COSCO SHIPPING Development Co., Ltd. — Capital/Financing Update 2004

Dec 30, 2004

The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaims 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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China Shipping Container Lines Company Limited[*] (a joint stock limited company incorporated in the People’s Republic of China)

(Stock Code: 2866)

Equity Transfers and Capital Injections in relation to Shanghai Puhai, change in the use of Listing proceeds and purchase of the Vessel

(A) Equity Transfers and Capital Injections in relation to Shanghai Puhai

The Directors are pleased to announce that on 30 December 2004, the Company, Shanghai Puhai, CS Logistics, China Shipping Agency, CSI and CS (Shanghai) have entered into the Equity Transfer and Capital Injection Agreement. The Equity Transfer and Capital Injection Agreement supersedes and replaces the Shanghai Puhai Capital Injection Agreement.

Under the Equity Transfer and Capital Injection Agreement:

• a) Equity Transfers

• the Company has agreed to acquire from each of CS Logistics and China Shipping Agency a 20% equity interest in Shanghai Puhai at an aggregate cash consideration of RMB23,765,900 (equivalent to approximately HK$22,420,660);

• CS (Shanghai) has agreed to acquire a 10% equity interest in Shanghai Puhai from CSI at a cash consideration of RMB5,941,470 (equivalent to approximately HK$5,605,160); and

• b) Capital Injections

• subject to the Equity Transfers becoming effective, the Company has agreed to contribute RMB200 million (equivalent to approximately HK$188.7 million) in cash into Shanghai Puhai in two stages: RMB100 million on or before 31 December 2005 and the remaining RMB100 million on or before 31 December 2006 and CS (Shanghai) has agreed to contribute about RMB22.2 million (equivalent to approximately HK$21 million) in cash into Shanghai Puhai in two stages: about RMB11.1 million on or before 31 December 2005 and about RMB11.1 million on or before 31 December 2006, in proportion to their respective equity interests in Shanghai Puhai.

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The Equity Transfers and Capital Injections constitute connected transactions of the Company under the Listing Rules. These connected transactions, however, do not exceed 2.5% of any of the applicable percentage ratios. Under Rule 14A.32, these transactions are therefore exempted from the independent shareholders’ approval requirements applicable to connected transactions under the Listing Rules, but would still be subject to the relevant disclosure requirements.

(B) Change in the use of Listing proceeds

Reference is made to the sections headed “USE OF PROCEEDS” and “Capital injection into Shanghai Puhai” appearing on pages 235 and 168 of the Prospectus. The Company’s original plan to make a capital contribution in the amount of RMB500 million into Shanghai Puhai out of its Listing proceeds as described in the Prospectus has now been changed.

As discussed in the above section, instead of making an aggregate RMB500 million capital contribution to Shanghai Puhai, the Company intends to inject an aggregate of only RMB200 million out of the Listing proceeds into Shanghai Puhai in two stages: RMB100 million on or before 31 December 2005 and an additional RMB100 million on or before 31 December 2006. The remaining amount of RMB300 million out of the Listing proceeds initially planned for capital contribution to Shanghai Puhai is intended to be used by the Company for the acquisition of new vessels and containers.

The above change in the use of Listing proceeds is subject to Shareholders’ approval at a special general meeting of the Shareholders intended to be convened by the Company as soon as reasonably practicable.

(C) Purchase of the Vessel

On 30 December 2004, the Company has entered into the Sale and Purchase Agreement with CSI and CSGIT under which the Company has agreed to acquire the Vessel from CSI at a consideration of RMB71,001,000 (equivalent to approximately HK$66,982,075) which will be fully paid in cash. An agency fee of RMB124,200 (equivalent to approximately HK$117,170) is to be paid in cash by the Company to CSGIT.

The Sale and Purchase Agreement constitutes a connected transaction of the Company under the Listing Rules. However, the consideration payable (including the agency fee) for the purchase of the Vessel does not exceed 2.5% of any of the applicable percentage ratios. Under Rule 14A.32, the Sale and Purchase Agreement is therefore exempted from the independent shareholders’ approval requirements applicable to connected transactions under the Listing Rules, but would still be subject to the relevant disclosure requirements.

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• (A) EQUITY TRANSFERS AND CAPITAL INJECTIONS IN RELATION TO SHANGHAI PUHAI

1. THE SHANGHAI PUHAI CAPITAL INJECTION AGREEMENT

As at the date of this announcement, the Company directly holds a 50% equity interest in Shanghai Puhai. China Shipping, through CS Logistics, China Shipping Agency and CSI, indirectly holds the remaining 50% interest. Notwithstanding the ownership structure, the Company has, pursuant to the articles of association of Shanghai Puhai, the power to appoint more than one half of the total number of directors of Shanghai Puhai, thus having control of its board of directors. Shanghai Puhai is therefore deemed to be a subsidiary of the Company and its results have been included in the consolidated accounts of the Company.

On 10 May 2004, the Company, CS Logistics, China Shipping Agency, CSI and Shanghai Puhai entered into an agreement under which the Company agreed to inject an additional RMB500 million and CS Logistics, China Shipping Agency and CSI agreed to inject an aggregate additional RMB50,300,000 into Shanghai Puhai as additional capital. Upon completion of such capital injection, the Company’s equity interest in Shanghai Puhai will increase to approximately 90% and China Shipping’s aggregate indirect equity interest through CS Logistics, China Shipping Agency and CSI in Shanghai Puhai will decrease to approximately 10%. The original plan of the Company was to make payment of the capital injection out of the net proceeds of the Listing.

The Shanghai Puhai Capital Injection Agreement has now been superseded and replaced by the Equity Transfer and Capital Injection Agreement.

2. THE EQUITY TRANSFER AND CAPITAL INJECTION AGREEMENT

• (a) Date: 30 December 2004

• (b) Parties: The Company, Shanghai Puhai, CS Logistics, China Shipping Agency, CSI and CS (Shanghai)

• (c) Equity Transfers

Under the Equity Transfer and Capital Injection Agreement:

• i. the Company has agreed to acquire from each of CS Logistics and China Shipping Agency a 20% equity interest in Shanghai Puhai at an aggregate cash consideration of RMB23,765,900 (equivalent to approximately HK$22,420,660), which is payable within 5 days after the Company has obtained the proof of title certificate issued by SUAEE; and

• ii. CS (Shanghai) has agreed to acquire a 10% equity interest in Shanghai Puhai from CSI at a cash consideration of RMB5,941,470 (equivalent to approximately HK$5,605,160), which is payable within 5 days after CS (Shanghai) has obtained the proof of title certificate issued by SUAEE.

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The current shareholding structure of Shanghai Puhai is set out below:

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China Shipping
a member of the China a member of the China
59.87% 100% Shipping Group Shipping Group
China Shipping
The Company CS Logistics CSI
Agency
50% 20% 20% 10%
Shanghai Puhai
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The shareholding structure of Shanghai Puhai following completion of the Equity Transfers and the Capital Injections is set out below:

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China Shipping
59.87% 10% (indirectly held
The Company by China Shipping
through its subsidiary)
90%
90% CS (Shanghai)
10%
Shanghai Puhai
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It is contemplated that Individual Equity Transfer Agreements will be entered into between the Company and CS Logistics and China Shipping Agency respectively and between CS (Shanghai) and CSI to effect the above mentioned transfers of equity interests. As the Individual Equity Transfer Agreements merely implement the above transfers of equity interests contemplated under the Equity Transfer and Capital Injection Agreement, they do not constitute new connected transactions.

Shanghai Puhai will remain as a subsidiary of the Group after completion of the Equity Transfers. The Company intends to restructure the board of directors of Shanghai Puhai after completion of the Equity Transfers, but there are no specific plans at this stage.

The Company and CS (Shanghai) intend to use their internal resources to satisfy their payment obligations for the Equity Transfers.

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(d) Consideration for the Equity Transfers

The consideration for the Equity Transfers was determined based on the appraised net asset value of Shanghai Puhai as at 31 August 2004 amounting to approximately RMB59,415,000 (equivalent to approximately HK$56,051,000) as set out in a complete asset valuation report of Shanghai Puhai prepared by an independent and duly qualified PRC valuer appointed by Shanghai Puhai. The unaudited net book value of Shanghai Puhai as at 31 August 2004 amounted to approximately RMB32,587,088 (equivalent to approximately HK$30,742,536). The audited net asset value of Shanghai Puhai as at 31 December 2003 amounted to approximately RMB24,908,412 (equivalent to approximately HK$23,498,502). The complete asset valuation method is based on a summation of the appraised value of each individual asset owned and liability owed by Shanghai Puhai. The valuation for fixed assets and inventories are by reference to their respective replacement costs. The valuation of account receivables is by reference to their respective realisable value and the remaining assets and all liabilities are by reference to their respective book values.

(e) Equity Transfers effective date

The Equity Transfers will become effective after registration of the above changes in the equity interests in Shanghai Puhai with the relevant PRC governmental authorities. Save for the above, the Equity Transfer and Capital Injection Agreement does not contain any other condition precedents.

Save for the Capital Injections, the Company confirms that as at the date of this announcement, there are no other capital commitment (whether equity, loan or otherwise) or guarantee to be provided by the Company or CS (Shanghai) to Shanghai Puhai.

(f) Capital Injections

Under the Equity Transfer and Capital Injection Agreement, subject to the Equity Transfers becoming effective, the Company has agreed to contribute RMB200 million (equivalent to approximately HK$188.7 million) in cash into Shanghai Puhai in two stages: RMB100 million on or before 31 December 2005 and an additional RMB100 million on or before 31 December 2006 and CS (Shanghai) has agreed to contribute about RMB22.2 million (equivalent to approximately HK$21 million) in cash into Shanghai Puhai in two stages: about RMB11.1 million on or before 31 December 2005 and about RMB11.1 million on or before 31 December 2006, in proportion to their respective equity interests in Shanghai Puhai.

It is contemplated that a capital injection agreement will be entered into between the Company and CS (Shanghai) to effect the above mentioned injections of capital. As the capital injection agreement merely implements the above injections of capital contemplated under the Equity Transfer and Capital Injection Agreement, it does not constitute a new connected transaction.

The Company intends to make payment of its capital injection out of the net proceeds from the Listing. CS (Shanghai) intends to make payment of its capital injection out of its internal resources.

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The registered capital of Shanghai Puhai before the Equity Transfers is RMB11.8 million (equivalent to approximately HK$11.13 million) fully contributed by each existing shareholder and, as at the date of this announcement, there are no outstanding capital commitment by CS Logistics, China Shipping Agency and CSI. Upon completion of the Equity Transfers and the Capital Injections, the registered capital of Shanghai Puhai will be about RMB234 million (equivalent to approximately HK$221 million).

3. GENERAL

The Group is principally engaged in the operation and management of international and domestic container marine transportation.

(a) China Shipping

China Shipping is a Chinese state-owned enterprise. It is the controlling shareholder of the Company having a 59.87% shareholding interest and is under the direct administration of SASAC. China Shipping is a large shipping conglomerate that operates across different regions, sectors and countries. Currently, China Shipping and its subsidiaries (including the Group) have 5 specialised shipping fleets of oil tankers, tramps, passenger vessels, container vessels and special cargo vessels.

(b) CS Logistics

CS Logistics is a limited liability company incorporated in the PRC. The principal business activity of CS Logistics is logistics.

(c) China Shipping Agency

China Shipping Agency is a limited liability company incorporated in the PRC. The principal business activity of China Shipping Agency is the provision of shipping agency services (excluding agency services for container vessels).

(d) CSI

CSI is a limited liability company incorporated in the PRC. CSI is principally engaged in the business of ship repair, ship construction, purchase of second hand ships, ship dismantling and ship leasing.

(e) Shanghai Puhai

Shanghai Puhai mainly carries out the sub-route services (i.e. international trade domestic feeder services, domestic trade domestic feeder services and international sub-route services) for the Group.

The audited net profits (before taxation and extraordinary items) generated by Shanghai Puhai for the two years ended 31 December 2003 were approximately RMB0.18 million (equivalent to approximately HK$0.17 million) and RMB4.36 million (equivalent to approximately HK$4.11 million) respectively. The audited net profits (after taxation and

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extraordinary items) generated by Shanghai Puhai for the two years ended 31 December 2003 were approximately RMB0.11 million (equivalent to approximately HK$0.10 million) and RMB2.92 million (equivalent to approximately HK$2.75 million) respectively.

(f) CS (Shanghai)

CS (Shanghai) is a limited liability company incorporated in the PRC. CS (Shanghai) principally acts as the Company’s sales agent in the Shanghai region.

(g) Reasons for the Equity Transfers and the Capital Injections

Under the Shanghai Puhai Capital Injection Agreement, the Company will increase its shareholding interest in Shanghai Puhai to 90%. The Board has been considering the potential business growth of Shanghai Puhai due to increase in the demand for sub-route services provided by Shanghai Puhai and has decided to replace the Shanghai Puhai Capital Injection Agreement with the Equity Transfers and Capital Injection Agreement so that the Company may acquire an attributable equity interest of approximately 99% in Shanghai Puhai.

Such increased shareholding resulting from the Equity Transfers will allow the Company to maximize any potential profit to be generated by Shanghai Puhai and further enhance the Company’s control of Shanghai Puhai.

The Capital Injections will allow Shanghai Puhai to have sufficient funds to further expand its business and will therefore strengthen the domestic container marine transportation services capabilities of the Group.

(h) Connected transactions

China Shipping, being the controlling shareholder of the Company, is a connected person of the Company. CS (Shanghai) is also a connected person of the Company as it is owned as to 90% by the Company and 10% by China Shipping. CS Logistics, China Shipping Agency and CSI are all connected persons of the Company since they are all members of the China Shipping Group.

The Equity Transfers and the Capital Injections constitute connected transactions of the Company under the Listing Rules. These connected transactions in aggregate, however, do not exceed 2.5% of any of the applicable percentage ratios. Under Rule 14A.32, these transactions are therefore exempted from the independent shareholders’ approval requirements applicable to connected transactions under the Listing Rules, but would still be subject to the relevant disclosure requirements.

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The Directors (including the independent non-executive Directors) are of the view that the transactions contemplated under the Equity Transfer and Capital Injection Agreement, including the replacement of the Shanghai Puhai Capital Injection Agreement by the Equity Transfer and Capital Injection Agreement, are on normal commercial terms, have been entered into in the ordinary and usual course of the Group’s business and are fair and reasonable and in the interests of the Company and its Shareholders as a whole.

(B) CHANGE IN THE USE OF LISTING PROCEEDS

Reference is made to the sections headed “USE OF PROCEEDS” and “Capital injection into Shanghai Puhai” appearing on pages 235 and 168 of the Prospectus. The Company’s original plan to make a capital contribution in the amount of RMB500 million into Shanghai Puhai out of its Listing proceeds to increase its shareholding in Shanghai Puhai to 90% as described in the Prospectus has now been changed.

As discussed in the above section, instead of making an aggregate RMB500 million capital contribution to Shanghai Puhai, the Company intends to inject an aggregate of only RMB200 million out of the Listing proceeds into Shanghai Puhai in two stages: RMB100 million on or before 31 December 2005 and an additional RMB100 million on or before 31 December 2006. The remaining amount of RMB300 million out of the Listing proceeds initially planned for capital contribution to Shanghai Puhai is intended to be used by the Company for the acquisition of new vessels and containers.

The original business plan of Shanghai Puhai was to engage in international container shipping as well as provide sub-route container transportation services in the PRC to other domestic and international marine transportation providers. Owing to the rapid development of the business of the Group, the Company intends to strategically reposition Shanghai Puhai’s scope of business. It is presently intended that Shanghai Puhai will mainly engage in domestic container shipping and will focus on providing sub-route container transportation services in the PRC and other selected regions globally to members of the Group or other domestic and international marine transportation providers.

As a result of the above change in business plan, Shanghai Puhai will no longer require to use the full amount of RMB500 million out of the Listing proceeds originally intended to be injected into Shanghai Puhai. The revised business plan of Shanghai Puhai will only require an aggregate capital injection of RMB200 million by the Company. Save for the Capital Injections, the Company confirms that as at the date of this announcement, there are no other capital commitment (whether equity, loan or otherwise) or guarantee to be provided by the Company or CS (Shanghai) to Shanghai Puhai. Such reduced capital contribution by the Company reflects the present business intention of the Company.

The change in the use of Listing proceeds is subject to Shareholders’ approval at a special general meeting of the Shareholders intended to be convened by the Company as soon as reasonably practicable.

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(C) PURCHASE OF THE VESSEL

1. THE SALE AND PURCHASE AGREEMENT

• (a) Date: 30 December 2004

• (b) Parties: The Company, as purchaser

CSI, as vendor

CSGIT, as the handling agent of the transaction

Asset to be transferred

Under the Sale and Purchase Agreement, the Company has agreed to purchase the Vessel from CSI at a consideration of RMB71,001,000 (equivalent to approximately HK$66,982,075) which will be fully paid in cash. CSGIT, as the handling agent of the transaction, will be responsible for the preparation and filing of the necessary registration documents to effect the transfer of the Vessel to the Company. An agency fee of RMB124,200 (equivalent to approximately HK$117,170) is to be paid in cash by the Company to CSGIT.

The Sale and Purchase Agreement does not contain any condition precedents.

Consideration

Under the Sale and Purchase Agreement, the consideration payable for the Vessel shall be paid in cash by the Company in the following manner:

• i) RMB30,180,600 (equivalent to approximately HK$28,472,264) to CSI within 5 banking days after signing the Sale and Purchase Agreement;

• ii) RMB33,534,000 (equivalent to approximately HK$31,635,849) to CSI within 15 banking days after signing the Sale and Purchase Agreement;

• iii) RMB4,968,000 (equivalent to approximately HK$4,686,792) to CSI within 30 banking days after signing the Sale and Purchase Agreement; and

• iv) RMB2,318,400 (equivalent to approximately HK$2,187,170) to CSI and RMB124,200 (equivalent to approximately HK$117,170) to CSGIT within 5 banking days after delivery of the Vessel to the Company.

The Vessel was purchased by CSI in October 2004. The total cost paid by CSI for the Vessel was approximately RMB71,012,000 (equivalent to approximately HK$66,992,453).

The consideration of RMB71,001,000 (equivalent to approximately HK$66,982,075) payable for the Vessel was determined based on the appraised value of the Vessel as at 30 November 2004, which amounted to RMB71,011,000 (equivalent to approximately HK$66,991,509) as set out in an asset valuation report based on the replacement cost of the Vessel prepared by an independent and duly qualified PRC valuer appointed by CSI. Such consideration will be funded from the Company’s internal resources.

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The Directors confirm that the consideration payable (including the agency fee) for the purchase of the Vessel has been determined after arm’s length negotiations between the Company and CSI and is comparable to market value in the PRC for vessels of similar type and capacity.

Delivery

The Vessel is expected to be delivered on or before 10 January 2005.

Reason for the acquisition

As there is increase in the demand for container spaces in the Company’s domestic trade lanes, the Company intends to deploy the Vessel in such trade lanes in order to further strengthen its shipping capacity and to satisfy such increasing demand.

In light of the above, the Directors (including the independent non-executive Directors) believe that the terms of the Sale and Purchase Agreement are fair and reasonable and in the interest of the Shareholders as a whole.

2. GENERAL

(a) CSGIT

CSGIT is a limited liability company incorporated in the PRC. CSGIT is principally engaged in the business of import, export, trading of goods and technologies and provision of agency services.

(b) Connected transactions

China Shipping, being the controlling shareholder of the Company, is a connected person of the Company. CSI and CSGIT, both being members of the China Shipping Group, are therefore also connected persons of the Company.

The Sale and Purchase Agreement constitutes a connected transaction of the Company under the Listing Rules. However, the consideration payable (including the agency fee) for the purchase of the Vessel does not exceed 2.5% of any of the applicable percentage ratios. Under Rule 14A.32, the Sale and Purchase Agreement is therefore exempted from the independent shareholders’ approval requirements applicable to connected transactions under the Listing Rules, but would still be subject to the relevant disclosure requirements.

The Directors (including the independent non-executive Directors) are of the view that the transaction contemplated under the Sale and Purchase Agreement is on normal commercial terms, has been entered into in the ordinary and usual course of the Group’s business and is fair and reasonable and in the interests of the Company and its Shareholders as a whole.

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(D) DEFINITIONS

In this announcement, unless the context otherwise requires, the following terms shall have the following meanings:

• “Capital Injections”

the capital injections as described in section (A)2(f) above

• “China Shipping” China Shipping (Group) Company ( ), a Chinese state-owned enterprise, which is the controlling shareholder of the Company, having a 59.87% shareholding interest

• “China Shipping Agency” China Shipping Agency Co., Ltd. ( ), a member of the China Shipping Group

• “China Shipping Group” China Shipping and its subsidiaries (excluding the Group)

• “Companies Ordinance” the Companies Ordinance, Chapter 32 of the Laws of Hong Kong, as amended and supplemented from time to time

• “Company” China Shipping Container Lines Company Limited ( ), a joint stock limited company established in the PRC, of which 2,420,000,000 H shares are listed on The Stock Exchange of Hong Kong Limited

• “CSGIT” China Shipping Group International Trading Company Limited ( ), a limited liability company incorporated in the PRC and a wholly owned subsidiary of China Shipping

• “CSI” China Shipping Industry Co., Ltd. ( ), a limited liability company incorporated in the PRC and a member of the China Shipping Group

• “CS Logistics” China Shipping Logistics Co., Ltd. ( ), a limited liability company incorporated in the PRC and a wholly owned subsidiary of China Shipping

• “CS (Shanghai)” China Shipping Container Lines Shanghai Co., Ltd. ( ), a limited liability company incorporated in the PRC and owned as to 90% by the Company with the remaining 10% ultimately controlled by China Shipping

• “Directors” the directors of the Company

• “Equity Transfers” the equity transfers as described in section (A)2(c) above

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• “Equity Transfer and Capital Injection Agreement”

• “Group”

• “HK$”

• “Hong Kong”

• “Individual Equity Transfer Agreements”

the equity transfer and capital injection agreement dated 30 December 2004 entered into between the Company, Shanghai Puhai, CS Logistics, China Shipping Agency, CSI and CS (Shanghai)

• the Company and its subsidiaries

Hong Kong dollars, the lawful currency of Hong Kong

Hong Kong Special Administrative Region of The People’s Republic of China

• i) the equity transfer agreement to be entered into between the Company and CS Logistics;

• ii) the equity transfer agreement to be entered into between the Company and China Shipping Agency; and

• iii) the equity transfer agreement to be entered into between CS (Shanghai) and CSI

• “Listing”

• “Listing Rules”

• “percentage ratios”

• “PRC”

• “Prospectus”

• “RMB”

• “Sale and Purchase Agreement”

• “SASAC”

• “Shanghai Puhai”

the listing of the Company’s H shares on the Main Board of The Stock Exchange of Hong Kong Limited, which commenced on 16 June 2004

the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

has the meaning ascribed to such term under the Listing Rules

People’s Republic of China

the prospectus of the Company dated 4 June 2004

Renminbi, the lawful currency of the PRC

the sale and purchase agreement dated 30 December 2004 entered into between the Company, CSI and CSGIT

the State-owned Assets Supervision and Administration Commission of the State Council ( )

Shanghai Puhai Shipping Co., Ltd. ( ), a limited liability company incorporated in the PRC and owned as to 50% by the Company with the remaining 50% ultimately controlled by China Shipping prior to the completion of the Equity Transfers

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“Shanghai Puhai Capital the Shanghai Puhai capital injection agreement dated 10 May Injection Agreement” 2004 entered into between the Company, CS Logistics, China Shipping Agency, CSI and Shanghai Puhai “SUAEE” the Shanghai United Assets and Equity Exchange Centre ( ), an exchange centre for State owned enterprise properties designated by the SASAC “Shareholders” shareholders of the Company “TEU” twenty-foot equivalent unit, a standard unit of measurement of the volume of a container with a length of 20 feet, height of 8 feet and 6 inches and width of 8 feet “Vessel” the oil tanker manufactured in March 1978 which was modified by CSI in November 2004 into a container vessel M/V Xiang Fei ( ) with a container capacity of 1270 TEU

By order of the board of Directors China Shipping Container Lines Company Limited Li Kelin Chairman

Shanghai, the People’s Republic of China 30 December 2004

The board of Directors as at the date of this announcement comprises of Mr. Li Kelin and Mr. Jia Hongxiang, being executive Directors, Mr. Li Shaode, Mr. Zhang Jianhua, Mr. Wang Daxiong and Mr. Wang Xiangyun, being non-executive Directors, and Mr. Hu Hanxiang, Mr. Gu Nianzu, Mr. Wang Zongxi and Mr. Lam Siu Wai, Steven, being independent non-executive Directors.

The exchange rate adopted in this announcement for illustration purposes only is HK$1.00 = RMB1.06.

• The Company is registered as an oversea company under Part XI of the Companies Ordinance under the English name “China Shipping Container Lines Company Limited”.

Please also refer to the published version of this announcement in South China Morning Post.

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