COSCO SHIPPING Development Co., Ltd. — Capital/Financing Update 2018

Nov 23, 2018

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.

==> picture [108 x 72] intentionally omitted <==

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)

TERMINATION OF DISCLOSEABLE TRANSACTION IN RELATION TO CAPITAL CONTRIBUTION TO CHINA BOHAI BANK

This announcement is made by COSCO SHIPPING Development Co., Ltd. (the “ Company ”, together with its subsidiaries, the “ Group ”) pursuant to Rule 14.36 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

Reference is made to the announcement of the Company dated 26 May 2017, the circular of the Company dated 31 May 2017 (the “ Circular ”) and the poll results announcement of the Company dated 20 June 2017 in relation to, among other things, the proposed capital contribution (the “ Capital Contribution ”) of approximately RMB1,759 million by China Shipping Investment Co., Ltd. (“ CS Investment ”), a wholly-owned subsidiary of the Company, for the subscription of 584,307,425 ordinary shares of China Bohai Bank Co., Ltd. (“ China Bohai Bank ”) at the subscription price of RMB3.01 per share, pursuant to the Capital Contribution Letter of Intent. Unless otherwise defined, terms used in this announcement shall have the same meanings as those defined in the Circular.

As the Capital Contribution has not been approved by the CBRC, the state-owned assets supervisory institution and other regulatory authorities on or before 29 September 2017, the Capital Contribution Letter of Intent has been automatically terminated pursuant to the terms thereof. Following such termination, Bohai Bank continues to push forward the Capital Contribution and conducted various consultations with the Group. Bohai Bank has recently submitted a revised proposal of the Capital Contribution to CS Investment. Having considered the revised proposal, in order to adjust the capital layout and improve the efficiency of capital allocation of the Company, the Board has resolved, on 23 November 2018, to terminate the Capital Contribution and waive its right to subscribe for the shares of China Bohai Bank in relation to the Capital Contribution.

1

The Board is of the view that the termination of the Capital Contribution is in the interests of the Company and the Shareholders as a whole and will not have any material adverse impact on the financial position, business and prospects of the Group.

By order of the Board COSCO SHIPPING Development Co., Ltd. Yu Zhen

Company Secretary

Shanghai, the People’s Republic of China 23 November 2018

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

• The Company is a registered non-Hong Kong company as defined under 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.”.

2