COSCO SHIPPING Development Co., Ltd. — Capital/Financing Update 2019

Jan 10, 2019

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)

INSIDE INFORMATION

PROPOSED CAPITAL INCREASE AND INTRODUCTION OF STRATEGIC INVESTOR(S) INTO COSCO SHIPPING LEASING CO., LTD.

This announcement is made by COSCO SHIPPING Development Co., Ltd. (the “ Company ”) pursuant to Rule 13.09(2)(a) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “ Listing Rules ”) and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

PROPOSED CAPITAL INCREASE AND INTRODUCTION OF STRATEGIC INVESTOR(S)

The board (the “ Board ”) of directors (the “ Directors ”) of the Company announces that, COSCO SHIPPING Leasing Co., Ltd.[#] (中遠海運租賃有限公司) (“ COSCO SHIPPING Leasing ”), a wholly-owned subsidiary of the Company as at the date of this announcement, proposes to increase its capital for the purpose of seeking strategic investor(s) (the “ Strategic Investor(s) ”) through public listing on the Shanghai United Assets and Equity Exchange (上海聯合產權交易 所) (the “ Proposed Capital Increase ”). The floor price for the Proposed Capital Increase will be determined with reference to the appraised net asset value of COSCO SHIPPING Leasing as at the relevant valuation date. The relevant valuation report will be subject to the filing procedures in respect of state-owned assets in accordance with the relevant laws and regulations of the People’s Republic of China (the “ PRC ”).

The terms and scale of the Proposed Capital Increase shall be determined with reference to market conditions. It is expected that upon completion of the Proposed Capital Increase, the Company will remain as the controlling shareholder of COSCO SHIPPING Leasing.

As at the date of this announcement, no definitive agreement in respect of the Proposed Capital Increase has been entered into by COSCO SHIPPING Leasing. The consummation of the Proposed Capital Increase is subject to, among other things, the entering into of the capital increase agreement(s) (the “ Capital Increase Agreement(s) ”) between COSCO SHIPPING Leasing and the Strategic Investor(s).

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INFORMATION ON COSCO SHIPPING LEASING

COSCO SHIPPING Leasing is a company established under the laws of the PRC with limited liability and a wholly-owned subsidiary of the Company as at the date of this announcement. COSCO SHIPPING Leasing is principally engaged in financial leasing and related businesses.

REASONS FOR THE PROPOSED CAPITAL INCREASE

The Proposed Capital Increase allows COSCO SHIPPING Leasing to raise additional capital and facilitates the development of its financial leasing business. In addition, the introduction of Strategic Investor(s) into COSCO SHIPPING Leasing will also be conducive to the optimisation of the capital structure and corporate governance, thereby promoting the long-term profitability of COSCO SHIPPING Leasing.

The Directors are of the view that the Proposed Capital Increase is in the interests of the Company and its shareholders as a whole.

GENERAL

The Proposed Capital Increase, if materialises, may constitute a notifiable transaction of the Company under Chapter 14 of the Listing Rules. Further announcement(s) in relation to the Proposed Capital Increase will be made by the Company as and when appropriate.

As the Proposed Capital Increase is subject to, among other things, the Capital Increase Agreement(s) being entered into and may or may not proceed, shareholders and potential investor(s) of the Company should exercise caution when dealing in the securities of the Company.

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

Shanghai, the People’s Republic of China 10 January 2019

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 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.”.

• # For identification purpose only.

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