ltd .,Co Leasing CS ("	PRC")	RMB 3,500,000,000	100%	–	Financial leasing
Haihui Commercial Factoring Tianjin ( Ltd .,Co) PRC .		RMB 397,939,194	–	100%	Commercial factoring
Yuanhai Leasing Tianjin ( Ltd .,Co)	PRC	RMB 1,000,000,000	–	100%	Financial leasing

2020 December 31

(continued (INFORMATION GROUP AND CORPORATE 1.

(continued (subsidiaries about Information

	of Place incorporation / registration and	Issued /ordinary registered	Percentage equity the to	of attributable Company
Name	business	capital share	Direct	Indirect	Principal activities
China Shipping Investment Co CS (".Ltd ., ("Investment	PRC	RMB 18,213,000,000	100%	–	Investment holding
COSCO China SHIPPING Development (Tianjin ( Leasing Company Limited	PRC	RMB 1,000,000,000	–	100%	Financial leasing
Shanghai Universal Logistics Equipment Ltd .,Co	PRC .	RMB 850,000,000	–	100%	Investment holding
Fang Dong International (Container (Lianyungang .Ltd .,Co	PRC	US \$44,133,900	–	100%	Container manufacturing
Fang Dong International (Container .,Co) Jinzhou .Ltd	PRC	US \$20,000,000	–	100%	Container manufacturing
Fang Dong International (Container (Guangzhou .Ltd .,Co	PRC	US \$21,417,780	–	100%	Container manufacturing
Fang Dong International Container (Kong Hong ( .Ltd .,Co	Kong Hong	\$10,000US	–	100%	Trading
Shanghai Haining Insurance Broker .Ltd .,Co	PRC	RMB 10,000,000	–	100%	Provision insurance of brokerage services
Suzhou Yuanhai Doukui Investment LLP	PRC	RMB 182,100,000	–	100%	Investment holding
COSCO SHIPPING Shanghai ( Investment) Management Ltd .,Co	PRC	RMB 21,033,540.37	100%	–	Investment holding
COSCO China SHIPPING Guanghua Investment Management Limited	PRC	RMB 200,000,000	100%	–	Investment holding

affected principally ,directors the of opinion the in ,which Company the of subsidiaries the lists table above The other of details give To .Group the of assets net the of portion substantial a formed or year the for results the .length excessive of particulars in result ,directors the of opinion the in ,would subsidiaries

2020 December 31

PREPARATION OF BASIS 2.1

Standards Reporting Financial Kong Hong with accordance in prepared been have statements financial These Standards Accounting Kong Hong ,Standards Reporting Financial Kong Hong all include which") (HKFRSs(" ,("HKICPA ("Accountants Public Certified of Institute Kong Hong the by issued) Interpretations and") HKASs(" Kong Hong the of requirements disclosure the and Kong Hong in accepted generally principles accounting financial certain for except ,convention cost historical the under prepared been have They .Ordinance Companies Renminbi in presented are statements financial These .value fair at measured been have which instruments .indicated otherwise when except thousand nearest the to rounded are values all and") RMB("

had Group the that notwithstanding basis concern going the on prepared been have statements financial The of are Company the of directors The 2020. December 31 at as 27,733,019,000RMB of liabilities current net have will Group the 2020, December 31 at as facilities banking unutilised available the on based that opinion .requirements expenditure capital its meet to and capital working its finance to funds liquid necessary the a on statements financial the prepare to appropriate is it that opinion the of are directors the ,Accordingly .basis concern going

consolidation of Basis

subsidiaries its and Company the of statements financial the include statements financial consolidated The including (entity an is subsidiary A 2020. December 31 ended year the for") Group "the as to referred collectively( is Group the when achieved is Control .Company the by controlled ,indirectly or directly ,)entity structured a affect to ability the has and investee the with involvement its from returns variable to ,rights has or ,exposed to ability current the Group the give that rights existing .,e.i (investee the over power its through returns those .(investee the of activities relevant the direct

,investee an of rights similar or voting the of majority a than less ,indirectly or directly ,has Company the When ,investee an over power has it whether assessing in circumstances and facts relevant all considers Group the :including

• ;investee the of holders vote other the with arrangement contractual the) a(
• and; arrangements contractual other from arising rights) b(
• .rights voting potential and rights voting s'Group the) c(

using ,Company the as period reporting same the for prepared are subsidiaries the of statements financial The Group the which on date the from consolidated are subsidiaries of results The .policies accounting consistent .ceases control such that date the until consolidated be to continue and control obtains

2020 December 31

(continued (PREPARATION OF BASIS 2.1

(continued (consolidation of Basis

of parent the of owners the to attributed are income comprehensive other of component each and loss or Profit deficit a having interests controlling-non the in results this if even ,interests controlling-non the to and Group the transactions to relating flows cash and expenses ,income ,equity ,liabilities and assets group-intra All .balance .consolidation on full in eliminated are Group the of members between

are there that indicate circumstances and facts if investee an controls it not or whether reassesses Group The interest ownership the in change A .above described control of elements three the of more or one to changes .transaction equity an as for accounted is ,control of loss a without ,subsidiary a of

liabilities and) goodwill including (assets the) i (derecognises it ,subsidiary a over control loses Group the If translation cumulative the) iii (and interest controlling-non any of amount carrying the) ii (,subsidiary the of value fair the) ii (,received consideration the of value fair the) i (recognises and; equity in recorded differences of share s'Group The .loss or profit in deficit or surplus resulting any) iii (and retained investment any of retained or loss or profit to reclassified is income comprehensive other in recognised previously components related the of disposed directly had Group the if required be would as basis same the on ,appropriate as ,profits .liabilities or assets

DISCLOSURES AND POLICIES ACCOUNTING IN CHANGES 2.2

revised following the and 2018 Reporting Financial for Framework Conceptual the adopted has Group The .statements financial s'year current the for time first the for HKFRSs

Amendments to 3 HKFRS	Definition a of Business
Amendments HKFRS to HKAS 9, and 39	Interest Rate Benchmark Reform
7 HKFRS
Amendment to 16 HKFRS	-19-Covid Related Rent Concessions
Amendments HKAS to and 1 8 HKAS	Definition of Material

2020 December 31

(continued (DISCLOSURES AND POLICIES ACCOUNTING IN CHANGES 2.2

HKFRSs revised the and 2018 Reporting Financial for Framework Conceptual the of impact the and nature The :below described are

• a out sets") Framework Conceptual "the (2018 Reporting Financial for Framework Conceptual) a( guidance provides and ,setting standard and reporting financial for concepts of set comprehensive all to assistance and policies accounting consistent developing in statements financial of preparers for on chapters new includes Framework Conceptual The .standards the interpret and understand to parties and assets of derecognition the on guidance new ,performance financial reporting and measurement roles the clarifies also It .liabilities and assets for criteria recognition and definitions updated and ,liabilities Framework Conceptual The .reporting financial in uncertainty measurement and prudence ,stewardship of in requirements or concepts the override therein contained concepts the of none and ,standard a not is position financial the on impact significant any have not did Framework Conceptual The .standard any .Group the of performance and
• The .business a of definition the on guidance additional provide and clarify 3 HKFRS to Amendments) b( must it ,business a considered be to assets and activities of set integrated an for that clarify amendments the to contribute significantly together that process substantive a and input an ,minimum a at ,include to needed processes and inputs the of all including without exist can business A .output create to ability of capable are participants market whether of assessment the remove amendments The .outputs create inputs acquired whether on is focus the ,Instead .outputs produce to continue and business the acquiring The .outputs create to ability the to contribute significantly together processes substantive acquired and to provided services or goods on focus to outputs of definition the narrowed also have amendments amendments the ,Furthermore .activities ordinary from income other or income investment ,customers value fair optional an introduce and substantive is process acquired an whether assess to guidance provide is assets and activities of set acquired an whether of assessment simplified a permit to test concentration that events other or transactions to prospectively amendments the applied has Group The .business a not position financial the on impact any have not did amendments The 2020. January 1 after or on occurred .Group the of performance and

2020 December 31

(continued (DISCLOSURES AND POLICIES ACCOUNTING IN CHANGES 2.2

• the in reporting financial affecting issues address 7 HKFRS and 39 HKAS 9, HKFRS to Amendments) c( rate free-risk alternative an with benchmark rate interest existing an of replacement the before period during continue to accounting hedge enable which reliefs temporary provide amendments The .")RFR(" amendments the ,addition In .RFR alternative the of introduction the before uncertainty of period the which relationships hedging their about investors to information additional provide to companies require financial the on impact any have not did amendments The .uncertainties these by affected directly are .relationships hedging rate interest any have not does Group the as Group the of performance and position
• modification lease apply to not elect to lessees for expedient practical a provides 16 HKFRS to Amendment) d( practical The .pandemic -19Covid the of consequence direct a as arising concessions rent for accounting only and pandemic the of consequence direct a as occurring concessions rent to only applies expedient the substantially is that lease the for consideration revised in results payments lease in change the) i (if reduction any) ii; (change the preceding immediately lease the for consideration the ,than less or ,as same no is there) iii (and; 2021 June 30 before or on due originally payments only affects payments lease in annual for effective is amendment The .lease the of conditions and terms other to change substantive applied be shall and permitted application earlier with 2020 June 1 after or on beginning periods that events other or transactions to prospectively amendment the applied has Group The .retrospectively and position financial the on impact any have not did amendment The 2020. June 1 after or on occurred .Group the of performance
• that states definition new The .material of definition new a provide 8 HKAS and 1 HKAS to Amendments) e( influence to expected be reasonably could it obscuring or misstating ,omitting if material is information those of basis the on make statements financial purpose general of users primary the that decisions of magnitude or nature the on depend will materiality that clarify amendments The .statements financial and position financial the on impact significant any have not did amendments The .both or ,information .Group the of performance

2020 December 31

REPORTING FINANCIAL KONG HONG EFFECTIVE YET NOT BUT ISSUED 2.3 STANDARDS

,effective yet not are but issued been have that ,HKFRSs revised and new following the applied not has Group The .statements financial these in

Amendments to 3 HKFRS	2 Reference the to Conceptual Framework
Amendments HKFRS to HKAS 9, 39,	Interest Rate Benchmark – Reform 21 Phase
HKFRS HKFRS 7, and 4 16 HKFRS
Amendments HKFRS to and 10	or Sale Contribution Assets of between an Investor its and
HKAS (2011) 28	Associate Joint or 4Venture
17 HKFRS	Insurance Contracts 3
Amendments to 17 HKFRS	Insurance Contracts 3,6
Amendments to 1 HKAS	Classification of Liabilities as Current Non or 3,5current-
Amendments to 16 HKAS	2Use Property Plant , and Equipment : Proceeds before Intended
Amendments to 37 HKAS	Onerous Contracts of Cost – Fulfilling a 2Contract
Annual Improvements to	Amendments to 1, HKFRS 9, HKFRS Illustrative Examples
HKFRSs 2018-2020	accompanying HKFRS and 16, 412 HKAS

• 2021 January 1 after or on beginning periods annual for Effective ¹
• 2022 January 1 after or on beginning periods annual for Effective ²
• 2023 January 1 after or on beginning periods annual for Effective ³
• adoption for available but determined yet date effective mandatory No ⁴
• Statements Financial of Presentation 5 Interpretation Kong Hong 1, HKAS to amendments the of consequence a As ⁵ October in revised was Clause Demand on Repayment a Contains that Loan Term a of Borrower the by Classification conclusion in change no with wording corresponding the align to 2020
• the extend to amended was 4 HKFRS 2020, October in issued 17 HKFRS to amendments the of consequence a As ⁶ before beginning periods annual for 9 HKFRS than rather 39 HKAS apply to insurers permits that exemption temporary 2023 January 1

of none ,policies accounting in changes in result may HKFRSs revised and new the of some of adoption the While .position financial and operations of results s'Group the on impact significant a have to expected is HKFRSs these

.below described is Group the to applicable be to expected are that HKFRSs those about information Further

Preparation the for Framework previous the to reference a replace to intended are 3 HKFRS to Amendments Reporting Financial for Framework Conceptual the to reference a with Statements Financial of Presentation and an 3 HKFRS to add also amendments The .requirements its changing significantly without 2018 June in issued what determine to Framework Conceptual the to refer to entity an for principle recognition its to exception would that liabilities contingent and liabilities for ,that specifies exception The .liability a or asset an constitutes a in assumed than rather separately incurred were they if 21 Int-)IFRIC(HK or 37 HKAS of scope the within be instead respectively 21 Int-)IFRIC(HK or 37 HKAS to refer should 3 HKFRS applying entity an ,combination business for qualify not do assets contingent that clarify amendments the ,Furthermore .Framework Conceptual the of January 1 from prospectively amendments the adopt to expects Group The .date acquisition the at recognition or on is date acquisition the which for combinations business to prospectively apply amendments the Since 2022. .transition of date the on amendments these by affected be not will Group the ,application first of date the after

2020 December 31

REPORTING FINANCIAL KONG HONG EFFECTIVE YET NOT BUT ISSUED 2.3 (continued (STANDARDS

the in with dealt not issues address 16 HKFRS and 4 HKFRS 7, HKFRS 39, HKAS 9, HKFRS to Amendments with replaced is benchmark rate interest existing an when reporting financial affect which amendments previous to rate interest effective the allow to expedient practical a provide amendments 2 Phase The .RFR alternative an determining for basis the in changes for accounting when amount carrying the adjusting without updated be interest the of consequence direct a is change the if ,liabilities and assets financial of flows cash contractual the equivalent economically is flows cash contractual the determining for basis new the and reform benchmark rate required changes permit amendments the ,addition In .change the preceding immediately basis previous the to the without documentation hedge and designations hedge to made be to reform benchmark rate interest the by through with dealt are transition on arise could that losses or gains Any .discontinued being relationship hedging also amendments The .ineffectiveness hedge recognise and measure to 9 HKFRS of requirements normal the RFR an when requirement identifiable separately the meet to having from entities to relief temporary a provide that assume to ,hedge the of designation upon ,entity an allows relief The .component risk a as designated is component risk RFR the expects reasonably entity the provided ,met is requirement identifiable separately the entity an require amendments the ,Furthermore .months 24 next the within identifiable separately become to interest of effect the understand to statements financial of users enable to information additional disclose to amendments The .strategy management risk and instruments financial s'entity an on reform benchmark rate but ,retrospectively applied be shall and 2021 January 1 after or on beginning periods annual for effective are .information comparative the restate to required not are entities

London the on based dollars US in denominated borrowings bank bearing-interest certain had Group The are borrowings these of rates interest the If 2020. December 31 at as") LIBOR ("Rate Offered Interbank these of modification the upon expedient practical this apply will Group the ,period future a in RFRs by replaced modification significant no that expects and met is criterion" equivalent economically "the when borrowings .changes these to amendments the applying of result a as arise will loss or gain

10 HKFRS in requirements the between inconsistency an address) 2011 (28 HKAS and 10 HKFRS to Amendments associate its and investor an between assets of contribution or sale the with dealing in) 2011 (28 HKAS in and of contribution or sale the when loss or gain a of recognition full a require amendments The .venture joint or involving transaction a For .business a constitutes venture joint or associate its and investor an between assets the in recognised is transaction the from resulting loss or gain a ,business a constitute not do that assets .venture joint or associate that in interest s'investor unrelated the of extent the to only loss or profit s'investor to amendments of date effective mandatory previous The .prospectively applied be to are amendments The effective mandatory new a and 2016 January in HKICPA the by removed was) 2011 (28 HKAS and 10 HKFRS .ventures joint and associates for accounting of review broader a of completion the after determined be will date .now adoption for available are amendments the ,However

2020 December 31

REPORTING FINANCIAL KONG HONG EFFECTIVE YET NOT BUT ISSUED 2.3 (continued (STANDARDS

The .current-non or current as liabilities classifying for requirements the clarify 1 HKAS to Amendments complying entity the to subject is liability a of settlement defer to right s'entity an if that specify amendments reporting the of end the at liability the of settlement defer to right a has entity the ,conditions specified with likelihood the by unaffected is liability a of Classification .date that at conditions those with complies it if period situations the clarify also amendments The .liability the of settlement defer to right its exercise will entity the that on beginning periods annual for effective are amendments The .liability a of settlement a considered are that amendments The .permitted is application Earlier .retrospectively applied be shall and 2023 January 1 after or .statements financial s'Group the on impact significant any have to expected not are

and plant ,property of item an of cost the from deducting from entity an prohibit 16 HKAS to Amendments condition and location the to asset that bringing while produced items selling from proceeds any equipment recognises entity an ,Instead .management by intended manner the in operating of capable be to it for necessary are amendments The .loss or profit in ,items those of cost the and ,items such any selling from proceeds the to only retrospectively applied be shall and 2022 January 1 after or on beginning periods annual for effective period earliest the of beginning the after or on use for available made equipment and plant ,property of items is application Earlier .amendments the applies first entity the which in statements financial the in presented .statements financial s'Group the on impact significant any have to expected not are amendments The .permitted

HKAS under onerous is contract a whether assessing of purpose the for that clarify 37 HKAS to Amendments relate that Costs .contract the to directly relate that costs the comprises contract the fulfilling of cost the 37, and labour direct .,g.e (contract that fulfilling of costs incremental the both include contract a to directly of allocation an .,g.e (contract that fulfilling to directly relate that costs other of allocation an and) materials as well as contract the fulfilling in used equipment and plant ,property of item an for charge depreciation the contract a to directly relate not do costs administrative and General .)costs supervision and management contract amendments The .contract the under counterparty the to chargeable explicitly are they unless excluded are and for contracts to applied be shall and 2022 January 1 after or on beginning periods annual for effective are which in period reporting annual the of beginning the at obligations its all fulfilled yet not has entity an which the applying initially of effect cumulative Any .permitted is application Earlier .amendments the applies first it without application initial of date the at equity opening the to adjustment an as recognised be shall amendments the on impact significant any have to expected not are amendments The .information comparative the restating .statements financial s'Group

2020 December 31

REPORTING FINANCIAL KONG HONG EFFECTIVE YET NOT BUT ISSUED 2.3 (continued (STANDARDS

Examples Illustrative 9, HKFRS 1, HKFRS to amendments out sets 2018-2020 HKFRSs to Improvements Annual the to applicable be to expected are that amendments the of Details 41. HKAS and 16, HKFRS accompanying :follows as are Group

• the whether assessing when includes entity an that fees the clarifies :Instruments Financial 9 HKFRS• original the of terms the from different substantially are liability financial modified or new a of terms ,lender the and borrower the between received or paid those only include fees These .liability financial applies entity An .behalf s'other the on lender or borrower the either by received or paid fees including the of beginning the after or on exchanged or modified are that liabilities financial to amendment the for effective is amendment The .amendment the applies first entity the which in period reporting annual is amendment The .permitted is application Earlier 2022. January 1 after or on beginning periods annual .statements financial s'Group the on impact significant a have to expected not
• improvements leasehold to relating lessor the from payments of illustration the removes :Leases 16 HKFRS• the regarding confusion potential removes This 16. HKFRS accompanying 13 Example Illustrative in 16. HKFRS applying when incentives lease of treatment

2020 December 31

POLICIES ACCOUNTING SIGNIFICANT OF SUMMARY 2.4

ventures joint and associates in Investments

the of 20% than less not generally of interest term long a has Group the which in entity an is associate An is influence Significant .influence significant exercise to position a in is it which over and rights voting equity or control not is but ,investee the of decisions policy operating and financial the in participate to power the .policies those over control joint

arrangement the of control joint have that parties the whereby arrangement joint of type a is venture joint A of control of sharing agreed contractually the is control Joint .venture joint the of assets net the to rights have consent unanimous the require activities relevant the about decisions when only exists which ,arrangement an .control sharing parties the of

financial of statement consolidated the in stated are ventures joint and associates in investments s'Group The .losses impairment any less ,accounting of method equity the under assets net of share s'Group the at position

.exist may that policies accounting dissimilar any line into bring to made are Adjustments

joint and associates of income comprehensive other and results acquisition-post the of share s'Group The ,income comprehensive other consolidated and loss or profit of statement consolidated the in included is ventures or associate the of equity the in directly recognised change a been has there when ,addition In .respectively of statement consolidated the in ,applicable when ,changes any of share its recognises Group the ,venture joint associates its and Group the between transactions from resulting losses and gains Unrealised .equity in changes ,ventures joint or associates the in investments s'Group the of extent the to eliminated are ventures joint or arising Goodwill .transferred assets the of impairment an of evidence provide losses unrealised where except associates in investments s'Group the of part as included is ventures joint or associates of acquisition the from .ventures joint or

in for accounted is it ,sale for held as classified is venture joint a or associate an in investment an When .Operations Discontinued and Sale for Held Assets current-Non 5 HKFRS with accordance

2020 December 31

(continued (POLICIES ACCOUNTING SIGNIFICANT OF SUMMARY 2.4

measurement value Fair

value Fair .period reporting each of end the at value fair at instruments financial certain its measures Group The between transaction orderly an in liability a transfer to paid or asset an sell to received be would that price the is that presumption the on based is measurement value fair The .date measurement the at participants market asset the for market principal the in either place takes liability the transfer or asset the sell to transaction the .liability or asset the for market advantageous most the in ,market principal a of absence the in or ,liability or a or asset an of value fair The .Group the by accessible be must market advantageous most the or principal The ,liability or asset the pricing when use would participants market that assumptions the using measured is liability .interest best economic their in act participants market that assuming

generate to ability s'participant market a account into takes asset financial-non a of measurement value fair A participant market another to it selling by or use best and highest its in asset the using by benefits economic .use best and highest its in asset the use would that

data sufficient which for and circumstances the in appropriate are that techniques valuation uses Group The of use the minimising and inputs observable relevant of use the maximising ,value fair measure to available are .inputs unobservable

categorised are statements financial the in disclosed or measured is value fair which for liabilities and assets All the to significant is that input level lowest the on based ,follows as described ,hierarchy value fair the within :whole a as measurement value fair

• liabilities or assets identical for markets active in) unadjusted (prices quoted on based 1 Level
• fair the to significant is that input level lowest the which for techniques valuation on based 2 Level indirectly or directly either ,observable is measurement value
• fair the to significant is that input level lowest the which for techniques valuation on based 3 Level unobservable is measurement value

determines Group the ,basis recurring a on statements financial the in recognised are that liabilities and assets For the on based (categorisation reassessing by hierarchy the in levels between occurred have transfers whether reporting each of end the at) whole a as measurement value fair the to significant is that input level lowest .period

2020 December 31

(continued (POLICIES ACCOUNTING SIGNIFICANT OF SUMMARY 2.4

assets financial-non of Impairment

other (required is asset an for testing impairment annual when or ,exists impairment of indication an Where disposal a/assets current-non and properties investment ,assets financial ,assets tax deferred ,inventories than amount recoverable s'asset An .estimated is amount recoverable s'asset the ,)sale for held as classified group is and ,disposal of costs less value fair its and use in value s'unit generating-cash or s'asset the of higher the is independent largely are that inflows cash generate not does asset the unless ,asset individual an for determined the for determined is amount recoverable the case which in ,assets of groups or assets other from those of .belongs asset the which to unit generating-cash

In .amount recoverable its exceeds asset an of amount carrying the if only recognised is loss impairment An tax-pre a using value present their to discounted are flows cash future estimated the ,use in value assessing the to specific risks the and money of value time the of assessments market current reflects that rate discount those in arises it which in period the in loss or profit of statement the to charged is loss impairment An .asset .asset impaired the of function the with consistent categories expense

previously that indication an is there whether to as period reporting each of end the at made is assessment An the ,exists indication an such If .decreased have may or exist longer no may losses impairment recognised is goodwill than other asset an of loss impairment recognised previously A .estimated is amount recoverable that of amount recoverable the determine to used estimates the in change a been has there if only reversed any of net (determined been have would that amount carrying the than higher amount an to not but ,asset of reversal A .years prior in asset the for recognised been loss impairment no had) amortisation/depreciation .arises it which in period the in loss or profit of statement the to credited is loss impairment an such

2020 December 31

(continued (POLICIES ACCOUNTING SIGNIFICANT OF SUMMARY 2.4

parties Related

:if Group the to related be to considered is party A

• :person that and family s'person that of member close a or person a is party the) a(
• ;Group the over control joint or control has) i(
• or; Group the over influence significant has) ii(
• ;Group the of parent a of or Group the of personnel management key the of member a is) iii(

or

• :applies conditions following the of any where entity an is party the) b(
• ;group same the of members are Group the and entity the) i(
• fellow or subsidiary ,parent a of or (entity other the of venture joint or associate an is entity one) ii( ;(entity other the of subsidiary
• ;party third same the of ventures joint are Group the and entity the) iii(
• ;entity third the of associate an is entity other the and entity third a of venture joint a is entity one) iv(
• or Group the either of employees of benefit the for plan benefit employment-post a is entity the) v( ;Group the to related entity an
• ;(a (in identified person a by controlled jointly or controlled is entity the) vi(
• key the of member a is or entity the over influence significant has) i)(a (in identified person a) vii( and); entity the of parent a of or (entity the of personnel management
• personnel management key provides ,part a is it which of group a of member any or ,entity the) viii( .Group the of parent the to or Group the to services

2020 December 31

(continued (POLICIES ACCOUNTING SIGNIFICANT OF SUMMARY 2.4

depreciation and equipment and plant ,Property

at stated are ,progress in construction and construction under vessels than other ,equipment and plant ,Property equipment and plant ,property of item an When .losses impairment any and depreciation accumulated less cost depreciated not is it ,sale for held as classified group disposal a of part is it when or sale for held as classified is .Operations Discontinued and Sale for Held Assets current-Non 5 HKFRS with accordance in for accounted is and attributable directly any and price purchase its comprises equipment and plant ,property of item an of cost The .use intended its for location and condition working its to asset the bringing of costs

repairs as such ,operation into put been have equipment and plant ,property of items after incurred Expenditure In .incurred is it which in period the in loss or profit of statement the to charged normally is ,maintenance and in capitalised is inspection major a for expenditure the ,satisfied are criteria recognition the where situations equipment and plant ,property of parts significant Where .replacement a as asset the of amount carrying the useful specific with assets individual as parts such recognises Group the ,intervals at replaced be to required are .accordingly them depreciates and lives

and plant ,property of item each of cost the off write to basis line-straight the on calculated is Depreciation purpose this for used rates annual principal The .life useful estimated its over value residual its to equipment :follows as are

Vessels	3.4% 3.6% to
Leasehold improvements	the Over of shorter lease the terms and years 5
Buildings	1.8% 5.0% to
Containers	3.3% 5.0% to
Machinery motor , vehicles and office equipment	4.8% 22.3% to

is item that of cost the ,lives useful different have equipment and plant ,property of item an of parts Where useful ,values Residual .separately depreciated is part each and parts the among basis reasonable a on allocated .end year financial each at least at ,appropriate if adjusted and ,reviewed are method depreciation the and lives

upon derecognised is recognised initially part significant any including equipment and plant ,property of item An disposal on loss or gain Any .disposal or use its from expected are benefits economic future no when or disposal difference the is derecognised is asset the year the in loss or profit of statement the in recognised retirement or .asset relevant the of amount carrying the and proceeds sales net the between

are and ,losses impairment any less cost at stated are progress in construction and construction under Vessels related on costs borrowing capitalised and construction of costs direct the comprises Cost .depreciated not are progress in construction and construction under Vessels .construction of period the during funds borrowed .use for ready and completed when equipment and plant ,property of category appropriate the to reclassified

2020 December 31

(continued (POLICIES ACCOUNTING SIGNIFICANT OF SUMMARY 2.4

properties Investment

use-of-right a as held property leasehold the including (buildings and land in interests are properties Investment or/and income rental earn to held) property investment an of definition the meet otherwise would which asset administrative for or services or goods of supply or production the in use for than rather ,appreciation capital for including ,cost at initially measured are properties Such .business of course ordinary the in sale for or; purposes accumulated less cost at stated are properties investment ,recognition initial to Subsequent .costs transaction .losses impairment any and depreciation

.properties investment of item each of cost the off write to basis line-straight a on calculated is Depreciation 2.0%. to 1.0% from range purpose this for used rates annual principal The

of statement the in recognised are property investment an of disposal or retirement the on losses or gains Any .disposal or retirement the of year the in loss or profit

(goodwill than other (assets Intangible

finite with assets Intangible .cost at recognition initial on measured are separately acquired assets Intangible is there whenever impairment for assessed and life economic useful the over amortised subsequently are lives method amortisation the and period amortisation The .impaired be may asset intangible the that indication an .end year financial each at least at reviewed are life useful finite a with asset intangible an for

software Computer

on based line-straight the on amortised is and losses impairment any less cost at stated is software Computer .years 8 to 4 of life useful estimated its

2020 December 31

(continued (POLICIES ACCOUNTING SIGNIFICANT OF SUMMARY 2.4

Leases

a ,contains or ,is contract A .lease a ,contains or ,is contract a whether inception contract at assesses Group The exchange in time of period a for asset identified an of use the control to right the conveys contract the if lease .consideration for

lessee a as Group

leases term-short for except ,leases all for approach measurement and recognition single a applies Group The use-of-right and payments lease make to liabilities lease recognises Group The .assets value-low of leases and .assets underlying the use to right the representing assets

assets use-of-Right) a(

underlying the date the is that (lease the of date commencement the at recognised are assets use-of-Right and depreciation accumulated any less ,cost at measured are assets use-of-Right .)use for available is asset use-of-right of cost The .liabilities lease of remeasurement any for adjusted and ,losses impairment any payments lease and ,incurred costs direct initial ,recognised liabilities lease of amount the includes assets are assets use-of-Right .received incentives lease any less date commencement the before or at made of lives useful estimated the and terms lease the of shorter the over basis line-straight a on depreciated :follows as assets the

Prepaid land lease payments	years 50
Buildings	to 2 years 12
Machinery motor , vehicles and office equipment	3 years 6 to

reflects cost the or term lease the of end the at Group the to transfers asset leased the of ownership If .asset the of life useful estimated the using calculated is depreciation ,option purchase a of exercise the

2020 December 31

(continued (POLICIES ACCOUNTING SIGNIFICANT OF SUMMARY 2.4

(continued (Leases

(continued (lessee a as Group

liabilities Lease) b(

lease of value present the at lease the of date commencement the at recognised are liabilities Lease an on depend that payments lease variable ,receivable incentives lease any less) payments fixed substancein including (payments fixed include payments lease The .term lease the over made be to payments payments lease The .guarantees value residual under paid be to expected amounts and ,rate a or index Group the by exercised be to certain reasonably option purchase a of price exercise the include also the exercising Group the reflects term lease the if ,lease a of termination for penalties of payments and are rate a or index an on depend not do that payments lease variable The .lease the terminate to option .occurs payment the triggers that condition or event the which in period the in expense an as recognised

the at rate borrowing incremental its uses Group the ,payments lease of value present the calculating In After .determinable readily not is lease the in implicit rate interest the because date commencement lease and interest of accretion the reflect to increased is liabilities lease of amount the ,date commencement the if remeasured is liabilities lease of amount carrying the ,addition In .made payments lease the for reduced future to change a .,g.e (payments lease in change a ,term lease the in change a ,modification a is there to option an of assessment in change a or) rate or index an in change a from resulting payments lease .asset underlying the purchase

assets value-low of leases and leases term-Short) c(

and machinery of leases term-short its to exemption recognition lease term-short the applies Group The commencement the from less or months 12 of term lease a have that leases those is that (equipment .value low of be to considered are that computers laptop and equipment office of leases to assets valuelow of leases for exemption recognition the applies also It .)option purchase a contain not do and date

a on expense an as recognised are assets value-low of leases and leases term-short on payments Lease .term lease the over basis line-straight

2020 December 31

(continued (POLICIES ACCOUNTING SIGNIFICANT OF SUMMARY 2.4

(continued (Leases

lessor a as Group

of each) modification lease a is there when or (inception lease at classifies it ,lessor a as acts Group the When .lease finance a or lease operating an either as leases its

an of ownership to incidental rewards and risks the all substantially transfer not does Group the which in Leases Group the ,components lease-non and lease contains contract a When .leases operating as classified are asset Rental .basis price selling alone-stand relative a on component each to contract the in consideration the allocates statement the in revenue in included is and terms lease the over basis line-straight a on for accounted is income operating an arranging and negotiating in incurred costs direct Initial .nature operating its to due loss or profit of basis same the on term lease the over recognised and asset leased the of amount carrying the to added are lease .earned are they which in period the in revenue as recognised are rents Contingent .income rental as

the to asset underlying an of ownership to incidental rewards and risks the all substantially transfer that Leases capitalised is asset leased the of cost the ,date commencement the At .leases finance as for accounted are lessee presented and ,)costs direct initial the including (payments related and payments lease the of value present the at investment net the on income finance The .lease the in investment net the to equal amount an at receivable a as return of rate periodic constant a provide to as so loss or profit of statement the in recognised is lease the in .terms lease the over

with lease operating or lease finance a as classified is sublease a ,lessor intermediate an is Group the When which to lease term-short a is lease head the If .lease head the from arising asset use-of-right the to reference operating an as sublease the classifies Group the ,exemption recognition sheet balance-on the applies Group the .lease

2020 December 31

(continued (POLICIES ACCOUNTING SIGNIFICANT OF SUMMARY 2.4

assets financial other and Investments

measurement and recognition Initial

through value fair ,cost amortised at measured subsequently as ,recognition initial at ,classified are assets Financial .loss or profit through value fair and ,income comprehensive other

flow cash contractual s'asset financial the on depends recognition initial at assets financial of classification The that receivables trade of exception the With .them managing for model business s'Group the and characteristics expedient practical the applied has Group the which for or component financing significant a contain not do asset financial a measures initially Group the ,component financing significant a of effect the adjusting not of .costs transaction ,loss or profit through value fair at not asset financial a of case the in plus ,value fair its at the applied has Group the which for or component financing significant a contain not do that receivables Trade the with accordance in 15 HKFRS under determined price transaction the at measured are expedient practical .below" recognition Revenue "for out set policies

other through value fair or cost amortised at measured and classified be to asset financial a for order In interest and principal of payments solely are that flows cash to rise give to needs it ,income comprehensive classified are SPPI not are that flows cash with assets Financial .outstanding amount principal the on") SPPI(" .model business the of irrespective ,loss or profit through value fair at measured and

order in assets financial its manages it how to refers assets financial managing for model business s'Group The contractual collecting from result will flows cash whether determines model business The .flows cash generate to are cost amortised at measured and classified assets Financial .both or ,assets financial the selling ,flows cash cash contractual collect to order in assets financial hold to objective the with model business a within held are income comprehensive other through value fair at measured and classified assets financial while ,flows .selling and flows cash contractual collect to holding both of objective the with model business a within held at measured and classified are models business aforementioned the within held not are which assets Financial .loss or profit through value fair

the that date the ,is that ,date trade the on recognised are assets financial of sales and purchases way regular All financial of sales or purchases are sales or purchases way Regular .asset the sell or purchase to commits Group the in convention or regulation by established generally period the within assets of delivery require that assets .marketplace

measurement Subsequent

:follows as classification their on depends assets financial of measurement subsequent The

2020 December 31

(continued (POLICIES ACCOUNTING SIGNIFICANT OF SUMMARY 2.4

(continued (assets financial other and Investments

(instruments debt (cost amortised at assets Financial

subject are and method interest effective the using measured subsequently are cost amortised at assets Financial or modified ,derecognised is asset the when loss or profit in recognised are losses and Gains .impairment to .impaired

loss or profit through value fair at assets Financial

value fair at position financial of statement the in carried are loss or profit through value fair at assets Financial .loss or profit of statement the in recognised value fair in changes net with

elected irrevocably not had Group the which investments equity and instruments derivative includes category This as classified investments equity on Dividends .income comprehensive other through value fair at classify to profit of statement the in income other as recognised also are loss or profit through value fair at assets financial associated benefits economic the that probable is it ,established been has payment of right the when loss or .reliably measured be can dividend the of amount the and Group the to flow will dividend the with

the from separated is ,host financial-non or liability financial a with ,contract hybrid a in embedded derivative A related closely not are risks and characteristics economic the if derivative separate a as for accounted and host of definition the meet would derivative embedded the as terms same the with instrument separate a; host the to derivatives Embedded .loss or profit through value fair at measured not is contract hybrid the and; derivative a .loss or profit of statement the in recognised value fair in changes with value fair at measured are

the modifies significantly that contract the of terms the in change a either is there if occurs only Reassessment through value fair the of out asset financial a of reclassification a or required be otherwise would that flows cash .category loss or profit

.separately for accounted not is host asset financial a containing contract hybrid a within embedded derivative A a as entirety its in classified be to required is derivative embedded the with together host asset financial The .loss or profit through value fair at asset financial

2020 December 31

(continued (POLICIES ACCOUNTING SIGNIFICANT OF SUMMARY 2.4

assets financial of Derecognition

(assets financial similar of group a of part or asset financial a of part a ,applicable where ,or (asset financial A :when) position financial of statement consolidated s'Group the from removed .,e.i (derecognised primarily is

• or; expired have asset the from flows cash receive to rights the•
• obligation an assumed has or asset the from flows cash receive to rights its transferred has Group the• "through-pass "a under party third a to delay material without full in flows cash received the pay to ,asset the of rewards and risks the all substantially transferred has Group the) a (either and; arrangement ,asset the of rewards and risks the all substantially retained nor transferred neither has Group the) b (or .asset the of control transferred has but

of ownership of rewards and risk the retained has it extent what to and if evaluates it ,arrangement throughpass a into entered has or asset an from flows cash receive to rights its transferred has Group the When nor asset the of rewards and risks the all substantially retained nor transferred neither has it When .asset the the of extent the to asset transferred the recognise to continues Group the ,asset the of control transferred transferred The .liability associated an recognises also Group the ,case that In .involvement continuing s'Group Group the that obligations and rights the reflects that basis a on measured are liability associated the and asset .retained has

lower the at measured is asset transferred the over guarantee a of form the takes that involvement Continuing could Group the that consideration of amount maximum the and asset the of amount carrying original the of .repay to required be

2020 December 31

(continued (POLICIES ACCOUNTING SIGNIFICANT OF SUMMARY 2.4

assets financial of Impairment

fair at held not instruments debt all for") ECLs ("losses credit expected for allowance an recognises Group The contract the with accordance in due flows cash contractual the between difference the on based are ECLs .value effective original the of approximation an at discounted ,receive to expects Group the that flows cash the all and credit other or held collateral of sale the from flows cash include will flows cash expected The .rate interest .terms contractual the to integral are that enhancements

approach General

in increase significant a been not has there which for exposures credit For .stages two in recognised are ECLs are that events default from result that losses credit for provided are ECLs ,recognition initial since risk credit a been has there which for exposures credit those For .)ECL month12- (months 12 next the within possible expected losses credit for required is allowance loss a ,recognition initial since risk credit in increase significant .(ECL lifetime a (default the of timing the of irrespective ,exposure the of life remaining the over

increased has instrument financial a on risk credit the whether assesses Group the ,date reporting each At default a of risk the compares Group the ,assessment the making When .recognition initial since significantly financial the on occurring default a of risk the with date reporting the at as instrument financial the on occurring is that information supportable and reasonable considers and recognition initial of date the at as instrument .information looking-forward and historical including ,effort or cost undue without available

in ,However .due past days 90 are payments contractual when default in asset financial a considers Group The information external or internal when default in be to asset financial a consider also may Group the ,cases certain into taking before full in amounts contractual outstanding the receive to unlikely is Group the that indicates reasonable no is there when off written is asset financial A .Group the by held enhancements credit any account .flows cash contractual the recovering of expectation

:follows as elements key with approach") PD ("default of probability the on based is ECLs of calculation The

• ;horizon time given a over default of likelihood the of estimate an :PD•
• given a at occurs default a where case the in arising loss the of estimate an :")LGD ("Default Given Loss• and; time
• .date default future a at exposure the of estimate an :")EAD ("Default at Exposure•

including ,losses credit expected of determination the into incorporated been has information looking-Forward .growth GDP as such ,information macroeconomic of use the

2020 December 31

(continued (POLICIES ACCOUNTING SIGNIFICANT OF SUMMARY 2.4

(continued (assets financial of Impairment

ECLs lifetime to equal

(continued (approach General

all ,Therefore .approach general the adopt to policy accounting its as chooses Group the ,receivables lease For classified are they and approach general the under impairment to subject are cost amortised at assets financial simplified the apply which receivables trade for except ECLs of measurement for stages following the within .below detailed as approach

Stage – 1	Financial instruments which for risk credit not has increased significantly since initial recognition and which for loss the allowance is measured an at amount to equal month12- ECLs
Stage – 2	Financial instruments which for credit has risk increased significantly since initial recognition but are that credit not impaired- financial assets and which for loss the allowance is measured an at amount to equal lifetime ECLs
Stage – 3	Financial assets that credit are impaired- the at reporting date that but ( not are purchased or originated credit impaired- and) which for loss the allowance is measured an at amount

on measured are ECLs 3, Stage in ,Meanwhile .basis collective a on measured are 2 Stage and 1 Stage in ECLs .basis individual an

approach Simplified

the applies Group the when or component financing significant a contain not do that receivables trade For the applies Group the ,component financing significant a of effect the adjusting not of expedient practical credit in changes track not does Group the ,approach simplified the Under .ECLs calculating in approach simplified receivables trade For .date reporting each at ECLs lifetime on based allowance loss a recognises instead but ,risk .basis individual an on measured are ECLs ,default in or difficulties financial in are that customers to related ,experience loss credit historical its on based is that matrix provision a established has Group the ,addition In ECLs measure to ,environment economic the and debtors the to specific factors looking-forward for adjusted :follows as basis collective a on

Ageing based the on invoice date	Provision rates
Within year 1	3%
1 years 2 to	10%
2 years 3 to	25%

2020 December 31

(continued (POLICIES ACCOUNTING SIGNIFICANT OF SUMMARY 2.4

liabilities Financial

measurement and recognition Initial

loss or profit through value fair at liabilities financial as ,recognition initial at ,classified are liabilities Financial .borrowings and loans and

,payables and borrowings and loans of case the in ,and value fair at initially recognised are liabilities financial All .costs transaction attributable directly of net

,accruals and payables other in included liabilities financial ,payables trade include liabilities financial s'Group The .payables term long other and liabilities lease ,bonds corporate ,borrowings other and bank

measurement Subsequent

:follows as classification their on depends liabilities financial of measurement subsequent The

loss or profit through value fair at liabilities Financial

financial and trading for held liabilities financial include loss or profit through value fair at liabilities Financial .loss or profit through value fair at as recognition initial upon designated liabilities

the in repurchasing of purpose the for incurred are they if trading for held as classified are liabilities Financial not are that Group the by into entered instruments financial derivative includes also category This .term near derivatives embedded Separated 9. HKFRS by defined as relationships hedge in instruments hedging as designated losses or Gains .instruments hedging effective as designated are they unless trading for held as classified also are loss or gain value fair net The .loss or profit of statement the in recognised are trading for held liabilities on .liabilities financial these on charged interest any include not does loss or profit of statement the in recognised

the at designated are loss or profit through value fair at as recognition initial upon designated liabilities Financial designated liabilities on losses or Gains .satisfied are 9 HKFRS in criteria the if only and ,recognition of date initial losses or gains the for except ,loss or profit of statement the in recognised are loss or profit through value fair at subsequent no with income comprehensive other in presented are which risk credit own s'Group the from arising of statement the in recognized loss or gain value fair net The .loss or profit of statement the to reclassification .liabilities financial these on charged interest any include not does loss or profit

2020 December 31

(continued (POLICIES ACCOUNTING SIGNIFICANT OF SUMMARY 2.4

(continued (liabilities Financial

(borrowings and loans (cost amortised at liabilities Financial

,cost amortised at measured subsequently are borrowings and loans bearing-interest ,recognition initial After case which in ,immaterial be would discounting of effect the unless method rate interest effective the using are liabilities the when loss or profit of statement the in recognised are losses and Gains .cost at stated are they .process amortisation rate interest effective the through as well as derecognised

that costs or fees and acquisition on premium or discount any account into taking by calculated is cost Amortised finance in included is amortisation rate interest effective The .rate interest effective the of part integral an are .loss or profit of statement the in costs

debt Perpetual

:obligation contractual a includes it if liability a as classified be will debt perpetual A

• or; entity another to asset financial another or cash deliver to•
• potentially are that conditions under entity another with liabilities financial or assets financial exchange to• .issuer the to unfavourable

.instrument equity an as classified be will it ,Otherwise

2020 December 31

(continued (POLICIES ACCOUNTING SIGNIFICANT OF SUMMARY 2.4

liabilities financial of Derecognition

.expires or ,cancelled or discharged is liability the under obligation the when derecognised is liability financial A

,terms different substantially on lender same the from another by replaced is liability financial existing an When as treated is modification or exchange an such ,modified substantially are liability existing an of terms the or the between difference the and ,liability new a of recognition a and liability original the of derecognition a .loss or profit of statement the in recognised is amounts carrying respective

instruments financial of Offsetting

financial of statement the in reported is amount net the and offset are liabilities financial and assets Financial intention an is there and amounts recognised the offset to right legal enforceable currently a is there if position .simultaneously liabilities the settle and assets the realise to or ,basis net a on settle to

accounting hedge and instruments financial Derivative

measurement subsequent and recognition Initial

Such .risk rate interest its hedge to ,swaps rate interest as such ,instruments financial derivative uses Group The is contract derivative a which on date the on value fair at recognised initially are instruments financial derivative value fair the when assets as carried are Derivatives .value fair at remeasured subsequently are and into entered .negative is value fair the when liabilities as and positive is

profit of statement the to directly taken are derivatives of value fair in changes from arising losses or gains Any income comprehensive other in recognised is which ,hedges flow cash of portion effective the for except ,loss or .loss or profit affects item hedged the when loss or profit to reclassified later and

:as classified are hedges ,accounting hedge of purpose the For

• liability or asset recognised a of value fair the in changes to exposure the hedging when hedges value fair• or; commitment firm unrecognised an or
• a to attributable either is that flows cash in variability to exposure the hedging when hedges flow cash• or ,transaction forecast probable highly a or liability or asset recognised a with associated risk particular or; commitment firm unrecognised an in risk currency foreign a
• .operation foreign a in investment net a of hedges•

relationship hedge the documents and designates formally Group the ,relationship hedge a of inception the At for strategy its and objective management risk the ,accounting hedge apply to wishes Group the which to .hedge the undertaking

2020 December 31

(continued (POLICIES ACCOUNTING SIGNIFICANT OF SUMMARY 2.4

(continued (accounting hedge and instruments financial Derivative

(continued (measurement subsequent and recognition Initial

risk the of nature the ,item hedged the ,instrument hedging the of identification includes documentation The effectiveness hedge the meets relationship hedging the whether assess will Group the how and hedged being .(determined is ratio hedge the how and ineffectiveness hedge of sources of analysis the including (requirements :requirements effectiveness following the of all meets it if accounting hedge for qualifies relationship hedging A

• .instrument hedging the and item hedged the between" relationship economic an "is There•
• economic that from result that" changes value the dominate "not does risk credit of effect The• .relationship
• hedged the of quantity the from resulting that as same the is relationship hedging the of ratio hedge The• actually Group the that instrument hedging the of quantity the and hedges actually Group the that item .item hedged of quantity that hedge to uses

:follows as for accounted are accounting hedge for criteria qualifying the meet which Hedges

hedges flow Cash

comprehensive other in directly recognised is instrument hedging the on loss or gain the of portion effective The statement the in immediately recognised is portion ineffective any while ,reserve hedge flow cash the in income the on loss or gain cumulative the of lower the to adjusted is reserve hedge flow cash The .loss or profit of .item hedged the of value fair in change cumulative the and instrument hedging

the of nature the on depending ,for accounted are income comprehensive other in accumulated amounts The financial-non a of recognition the in results subsequently transaction hedged the If .transaction hedged underlying in included and equity of component separate the from removed is equity in accumulated amount the ,item adjustment reclassification a not is This .liability or asset hedged the of amount carrying other or cost initial the hedged the where applies also This .period the for income comprehensive other in recognised be not will and commitment firm a becomes subsequently liability financial-non or asset financial-non a of transaction forecast .applied is accounting hedge value fair which to

the to reclassified is income comprehensive other in accumulated amount the ,hedges flow cash other any For hedged the which during periods or period same the in adjustment reclassification a as loss or profit of statement .loss or profit of statement the affect flows cash

comprehensive other in accumulated been has that amount the ,discontinued is accounting hedge flow cash If still are flows cash future hedged the if income comprehensive other accumulated in remain must income a as loss or profit of statement the to reclassified immediately be will amount the ,Otherwise .occur to expected remaining amount any ,occurs flow cash hedged the once ,discontinuation the After .adjustment reclassification underlying the of nature the on depending for accounted is income comprehensive other accumulated in .above described as transaction

2020 December 31

(continued (POLICIES ACCOUNTING SIGNIFICANT OF SUMMARY 2.4

(continued (accounting hedge and instruments financial Derivative

classification current-non versus Current

circumstances and facts the of assessment an on based portions current-non and current into separated or currentnon or current as classified are instruments hedging effective as designated not are that instruments Derivative .(flows cash contracted underlying the .,e.i(

• hedge apply not does and (hedge economic an as derivative a hold to expects Group the Where• classified is derivative the ,period reporting the of end the after months 12 beyond period a for) accounting of classification the with consistently) portions current-non and current into separated or (current-non as .item underlying the
• the with consistently classified are contract host the to related closely not are that derivatives Embedded• .contract host the of flows cash
• classified are ,instruments hedging effective are and ,as designated are that instruments Derivative• separated are instruments derivative The .item hedged underlying the of classification the with consistently .made be can allocation reliable a if only portions current-non and portions current into

shares Treasury

are) shares treasury (Group the or Company the by held and reacquired are which instruments equity Own the on loss or profit of statement the in recognised is loss or gain No .cost at equity in directly recognised .instruments equity own s'Group the of cancellation or issue ,sale ,purchase

Inventories

weighted the on determined is Cost .value realisable net and cost of lower the at stated are Inventories incurred be to costs estimated any less prices selling estimated on based is value realisable Net .basis average .disposal and completion to

equivalents cash and Cash

hand on cash comprise equivalents cash and cash ,flows cash of statement consolidated the of purpose the For amounts known into convertible readily are that investments liquid highly term short and ,deposits demand and within generally of maturity short a have and ,value in changes of risk insignificant an to subject are ,cash of part integral an form and demand on repayable are which overdrafts bank less ,acquired when months three .management cash s'Group the of

cash comprise equivalents cash and cash ,position financial of statement consolidated the of purpose the For restricted not are which ,cash to nature in similar assets and ,deposits term including ,banks at and hand on .use to as

2020 December 31

(continued (POLICIES ACCOUNTING SIGNIFICANT OF SUMMARY 2.4

tax Income

is loss or profit outside recognised items to relating tax Income .tax deferred and current comprises tax Income .equity in directly or income comprehensive other in either ,loss or profit outside recognised

the to paid or from recovered be to expected amount the at measured are liabilities and assets tax Current the by enacted substantively or enacted been have that) laws tax and (rates tax on based ,authorities taxation countries the in prevailing practices and interpretations consideration into taking ,period reporting the of end .operates Group the which in

reporting the of end the at differences temporary all on ,method liability the using ,provided is tax Deferred .purposes reporting financial for amounts carrying their and liabilities and assets of bases tax the between period

:except ,differences temporary taxable all for recognised are liabilities tax Deferred

• a in liability or asset an or goodwill of recognition initial the from arises liability tax deferred the when• the neither affects ,transaction the of time the at ,and combination business a not is that transaction and; loss or profit taxable nor profit accounting
• and associates ,subsidiaries in investments with associated differences temporary taxable of respect in• is it and controlled be can differences temporary the of reversal the of timing the when ,ventures joint .future foreseeable the in reverse not will differences temporary the that probable

tax unused of carryforward the and ,differences temporary deductible all for recognised are assets tax Deferred taxable that probable is it that extent the to recognised are assets tax Deferred .losses tax unused any and credits tax unused of carryforward the and ,differences temporary deductible the which against available be will profit :except ,utilised be can losses tax unused and credits

• initial the from arises differences temporary deductible the to relating asset tax deferred the when• of time the at ,and combination business a not is that transaction a in liability or asset an of recognition and; loss or profit taxable nor profit accounting the neither affects ,transaction the
• and associates ,subsidiaries in investments with associated differences temporary deductible of respect in• temporary the that probable is it that extent the to recognised only are assets tax deferred ,ventures joint the which against available be will profit taxable and future foreseeable the in reverse will differences .utilised be can differences temporary

to reduced and period reporting each of end the at reviewed is assets tax deferred of amount carrying The the of part or all allow to available be will profit taxable sufficient that probable longer no is it that extent the reporting each of end the at reassessed are assets tax deferred Unrecognised .utilised be to asset tax deferred available be will profit taxable sufficient that probable become has it that extent the to recognised are and period .recovered be to asset tax deferred the of part or all allow to

2020 December 31

(continued (POLICIES ACCOUNTING SIGNIFICANT OF SUMMARY 2.4

(continued (tax Income

the when period the to apply to expected are that rates tax the at measured are liabilities and assets tax Deferred substantively or enacted been have that) laws tax and (rates tax on based ,settled is liability the or realised is asset .period reporting the of end the by enacted

right enforceable legally a has Group the if only and if offset are liabilities tax deferred and assets tax Deferred liabilities tax deferred and assets tax deferred the and liabilities tax current and assets tax current off set to taxable different or entity taxable same the either on authority taxation same the by levied taxes income to relate and assets the realise to or ,basis net a on assets and liabilities tax current settle to either intend which entities liabilities tax deferred of amounts significant which in period future each in ,simultaneously liabilities the settle .recovered or settled be to expected are assets or

grants Government

will grant the that assurance reasonable is there where value fair their at recognised are grants Government ,item expense an to relates grant the When .with complied be will conditions attaching all and received be to intended is it which for ,costs the that periods the over basis systematic a on income as recognised is it .expensed are ,compensate

recognition Revenue

customers with contracts from Revenue

the to transferred is services or goods of control when recognised is customers with contracts from Revenue exchange in entitled be to expects Group the which to consideration the reflects that amount an at customers .services or goods those for

to estimated is consideration of amount the ,amount variable a includes contract a in consideration the When variable The .customer the to services or goods the transferring for exchange in entitled be will Group the which significant a that probable highly is it until constrained and inception contract at estimated is consideration uncertainty associated the when occur not will recognised revenue cumulative of amount the in reversal revenue .resolved subsequently is consideration variable the with

of benefit significant a with customer the provides which component financing a contains contract the When the at measured is revenue ,year one than more for customer the to services or goods of transfer the financing separate a in reflected be would that rate discount the using discounted ,receivable amount the of value present contains contract the When .inception contract at customer the and Group the between transaction financing ,year one than more for benefit financial significant a with Group the provides which component financing a under liability contract the on accreted expense interest the includes contract the under recognised revenue the and customer the by payment the between period the where contract a For .method interest effective the effects the for adjusted not is price transaction the ,less or year one is services or goods promised the of transfer 15. HKFRS in expedient practical the using ,component financing significant a of

2020 December 31

(continued (POLICIES ACCOUNTING SIGNIFICANT OF SUMMARY 2.4

(continued (recognition Revenue

(continued (customers with contracts from Revenue

containers of Sale) a(

is arrangement hold-and-bill A .basis hold-and-bill a on recognised is containers of sale the from Revenue possessions physical retains Group the but product a for customer a bills Group the which under contract a assesses Group The .future the in time in point a at customer the to transferred is it until product the of :met are criteria following the of all when

• ;customer the to contract the in specifications uponagreed the meets container the that demonstrates Group the ,manufacturing of completion Upon•
• ;arrangement hold-and-bill the requested has customer The•
• ;customer the to belonging as separately identified been has container The•
• and; customer the to transfer physical for ready is container The•
• .customer another to it direct to or container the use to ability the have cannot Group The•

recognised is revenue and satisfied is obligation performance the ,met are above criteria the of all When credit normal the and required normally is advance in payment ,arrangement such Under .accordingly .obligation performance the of satisfaction upon days 60 to 45 is consideration residual the for term

parts spare related shipping of Sale) b(

the to transferred is asset the of control when time in point the at satisfied is obligation performance The within due generally is Payment .accordingly recognised is revenue and ,delivery on generally ,customer .delivery from days 60 to 45

services of Rendering) c(

obligation performance The .services brokerage insurance and services related shipping provides Group The upon days 45 to 30 within due generally is Payment .rendered are services as time over satisfied is .customer the by acceptance and service of completion

2020 December 31

(continued (POLICIES ACCOUNTING SIGNIFICANT OF SUMMARY 2.4

(continued (recognition Revenue

sources other from Revenue

payments lease Variable .terms lease the over basis proportion time a on recognised is income lease Operating are they which in period accounting the in income as recognised are rate a or index an on depend not do that .incurred

rate the applying by method interest effective the using basis accrual an on recognised is income lease Finance a of investment net the of life expected the through receipts cash future estimated the discounts exactly that the of investment net the of amount carrying net the to ,appropriate when ,period shorter a or lease finance .lease finance

income Other

that rate the applying by method interest effective the using basis accrual an on recognised is income Interest shorter a or instrument financial the of life expected the over receipts cash future estimated the discounts exactly .asset financial the of amount carrying net the to ,appropriate when ,period

is it ,established been has payment receive to right' shareholders the when recognised is income Dividend the of amount the and Group the to flow will dividend the with associated benefits economic the that probable .reliably measured be can dividend

liabilities Contract

a from) earlier is whichever (due is payment a or received is payment a when recognised is liability contract A revenue as recognised are liabilities Contract .services or goods related the transfers Group the before customer the to services or goods related the of control transfers .,e.i (contract the under performs Group the when .(customer

payments based-Share

eligible to rewards and incentives providing of purpose the for scheme option share a operates Company The the of) directors including (Employees .operations s'Group the of success the to contribute who participants as services render employees whereby ,payments based-share of form the in remuneration receive Group .("transactions settled-equity ("instruments equity for consideration

at value fair the to reference by measured is grants for employees with transactions settled-equity of cost The Scholes-Black the using valuer external an by determined is value fair The .granted are they which at date the .statements financial the to 38 note in given are which of details further ,model

2020 December 31

(continued (POLICIES ACCOUNTING SIGNIFICANT OF SUMMARY 2.4

(continued (payments based-Share

corresponding a with together ,expense benefit employee in recognised is transactions settled-equity of cost The cumulative The .fulfilled are conditions service or/and performance the which in period the over ,equity in increase date vesting the until period reporting each of end the at transactions settled-equity for recognised expense of number the of estimate best s'Group the and expired has period vesting the which to extent the reflects period a for loss or profit of statement the to credit or charge The .vest ultimately will that instruments equity .period that of end and beginning the at as recognised expense cumulative the in movement the represents

fair date grant the determining when account into taken not are conditions performance market-non and Service of estimate best s'Group the of part as assessed is met being conditions the of likelihood the but ,awards of value the within reflected are conditions performance Market .vest ultimately will that instruments equity of number the ,requirement service associated an without but ,award an to attached conditions other Any .value fair date grant award an of value fair the in reflected are conditions vesting-Non .conditions vesting-non be to considered are .conditions performance or/and service also are there unless award an of expensing immediate an to lead and

not have conditions service or/and performance market-non because vest ultimately not do that awards For transactions the ,condition vesting-non or market a include awards Where .recognised is expense no ,met been all that provided ,satisfied is condition vesting-non or market the whether of irrespective vesting as treated are .satisfied are conditions service or/and performance other

the if as recognised is expense an minimum a as ,modified are award settled-equity an of terms the Where recognised is expense an ,addition In .met are award the of terms original the if ,modified been not had terms to beneficial otherwise is or payments based-share the of value fair total the increases that modification any for .modification of date the at measured as employee the

any and ,cancellation of date the on vested had it if as treated is it ,cancelled is award settled-equity an Where vesting-non where award any includes This .immediately recognised is award the for recognised yet not expense is award new a if ,However .met not are employee the or Group the either of control the within conditions ,granted is it that date the on award replacement a as designated is and ,award cancelled the for substituted in described as ,award original the of modification a were they if as treated are awards new and cancelled the .paragraph previous the

earnings of computation the in dilution share additional as reflected is options outstanding of effect dilutive The .share per

2020 December 31

(continued (POLICIES ACCOUNTING SIGNIFICANT OF SUMMARY 2.4

benefits employee Other

relevant the to pursuant PRC the in employees its for schemes pension central in participated has Group The to charged are contributions the and contributions monthly makes Group The .PRC the of regulations and laws .made contributions the beyond obligations further no has Group The .basis accrual an on loss or profit

MPF "the (scheme benefit retirement Fund Provident Mandatory contribution defined a operates Group The .Kong Hong in employees its of all for Ordinance Schemes Fund Provident Mandatory the under") Scheme statement the to charged are and salaries basic' employees the of percentage a on based made are Contributions the of assets The .Scheme MPF the of rules the with accordance in payable become they as loss or profit of s'Group The .fund administered independently an in Group the of those from separately held are Scheme MPF .Scheme MPF the into contributed when employees the with fully vest contributions employer

costs Borrowing

of cost the of part as capitalised are construction under vessels certain to attributable directly costs Borrowing their for ready substantially are assets the when ceases costs borrowing such of capitalisation The .assets those their pending borrowings specific of investment temporary the on earned income Investment .use intended costs borrowing other All .capitalised costs borrowing the from deducted is assets qualifying on expenditure that costs other and interest of consist costs Borrowing .incurred are they which in period the in expensed are .funds of borrowing the with connection in incurs entity an

Dividends

.meeting general a in shareholders the by approved are they when liability a as recognised are dividends Final .statements financial the to 12 note in disclosed are dividends final Proposed

articles and memorandum s'Company the because ,declared and proposed simultaneously are dividends Interim are dividends interim ,Consequently .dividends interim declare to authority the directors the grant association of .declared and proposed are they when liability a as immediately recognised

2020 December 31

(continued (POLICIES ACCOUNTING SIGNIFICANT OF SUMMARY 2.4

currencies Foreign

the in entity Each .currency functional s'Company the is which ,RMB in presented are statements financial These are entity each of statements financial the in included items and currency functional own its determines Group Group the in entities the by recorded transactions currency Foreign .currency functional that using measured .transactions the of dates the at prevailing rates currency functional respective their using recorded initially are of rates currency functional the at translated are currencies foreign in denominated liabilities and assets Monetary monetary of translation or settlement on arising Differences .period reporting the of end the at ruling exchange .loss or profit of statement the in recognised are items

the using translated are currency foreign a in cost historical of terms in measured are that items monetary-Non foreign a in value fair at measured items monetary-Non .transactions initial the of dates the at rates exchange loss or gain The .measured was value fair the when date the at rates exchange the using translated are currency of recognition the with line in treated is value fair at measured item monetary-non a of translation on arising gain value fair whose item the on difference translation .,e.i (item the of value fair in change on loss or gain the comprehensive other in recognised also is loss or profit or income comprehensive other in recognised is loss or .(respectively ,loss or profit or income

the on income or expense ,asset related the of recognition initial on rate exchange the determining In date the ,consideration advance an to relating liability monetary-non or asset monetary-non a of derecognition monetary-non or asset monetary-non the recognises initially Group the which on date the is transaction initial of Group the ,advance in receipts or payments multiple are there If .consideration advance the from arising liability .consideration advance the of receipt or payment each for date transaction the determines

than other currencies are associates and ventures joint ,subsidiaries overseas certain of currencies functional The into translated are entities these of liabilities and assets the ,period reporting the of end the at As .RMB the loss or profit of statements their and period reporting the of end the at prevailing rates exchange the at RMB .year the for rates exchange average weighted the at RMB into translated are

the in accumulated and income comprehensive other in recognised are differences exchange resulting The income comprehensive other of component the ,operation foreign a of disposal On .reserve fluctuation exchange .loss or profit of statement the in recognised is operation foreign particular that to relating

translated are subsidiaries overseas of flows cash the ,flows cash of statement consolidated the of purpose the For .flows cash the of year the for rates exchange average weighted the at RMB into

2020 December 31

ESTIMATES AND JUDGEMENTS ACCOUNTING SIGNIFICANT 3.

estimates ,judgements make to management requires statements financial s'Group the of preparation The their and ,liabilities and assets ,expenses ,revenues of amounts reported the affect that assumptions and and assumptions these about Uncertainty .liabilities contingent of disclosure the and ,disclosures accompanying the of amounts carrying the to adjustment material a require could that outcomes in result could estimates .future the in affected liabilities or assets

Judgements

,judgements following the made has management ,policies accounting s'Group the applying of process the In in recognised amounts the on effect significant most the have which ,estimations involving those from apart :statements financial the

leases operating and leases finance between Classification

transfer which (leases finance either as classified be to required are leases ,lessor a as acts Group the When operating or) lessor the by receivable a to rise give and ,ownership of rewards and risks the all substantially judgement exercise to has Management .)lessor the by recognised remaining asset the in result which (leases .classification the determining in

:following the include lease finance a as classified being lease a to lead normally would that Situations

• ;term lease the of end the by lessee the to asset the of ownership transfers lease the•
• than lower sufficiently be to expected is which price a at asset the purchase to option the has lessee the• reasonably is it ,lease the of inception the at ,and exercisable becomes option the date the at value fair the ;exercised be will option the that certain
• ;transferred not is title if even ,asset the of life economic the of part major the for is term lease the•
• least at to amounts payments lease minimum the of value present the ,lease the of inception the at• and; asset leased the of value fair the of all substantially
• major without them use can lessee the only that such nature specialised a of are assets leased the• .made being modifications

2020 December 31

ESTIMATES AND JUDGEMENTS ACCOUNTING SIGNIFICANT 3. (continued(

(continued (Judgements

risk credit in increases significant of Determination

according stages different into categorised be to required is approach general the under ECLs of calculation The .mechanics calculation respective the apply to risk credit in changes the to

recognition initial since significantly increased has asset financial a of risk credit the whether considers Group The :factors exhaustive-non following the with

• ;days 90 over due past•
• and; borrower the of results operating the in change significant expected or actual an•
• environment technological or ,economic ,regulatory the in change adverse significant expected or actual an• .obligations debt its meet to ability s'borrower the in change significant a in results that borrower the of

uncertainty Estimation

the of end the at uncertainty estimation of sources key other and future the concerning assumptions key The assets of amounts carrying the to adjustment material a causing of risk significant a have that ,period reporting .below described are ,year financial next the within liabilities and

ECLs of Estimation

simplified the under matrix provision a and approach general the under approach PD the uses Group The ,rate provision and LGD ,PD the estimates Group The .ECLs of calculation the in ,respectively ,approach .information external and experience loss credit historical internal the to reference by ,respectively

2020 December 31

ESTIMATES AND JUDGEMENTS ACCOUNTING SIGNIFICANT 3. (continued(

(continued (uncertainty Estimation

investments equity unlisted of value Fair

price a to reference with approach market the using investments equity unlisted its of certain assesses Group The comparable the determine to Group the requires valuation The .)peers (companies public comparable of multiple discount the about estimates makes Group the ,addition In .multiple price the select and) peers (companies public .statements financial the to 47 note in contained are details Further .illiquidity for

assets financial-non of Impairment

the including (assets financial-non all for impairment of indicators any are there whether assesses Group The when impairment for tested are assets financial-Non .period reporting each of end the at) assets use-of-right carrying the when exists impairment An .recoverable be not may amounts carrying the that indicators are there value fair its of higher the is which ,amount recoverable its exceeds unit generating-cash a or asset an of value on based is disposal of costs less value fair the of calculation The .use in value its and disposal of costs less observable or assets similar of transaction length s'arm an in transactions sales binding from data available ,undertaken are calculations use in value When .asset the of disposing for costs incremental less prices market choose and unit generating-cash or asset the from flows cash future expected the estimate must management .flows cash those of value present the calculate to order in rate discount suitable a

equipment and plant ,property of values residual and lives Useful

and plant ,property s'Group the for values residual and lives useful estimated the determines Management ,practice industry the ,policy management asset its ,model business s'Group the to reference by equipment .date measurement each at market active an in steel of values scrap current the and ,asset the of usage expected equipment and plant ,property of values residual or lives useful the where change will expense depreciation The .estimates previous the from different are

2020 December 31

INFORMATION SEGMENT OPERATING 4.

products their on based units business into organised is Group the 2020, December 31 ended year the During :follows as segments operating reportable four has and services and

• and leasing container ,chartering vessel renders which ,segment leasing related-industry and shipping The) a( ;services lease finance
• ;containers sells and manufactures which ,segment manufacturing container The) b(
• insurance and investment debt or equity on focuses which ,segment services financial and investment The) c( and; services brokerage
• .services agency liner and cargo ,principally ,comprises segment" others "The) d(

making of purpose the for separately segments operating s'Group the of results the monitors Management on based evaluated is performance Segment .assessment performance and allocation resource about decisions .operations continuing from tax before loss/profit adjusted of measure a is which ,loss/profit segment reportable /profit s'Group the with consistently measured is operations continuing from tax before loss/profit adjusted The .measurement such from excluded are costs finance related-leasenon and expenses administrative and selling unallocated that except operations continuing from tax before loss

.assets s'Group the with consistently measured are assets Segment

are liabilities these as bonds corporate and borrowings other and bank certain exclude liabilities Segment .basis group a on managed

third to made sales for used prices selling the to reference with transacted are transfers and sales Intersegment .prices market prevailing then the at parties

2020 December 31

(continued (INFORMATION SEGMENT OPERATING 4.

		For year the	31 ended December	2020
	Shipping and industry related leasing 000'RMB	Container manufacturing 000'RMB	Investment and financial services 000'RMB	Others 000'RMB	Total 000'RMB
Segment revenue
of Sales containers	–	6,487,575	–	–	6,487,575
and Fee commission income	–	–	41,359	–	41,359
Total revenue from contracts
with external customers Other revenue from external customers	– 7,750,919	6,487,575 –	41,359 142,066	– –	6,528,934 7,892,985
Total revenue from external customers	7,750,919	6,487,575	183,425	–	14,421,919
Intersegment revenue from contracts
with customers	–	1,642,691	7,396	–	1,650,087
Total revenue	7,750,919	8,130,266	190,821	–	16,072,006
Segment results	510,969	284,428	1,738,484	(26,592)	2,507,289
Elimination of intersegment results					(97,363)
Unallocated ,selling administrative
general and expenses					(180,948)
Unallocated finance costs					(468,020)
Profit before from tax continuing operations					1,760,958
Supplementary segment information	:
Depreciation and amortisation	(1,645,839)	(64,807)	(658)	–	(1,711,304)
Impairment property of plant ,
and equipment	(270,123)	(35,376)	–	–	(305,499)
Impairment finance of lease receivables	(635,349)	–	–	–	(635,349)
of Reversal impairment factoring of
receivables	350	–	–	–	350
Write of down- inventories net to
realisable value of Reversal /impairment impairment( of)	(24,508)	–	–	–	(24,508)
trade receivables	47,846	(37,465)	(2)	–	10,379
of Reversal impairment other of
receivables	1,467	198	616	–	2,281
Share losses of joint of ventures	–	–	(4,774)	–	(4,774)
Share of profits of associates	–	–	1,985,148	–	1,985,148
Capital expenditure *	7,057,801	69,153	3,135	–	7,130,089

2020 December 31

(continued (INFORMATION SEGMENT OPERATING 4.

		year the For	31 ended December	2019
	Shipping industry and related leasing 000'RMB Restated( )	Container manufacturing 000'RMB ( Restated )	Investment and financial services 000'RMB ( Restated )	Others 000'RMB ( Restated )	Total 000'RMB ( (Restated
Segment revenue of Sales containers and Fee commission income	– –	3,076,280 –	– 39,940	– –	3,076,280 39,940
Total revenue from contracts with external customers Other revenue from external customers	– 6,472,806	3,076,280 –	39,940 76,656	– –	3,116,220 6,549,462
Total revenue from external customers Intersegment revenue from contracts with customers	6,472,806 –	3,076,280 1,506,420	116,596 8,053	– –	9,665,682 1,514,473
Total revenue	6,472,806	4,582,700	124,649	–	11,180,155
Segment results Elimination of intersegment results Unallocated ,selling administrative general and expenses Unallocated finance costs	67,411	(202,854)	1,961,556	(75,789)	1,750,324 3,952 (144,105) (742,569)
Profit before from tax continuing operations					867,602
Supplementary segment information : Depreciation and amortisation Impairment property of plant , and equipment	(1,533,839) (17,484)	(53,793) –	(243) –	– –	(1,587,875) (17,484)
Impairment finance of lease receivables Impairment factoring of receivables Write of down- inventories net to	(359,017) (7,656)	– –	– –	– –	(359,017) (7,656)
realisable value Impairment( of reversal/) impairment of	(82,011)	(96,393)	–	–	(178,404)
trade receivables Impairment other of receivables Share losses of joint of ventures	(39,110) (3,063) –	(5,243) (120) –	307 (3,661) (1,077)	– – –	(44,046) (6,844) (1,077)
Share of profits of associates Capital expenditure *	– 3,328,447	– 83,740	2,292,840 182	– –	2,292,840 3,412,369

.assets intangible and assets use-of-right ,equipment and plant ,property to additions of consists expenditure Capital*

2020 December 31

(continued (INFORMATION SEGMENT OPERATING 4.

		31 December 2020
	Shipping and industry related leasing 000'RMB	Container manufacturing 000'RMB	Investment and financial services 000'RMB	Total 000'RMB
Segment assets Elimination of intersegment assets	108,516,375	5,342,013	38,830,767	152,689,155 ) 6,650,361 (
Total assets				146,038,794
Segment liabilities Unallocated liabilities Elimination of intersegment liabilities	81,448,304	3,908,470	24,099,861	109,456,635 17,944,427 ) 5,732,276 (
Total liabilities				121,668,786
Supplementary segment information : Investments joint in ventures Investments in associates	– –	– –	180,727 20,841,847	180,727 20,841,847
	31 December 2019

	Shipping		Investment
	and industry	Container	and financial
	related leasing	manufacturing	services	Total
	000'RMB	000'RMB	000'RMB	000'RMB
Segment assets	108,661,696	5,109,276	37,101,599	150,872,571
Elimination of intersegment assets				) (6,378,452
Total assets				144,494,119
Segment liabilities	80,281,672	3,892,970	23,406,340	107,580,982
Unallocated liabilities				18,226,213
Elimination of intersegment liabilities				) (5,520,794
Total liabilities				120,286,401
Supplementary segment information :
Investments joint in ventures	–	–	188,827	188,827
Investments in associates	–	–	25,665,387	25,665,387

2020 December 31

(continued (INFORMATION SEGMENT OPERATING 4.

information Geographical

customers external from Revenue) a(

	For year the ended 31 December 2020 000'RMB	For year the ended 31 December 2019 000'RMB (Restated(
Hong Kong	3,350,282	2,931,746
Mainland China	4,386,225	3,472,931
(Asia excluding Hong Kong and Mainland (China	2,113,830	1,374,174
United States	3,651,397	1,187,501
Europe	818,555	689,940
Others	101,630	9,390
	14,421,919	9,665,682

.customers the of locations the on based is above operations continuing of information revenue The

assets current-Non) b(

	31 December 2020	31 December 2019
	000'RMB	000'RMB
Hong Kong	47,385,489	56,281,624
Mainland China	29,367,584	26,849,544
	76,753,073	83,131,168

the of locations the on based is above operations continuing of information asset current-non The tax deferred and instruments financial excludes and assets the own which subsidiaries its or Company .assets

customer major a about Information

was) 2,416,530,000RMB 2019: (1,783,318,000RMB approximately of operations continuing from Revenue segment manufacturing container and segment leasing related-industry and shipping the by sales from derived .customer single a to

2020 December 31

GAINS AND INCOME OTHER ,REVENUE 5.

:follows as is operations continuing from gains and income other ,revenue of analysis An

Revenue) a(

	For year the ended 31 December 2020 000'RMB	For year the ended 31 December 2019 000'RMB (Restated(
Revenue from contracts with customers :
of Sales containers	6,487,575	3,076,280
and Fee commission income	41,359	39,940
	6,528,934	3,116,220
Other :revenue
Vessel chartering	75,925	68,494
Container leasing	4,837,260	3,749,254
Finance lease income	2,979,800	2,731,714
	7,892,985	6,549,462
	14,421,919	9,665,682

and goods of sales including ,customers with contracts from revenue s'Group the of disaggregation The :follows as is above services of rendering

	For year the ended 31 December 2020	For year the ended 31 December 2019
	000'RMB	000'RMB
		(Restated(
Hong Kong	1,700,908	637,669
Mainland China	851,658	965,827
(Asia excluding Hong Kong and Mainland (China	651,755	927,078
United States	3,211,502	432,364
Europe	109,236	150,097
Others	3,875	3,185
	6,528,934	3,116,220

2020 December 31

(continued (GAINS AND INCOME OTHER ,REVENUE 5.

(continued (Revenue) a(

	For year the ended 31 December 2020	For year the ended 31 December 2019
	000'RMB	000'RMB
		(Restated(
Goods transferred point a at time in	6,487,575	3,076,280
Services transferred time over	41,359	39,940
	6,528,934	3,116,220

customers with contracts from revenue to relation in receivables notes and trade of amount carrying The .(516,548,000RMB 2019: (1,649,634,000RMB was 2020 December 31 at as 15 HKFRS under

of liabilities contract 2020, December 31 ended year the During .customers from advances termshort are) 150,194,000RMB 2019: (2020 December 31 at as 162,354,000RMB of liabilities Contract The .revenue as recognised were year the of beginning the at) 26,811,000RMB 2019: (150,194,000RMB advances term-short in increase the to due mainly was 2019 and 2020 in liabilities contract in increase .containers of sale the to relation in customers from received

income Other) b(

		For year the ended	For year the ended
		31 December 2020	31 December 2019
	Note	000'RMB	000'RMB
Interest income		141,764	191,010
Government grants related to
the ordinary of course business	36	1,550	1,552
Government subsidies		126,050	90,600
-Super deduction valued of added- tax input		37	31
Fees refunded for individual income
tax withheld		251	204
Others		17,298	46,736
		286,950	330,133

2020 December 31

(continued (GAINS AND INCOME OTHER ,REVENUE 5.

gains Other) c(

	For year the ended 31 December 2020	For year the ended 31 December 2019
	000'RMB	000'RMB
on Gain disposal of of items ,property
plant and equipment	25,686	82,630
on Gain disposal of investments in associates	219,316	–
Changes fair in of value financial assets
at value fair through profit loss or	26,202	747,033
Net foreign exchange ( gain/)loss	) (126,820	57,448
Others	11,209	32,124
	155,593	919,235

2020 December 31

OPERATIONS CONTINUING FROM TAX BEFORE PROFIT 6.

:(crediting(/charging after at arrived is operations continuing from tax before profit s'Group The

		For year the ended	the For ended year
		31 December 2020	31 December 2019
	Notes	000'RMB	000'RMB
			(Restated(
of Cost sold goods		6,116,905	2,636,123
Cost service of provided		2,481,521	2,353,072
Depreciation property of and plant , equipment		1,638,051	1,521,561
Depreciation of investment properties	15	608	608
Depreciation of-right of assets use-	16	65,262	60,154
Amortisation of intangible assets	17	7,383	5,552
s'Auditor remuneration		8,250	7,650
Employee benefit :expense
Wages salaries and		1,157,044	918,719
Equity settled- share option expense		5,528	–
Pension scheme contributions defined ( contribution (scheme		83,666	115,384
		1,246,238	1,034,103
Expense relating short to leases term-		8,785	150,311
Foreign exchange differences net ,	5.3	126,820	(57,448)
Impairment property of and plant , equipment	14	305,499	17,484
Impairment finance of lease receivables	47	635,349	359,017
of Reversal( impairment /) impairment factoring of receivables	47	(350)	7,656
Write of down- inventories net to realisable value		24,508	178,404
of Reversal( )impairment impairment/ trade of receivables	47	(10,379)	44,046
of Reversal( )impairment impairment/ other of receivables		(2,281)	6,844

2020 December 31

COSTS FINANCE 7.

:follows as is operations continuing from costs finance of analysis An

		For year the ended	the For ended year
		31 December 2020	31 December 2019
	Note	000'RMB	000'RMB
on Interest and debts borrowings		2,150,179	3,425,805
Interest lease on liabilities	35	5,991	6,553
Others		96,950	108,426
		2,253,120	3,540,784

EMOLUMENTS S'EXECUTIVE CHIEF AND' DIRECTORS 8.

,(a)(1(383 section ,Rules Listing the to pursuant disclosed ,year the for emoluments s'executive chief and Directors Information of Disclosure (Companies the of 2 Part and Ordinance Companies Kong Hong the of) f (and) c (,)b( :follows as is ,Regulation) Directors of Benefits about

	For year the ended	For year the ended
	31 December 2020	31 December 2019
	000'RMB	000'RMB
Fees	1,200	1,313
Other emoluments :
,Salaries allowances and benefits kind in	2,644	3,658
Performance related bonuses	–	3,137
Equity settled- share option expense	129	–
Pension scheme contributions	307	597
	3,080	7,392
	4,280	8,705

.options share granted were) none 2019: (directors three ,year the During

2020 December 31

(continued (EMOLUMENTS S'EXECUTIVE CHIEF AND' DIRECTORS 8.

:below out set are emoluments s'executive chief and' directors The

		,Salaries
		allowances	Performance	Equity settled-	Pension
		and benefits	related	share option	scheme
	Fees	kind in	bonuses	expense	contributions	Total
	000'RMB	000'RMB	000'RMB	000'RMB	000'RMB	000'RMB
year the For 31 ended December 2020
Executive :directors
Mr Chong Liu .	–	1,360	–	129	153	1,642
Hui Xu .Mr	–	1,284	–	–	154	1,438
	–	2,644	–	129	307	3,080
Independent executive-non :directors
.Mr Hongping Cai	300	–	–	–	–	300
Ms Yuet Chi Hai .	300	–	–	–	–	300
Mr Jack Graeme .	300	–	–	–	–	300
.Mr Jianzhong Lu	150	–	–	–	–	150
Zhang .Ms Weihua	150	–	–	–	–	150
	1,200	–	–	–	–	1,200
	1,200	2,644	–	129	307	4,280

2020 December 31

(continued (EMOLUMENTS S'EXECUTIVE CHIEF AND' DIRECTORS 8.

		,Salaries
		allowances	Performance	Pension
		and benefits	related	scheme
	Fees	kind in	bonuses	contributions	Total
	000'RMB	000'RMB	000'RMB	000'RMB	000'RMB
For year the 31 ended December 2019
Executive :directors
Wang .Mr Daxiong chief ( (executive	–	1,250	697	217	2,164
.Mr Chong Liu	–	1,300	1,185	192	2,677
Hui Xu .Mr	–	1,108	1,255	188	2,551
	–	3,658	3,137	597	7,392
Independent non executive- :directors
Cai .Mr Hongping	300	–	–	–	300
Hai .Ms Yuet Chi	300	–	–	–	300
Mr Graeme . Jack	300	–	–	–	300
Lu .Mr Jianzhong	150	–	–	–	150
Zhang .Ms Weihua	150	–	–	–	150
Xu Gu .Mr resigned ( on
August 20 (2019	113	–	–	–	113
	1,313	–	–	–	1,313
	1,313	3,658	3,137	597	8,705

1. and 2020 during emoluments any received directors the of none ,above disclosed as Save

any waive to agreed or waived executive chief the or director a which under arrangement no was There .year the during remuneration

an as officer executive chief or directors the of any to Group the by paid were emoluments no ,year the During .(Nil 2019: (office of loss for compensation as or Group the joining upon or join to inducement

2020 December 31

EMPLOYEES PAID HIGHEST FIVE 9.

chief the and director two 2019: (directors two included year the during employees paid highest five The year the for remuneration the of Details .above 8 note in out set are remuneration whose of details ,)executive of executive chief nor director a neither are who employees paid highest) two 2019: (three remaining the of :follows as are Company the

	For year the ended	For year the ended
	31 December 2020	31 December 2019
	000'RMB	000'RMB
,Salaries allowances and benefits kind in	3,443	2,168
Performance related bonuses	–	2,068
Equity settled- share option expense	329	–
Pension scheme contributions	505	402
	4,277	4,638

within fell remuneration whose employees paid highest executive chief-non and director-non of number The :follows as is band following the

	Number of employees
	For year the ended	For year the ended
	31 December 2020	31 December 2019
HK \$2,000,001 HK to \$3,000,000	–	2

an as individuals paid highest five the of any to Group the by paid were emoluments no ,year the During .(Nil 2019: (office of loss for compensation as or Group the joining upon or join to inducement

2020 December 31

TAX INCOME 10.

the 2008, January 1 from effective was which ,PRC the of Law") CIT ("Tax Income Corporate the to According 31 ended years the for 25% was PRC the in established subsidiaries its and Company the to applicable rate CIT 2019. and 2020 December

of profits assessable estimated the on) 16.5% 2019: (16.5% of rate the at provided was tax profits Kong Hong .year the during Kong Hong in operating companies s'Group the

or countries the in prevailing tax of rates the at calculated been have elsewhere assessable profits or Taxes .operates Group the which in jurisdictions

		For year the ended	For year the ended
		31 December 2020	31 December 2019
	Note	000'RMB	000'RMB
Current income :tax
Mainland China		293,583	211,398
Hong Kong		22,746	7,083
United States		14,620	10,191
Elsewhere		519	433
		331,468	229,105
Deferred income tax	24	(12,695)	(29,356)
		318,773	199,749

statutory the at operations continuing from tax before profit to applicable expense tax the of reconciliation A to domiciled are subsidiaries its of majority the and Company the which in jurisdiction or country the for rate :follows as is rate tax effective the at expense tax the

2020 December 31

(continued (TAX INCOME 10.

	For year the ended	For year the ended
	31 December 2020	31 December 2019
	000'RMB	000'RMB
		(Restated(
Profit before from tax continuing operations	1,760,958	867,602
Tax the at statutory rate tax	440,240	216,900
of Effect different tax for rates specific provinces
or enacted local by authority	(12,880)	(12,426)
of Effect withholding tax	28,132	17,424
Adjustments respect in of current of tax previous periods	2,296	(3,233)
Profits attributable to associates joint and ventures	) (495,094	(572,941)
Income not subject tax to	) (360,915	(359,499)
Expenses not deductible tax for	556,253	868,770
losses Tax not recognised	–	197,891
losses Tax utilised from previous periods	(20,271)	–
Temporary differences not recognised	181,012	13,506
Temporary differences utilised from previous periods	–	(166,643)
	318,773	199,749

OPERATION DISCONTINUED 11.

.,Co Lines SHIPPING COSCO and) lessor the as (Group the between contract lease existing the of terms the As entered Lines SHIPPING COSCO and Group the ,expire to due are) lessee the as") (Lines SHIPPING COSCO(".,Ltd vessel provide to agreed has Group the ,which to pursuant ,Agreement Master Service Leasing Vessel the into and 2021 January 1 from commence will contract lease new The .Lines SHIPPING COSCO the to services leasing 2020, December 31 ended year the During .years 25 reaches vessels the of age the which on date the on end Service Leasing Vessel the of into entering the approved meeting' shareholders the and directors of board the .Agreement Master

economic the of part major the for is term lease the ,Agreement Master Service Leasing Vessel the to Pursuant direct to ability its in limited is Group the as vessels the of control have not does Group The .vessels the of life vessel the ,Accordingly .vessels the from ,benefits remaining the of all substantially obtain to and ,of use the .Group the of arrangement lease finance a as for accounted be shall services leasing

the and arrangement lease operating an as for accounted were services leasing vessel the ,leases existing Under .equipment and plant ,property as for accounted were vessels

2020 December 31

(continued (OPERATION DISCONTINUED 11.

Group the 2021, January 1 from commencing Agreement Master Service Leasing Vessel proposed the With and; lease the in investment net the recognise; vessels underlying the of amount carrying the derecognise will .loss or profit in gain transaction expected the recognise

vessel of provision the is which ,operation major separate a represent vessels the ,directors the of opinion the In .operation discontinued a as classified were vessels the ,result a As .chartering

:below presented are 2020 December 31 ended year the for operation discontinued the of results The

	For year the ended	For year the ended
	31 December 2020	31 December 2019
	000'RMB	000'RMB
		(Restated(
REVENUE	4,468,020	4,490,177
Cost sales of	) 3,362,640 (	) 3,413,297 (
Gross profit	1,105,380	1,076,880
,Selling administrative and general expenses	) (417,294	–
Profit before tax the from discontinued operation	688,086	1,076,880
Income tax expense	–	–
for Profit year the the from discontinued operation	688,086	1,076,880

2020 December 31

(continued (OPERATION DISCONTINUED 11.

:on based are operation discontinued the from share per earnings diluted and basic of calculations The

	For year the ended 31 December 2020 000'RMB	For year the ended 31 December 2019 000'RMB (Restated(
Profit attributable to ordinary equity holders of the parent the from discontinued operation Weighted average number of ordinary shares in ( thousand ( issue in during the used year the in and basic diluted	688,086	1,076,880
earnings per share calculations (13 note (	11,608,125	11,575,875

:follows as are operation discontinued the by incurred flows cash net The

	For year the ended	For year the ended
	31 December 2020	31 December 2019
	000'RMB	000'RMB
		(Restated(
Operating activities and cash net flows	2,713,066	2,629,495

DIVIDENDS 12.

	For year the ended	For year the ended
	31 December 2020	31 December 2019
	000'RMB	000'RMB
Proposed final – dividend 0.056RMB 2019: ( RMB (0.045
per ordinary share	645,596	518,782

the at shareholders s'Company the of approval the to subject is year the for dividend final proposed The .meeting general annual forthcoming

inclusive (share per) 0.045RMB 2019: (0.056RMB of dividend final a of payment the proposed Board The on based calculated) 518,782,000RMB 2019: (645,596,000RMB approximately totaling ,)tax applicable of March 30 at as 11,608,125,000 of Company the of shares issued of number the being ,shares 11,528,497,997 2020. December 31 ended year the for ,Company the by repurchased shares A 79,627,003 deducting 2021

2020 December 31

EQUITY ORDINARY TO ATTRIBUTABLE SHARE PER EARNINGS 13. PARENT THE OF HOLDERS

of holders equity ordinary to attributable profit the dividing by calculated is amount share per earnings Basic .year the during issue in shares ordinary of number average weighted the by parent the

	For year the ended	For year the ended
	31 December 2020	31 December 2019
	000'RMB	000'RMB
Earnings
Profit attributable ordinary to equity holders the of ,parent
in used basic the earnings share per calculation
From continuing operations	1,118,640	410,399
a From discontinued operation	688,086	1,076,880
	1,806,726	1,487,279
on Interest perpetual *debts	323,545	257,454
Profit attributable equity to of holders parent the before
on interest perpetual debts	2,130,271	1,744,733
Attributable :to
From continuing operations	1,442,185	667,853
a From discontinued operation	688,086	1,076,880
	2,130,271	1,744,733
	For year the ended	For year the ended
	31 December 2020	31 December 2019
	000'	000'
Shares
Weighted average number ordinary of shares issue in during
year the in used basic the earnings share per calculation	11,608,125 **	11,575,875

• set conditions and terms the under 2019, December 31 ended year the during debts perpetual issued Company The* interest mandatory the triggered Company the of shares of repurchase and distribution dividend The 40. note in out the of respect in share ordinary per earnings basic calculating of purpose the For .debts perpetual of event payment from deducted was debts perpetual to attributable) 257,454,000RMB 2019: (323,545,000RMB 2019, and 2020 years .Company the of holders equity to attributable profits
• options share the ,account into options share taking when increased is amount share per earnings diluted the Because** diluted of calculation the in ignored were and year the for share per earnings basic the on effect dilutive-anti an had and 2020 December 31 ended years the for shares ordinary the on effect dilution no was There .share per earnings 2019.

2020 December 31

EQUIPMENT AND PLANT ,PROPERTY 14.

				,Machinery motor vehicles
				office and	Leasehold	Construction
	Vessels	Containers	Buildings	equipment	improvements	progress in	Total
	000'RMB	000'RMB	000'RMB	000'RMB	000'RMB	000'RMB	000'RMB
January 1 At 2020:
Cost	46,610,498	37,741,620	488,224	897,607	87,565	52,434	85,877,948
Accumulated depreciation
and impairment	(17,439,415)	(10,932,528)	(169,875)	(446,237)	(70,921)	–	(29,058,976)
carrying Net amount	29,171,083	26,809,092	318,349	451,370	16,644	52,434	56,818,972
January 1 At of net 2020, accumulated
depreciation and impairment	29,171,083	26,809,092	318,349	451,370	16,644	52,434	56,818,972
Additions	–	6,117,083	–	22,105	6,043	950,022	7,095,253
Disposals	–	(1,570,392)	–	(26)	(660)	–	(1,571,078)
Depreciation	(1,674,987)	(1,536,403)	(15,933)	(51,181)	(9,125)	–	(3,287,629)
Impairment	(417,294)	(270,123)	(35,376)	–	–	–	(722,793)
Transfers	791,200	–	10,396	66,652	–	(868,248)	–
Exchange realignment	(1,120,706)	(1,882,950)	(1)	(1,531)	(300)	(2,529)	(3,008,017)
At December 31 of net 2020,
accumulated depreciation
and impairment	26,749,296	27,666,307	277,435	487,389	12,602	131,679	55,324,708
At December 31 2020:
Cost	45,796,312	38,877,999	498,484	968,338	92,077	131,679	86,364,889
Accumulated depreciation
and impairment	(19,047,016)	(11,211,692)	(221,049)	(480,949)	(79,475)	–	(31,040,181)
carrying Net amount	26,749,296	27,666,307	277,435	487,389	12,602	131,679	55,324,708

2020 December 31

(continued (EQUIPMENT AND PLANT ,PROPERTY 14.

				,Machinery
				vehicles motor
				office and	Leasehold	Construction
	Vessels	Containers	Buildings	equipment	improvements	progress in	Total
	000'RMB	000'RMB	000'RMB	000'RMB	000'RMB	000'RMB	000'RMB
At 2019: January 1
Cost	46,219,310	35,684,086	471,247	863,451	96,495	27,316	83,361,905
Accumulated depreciation impairment and	(15,730,044)	(10,513,764)	(154,429)	(412,763)	(67,409)	–	(26,878,409)
Net amount carrying	30,489,266	25,170,322	316,818	450,688	29,086	27,316	56,483,496
January 1 At net 2019, accumulated of
depreciation impairment and	30,489,266	25,170,322	316,818	450,688	29,086	27,316	56,483,496
Additions	–	3,231,057	2,244	7,498	1,601	83,622	3,326,022
Disposals	–	(588,337)	–	(2,414)	(21)	(781)	(591,553)
Depreciation	(1,603,019)	(1,418,722)	(15,414)	(47,861)	(14,141)	–	(3,099,157)
Impairment	–	(17,484)	–	–	–	–	(17,484)
Transfers	–	–	14,701	43,022	–	(57,723)	–
Exchange realignment	284,836	432,256	–	437	119	–	717,648
December 31 At net 2019, accumulated of
depreciation impairment and	29,171,083	26,809,092	318,349	451,370	16,644	52,434	56,818,972
December 31 At 2019:
Cost	46,610,498	37,741,620	488,224	897,607	87,565	52,434	85,877,948
Accumulated depreciation impairment and	(17,439,415)	(10,932,528)	(169,875)	(446,237)	(70,921)	–	(29,058,976)
Net amount carrying	29,171,083	26,809,092	318,349	451,370	16,644	52,434	56,818,972

of amount carrying net a with containers and vessels container s'Group the of certain 2020, December 31 At facilities banking general secure to pledged were) 25,765,286,000RMB 2019: (25,232,185,000RMB approximately .(33 note (Group the to granted

approximately of amount carry net a with vessels container s'Group the of certain 2020, December 31 At Master Service Leasing Vessel of commencement the with disposed be will) Nil2019: (25,411,857,000RMB financial the to 11 note in given are which of details further ,lessor the as acts Group the which in Agreement .statements

2020 December 31

(continued (EQUIPMENT AND PLANT ,PROPERTY 14.

.identified were buildings and containers ,vessels container certain for impairment of indicators ,year the During .amount recoverable the calculating by assets those of amount recoverable the estimated Group the ,Therefore (17,484,000RMB 2019: (270,123,000RMB ,)Nil 2019: (417,294,000RMB of impairment an recognised Group The to buildings and containers ,vessels container of amount carrying the reduce to) Nil 2019: (35,376,000RMB and .respectively ,amount recoverable the

:leases operating under held assets the of movements the illustrates table following The

	Vessels 000'RMB	Containers 000'RMB	Total 000'RMB
At January 1 2020:
Cost	46,610,498	36,164,269	82,774,767
Accumulated depreciation and impairment	) 17,439,415	) ( 10,424,688	) ( 27,864,103 (
Net carrying amount	29,171,083	25,739,581	54,910,664
At January 1 2020, of net accumulated depreciation
and impairment	29,171,083	25,739,581	54,910,664
Additions	–	6,117,083	6,117,083
Disposals		) – 1,507,577	) ( 1,507,577 (
Depreciation provided during year the	) 1,674,987	) ( 1,474,948	) ( 3,149,935 (
Impairment	) (417,294	270,123)	) ( (687,417
Transfers	) 24,620,657 (	) –	24,620,657 (
Exchange realignment	) 1,120,706	) ( 1,783,600	) ( 2,904,306 (
31 At December 2020, of net accumulated
depreciation and impairment	1,337,439	26,820,416	28,157,855
31 At December 2020:
Cost	1,439,345	37,047,681	38,487,026
Accumulated depreciation and impairment	101,906)	) ( 10,227,265	) ( 10,329,171 (
Net carrying amount	1,337,439	26,820,416	28,157,855

2020 December 31

(continued (EQUIPMENT AND PLANT ,PROPERTY 14.

(continued (:leases operating under held assets the of movements the illustrates table following The

	Vessels	Containers	Total
	000'RMB	000'RMB	000'RMB
31 December 2019
At January 1 2019:
Cost	46,219,310	34,014,305	80,233,615
Accumulated depreciation and impairment	) 15,730,044 ) (	10,021,788 ) (	25,751,832 (
Net carrying amount	30,489,266	23,992,517	54,481,783
At January 1 2019, of net accumulated depreciation
and impairment	30,489,266	23,992,517	54,481,783
Additions	–	3,231,057	3,231,057
Disposals	–	(518,698)	(518,698)
Depreciation provided during year the	) 1,603,019	) ( 1,354,336	) ( 2,957,355 (
Impairment	–	(17,484)	(17,484)
Exchange realignment	284,836	406,525	691,361
31 At December 2019, of net accumulated
depreciation and impairment	29,171,083	25,739,581	54,910,664
31 At December 2019:
Cost	46,610,498	36,164,269	82,774,767
Accumulated depreciation and impairment	) 17,439,415 ) (	10,424,688 ) (	27,864,103 (
Net carrying amount	29,171,083	25,739,581	54,910,664

2020 December 31

PROPERTIES INVESTMENT 15.

	For year the ended	For year the ended
	31 December 2020	31 December 2019
	000'RMB	000'RMB
At beginning :year of
Cost	160,503	157,903
Accumulated depreciation and impairment	(54,956)	(53,460)
Net carrying amount	105,547	104,443
At beginning year of of net , accumulated
depreciation and impairment	105,547	104,443
Depreciation	(608)	(608)
Exchange realignment	(6,795)	1,712
end At year of of net , accumulated depreciation
and impairment	98,144	105,547
end At :year of
Cost	150,120	160,503
Accumulated depreciation and impairment	(51,976)	(54,956)
Net carrying amount	98,144	105,547

.Kong Hong in properties office) nineteen 2019: (nineteen of consist properties investment s'Group The

2020 December 31

(continued (PROPERTIES INVESTMENT 15.

based ,units office .,e.i ,asset of class one of consist properties investment the that determined has Management .property each of risks and characteristics ,nature the on

in included are which of details summary further ,leases operating under leased are properties investment The .statements financial the to 42 note

hierarchy value Fair

qualified professionally independent an by performed valuation a on based valued were properties investment The external which decide Group the of directors the ,year Each .)308,361,000RMB 2019: (289,718,000RMB at valuer market include criteria Selection .properties s'Group the of valuations external the for responsible be to valuer has Management .maintained are standards professional whether and independence ,reputation ,knowledge .performed is valuation the when results valuation and assumptions valuation the on valuer the with discussions

:properties investment s'Group the of hierarchy measurement value fair the illustrate tables following The

2020 December 31

	Fair value	measurement	categorised into
	1 Level	2 Level	3 Level	Total
	000'RMB	000'RMB	000'RMB	000'RMB
Office units	–	–	289,718	289,718
31 December 2019
	Fair value	measurement	categorised into
	1 Level	2 Level	3 Level	Total
	000'RMB	000'RMB	000'RMB	000'RMB
Office units	–	–	308,361	308,361

transfers no and 2 Level and 1 Level between measurements value fair of transfers no were there ,year the During .(Nil 2019: (3 Level of out or into

2020 December 31

(continued (PROPERTIES INVESTMENT 15.

(continued (hierarchy value Fair

investment of valuation the to inputs key the and used techniques valuation the of summary a is below out Set :properties

	Valuation technique	Significant unobservable inputs	Weighted average 000'RMB
31 December 2020
Office units	Market comparison method	Estimated per (value (.ft .sq	13
31 December 2019
Office units	Market comparison method	Estimated per (value (.ft .sq	14

2020 December 31

ASSETS USE-OF-RIGHT 16.

			Machinery ,
	Prepaid		motor vehicles
	land lease		and office
	payments	Buildings	equipment	Total
	000'RMB	000'RMB	000'RMB	000'RMB
At January 1 2020:
Cost	158,240	263,995	752	422,987
Accumulated depreciation	47,445)	) ( (100,692	230)	) ( (148,367
Net carrying amount	110,795	163,303	522	274,620
At January 1 2020, of net
accumulated depreciation	110,795	163,303	522	274,620
Additions	–	14,597	–	14,597
Disposals	–	(136)	–	(136)
Depreciation	(3,588)	(61,552)	(122)	(65,262)
Exchange realignment	–	(1,412)	–	(1,412)
31 At December 2020, of net
accumulated depreciation	107,207	114,800	400	222,407
31 At December 2020:
Cost	158,240	274,869	752	433,861
Accumulated depreciation	51,033)	) ( (160,069	352)	) ( (211,454
Net carrying amount	107,207	114,800	400	222,407

2020 December 31

(continued (ASSETS USE-OF-RIGHT 16.

			Machinery ,
	Prepaid		motor vehicles
	land lease		and office
	payments	Buildings	equipment	Total
	000'RMB	000'RMB	000'RMB	000'RMB
At January 1 2019:
Cost	158,240	191,361	298	349,899
Accumulated depreciation	(43,858)	(43,764)	(149)	(87,771)
Net carrying amount	114,382	147,597	149	262,128
At January 1 2019, of net
accumulated depreciation	114,382	147,597	149	262,128
Additions	–	71,634	454	72,088
Depreciation	(3,587)	(56,486)	(81)	(60,154)
Exchange realignment	–	558	–	558
31 At December 2019, of net
accumulated depreciation	110,795	163,303	522	274,620
31 At December 2019:
Cost	158,240	263,995	752	422,987
Accumulated depreciation	(47,445)	(100,692)	(230)	(148,367)
Net carrying amount	110,795	163,303	522	274,620

2020 December 31

ASSETS INTANGIBLE 17.

	Computer software
	000'RMB
At January 1 2020:
Cost Accumulated amortisation	198,257 ) (171,083
Net carrying amount	27,174
At January 1 2020, of net accumulated amortisation	27,174
Additions – acquired separately	20,239
Disposals	(497)
Amortisation	(7,383)
Exchange realignment	(277)
31 At December 2020, of net accumulated amortisation	39,256
31 At December 2020:
Cost	207,546
Accumulated amortisation	) (168,290
Net carrying amount	39,256
At January 1 2019: Cost	181,549
Accumulated amortisation	(163,161)
Net carrying amount	18,388
At January 1 2019, of net accumulated amortisation	18,388
Additions – acquired separately Amortisation	14,259 (5,552)
Exchange realignment	79
31 At December 2019, of net accumulated amortisation	27,174
31 At December 2019:
Cost	198,257
Accumulated amortisation	(171,083)
Net carrying amount	27,174

2020 December 31

VENTURES JOINT IN INVESTMENTS 18.

	31 December 2020	31 December 2019
	000'RMB	000'RMB
of Share assets net	180,727	188,827

not are that ventures joint s'Group the of information financial aggregate the illustrates table following The :material individually

	For year the ended	For year the ended
	31 December 2020	31 December 2019
	000'RMB	000'RMB
Share loss of	(4,774)	(1,077)
Share other of comprehensive loss	(12)	(59)
Share total of comprehensive loss	(4,786)	(1,136)
	31 December 2020	31 December 2019
	000'RMB	000'RMB
Aggregate carrying amount of investments	180,727	188,827

ASSOCIATES IN INVESTMENTS 19.

	31 December 2020 000'RMB	31 December 2019 000'RMB
of Share assets net	20,262,263	23,338,313
Goodwill on acquisition	641,349	2,388,839
Impairment	(61,765)	(61,765)
	20,841,847	25,665,387

2020 December 31

(continued (ASSOCIATES IN INVESTMENTS 19.

:follows as are associates material the of particulars 2020, December 31 of As

Name	Particulars of issued shares held	of Place registration	Percentage of ownership interest	Principal activities
China International Marine Containers Group ( .Ltd .,Co) ("CIMC("	Ordinary shares RMB each 1	PRC	4.69	Manufacture and of sale containers
China Bohai Bank .Ltd .,Co ("CBB("	Ordinary shares RMB each 1	PRC	11.12	Banking
China Everbright Bank .Ltd .,Co ("CEB("	Ordinary shares RMB each 1	PRC	1.34	Banking
Bank Kunlun of .Ltd .,Co ("BOK("	Ordinary shares RMB each 1	PRC	3.74	Banking
Shanghai Life Insurance .Ltd .,Co (" Shanghai ("Life	Registered capital RMB each 1	PRC	16	Insurance
COSCO SHIPPING Finance	Registered capital RMB each 1	PRC	23.38	Banking

s'Group the With .Life Shanghai and BOK ,CEB ,CBB ,CIMC in interests equity of 20% than less has Group The these of activities operating and financial the in participation and companies these of boards the in presence companies these ,Accordingly .companies these over influence significant exercise could Group the ,companies .associates as for accounted are

(continued (ASSOCIATES IN INVESTMENTS19.

of consideration the for CIMC in Shares A 350,000,000 and Shares H 295,010,617 of disposal the completed Group the ,year the During to decreased has CIMC in Group the of interest equity the ,completion Upon .costs transaction attributable directly of net 6,308,725,000,RMB 4.69%. approximately

differences any for adjusted associates material s'Group the of each of respect in information financial summarised the illustrate tables following The :statements financial the in amount carrying the to reconciled and policies accounting in

	CIMC		CBB		CEB		BOK		Shanghai	Life	SHIPPING COSCO	Finance
	December 2020 000 ' RMB 31	December 2019 000 ' RMB 31	December 2020 000 ' RMB 31	December 2019 000 ' RMB 31	December 2020 000 ' RMB 31	December 2019 000 ' RMB 31	December 2020 000 ' RMB 31	December 2019 000 ' RMB 31	December 2020 000 ' RMB 31	December 2019 000 ' RMB 31	December 2020 000 ' RMB 31	December 2019 000 ' RMB 31
assets liabilities assets current Current -Non Total	( 71,498,660 67,141,741 92,357,667 )	( 82,084,394 82,675,837 117,069,543 )	( 251,548,460 1,138,117,477 1,286,693,615 )	( 201,437,934 911,678,576 1,030,335,132 )	( 986,392,375 4,380,759,654 4,882,530,300 )	( 870,442,000 3,866,646,930 4,347,377,000 )	( 138,216,863 213,318,600 315,946,473 )	( 139,153,258 198,982,202 303,708,047 )	( 4,976,643 79,476,515 77,915,642 )	( 3,728,987 59,597,271 57,150,811 )	( 73,368,180 38,791,351 43,321,661 )	( 38,143,442 38,193,613 70,941,729 )
shares debt preference perpetual – – interests instrument instrument controlling equity equity assets Other Other -Non Net	( ( 46,282,734 – 9,836,328 4,308,042 ) )	( ( 47,690,688 – 4,007,545 15,784,092 ) )	( – – 102,972,322 19,961,604 )	( 82,781,378 19,961,604 – – )	( ( ( 484,621,729 39,993,000 69,069,000 34,832,000 ) ) )	( ( – 389,711,930 70,067,000 1,072,000 ) )	( 35,588,990 – – 95,344 )	( – – 34,427,413 93,965 )	– – – 6,537,516	– – – 6,175,447	8,744,832 – – –	– – – 5,395,326
parent the of owners to attributable assets Net	32,138,364	27,899,051	83,010,718	62,819,774	340,727,729	318,572,930	35,493,646	34,333,448	6,537,516	6,175,447	8,744,832	5,395,326
ownership acquisition assets the of net on Impairment Proportion of Goodwill Share	1,507,289 456,795 – 4.69%	– 22.70% 6,333,085 2,204,285	– – 11.12% 9,230,792	8,587,463 – – 13.67%	4,565,752 – – 1.34%	– – 1.38% 4,393,121	( 1,327,462 61,765 3.74% 97,421 )	( 3.74% 61,765 1,284,071 97,421 )	– – 16.00% 1,046,003	– – 988,072 16.00%	2,044,542 74,655 – 23.38%	– 23.38% 1,261,427 74,655
investments the of amounts Carrying	1,964,084	8,537,370	9,230,792	8,587,463	4,565,752	4,393,121	1,363,118	1,319,727	1,046,003	988,072	2,119,197	1,336,082
	CIMC year ended December the For 31	year December ended the For 31	CBB year December ended the For 31	year ended December the For 31	CEB year December ended the For 31	year December ended the For 31	BOK year ended December the For 31	year December ended the For 31	Shanghai year December ended the For 31	year ended December the For Life 31	SHIPPING year December ended COSCO the For 31	year December ended Finance the For 31
	2020 000 ' RMB	2019 000 ' RMB	2020 000 ' RMB	2019 000 ' RMB	2020 000 ' RMB	2019 000 ' RMB	2020 000 ' RMB	2019 000 ' RMB	2020 000 ' RMB	2019 000 ' RMB	2020 000 ' RMB	2019 000 ' RMB
of to Attributable Revenue	94,159,083	85,815,341	32,492,170	28,378,394	142,479,000	132,939,000	10,914,001	10,800,176	22,080,684	15,793,152	1,738,813	1,741,348
income : parent /) loss ( comprehensive owners year the for Other Profit	5,349,613	1,156,846	8,047,608	8,563,702	34,960,448	35,127,919	2,910,588	3,533,075	243,538	240,469	500,244	655,188
year the for	( 794,557 )	690,775	( 968,813 )	686,079	( 1,399,925 )	1,082,016	( 289,492 )	62,433	98,675	416,181	( 14,957 )	24,260
year the for income comprehensive declared Dividends Total	4,555,056 453,143	1,642,767 1,847,621	– 7,078,795	2,289,956 9,249,781	11,562,388 33,560,523	8,452,814 36,209,935	2,621,096 1,460,898	3,595,508 1,305,987	– 342,213	– 656,650	485,287 336,330	679,448 299,700

Statements Financial to Notes

2020 December 31

2020 December 31

(continued (ASSOCIATES IN INVESTMENTS 19.

not are that associates s'Group the of information financial aggregate the illustrates table following The :material individually

	31 December 2020	31 December 2019
	000'RMB	000'RMB
Aggregate carrying amount of investments	552,901	503,552
	For year the ended	For year the ended
	31 December 2020	31 December 2019
	000'RMB	000'RMB
Share profit of	54,216	51,369
Share other of comprehensive income	340	13,521
Share total of comprehensive income	54,556	64,890

LOSS OR PROFIT THROUGH VALUE FAIR AT ASSETS FINANCIAL 20.

	31 December 2020	31 December 2019
	000'RMB	000'RMB
Unlisted debt investments	627,605	457,032
Listed equity investments	1,516,558	2,496,638
Unlisted equity investments	2,442,815	1,803,605
	4,586,978	4,757,275
Current portion	) (654,224	(490,967)
Non current- portion	3,932,754	4,266,308

2020 December 31

RECEIVABLES LEASE FINANCE 21.

:follows as were values present their and leases finance under receivables payment lease future total The

	31 December 2020 000'RMB	31 December 2019 000'RMB
Within year one	21,137,003	18,116,489
one After but year within years two	12,757,673	12,401,232
two After but years within three years	7,693,231	6,890,188
After three but years within four years	3,830,108	3,678,095
After four but years within years five	2,980,850	3,278,306
After years five	4,959,224	5,770,840
Total minimum finance lease receivables	53,358,089	50,135,150
Unearned finance income	) 6,212,539 (	) 7,064,023 (
Total present of value minimum finance lease
receivables	47,145,550	43,071,127
Impairment	) 1,279,806 (	(915,062)
net Total finance lease receivables	45,865,744	42,156,065
Current portion	) 18,296,935 (	) 15,532,797 (
Non current- portion	27,568,809	26,623,268
	31 December 2020	31 December 2019
	000'RMB	000'RMB
Within year one	18,742,401	15,888,889
one After but year within years two	11,222,681	10,597,242
two After but years within three years	6,782,884	5,760,574
After three but years within four years	3,365,916	3,033,940
After four but years within years five	2,647,081	2,711,190
After years five	4,384,587	5,079,292
Total present of value minimum finance lease receivables	47,145,550	43,071,127

of amount carrying net a with receivables lease finance s'Group the of certain 2020, December 31 At facilities banking general secure to pledged were) 24,015,141,000RMB 2019: (24,367,438,000RMB approximately .(34 note (bonds corporate issued and) 33 note (Group the to granted

is receivables lease finance of ECLs and risk credit regarding information quantitative and qualitative Further .statements financial the to 47 note in disclosed

2020 December 31

RECEIVABLES FACTORING 22.

	31 December 2020	31 December 2019
	000'RMB	000'RMB
Factoring receivables	1,472,054	1,575,635
Impairment	(23,387)	(23,737)
	1,448,667	1,551,898
Current portion	) 1,083,635 (	) 1,123,489 (
Non current- portion	365,032	428,409

disclosed is receivables factoring of ECLs and risk credit regarding information quantitative and qualitative Further .statements financial the to 47 note in

INSTRUMENTS FINANCIAL DERIVATIVE 23.

as instruments hedging as designated agreements swap rate interest represent instruments financial Derivative :follows

Assets

	31 December 2020 000'RMB	31 December 2019 000'RMB
Interest rate swaps	–	1,529
Current portion	–	(960)
Non current- portion	–	569

Liabilities

	31 December 2020 000'RMB	31 December 2019 000'RMB
Interest rate swaps	20,939	12,035
Current portion	(8,654)	(3,445)
Non current- portion	12,285	8,590

2020 December 31

(continued (INSTRUMENTS FINANCIAL DERIVATIVE 23.

risk currency Foreign – hedge flow Cash

sales forecast of hedges flow cash in instruments hedging as designated are contracts forward currency Foreign sales currency foreign expected of level the with vary balances contract forward exchange foreign The .USD in .rates forward exchange foreign in changes and

of amount notional total a with place in agreements swap rate interest had Group the 2020, December 31 At Offered Interbank London month3- the to equal rates variable at interest receive they whereby \$86,954,000US used are swaps The 2.93%. to 1.37% of rates fixed at interest pay and amounts notional the on") LIBOR ("Rate .rates variable with loans secured its of flows cash the in changes to exposure the hedge to

has Group The .instruments hedging the and items hedged the between relationship economic an is There instruments hedging the of risks underlying the as relationships hedging the for 1:1 of ratio hedge a established hypothetical the uses Group the ,effectiveness hedge the measure To .components risk hedged the to identical are changes the against instruments hedging the of value fair the in changes the compares and method derivative .risks hedged the to attributable items hedged the of value fair in

:from arise can ineffectiveness Hedge

• instruments hedging the and items hedged the of flows cash the of timing the in Differences•
• instruments hedging and items hedged the discount to applied curves rate interest Different•
• instruments hedging the of movements value fair the impacting differently risks credit' counterparties The• items hedged and
• instruments hedging and items hedged of flows cash of amounts forecasted the to Changes•

:instruments hedging following the holds Group The

	Less than year 1	2 to 1 years	5 to 2 years	5 Over years	Total
31 at As December 2020
Interest rate swaps in ( (000'RMB	331,172	87,169	128,414	20,615	567,370
	than Less	2 to 1	5 to 2	5 Over
	year 1	years	years	years	Total
31 at As December 2019
Interest rate swaps in ( (000'RMB	440,012	354,076	184,728	67,805	1,046,621

2020 December 31

(continued (INSTRUMENTS FINANCIAL DERIVATIVE 23.

:follows as are reserve hedge flow cash of movements The

	Foreign currency
	forward	Interest rate
	contracts	swaps	Total
	000'RMB	000'RMB	000'RMB
at As January 1 2019	3,974	15,201	19,175
Hedging loss recognised other in comprehensive income	(3,974)	(15,691)	(19,665)
Amount reclassified to finance costs the of
consolidated statement profit of loss or	–	(10,419)	(10,419)
31 at As December 2019 and January 1 2020	–	(10,909)	(10,909)
Hedging loss recognised other in comprehensive income	–	(15,578)	(15,578)
Amount reclassified to finance costs the of
consolidated statement profit of loss or	–	3,827	3,827
31 at As December 2020	–	(22,660)	(22,660)

for used value fair in change the ,Consequently .loss or profit in recognised ineffectiveness hedge no is There that with same the is instruments hedging the of 2020 December 31 ended year the for ineffectiveness measuring .above income comprehensive other in recognised gain hedging of amount the equalling ,items hedged the of

2020 December 31

TAX DEFERRED 24.

:follows as are year the during assets and liabilities tax deferred in movements The

assets tax Deferred

			Changes in
		Impairment	value fair	Depreciation	Accruals	Total
	Note	000'RMB	000'RMB	000'RMB	000'RMB	000'RMB
At January 1 2020		215,886	12,734	4,805	10,226	243,651
Credited charged(/ profit to) loss or	10	58,405	(12,734)	(4,084)	(27)	41,560
Exchange realignment		(164)	–	(99)	(278)	(541)
31 At December 2020		274,127	–	622	9,921	284,670

			in Changes
		Impairment	value fair	Depreciation	Accruals	Total
	Note	000'RMB	000'RMB	000'RMB	000'RMB	000'RMB
At January 1 2019		186,767	–	4,723	6,250	197,740
Credited profit to loss or	10	29,102	12,734	4	3,906	45,746
Exchange realignment		17	–	78	70	165
31 At December 2019		215,886	12,734	4,805	10,226	243,651

2020 December 31

(continued (TAX DEFERRED 24.

liabilities tax Deferred

		Withholding tax	Changes in value fair	Depreciation	Total
	Note	000'RMB	000'RMB	000'RMB	000'RMB
At January 1 2020		348,241	–	2,734	350,975
Charged credited(/ profit to) loss or	10	28,132	1,001	(268)	28,865
Disposal an of associate		) (260,041	–	) –	(260,041
Transfer tax to payable		(14,750)	–	–	(14,750)
Exchange realignment		–	–	(161)	(161)
31 At December 2020		101,582	1,001	2,305	104,888
		Withholding	Changes in
		tax	value fair	Depreciation	Total
	Note	000'RMB	000'RMB	000'RMB	000'RMB
At January 1 2019		368,088	926	2,798	371,812
Charged credited(/ profit to) loss or	10	17,424	(926)	(108)	16,390
Transfer tax to payable		(37,271)	–	–	(37,271)
Exchange realignment		–	–	44	44
31 At December 2019		348,241	–	2,734	350,975

from investors foreign to declared dividends on levied is tax withholding 10% a ,Law CIT PRC the to Pursuant January 1 from effective is requirement The .China Mainland in established enterprises investment foreign the of Certain 10%. is rate applicable the ,Group the For 2007. December 31 after earnings to applies and 2008 certain by distributed dividends on taxes withholding for liable therefore are subsidiaries overseas s'Group the 2008. January 1 from generated earnings of respect in China Mainland in established associates

:items following the of respect in recognised been not have assets tax Deferred

	31 December 2020 000'RMB	31 December 2019 000'RMB
losses Tax	1,622,606	1,703,690
Deductible temporary differences	1,742,680	1,018,634
	3,365,286	2,722,324

differences temporary deductible and losses these of respect in recognised been not have assets tax Deferred available be will profits taxable that probable considered not is it as Kong Hong and China Mainland in arising .utilised be can differences temporary deductible and losses tax the which against

2020 December 31

INVENTORIES 25.

	31 December 2020 000'RMB	31 December 2019 000'RMB
Raw materials	382,237	307,721
Finished goods	75,269	221,003
Spare parts	537,600	509,972
Provision write for of down- inventories	(32,696)	(157,567)
	962,410	881,129

RECEIVABLES NOTES AND TRADE 26.

	31 December 2020	31 December 2019
	000'RMB	000'RMB
Trade receivables	2,202,779	1,255,223
Notes receivables	387,926	16,701
Impairment	) (144,941	(160,924)
	2,445,764	1,111,000

is There .history payment good a with customers those to granted are months two within period a in terms Credit ,customers of number large a has Group the as ,receivables trade to respect with risk credit of concentration no .dispersed internationally are which

2020 December 31

(continued (RECEIVABLES NOTES AND TRADE 26.

and date invoice the on based ,period reporting the of end the at as receivables trade the of analysis ageing An :follows as is ,allowance loss of net

	31 December 2020	31 December 2019
	000'RMB	000'RMB
Within months 3	1,615,687	965,844
to 3 months 6	316,036	88,287
12 to 6 months	124,612	35,793
Over year 1	1,503	4,375
	2,057,838	1,094,299

disclosed is receivables trade of ECLs and risk credit regarding information quantitative and qualitative Further .statements financial the to 47 note in

RECEIVABLES OTHER AND PREPAYMENTS 27.

	31 December 2020 000'RMB	31 December 2019 000'RMB
Prepayments	732,416	229,633
Other receivables	188,687	198,236
Input -value tax added	141,525	42,038
Impairment	(8,087)	(10,938)
	1,054,541	458,969

2020 December 31

DEPOSITS PLEDGED 28.

	31 December 2020	31 December 2019
	000'RMB	000'RMB
Pledged deposits for and bank other borrowings	220,172	84,028
Pledged deposits for corporate bonds	59,431	153,511
Restricted insurance premium received	88,631	77,729
Pledged deposits letters for credit of	100	100
Pledged deposits bank for acceptance notes	220,784	249,965
Other pledged deposits	1,028	1,006
	590,146	566,339
Current portion	) (590,146	(566,339)
Non current- portion	–	–

EQUIVALENTS CASH AND CASH 29.

	31 December 2020	31 December 2019
	000'RMB	000'RMB
Cash bank and balances	12,046,801	9,635,096

("RMB ("Renminbi in denominated Group the of balances bank and cash the ,period reporting the of end the At other into convertible freely not is RMB The .)6,182,304,000RMB 2019: (5,172,807,000RMB to amounted of Administration and Regulations Control Exchange Foreign s'China Mainland under ,However .currencies for RMB exchange to permitted is Group the ,Regulations Exchange Foreign of Payment and Sale ,Settlement .business exchange foreign conduct to authorised banks through currencies other

are deposits time term Short .rates deposit bank daily on based rates floating at interest earns banks at Cash requirements cash immediate the on depending months three and day one between of periods varying for made pledged and balances bank The .rates deposit time term short respective the at interest earn and ,Group the of .default of history recent no with banks creditworthy with deposited are deposits

2020 December 31

PAYABLES TRADE 30.

:follows as is ,date invoice the on based ,date reporting the of end at as payables trade the of analysis ageing An

	31 December 2020 000'RMB	31 December 2019 000'RMB
Within months 3	2,557,729	1,980,343
to 3 months 6	374,716	374,247
12 to 6 months	145,657	184,017
1 years 2 to	22,793	15,093
	3,100,895	2,553,700

ACCRUALS AND PAYABLES OTHER 31.

	31 December 2020	31 December 2019
	000'RMB	000'RMB
in Receipt advance	348,730	169,957
Other payables	3,745,673	2,813,947
Indirect tax payables	35,310	34,213
Interest payables	415,174	408,711
Dividend payables	226,360	231,443
	4,771,247	3,658,271

LIABILITIES CONTRACT 32.

	31 December 2020 000'RMB	31 December 2019
		000'RMB
of Sales containers	162,354	150,194
Current portion	) (162,354	(150,194)
Non current- portion	–	–

2020 December 31

BORROWINGS OTHER AND BANK 33.

	31 December 2020	31 December 2019
	000'RMB	000'RMB
Secured bank loans	28,865,210	31,922,819
Unsecured bank loans	56,764,479	59,799,789
Unsecured interest bearing- loans from related parties	7,150,990	6,197,120
	92,780,679	97,919,728
Current portion	) 47,252,731 (	) 43,066,519 (
Non current- portion	45,527,948	54,853,209

:follows as are borrowings other and bank of rate interest effective The

	31 December 2020
	Effective
	interest rate
	%( )	Maturity	000'RMB
Current
Bank – loans secured	1.36 6.20 –	2021	12,064,854
Bank – loans unsecured	0.98 5.23 –	2021	28,734,387
Borrowings from related – parties unsecured	1.02 4.04 –	2021	6,453,490
			47,252,731
Non current-
Bank – loans secured	1.36 6.20 –	2022 2031 –	16,800,356
Bank – loans unsecured	0.79 6.25 –	2022 2023 –	28,030,092
Borrowings from related – parties unsecured	4.04	2022	697,500
			45,527,948
			92,780,679

2020 December 31

(continued (BORROWINGS OTHER AND BANK 33.

	31	December 2019
	Effective
	interest rate
	%( )	Maturity	000'RMB
Current
Bank – loans secured	2.75 6.20 –	2020	9,660,648
Bank – loans unsecured	2.61 5.23 –	2020	28,507,251
Borrowings from related – parties unsecured	3.11 4.04 –	2020	4,898,620
			43,066,519
Non current-
Bank – loans secured	2.75 6.20 –	2021 2031 –	22,272,171
Bank – loans unsecured	2.56 6.25 –	2021 2023 –	31,282,538
Borrowings from related – parties unsecured	3.60 4.04 –	2021 2022 –	1,298,500
			54,853,209
			97,919,728

:follows as is 2020 December 31 at as borrowings other and bank of profile Maturity

	31 December 2020 000'RMB	31 December 2019 000'RMB
Within year one on or demand	47,252,731	43,066,519
the In second year	20,594,878	22,218,483
In third the fifth to years inclusive ,	21,137,738	27,610,809
Beyond years five	3,795,332	5,023,917
	92,780,679	97,919,728

note (equipment and plant ,property certain by secured are above disclosed loans bank secured s'Group The .(28 note (deposits pledged and) 21 note (receivables lease finance ,)14

2019:) 2020 December 31 at as 2,335,100,000RMB of loan bank a ,above pledged assets the to addition In CS and Leasing CS ,subsidiaries its in interests equity s'Company the by secured was) 5,225,100,000RMB .Investment

2020 December 31

BONDS CORPORATE 34.

	31 December 2020 000'RMB	31 December 2019 000'RMB
Bond payables	17,559,660	12,544,867
Current portion	) 9,272,114 (	) 4,273,467 (
Non current- portion	8,287,546	8,271,400

:follows as are bonds corporate of rates interest effective The

	31 December 2020
	Effective
	interest rate
	%( )	Maturity	000'RMB
Current
Corporate bond	1.80 2.25 –	2021	3,000,000
Assets backed- notes	3.60 6.50 –	2021	1,242,515
Assets backed- securities	2.40 6.70 –	2021	3,529,599
Medium note term	4.15	2021	1,500,000
			9,272,114
Non current-
Corporate bond	3.95 5.00 –	2022 2030 –	2,300,000
Assets backed- notes	3.60 6.50 –	2022 2024 –	682,301
Assets backed- securities	2.40 6.70 –	2022 2023 –	1,205,245
Medium note term	3.56 3.91 –	2022 2023 –	4,100,000
			8,287,546

17,559,660

2020 December 31

(continued (BONDS CORPORATE 34.

	31 December 2019
	Effective
	interest rate
	%( )	Maturity	000'RMB
Current
Assets backed- notes	3.60 6.50 –	2020	2,200,124
Assets backed- securities	3.80 6.70 –	2020	2,073,343
			4,273,467
Non current-
Corporate bond	5.00	2021 2022 –	1,000,000
Assets backed- notes	3.60 6.50 –	2021 2024 –	1,071,381
Assets backed- securities	3.80 6.70 –	2021 2022 –	1,200,019
Medium note term	3.56 4.15 –	2021 2022 –	5,000,000
			8,271,400
			12,544,867

:follows as is 2020 December 31 at as bonds corporate of profile Maturity

	31 December 2020 000'RMB	31 December 2019 000'RMB
Within year one on or demand	9,272,114	4,273,467
the In second year	6,139,230	3,317,669
In third the fifth to years inclusive ,	1,148,316	4,953,731
Beyond years five	1,000,000	–
	17,559,660	12,544,867

finance certain by secured are) 6,544,867,000RMB 2019: (7,559,660,000RMB of bonds corporate s'Group The .(28 note (deposits pledged and) 21 note (receivables lease

2020 December 31

LIABILITIES LEASE 35.

For year the ended	For year the ended
31 December 2020	31 December 2019
000'RMB	000'RMB
539,730	990,551
14,597	72,088
) (396,861	(538,202)
(136)	–
5,991	6,553
(8,465)	8,740
154,856	539,730
) (100,998	(391,082)
53,858	148,648

:follows as is 2020 December 31 at as liabilities lease of profile Maturity

	31 December 2020	31 December 2019
	000'RMB	000'RMB
Within year one	113,599	422,112
the In second year	31,968	104,887
In third the fifth to years inclusive ,	24,049	42,365
After years five	4,444	8,787
Total undiscounted lease liabilities	174,060	578,151
Discount amount	(19,204)	(38,421)
Total present value lease of liabilities	154,856	539,730
Current portion	) (100,998	(391,082)
Non current- portion	53,858	148,648

2020 December 31

(continued (LIABILITIES LEASE 35.

	31 December 2020	31 December 2019
	000'RMB	000'RMB
Within year one	100,998	391,082
the In second year	28,914	100,835
In third the fifth to years inclusive ,	20,602	39,431
After years five	4,342	8,382
Total present value lease of liabilities	154,856	539,730

GRANTS GOVERNMENT 36.

	For year the ended	For year the ended
	31 December 2020	31 December 2019
	000'RMB	000'RMB
At beginning year of	11,484	13,036
Released profit to loss or	(1,550)	(1,552)
end At year of	9,934	11,484

SHARES TREASURY AND CAPITAL SHARE 37.

	31 December 2020	31 December 2019
	000'RMB	000'RMB
Authorised :
11,608,125,000 2019:) 11,608,125,000 (
ordinary shares with value par RMB of each 1	11,608,125	11,608,125
Issued and :paid fully
11,608,125,000 2019:) 11,608,125,000 (
ordinary shares with value par RMB of each 1	11,608,125	11,608,125

2019:) Shares H 3,676,000,000 and Shares A 7,932,125,000 included shares the 2020, December 31 at As .(Shares H 3,676,000,000 and Shares A 7,932,125,000

2020 December 31

(continued (SHARES TREASURY AND CAPITAL SHARE 37.

:follows as is shares treasury and capital share s'Company the in movements of summary A

	Number of shares issue in	Share capital	Treasury shares
	000'	000'RMB	000'RMB
At January 1 2019	11,683,125	11,683,125	–
Repurchases shares of (a note (	) (154,627	– )	(300,205
(a note ( Cancellation of treasury shares	–	(75,000)	66,777
31 At December 2019, January 1 2020 and
31 December 2020	11,528,498	11,608,125	) (233,428

Hong and Exchange Stock Shanghai the on Shares H 75,000,000 and Shares A 79,627,003 purchased Company The) a( repurchased 75,000,000 .respectively 66,777,000,RMB and 233,428,000RMB of considerations at Exchange Stock Kong 2019. December 31 ended year the in cancelled were Shares H

SCHEME OPTION SHARE 38.

and incentives providing of purpose the for") Scheme "the (scheme option share a operates Company The 2020, March 30 On .operations s'Group the of success the to contribute who participants eligible to rewards granted were options share 73,741,000 and directors s'Company the to granted were options share 4,480,000 management senior and directors include Scheme the of participants Eligible .Group the of employees other to on effective became Scheme The .Group the of personnel business and management core and Company the of .date that from years 10 for force in remain will ,amended or cancelled otherwise unless ,and 2020 March 30

an is Scheme the under granted be to permitted currently options share unexercised of number maximum The maximum The .time any at issue in Company the of shares the of 10% to ,exercise their upon ,equivalent amount month12- any within Scheme the in participant eligible each to options share under issuable shares of number options share of grant further Any .time any at issue in Company the of shares the of 1% to limited is period .meeting general a in approval' shareholders to subject is limit this of excess in

2020 December 31

(continued (SCHEME OPTION SHARE 38.

of any to or ,Company the of shareholder substantial or executive chief ,director a to granted options Share any ,addition In .directors executive-non independent the by advance in approval to subject are ,associates their ,Company the of director executive-non independent an or shareholder substantial a to granted options share an with or time any at issue in Company the of shares the of 0.1% of excess in ,associates their of any to or ,million \$5HK of excess in) grant of date the at shares s'Company the of price the on based (value aggregate .meeting general a in advance in approval' shareholders to subject are ,period month12- any within

vesting a after commences and ,directors the by determinable is granted options share the of period exercise The share the of offer of date the from years seven than later not is which date a on ends and years two of period .earlier if ,Scheme the of date expiry the or options

the) i (of highest the than less be not may but ,directors the by determinable is options share of price exercise The announcement of date the preceding immediately day trading last the on Shares A the of price trading average preceding immediately days trading twenty the for Shares A the of price trading average the) ii; (Scheme the of .Shares A the of value par the) iii (and; Scheme the of announcement the of date the

.meetings' shareholders at vote to or dividends to holders the on rights confer not do options Share

:year the during outstanding were options share following The

Weighted average
exercise price	Number of
per RMB share	options 000'
–	–
2.52	78,221
2.52	(11,415)
2.52	66,806

2020 December 31

(continued (SCHEME OPTION SHARE 38.

period reporting the of end the at as outstanding options share the of periods exercise and prices exercise The :follows as are

2020
Number of options	Exercise *price
000'	per RMB share	Exercise period
23,118	2.52	April 1 to 2022 March 30 2023
22,163	2.52	April 1 to 2023 March 30 2024
21,525	2.52	April 1 to 2024 March 30 2027
66,806

similar other or ,issues bonus or rights of case the in adjustment to subject is options share the of price exercise The* .capital share s'Company the in changes

,(Nil 2019:) (each 0.32RMB (25,031,000RMB was year the during granted options share the of value fair The 31 ended year the during) Nil 2019: (5,528,000RMB of expense option share a recognised Group the which of 2020. December

and values fair such and model valuation Scholes-Black the using estimated is date grant the at value fair The :follows as are model the into inputs significant

Dividend (%) yield	–
Expected volatility (%)	28.1
free-Risk interest (%) rate	2.24
Expected life share of options (years (	3.83
Weighted average share price (RMB (	2.52

necessarily not is and years three past the over data historical the on based is options the of life expected The the that assumption the reflects volatility expected The .occur may that patterns exercise the of indicative .outcome actual the be necessarily not also may which ,trends future of indicative is volatility historical

.value fair of measurement the into incorporated was granted options the of feature other No

in exercise The .outstanding options share 66,806,000 had Company the ,period reporting the of end the At the in result ,Company the of structure capital present the under ,would options share outstanding the of full 173,880,000RMB of capital share additional and Company the of shares ordinary additional 66,806,000 of issue .(capital share to reserve option share the from transferred 5,528,000RMB including(

outstanding options share 66,806,000 had Company the ,statements financial these of approval of date the At Company the of capital share A existing the of 0.84% approximately represented which ,Scheme the under 2020. December 31 at as Company the of capital share issued total existing the of 0.58% approximately and

2020 December 31

RESERVES SPECIAL 39.

Use and Withdrawal the for Measures Administrative the Distributing and Printing on Circular "to According Production Safety the and Finance of Ministry the by issued" Enterprises of Production Safety for Expenses of production the improve to" Fund Safety "a accrue to required is Group the 2012, February 14 on Bureau General the of 1% is rate standard accrual The 2012. January 1 from Fund Safety the accrue should Group The .safety accrued is fund The .PRC the in subsidiaries its of certain and Company the of chartering vessel from revenue .way progressive a in and revenue to according monthly

INSTRUMENTS EQUITY OTHER 40.

of") bonds corporate renewable 2017 "the (debt perpetual a issued Group the 2017, December 21 On deferred indefinitely be can interest of payment the ,addition In .date maturity fixed no with 1,000,000,000RMB renewable 2017 the repaid has Group the 2020, December 31 ended year the During .option s'Group the at .bonds corporate

of") bonds corporate renewable 2018 "the (debt perpetual a issued Group the 2018, November 26 On deferred indefinitely be can interest of payment the ,addition In .date maturity fixed no with 1,000,000,000RMB .option s'Group the at

renewable 2019 "the (debt perpetual of batches four issued Group the 2019, December 31 ended year the During can interest of payment the ,addition In .date maturity fixed no with 5,000,000,000RMB of") bonds corporate .option s'Group the at deferred indefinitely be

corporate renewable 2019 and bonds corporate renewable 2018 ,bonds corporate renewable 2017 the ,Therefore :obligation contractual any include not do they as instruments equity as classified are bonds

• or; entity another to asset financial another or cash deliver to•
• potentially are that conditions under entity another with liabilities financial or assets financial exchange to• .issuer the to unfavourable

2020 December 31

FLOWS CASH OF STATEMENT CONSOLIDATED THE TO NOTES 41.

transactions cash-non Major) a(

of liabilities lease and assets use-of-right to additions cash-non had Group the ,year the During .respectively ,)72,088,000RMB 2019: (14,597,000RMB and) 72,088,000RMB 2019: (14,597,000RMB

generated cash to tax before profit the of reconciliation A) b( :follows as is operations from

		the For ended year	the For ended year
		31 December 2020	December 31 2019
	Notes	000'RMB	000'RMB
CASH FROM FLOWS OPERATING ACTIVITIES
before Profit from tax continuing operations		1,760,958	867,602
before Profit a from tax discontinued operation	11	688,086	1,076,880
Adjustments :for
costs Finance		2,253,120	3,540,784
Interest expenses in included sales of cost		1,398,240	1,304,848
Share of losses of ventures joint		4,774	1,077
Share profits of associates of		(1,985,148)	(2,292,840)
Interest income	5.2	(141,764)	(191,010)
Gain disposal on items of property of and plant , equipment	5.3	(25,686)	(82,630)
Gain disposal on investments of associates in	5.3	(219,316)	–
Changes value fair in financial of fair at assets through value loss or profit	5.3	(26,202)	(747,033)
Depreciation property of and plant , equipment	14	3,287,629	3,099,157
Depreciation investment of properties	15	608	608
Depreciation right of assets use-of-	16	65,262	60,154
Amortisation intangible of assets	17	7,383	5,552
Expected losses credit		622,339	417,563
Impairment property of and plant , equipment	14	722,793	17,484
of down-Write to inventories realisable net value		24,508	178,404
settled Equity option share expense	38	5,528	–
Foreign exchange differences net ,		321,766	(50,172)
		8,764,878	7,206,428
Decrease inventories in		1,270,061	434,138
Increase trade in notes and receivables		(1,318,781)	(122,262)
Increase( in decrease/) prepayments other and receivables		(597,844)	115,014
Increase( decrease/) pledged in deposits		(10,924)	15,840
Increase trade in payables		547,195	867,673
Increase other in payables accruals and		1,378,389	102,012
Increase contract in liabilities		12,160	123,383
in Decrease government grants		(1,550)	(1,552)
Cash generated from operations		10,043,584	8,740,674
Income paid tax		(294,496)	(316,609)
Net flows cash generated from operating activities		9,749,088	8,424,065

2020 December 31

FLOWS CASH OF STATEMENT CONSOLIDATED THE TO NOTES 41. (continued(

activities financing from arising liabilities in Changes) c(

	Bank and other borrowings 000'RMB	Corporate bonds 000'RMB	Lease liabilities 000'RMB
At January 1 2019	106,362,913	6,013,700	990,551
Changes from financing cash flows	) 9,442,867	( 6,531,167	(538,202)
New leases	–	–	72,088
Interest expense	–	–	6,553
Foreign exchange movement	999,682	–	8,740
31 At December 2019	97,919,728	12,544,867	539,730
At January 1 2020	97,919,728	12,544,867	539,730
Changes from financing cash flows	) 1,064,566	( 5,014,793	) (396,861
New leases	–	–	14,597
Interest expense	–	–	5,991
Lease modification	–	–	(136)
Foreign exchange movement	) 4,074,483 (	–	(8,465)
31 At December 2020	92,780,679	17,559,660	154,856

leases for outflow cash Total) d(

:follows as is flows cash of statement the in included leases for outflow cash total The

	31 December 2020 000'RMB	31 December 2019 000'RMB
Within operating activities Within financing activities	8,785 396,861	150,311 538,202
	405,646	688,513

2020 December 31

ARRANGEMENTS LEASE OPERATING 42.

lessor As

details The .arrangements lease operating under buildings and containers ,vessels certain its leases Group The .statements financial the to 5.1 note in included are leasing container and chartering vessel from revenue of .(7,370,000RMB 2019: (6,522,000RMB was properties investment from income Rental

2020 December 31 at as commitments lease Operating) a(

under periods future in Group the by receivable payments lease undiscounted the 2020, December 31 At :follows as are tenants its with leases operating cancellable-non

	31 December 2020	31 December 2019
	000'RMB	000'RMB
Within year one	1,788,785	5,719,539
one After but year within years two	1,597,830	1,682,789
two After but years within three years	1,434,664	1,401,326
After three but years within four years	1,297,496	1,146,166
After four but years within years five	1,158,898	922,578
After years five	2,649,018	2,561,695
	9,926,691	13,434,093

:follows as are accounting lessor to relation in loss or profit in recognised amounts The) b(

	31 December 2020	31 December 2019
	000'RMB	000'RMB
Income from subleasing	10,612	24,156

2020 December 31

(continued (ARRANGEMENTS LEASE OPERATING 42.

lessee As

vehicles motor ,machinery and buildings ,payments lease land prepaid for contracts lease various has Group The note in included are contracts lease these of terms lease of Details .operation its in used equipment office and leased the subleasing and assigning from restricted is Group the ,Generally .statements financial the to 2.4 .Group the outside assets

liabilities lease and assets use-of-Right) a(

and 16 notes in out set been has liabilities lease and assets use-of-right regarding information Detailed .statements financial the to ,respectively 35,

:follows as are accounting lessee to relation in loss or profit in recognised amounts The) b(

	31 December 2020	31 December 2019
	000'RMB	000'RMB
Interest lease on liabilities	5,991	6,553
Depreciation charge right of use-of- assets	65,262	60,154
Expense relating short to term- leases	8,785	150,311

(a(41 note in disclosed are liabilities lease and assets use-of-right to additions cash-Non) c( .statements financial the to

COMMITMENTS 43.

:period reporting the of end the at commitments following the had Group The

commitments Capital

	31 December 2020 000'RMB	31 December 2019 000'RMB
Contracted not but , provided :for
Equity investment	423,215	757,005
Property plant , and equipment	7,028,381	67,665
	7,451,596	824,670

2020 December 31

TRANSACTIONS PARTY RELATED SIGNIFICANT 44.

the had Group the ,statements financial these in elsewhere detailed transactions the to addition In) a( :year the during parties related with transactions following

	For year the ended 31 December 2020 000'RMB	For year the ended 31 December 2019 000'RMB
Interest income :from
An associate *	52,730	73,197
Interest expenses :to
Immediate holding company *	21,960	21,900
Fellow subsidiaries *	2,382	1,331
An associate *	138,378	105,061
of Sales :to goods
Fellow subsidiaries *	1,486,888	1,251,341
Purchases goods of :from
Fellow subsidiaries *	3,800,158	816,509
Purchases of of items ,property
plant and equipment :from
Fellow subsidiaries * Rendering of services fellow to subsidiaries :	2,774,334	–
Vessel chartering and container *leasing	5,654,446	5,814,614
Finance lease * income	11,024	9,111
Management fee *income	39,665	24,027
*Others	26,855	30,956
Receiving of services :from
Fellow subsidiaries *	1,641,020	1,616,371
of Sales of items property plant , and equipment :to
Fellow subsidiaries *	–	10,294

and rates interest or prices published the to according made were above transactions party related The .customers major respective the to offered those to similar conditions

as transactions connected continuing or transactions connected constitute transactions party related Certain* .Rules Listing the of A14 Chapter in defined

parties related with Commitments) b(

:subsidiaries fellow with commitments the summarises below table The

lessor As

	31 December 2020 000'RMB	31 December 2019 000'RMB
Within year one	361,459	4,322,009
one After but year within years two	248,912	258,588
two After but years within three years	211,884	146,041
After three but years within four years	198,459	109,013
After four but years within years five	174,047	83,109
After years five	673,793	18,665
	1,868,554	4,937,425

2020 December 31

(continued (TRANSACTIONS PARTY RELATED SIGNIFICANT 44.

parties related with balances Outstanding) c(

		31 December	31 December
		2020	2019
	Notes	000'RMB	000'RMB
Amounts :from due
Fellow subsidiaries		508,975	868,814
An associate	( (i	5,235,747	6,334,490
Amounts :to due
Immediate holding company		660	660
Fellow subsidiaries		1,789,869	1,229,028
An associate		5,645	6,297
Loans :from
Immediate holding company	( (ii	600,000	600,000
Fellow subsidiaries	( (ii	–	697,620
An associate	( (ii	6,550,990	4,899,500
Lease liabilities :to due
Fellow subsidiaries		48,078	75,899

:Notes

• the of each of end the at deposits of All .associate an at cash its of portion certain a placed Group The) i( Interest .equivalents cash and cash in presented ,therefore were and ,deposits demand were periods reporting .associate the with agreed terms and rates the to according charged was
• at as associate an and subsidiaries fellow ,company holding immediate the from loans s'Group the of Details) ii( .statements financial the to 33 note in included are period reporting the of end the

had and bearing-interest-non ,unsecured were parties related with balances outstanding the ,above disclosed as Save .terms repayment fixed no

2020 December 31

(continued (TRANSACTIONS PARTY RELATED SIGNIFICANT 44.

Group the of personnel management key of Compensation) d(

	31 December 2020 000'RMB	31 December 2019 000'RMB
,Salaries allowances and benefits kind in	7,099	7,949
Performance related bonuses	–	6,954
Equity settled- share potion expense	509	–
Pension scheme contributions	979	1,501
	8,587	16,404

CATEGORY BY INSTRUMENTS FINANCIAL 45.

period reporting the of end the at as instruments financial of categories the of each of amounts carrying The :follows as are

loss or profit through value fair at – assets Financial

	31 December 2020	31 December 2019
	000'RMB	000'RMB
Financial at assets value fair through profit loss or	4,586,978	4,757,275
Derivative financial instruments	–	1,529
	4,586,978	4,758,804

cost amortised at – assets Financial

	31 December 2020 000'RMB	31 December 2019 000'RMB
Finance lease receivables	45,865,744	42,156,065
Factoring receivables	1,448,667	1,551,898
Trade and notes receivables	2,445,764	1,111,000
Financial assets included in prepayments and
other receivables	180,600	187,298
Pledged deposits	590,146	566,339
Cash cash and equivalents	12,046,801	9,635,096
	62,577,722	55,207,696

2020 December 31

(continued (CATEGORY BY INSTRUMENTS FINANCIAL 45.

instruments financial derivative – liabilities Financial

	31 December 2020	31 December 2019
	000'RMB	000'RMB
Derivative financial instruments	20,939	12,035

cost amortised at – liabilities Financial

	31 December 2020	31 December 2019
	000'RMB	000'RMB
Trade payables	3,100,895	2,553,700
Financial liabilities included other in payables
and accruals	4,387,207	3,454,101
and Bank other borrowings	92,780,679	97,919,728
Corporate bonds	17,559,660	12,544,867
Lease liabilities	154,856	539,730
Other term long payables	2,804,852	2,370,536
	120,788,149	119,382,662

2020 December 31

FINANCIAL OF HIERARCHY VALUE FAIR AND VALUE FAIR 46. INSTRUMENTS

fair at measured those than other ,instruments financial s'Group the of values fair and amounts carrying The :follows as are ,values fair to approximate reasonably that amounts carrying with or value

	Carrying	amounts	Fair values
	31 December	31 December	31 December	31 December
	2020	2019	2020	2019
	000'RMB	000'RMB	000'RMB	000'RMB
and Bank other borrowings	45,527,948	54,853,209	44,086,711	54,543,065
Corporate bonds	8,287,546	8,271,400	8,286,332	8,162,984
Other term long payables	2,804,852	2,370,536	2,564,869	2,169,397
	56,620,346	65,495,145	54,937,912	64,875,446

notes and trade ,deposits pledged ,equivalents cash and cash of values fair the that assessed has Management lease finance of portion current the ,receivables other and prepayments in included assets financial ,receivables other in included liabilities financial ,payables trade ,receivables factoring of portion current the and receivables bonds corporate of portion current the ,borrowings other and bank of portion current the ,accruals and payables term short the to due largely amounts carrying their to approximate liabilities lease of portion current the and .instruments these of maturities

the and receivables factoring of portion current-non the ,receivables lease finance of portion current-non The carrying their because values fair their to approximate Group the of liabilities lease of portion current-non with instruments for available currently rates to close are return of rates internal and value present are amounts .maturities remaining and risk credit ,terms similar

and policies the determining for responsible is manager finance the by headed department finance s'Group The to directly reports department finance The .instruments financial of measurement value fair the for procedures values the in movements the analyses department finance the ,date reporting each At .officer financial chief the and reviewed is valuation The .valuation the in applied inputs major the determines and instruments financial of .officer financial chief the by approved

term long other and bonds corporate ,borrowings other and bank of portion current-non the of value fair The available currently rates using flows cash future expected the discounting by calculated been has payables carrying the between differences The .maturities remaining and risk credit ,terms similar with instruments for .significant not are liabilities financial those of values fair and amounts

2020 December 31

FINANCIAL OF HIERARCHY VALUE FAIR AND VALUE FAIR 46. (continued (INSTRUMENTS

hierarchy value Fair

:instruments financial s'Group the of hierarchy measurement value fair the illustrate tables following The

value fair at measured assets Financial

2020 December 31

	Fair value measurement	categorised into
	1 Level	2 Level	3 Level	Total
	000'RMB	000'RMB	000'RMB	000'RMB
Financial at assets value fair through
profit loss or	1,516,558	2,442,815	627,605	4,586,978
31 December 2019
	Fair value	measurement categorised	into
	1 Level	2 Level	3 Level	Total
	000'RMB	000'RMB	000'RMB	000'RMB
Financial at assets value fair through
profit loss or	2,496,638	1,803,605	457,032	4,757,275
Derivative financial instruments	–	1,529	–	1,529
	2,496,638	1,805,134	457,032	4,758,804

2020 December 31

FINANCIAL OF HIERARCHY VALUE FAIR AND VALUE FAIR 46. (continued (INSTRUMENTS

(continued (hierarchy value Fair

value fair at measured liabilities Financial

2020 December 31

	Fair value	measurement categorised into
	1 Level	2 Level	3 Level	Total
	000'RMB	000'RMB	000'RMB	000'RMB
Derivative financial instruments	–	20,939	–	20,939
31 December 2019
	Fair value	measurement categorised	into
	1 Level	2 Level	3 Level	Total
	000'RMB	000'RMB	000'RMB	000'RMB
Derivative financial instruments	–	12,035	–	12,035

transfers no and 2 Level and 1 Level between measurements value fair of transfers no were there ,year the During .(Nil 2019: (liabilities and assets financial both for 3 Level of out or into

fair their estimates Group the 2, Level into categorised measurement value fair with assets financial the all For accordance in calculated are values fair the ,funds private in investments For .approach market the using values regarding deal recent a is there if ,investments other the For .manager fund the by prepared value asset net with ,referenced be to deal such no is there If .price deal the on based estimated are values fair the ,investments these ,strategy and leverage ,size ,industry on based) peers (companies public comparable determine will directors the calculated is multiple The .identified company comparable each for multiple price appropriate an calculate and is multiple trading The .profit net or assets net by company comparable the of value enterprise the dividing by The .circumstances and facts specific-company on based illiquidity as such considerations for discounted then to investments equity unlisted the of profit net or assets net corresponding the to applied is multiple discounted ,technique valuation the from resulting values fair estimated the that believe directors The .value fair the measure ,values fair in changes related the and ,position financial of statement consolidated the in recorded are which end the at values appropriate most the were they that and ,reasonable are ,loss or profit in recorded are which .period reporting the of

management wealth represent 3 Level into categorised loss or profit through value fair at assets financial All cash discounted a using by value fair their estimated has Group The .China Mainland in banks by issued products .risks and terms similar with instruments of rates interest market the on based model valuation flow

2020 December 31

FINANCIAL OF HIERARCHY VALUE FAIR AND VALUE FAIR 46. (continued (INSTRUMENTS

(continued (hierarchy value Fair

was loss or profit through value fair at assets financial s'Group the for measurement value fair recurring The summary a is below out Set 2020. December 31 at as) 3 Level (inputs unobservable significant using performed :valuation the to input key the and used techniques valuation the of

		Significant		Sensitivity
	Valuation	unobservable		fair of to value
	technique	input	Range	the input
Financial at assets value fair	Discounted	Discount rate	2020:	5% 2019:) (5%
through profit loss or	flow cash method	per annum	4.1% 4.6% –	/increase decrease
			) 2019:4.7%	would in result
			(-5.2%	decrease increase/ in
				fair by value 0.06%
				2019:) (0.08%

:follows as are year the during 3 Level into categorised assets financial in movements The

	Financial assets fair at value through profit loss or 000' RMB
At January 1 2019	–
Purchases	500,000
Disposals	(50,644)
Total gains recognised the in statement profit of loss or
included other in income gains and	7,676
31 December 2019 at and January 1 2020	457,032
Purchases	620,000
Disposals	) (457,032
Total gains recognised the in statement profit of loss or
included other in income gains and	7,605
31 at As December 2020	627,605

2020 December 31

POLICIES AND OBJECTIVES MANAGEMENT RISK FINANCIAL 47.

,borrowings other and bank comprise ,derivatives than other ,instruments financial principal s'Group The instruments financial these of purpose main The .equivalents cash and cash and liabilities lease ,bonds corporate as such liabilities and assets financial other various has Group The .operations s'Group the for finance raise to is .operations its from directly arise which ,payables notes and trade and ,receivables notes and trade

to is purpose The .swaps rate interest principally including ,transactions derivative into enters also Group The .finance of sources its and operations s'Group the from arising rate interest the manage

and risk liquidity ,risk credit ,risk rate interest are instruments financial s'Group the from arising risks main The they and risks these of each managing for policies agrees and reviews directors of board The .risk price equity .below summarised are

risk rate Interest

borrowings bank s'Group the to primarily relates rates interest market in changes of risk to exposure s'Group The variable and fixed of mix a using cost interest its manage to is policy s'Group The .rates interest floating with .contracts swap rate interest using and debts rate

held variables other all with lower/higher points basis 100 been had rates interest if 2020, December 31 at As 595,706,000RMB 2019: (higher/lower 676,572,000RMB been have would year the for tax before profit ,constant .borrowings bank rate floating on expense interest lower/higher of result a as mainly ,)higher/lower

risk Credit

trade and receivables factoring ,receivables lease finance from primarily risk credit to exposed is Group The .operation its in receivables

all that policy s'Group the is It .parties third creditworthy and recognised with only trades Group The ongoing an on monitored are balances Receivable .procedures verification credit to subject are counterparties .basis

exposure risk credit Maximum) a(

maximum a with ,counterparty the of default from arises assets financial s'Group the of risk credit The collateral any of account taking without instruments these of amounts carrying the to equal exposure .enhancements credit other or held

2020 December 31

POLICIES AND OBJECTIVES MANAGEMENT RISK FINANCIAL 47. (continued(

(continued (risk Credit

assessment Impairment) b(

in impairment for estimates and judgements accounting significant and policy accounting detailed The .respectively ,statements financial the to 3 and 2.4 notes in given are risk credit to relation

and receivables factoring ,receivables lease finance of impairment for provision the in movements The :follows as are ,Group the of risk credit primary the for account which ,receivables trade

		lease Finance receivables December 31 2020				Factoring receivables	Trade receivables December 31 2020
						December 31
	Stage	Stage 1	3 Stage 2		Stage Total	Stage 1	Stage 2	Total 3
	000'RMB	000'RMB	000'RMB	000'RMB	000'RMB	000'RMB	000'RMB	000'RMB	000'RMB
At 2020 January 1	254,901	296,396	363,765	915,062	15,741		7,996 –	23,737	160,924
Impairment reversed (losses recognised/)	52,541)	228,425 (	459,465	635,349	(1,213)		863 –	(350)	(10,379)
Transfer 1 Stage to	53,838	(53,838)		– –		– –		– –	–
Transfer 2 Stage to	29,400)	29,400 (		– –		– –		– –	–
Transfer 3 Stage to	21,132)	2,077) (	23,209 (	–		– –		– –	–
Amount off written uncollectable as	–		257,755) –	(257,755) (		– –		– –	–
Exchange realignment	762)	1,910) (	10,178) (	(12,850) (		– –		– –	(5,604)
31 At 2020 December	204,904	496,396	578,506	1,279,806	14,528		8,859 –	23,387	144,941

		Finance receivables lease				Factoring receivables		Trade receivables
		31 2019 December				31 2019 December		31 2019 December
	Stage	Stage 1 3 Stage 2			Stage Total	Stage 1	Stage 2	Total 3
	000'RMB	000'RMB	000'RMB	000'RMB	000'RMB	000'RMB	000'RMB	000'RMB	000'RMB
At 2019 January 1	356,218	195,812	234,871	786,901	10,801		5,280 –	16,081	114,790
Impairment losses recognised (reversed(/	251,235	9,727)	117,509 (	359,017	4,940		2,716 –	7,656	44,046
Transfer 1 Stage to	3,725	(3,725)		– –		– –		– –	–
Transfer 2 Stage to	113,717)	113,717 (		– –		– –		– –	–
Transfer 3 Stage to	242,744)	249) (	242,993 (	–		– –		– –	–
Amount off written uncollectable as	–		232,105) –	(232,105) (		– –		– –	–
Exchange realignment	184	568	497	1,249		– –		– –	2,088
31 At 2019 December	254,901	296,396	363,765	915,062	15,741		7,996 –	23,737	160,924

2020 December 31

POLICIES AND OBJECTIVES MANAGEMENT RISK FINANCIAL 47. (continued(

(continued (risk Credit

quality Credit) c(

quality credit descending in classified ,grades rating risk credit by quality credit the manages Group The ,impaired not but due past ,impaired individually and due past not ,impaired nor due past neither as order .impaired individually and due past and impaired collectively and due past

credit primary the for account which ,receivables trade and receivables factoring ,receivables lease Finance :follows as classified are ,Group the of risk

receivables factoring and receivables lease Finance

		lease Finance receivables				Factoring receivables
		December 31	2020		December 31 2020
	Stage 000'RMB	Stage 1 000'RMB	Stage 2 000'RMB	Total 3 000'RMB	Stage 000'RMB	Stage 1 000'RMB	Stage 2 000'RMB	Total 3 000'RMB
due past Not collectively and impaired	40,574,681	–		40,574,681 –	1,459,697	–		1,459,697 –
due Past collectively and impaired	805,368	4,663,261		5,468,629 –		– –		– –
due Past individually and impaired	–		1,102,240 –	1,102,240	–		12,357 –	12,357
	41,380,049	4,663,261	1,102,240	47,145,550	1,459,697		12,357 –	1,472,054
		Finance receivables lease				Factoring receivables
		31	2019 December		31 2019 December
	Stage	Stage 1	Stage 2	Total 3	Stage	Stage 1	Stage 2	Total 3
	000'RMB	000'RMB	000'RMB	000'RMB	000'RMB	000'RMB	000'RMB	000'RMB
due past Not collectively and impaired	39,248,338	–		39,248,338 –	1,567,639	–		1,567,639 –
due Past collectively and impaired	671,467	2,629,113		3,300,580 –		– –		– –
due Past individually and impaired	–		522,209 –	522,209	–		7,996 –	7,996
	39,919,805	2,629,113	522,209	43,071,127	1,567,639		7,996 –	1,575,635

2020 December 31

POLICIES AND OBJECTIVES MANAGEMENT RISK FINANCIAL 47. (continued(

(continued (risk Credit

(continued (quality Credit) c(

receivables Trade

	December 31 2020						31	2019 December
		Aging	the on based date invoice		on based Aging date invoice the
	Within	1-2	2-3			Within	1-2	2-3	Over
	year 1	years years		years 3	Total	year 1	years	years	years 3	Total
	000'RMB	000'RMB	000'RMB 000'RMB 000'RMB		000'RMB	000'RMB	000'RMB	000'RMB	000'RMB
due past Not collectively and
impaired	1,993,143		– –		1,993,143 –	998,709		– –		998,709 –
due Past collectively and
impaired	126,790	1,642	34		128,466 –	124,924	4,861	–		129,785 –
due Past individually and
impaired		11,436 –	33,317	36,417	81,170		35,621 –	13,651	77,457	126,729
	2,119,933	13,078	33,351	36,417	2,202,779	1,123,633	40,482	13,651	77,457	1,255,223

Concentration) d(

.sector industry by and region geographical by ,counterparty by managed are risk credit of Concentrations widely are receivables the as Group the within risk credit of concentrations significant no are There .industries and sectors different in dispersed

risk Liquidity

finances Group The .requirements liquidity its meet to lines credit and cash sufficient maintain to aims Group The other and bank ,operations from generated funds of combination a through requirements capital working its .liabilities lease and bonds corporate ,borrowings

on based December 31 at liabilities financial s'Group the of profile maturity the summarises below table The ,floating if ,or rates contractual using computed payments interest including payments undiscounted contractual .period reporting the of end the at current rates on based

the on based ,period reporting the of end the at as liabilities financial s'Group the of profile maturity The :follows as is ,payments undiscounted contractual

2020 December 31

POLICIES AND OBJECTIVES MANAGEMENT RISK FINANCIAL 47. (continued(

(continued (risk Liquidity

2020 December 31

	Less than	2 to 1	5 to 2	5 Over
	year 1	years	years	years	Total
	000'RMB	000'RMB	000'RMB	000'RMB	000'RMB
Trade payables	3,100,895	–	–	–	3,100,895
Financial liabilities included in
other payables and accruals	4,387,207	–	–	–	4,387,207
and Bank other borrowings	49,235,436	22,000,977	22,286,654	3,803,361	97,326,428
Corporate bonds	9,759,677	6,350,088	1,351,049	1,223,000	18,683,814
Lease liabilities	113,599	31,968	24,049	4,444	174,060
Other term long payables	–	1,371,125	1,001,941	431,786	2,804,852
Total	66,596,814	29,754,158	24,663,693	5,462,591	126,477,256

2019 December 31

	than Less	2 to 1	5 to 2	5 Over
	year 1	years	years	years	Total
	000'RMB	000'RMB	000'RMB	000'RMB	000'RMB
Trade payables	2,553,700	–	–	–	2,553,700
Financial liabilities included in
other payables and accruals	3,454,101	–	–	–	3,454,101
and Bank other borrowings	45,960,999	23,887,375	29,748,080	5,726,619	105,323,073
Corporate bonds	4,721,200	3,588,181	5,246,022	–	13,555,403
Lease liabilities	422,112	104,887	42,365	8,787	578,151
Other term long payables	–	823,861	1,287,902	258,773	2,370,536
Total	57,112,112	28,404,304	36,324,369	5,994,179	127,834,964

2020 December 31

POLICIES AND OBJECTIVES MANAGEMENT RISK FINANCIAL 47. (continued(

risk price Equity

levels the in changes of result a as decrease securities equity of values fair the that risk the is risk price Equity from arising risk price equity to exposed is Group The .securities individual of value the and indices equity of December 31 at as loss or profit through value fair at assets financial in included investments equity individual .prices market quoted at valued are which 2020,

other all with lower/higher 10% been had investments equity the of values fair if 2020, December 31 at As 2019:) lower/higher 151,656,000RMB been have would year the for tax before profit ,constant held variables /higher 187,248,000RMB 2019: (lower/higher 113,742,000RMB been have would equity and) 249,664,000RMB .(lower

management Capital

a as continue to ability s'Group the safeguard to are management capital s'Group the of objectives primary The 'shareholders maximise and business its support to order in ratios capital healthy maintain to and concern going .value

conditions economic in changes of light in it to adjustments makes and structure capital its manages Group The may Group the ,structure capital the adjust or maintain To .assets underlying the of characteristics risk the and changes No .shares new issue or shareholders to capital return ,shareholders to payment dividend the adjust December 31 ended years the during capital managing for processes or policies ,objectives the in made were 2019. December 31 and 2020

2020 December 31

POLICIES AND OBJECTIVES MANAGEMENT RISK FINANCIAL 47. (continued(

(continued (management Capital

includes debt Net .equity total by divided debt net is which ,ratio gearing a using capital monitors Group The cash and cash and deposits pledged less ,liabilities lease and bonds corporate ,borrowings other and bank :follows as were periods reporting the of end the at as ratios gearing The .equivalents

	31 December 2020	31 December 2019
	000'RMB	000'RMB
and Bank other borrowings	92,780,679	97,919,728
Corporate bonds	17,559,660	12,544,867
Lease liabilities	154,856	539,730
Pledged deposits	) (590,146	(566,339)
Cash cash and equivalents	) 12,046,801 (	) 9,635,096 (
debt Net	97,858,248	100,802,890
Total equity	24,370,008	24,207,718
Gearing ratio	402%	416%

PERIOD REPORTING THE AFTER EVENTS 48.

of inclusive (share per 0.056RMB of dividend final a of payment the proposed Board the 2021, March 30 On the being ,shares 11,528,497,997 on based calculated 645,596,000RMB approximately totaling ,)tax applicable A 79,627,003 deducting 2021 March 30 at as 11,608,125,000 of Company the of shares issued of number of approval the to subject is which 2020, December 31 ended year the for ,Company the by repurchased shares .Company the of meeting general annual forthcoming the at Company the of shareholders

AMOUNTS COMPARATIVE 49.

the during discontinued operation the if as presented-re been has loss or profit of statement comparative The .(11 note (period comparative the of beginning the at discontinued been had year current

2020 December 31

COMPANY THE OF POSITION FINANCIAL OF STATEMENT 50.

as is period reporting the of end the at Company the of position financial of statement the about Information :follows

	31 December 2020	31 December 2019
	000'RMB	000'RMB
-NON CURRENT ASSETS
Property plant , and equipment	9,548,394	11,809,825
Right use-of- assets	39,403	55,707
Intangible assets	5,492	1,894
Investments in associates	1,618,929	877,425
Investments in subsidiaries	40,522,213	38,332,369
Financial at assets value fair through profit loss or	1,845,780	2,738,058
Loans and receivables	5,296,340	3,092,860
non Total current- assets	58,876,551	56,908,138
CURRENT ASSETS
Inventories	380,282	330,260
Trade and notes receivables	427,622	460,027
Prepayments and other receivables	3,552,148	2,376,467
Loans and receivables	500,000	2,909,286
Pledged deposits	2,610	19,507
Cash cash and equivalents	2,773,005	2,835,921
Total current assets	7,635,667	8,931,468
Total assets	66,512,218	65,839,606
CURRENT LIABILITIES
Trade payables Other payables and accruals	443,236 9,359,874	270,473 8,368,154
and Bank other borrowings	13,680,100	9,671,000
Lease liabilities	13,492	12,906
Total current liabilities	23,496,702	18,322,533
NET CURRENT LIABILITIES	) 15,861,035 (	) 9,391,065 (
TOTAL ASSETS LESS CURRENT LIABILITIES	43,015,516	47,517,073

2020 December 31

(continued (COMPANY THE OF POSITION FINANCIAL OF STATEMENT 50.

	31 December 2020 000'RMB	31 December 2019 000'RMB
-NON CURRENT LIABILITIES
and Bank other borrowings	3,132,000	4,833,600
Corporate bonds	4,500,000	5,000,000
Lease liabilities	17,731	31,223
Other term long payables	18,105	17,525
non Total current- liabilities	7,667,836	9,882,348
Net assets	35,347,680	37,634,725
EQUITY
Share capital	11,608,125	11,608,125
Treasury shares	) (233,428	(233,428)
Other reserves (note (	19,278,493	19,211,565
Other equity instrument (note (	6,000,000	7,000,000
( Accumulated losses retained/) profits (note (	) 1,305,510 (	48,463
Total equity	35,347,680	37,634,725

2020 December 31

(continued (COMPANY THE OF POSITION FINANCIAL OF STATEMENT 50.

:Note

:follows as is losses accumulated and reserves s'Company the of summary A

			(	Accumulated
			Other	/(losses
	Special	Other	equity	retained
	reserve	reserves	instrument	profits
	000'RMB	000'RMB	000'RMB	000'RMB
At January 1 2019	–	19,068,767	2,000,000	(367,357)
Profit total and comprehensive for income year the	–	–	–	1,267,884
Issue other of equity instruments	–	–	5,000,000	–
Cancellation treasury of shares	–	8,223	–	–
Dividends declared	–	–	–	(380,440)
Dividends to of holders other the equity instruments	–	–	–	(337,049)
Transfer from retained profits	17,669	134,575	–	(152,244)
Utilisation reserve of funds	(17,669)	–	–	17,669
31 At December 2019	–	19,211,565	7,000,000	48,463
At January 1 2020	–	19,211,565	7,000,000	48,463
Loss total and comprehensive for loss year the	–	–	–	(453,190)
Equity settled- share option arrangements	–	5,528	–	–
Repayment other of equity instruments	–		) – (1,000,000	–
Dividends declared	–	–	–	(518,782)
Dividends to of holders other the equity instruments	–	–	–	(320,601)
Transfer from retained profits	19,054	61,400	–	(80,454)
Utilisation reserve of funds	(19,054)	–	–	19,054
31 At December 2020	–	19,278,493	6,000,000	) (1,305,510

STATEMENTS FINANCIAL THE OF APPROVAL 51.

1. March 30 on directors of board the by issue for authorised and approved were statements financial The

Summary Financial Year Five

RESULTS

	Year ended 31 December
	2020	2019	2018	2017	2016
	000'RMB	000'RMB	000'RMB	000'RMB	000'RMB
		Restated( )	( Restated )	( Restated )	( (Restated
CONTINUING OPERATIONS
REVENUE	14,421,919	9,665,682	12,020,213	11,391,466	11,213,705
Costs sales of	) 10,834,932	) ( 7,202,187 ) (	9,615,277	) ( 9,737,991 ) (	10,916,542 (
Gross profit	3,586,987	2,463,495	2,404,936	1,653,475	297,163
Other income	286,950	414,051	393,967	191,249	416,273
Other gains losses(/ net ,)	155,593	835,317	(272,695)	(25,886)	108,856
Selling and administrative expenses	) 1,373,487	) ( 1,178,677 (	(930,121)	961,876)	) ( 1,536,466 (
Expected credit losses	) (622,339	(417,563)	(289,157)	–	–
Finance costs	) 2,253,120	) ( 3,540,784	) ( 3,406,547	) ( 2,701,922	) ( 1,690,941 (
of Share (/profits :of) losses
Associates	1,985,148	2,292,840	2,314,450	2,057,169	1,538,043
Joint ventures	(4,774)	(1,077)	6,467	7,155	8,532
PROFIT LOSS(/ BEFORE) TAX FROM CONTINUING OPERATIONS	1,760,958	867,602	221,300	219,364	(858,540)
tax Income expenses	) (318,773	(199,749)	(356,208)	(360,142)	(168,414)
(/PROFIT FOR) LOSS YEAR THE
FROM CONTINUING OPERATIONS	1,442,185	667,853	(134,908)	140,778)	) ( 1,026,954 (
DISCONTINUED OPERATION
for Profit year the a from discontinued
operation	688,086	1,076,880	1,571,183	1,675,110	1,420,029
PROFIT FOR YEAR THE	2,130,271	1,744,733	1,436,275	1,534,332	393,075
Attributable :to
of Owners parent the	2,130,271	1,744,733	1,384,257	1,463,803	347,503
-Non controlling interests	–	–	52,018	70,529	45,572
	2,130,271	1,744,733	1,436,275	1,534,332	393,075

Summary Financial Year Five

INTERESTS CONTROLLING-NON AND LIABILITIES ,ASSETS

	31 at As December
	2020	2019	2018	2017	2016
	000'RMB	000'RMB	000'RMB	000'RMB	000'RMB
		Restated( )	( Restated )	( Restated )	( (Restated
TOTAL ASSETS	146,038,794	144,494,119	137,837,422	139,037,660	125,460,305
TOTAL LIABILITIES	) 121,668,786	) ( 120,286,401	) ( 119,797,287 ) (	122,163,873	) ( 111,897,191 (
-NON CONTROLLING INTERESTS	–	–	–	(597,625)	(313,067)
	24,370,008	24,207,718	18,040,135	16,276,162	13,250,047