COSCO SHIPPING Development Co., Ltd. — Audit Report / Information 2020

Apr 29, 2021

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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中遠海運發展股份有限公司 COSCO SHIPPING Development Co., Ltd.*

(A joint stock limited company incorporated in the People’s Republic of China with limited liability)

(Stock Code: 02866)

OVERSEAS REGULATORY ANNOUNCEMENT

This announcement is made pursuant to Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

The “COSCO SHIPPING Development Co., Ltd. Pro Forma Consolidated Financial Statements and Review Report for 2020” as published by COSCO SHIPPING Development Co., Ltd. in Chinese on the website of the Shanghai Stock Exchange (www.sse.com.cn) on 29 April 2021 and its English translation extract is enclosed hereto as overseas regulatory announcement for your reference only. In case of any inconsistencies between the Chinese version and the English translation, the Chinese version shall prevail.

By order of the Board COSCO SHIPPING Development Co., Ltd. Cai Lei Joint Company Secretary

29 April 2021

As at the date of this announcement, the Board comprises Mr. Wang Daxiong, Mr. Liu Chong and Mr. Xu Hui, being executive Directors, Mr. Huang Jian, Mr. Liang Yanfeng and Mr. Ip Sing Chi, being non-executive Directors, and Mr. Cai Hongping, Ms. Hai Chi Yuet, Mr. Graeme Jack, Mr. Lu Jianzhong and Ms. Zhang Weihua, being independent non-executive Directors.

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

REVIEW REPORT

Ernst & Young Hua Ming (2021) Zhuan Zi No. 61227808_B01 COSCO SHIPPING Development Co., Ltd.

To All Shareholders of COSCO SHIPPING Development Co., Ltd.,

We have reviewed the accompanying pro forma combined financial statements of COSCO SHIPPING Development Co., Ltd. prepared in accordance with the basis of preparation stated in Note 2 to the pro forma combined financial statements, which comprise the pro forma combined balance sheet as at 31 December 2020, the pro forma combined income statements for 2020 and limited notes to the pro forma combined financial statements. It is the responsibility of the management of COSCO SHIPPING Development Co., Ltd. to prepare the pro forma combined financial statements in accordance with the basis of preparation stated in Note 2 to the pro forma combined financial statements. Our responsibility is to issue a review report on the pro forma combined financial statements on the basis of the review work.

We conducted our review work in accordance with the provisions of the “China Certified Public Accountant Review Standard No. 2101 - Review of Financial Statement”. This standard requires that we plan and perform review work to obtain limited assurance about whether there are material reporting errors in the pro forma combined financial statements. The review was mainly limited to inquiring the relevant personnel of COSCO SHIPPING Development Co., Ltd. and implementing the analysis procedures for the financial information, which provided less assurance than the audit. We have not carried out the audit and therefore do not express an audit opinion.

Based on our review, we are not aware of any matter that causes us to believe that the above pro forma combined financial statements have not been prepared in all material respects in accordance with the basis of preparation stated in Note 2 to the pro forma combined financial statements.

We remind users of the pro forma combined financial statements to pay attention to the description of preparation basis in Note 2 to the pro forma combined financial statements. This report is only for COSCO SHIPPING Development Co., Ltd. to apply to China Securities Regulatory Commission to acquire assets and raise ancillary funds through issuance of shares, and is not applicable to any other purposes. This paragraph does not affect the review conclusions published.

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REVIEW REPORT (Continued)

Ernst & Young Hua Ming (2021) Zhuan Zi No. 61227808_B01 COSCO SHIPPING Development Co., Ltd.

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Ernst & Young Hua Ming LLP

Chinese Certified Public Accountant: You Fei ( 尤飞 )

Chinese Certified Public Accountant: Zhu Li ( 朱莉 )

Beijing, the PRC

23 April 2021

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COSCO SHIPPING Development Co., Ltd. PRO FORMA CONSOLIDATED BALANCE SHEET As at 31 December 2020

RMB

Assets Note V Current assets Cash and bank balances 1 Financial assets held for trading 2 Bills receivables 3 Accounts receivable 4 Reinsurance accounts receivable Prepayments 5 Other receivables 6 Inventories 7 Non-current assets due within one year 8 Other current assets 9 Total current assets Non-current assets Other debt investments 10 Long-term receivables 11 Long-term equity investments 12 Other non-current financial assets 13 Investment properties 14 Fixed assets 15 Construction in progress 16 Right-of-use assets 17 Intangible assets 18 Long-term prepaid expenses 19 Deferred income tax assets 20 Other non-current assets 21 Total non-current assets Total assets	31 December 2020 13,379,760,376.91 654,224,047.94 391,903,718.89 4,233,997,406.55 6,938,190.88 1,718,491,888.73 273,157,801.17 1,964,858,083.79 19,380,569,317.13 380,130,156.28 42,384,030,988.27 59,820,000.00 27,698,200,826.12 21,022,573,976.71 3,932,753,960.40 113,220,569.47 56,533,767,074.02 193,499,047.74 121,371,604.51 607,217,429.04 58,786,352.81 284,669,504.39 222,669,186.50 110,848,549,531.71 153,232,580,519.98	31 December 2019 10,468,319,046.24 515,966,828.33 16,700,690.01 2,101,558,440.72 7,453,139.84 573,363,854.29 905,139,864.98 1,480,850,232.29 16,553,534,222.73 116,665,693.07
		32,739,552,012.50
		- 27,051,677,344.51 25,854,213,940.22 4,266,307,368.85 121,167,177.90 58,415,566,560.34 106,782,505.64 175,811,685.93 606,809,898.04 67,067,622.72 243,651,234.65 54,773,101.34
		116,963,828,440.14
		149,703,380,452.64

The accompanying notes of the pro forma combined financial statements form part of these pro forma combined financial statements

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COSCO SHIPPING Development Co., Ltd. PRO FORMA CONSOLIDATED BALANCE SHEET （ Continued ） As at 31 December 2020

RMB

Liabilities and owners’ equity Note V Current liabilities Short-term borrowings 22 Bills-payable 23 Accounts payable 24 Receipts in advance 25 Contract liabilities 26 Staff remuneration payable 27 Taxes payable 28 Other payables 29 Reinsurance accounts payable Non-current liabilities due within one year 30 Other current liabilities 31 Total current liabilities Non-current liabilities Long-term borrowings 32 Bonds payable 33 Lease liabilities 34 Long-term payables 35 Long-term staff remuneration payable 36 Deferred income 37 Deferred income tax liabilities 20 Other non-current liabilities 38 Total non-current liabilities Total liabilities	31 December 2020 19,953,169,100.00 1,463,509,348.22 3,945,885,713.10 348,748,576.27 175,784,942.16 678,495,772.39 263,232,003.87 2,011,650,818.06 25,724,639.84 37,138,160,577.00 3,000,000,000.00 69,004,361,490.91 45,527,948,093.17 8,287,545,838.06 55,338,974.12 2,607,811,275.88 21,688,199.77 20,372,489.01 104,888,101.64 196,756,397.98 56,822,349,369.63 125,826,710,860.54	31 December 2019
		17,245,920,397.60
		926,240,520.00
		3,044,893,843.72
		169,957,081.65
		173,711,329.14
		436,368,348.40
		229,473,189.06
		1,526,971,875.86
		22,520,027.50
		32,335,764,543.94
		-
		56,111,821,156.87
		54,853,208,883.56
		8,271,399,591.01
		151,920,055.56
		2,352,044,869.48
		18,491,589.50
		15,780,249.77
		350,975,260.05
		12,032,890.65
		66,025,853,389.58
		122,137,674,546.45

The accompanying notes of the pro forma combined financial statements form part of these pro forma combined financial statements

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COSCO SHIPPING Development Co., Ltd. PRO FORMA CONSOLIDATED BALANCE SHEET （ Continued ） As at 31 December 2020

RMB

Liabilities and owners’ equity Note V Owners’ equity Share capital 39 Other equity instruments 40 Including: Perpetual bonds Capital reserve 41 Less: Treasury shares 42 Other comprehensive income 43 Special reserve 44 Surplus reserve 45 Retained earnings 46 Total equity attributable to shareholders of the parent company Minority interests Total owners’ equity Total liabilities and owners’ equity	31 December 2020 13,027,199,539.00 6,000,000,000.00 6,000,000,000.00 1,968,821,870.70 233,428,071.84 (2,320,757,973.36) 1,360,053.39 1,635,440,480.64 7,327,233,760.91 27,405,869,659.44 - 27,405,869,659.44 153,232,580,519.98	31 December 2019 13,027,199,539.00 7,000,000,000.00 7,000,000,000.00 2,414,696,722.10 233,428,071.84 (2,638,034,334.93) 2,887,403.67 1,552,192,349.37 6,440,192,298.82 27,565,705,906.19 - 27,565,705,906.19 149,703,380,452.64

These pro forma combined financial statements have been signed by:

Legal representative:

Person-in-charge of accounting Head of the accounting affairs: department:

The accompanying notes of the pro forma combined financial statements form part of these pro forma combined financial statements

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COSCO SHIPPING Development Co., Ltd. PRO FORMA CONSOLIDATED INCOME STATEMENT 2020

RMB

Note V Operating revenue 47 Handling charges and commission income 48 Less: Operating cost 47 Taxes and surcharges 49 Selling expenses 50 Administrative expenses 51 Research and development expenses 52 Finance cost 53 Including: Interest expense Interest income Add: Other gains 54 Investment gains 55 Including: Gains from investment in associates and joint ventures Derecognition gains on financial assets measured at amortized cost Losses from change in fair value 56 Credit impairment losses 57 Asset impairment losses 58 Gains from disposal of assets 59 Profit from operations Add: Non-operating income 60 Less: Non-operating expense 61 Total profit Less: Income tax expenses 63 Net profit Classified by continuity of operation Net profit from continuing operations Net profit from discontinued operations Classified by ownership of equity Net profit attributable to shareholders of the parent company Minority interests

2020 20,181,877,707.96 41,359,181.05 14,927,473,766.37 76,483,592.46 21,971,091.53 1,359,674,144.48 21,576,502.18 2,405,424,826.78 2,232,946,536.45 150,729,536.76 134,702,346.99 2,437,088,739.98 1,980,351,138.33 4,588,747.02 (206,223,798.34) (625,008,425.05) (743,803,399.30) 25,722,891.70 2,433,111,321.19 61,926,633.97 17,900,416.45 2,477,137,538.71 335,861,123.99 2,141,276,414.72 1,453,190,376.73 688,086,037.99 2,141,276,414.72 -

The accompanying notes of the pro forma combined financial statements form part of these pro forma combined financial statements

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COSCO SHIPPING Development Co., Ltd. PRO FORMA CONSOLIDATED INCOME STATEMENT (Continued) 2020

RMB

Note V Net other comprehensive income after taxes Net other comprehensive income attributable to shareholders of the parent company after taxes 43 Other comprehensive income that may not be transferred to profit or loss Other comprehensive income that may not be transferred to profit or loss under the equity method Other comprehensive income that may be reclassified to profit or loss Other comprehensive income that may be transferred to profit or loss under the equity method Reserve for cash flow hedging Exchange differences from translation of financial statement Net other comprehensive income attributable to minority interests after taxes 43 Total comprehensive income Including: Total comprehensive income attributable to shareholders of the parent company Total comprehensive income attributable to minority interests Earnings per share 64 Basic earnings per share (RMB per share) Diluted earnings per share (RMB per share)	2020 317,276,361.57
	317,276,361.57
	(13,390,441.41)
	(342,364,689.90)
	(10,030,039.10)
	683,061,531.98
	-
	2,458,552,776.29
	2,458,552,776.29
	-
	0.1395
	0.1395

The accompanying notes of the pro forma combined financial statements form part of these pro forma combined financial statements

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