COSCO SHIPPING Development Co., Ltd. — Earnings Release 2004

Mar 8, 2005

Listed Company Information

Listed Company Information
CSCL<02866> - Results Announcement China Shipping Container Lines Company Limited announced on 08/03/2005: (stock code: 02866 ) Year end date: 31/12/2004 Currency: RMB Auditors' Report: Unqualified (Audited ) (Audited ) Last Current Corresponding Period Period from 01/01/2004 from 01/01/2003 to 31/12/2004 to 31/12/2003 Note ('000 ) ('000 ) Turnover : 22,363,851 15,276,163 Profit/(Loss) from Operations : 5,154,115 1,859,408 Finance cost : (452,272) (459,447) Share of Profit/(Loss) of Associates : 8,000 6,957 Share of Profit/(Loss) of Jointly Controlled Entities : 0 0 Profit/(Loss) after Tax & MI : 4,022,409 1,382,872 % Change over Last Period : +190.87 % EPS/(LPS)-Basic (in dollars) : 0.80 0.46 -Diluted (in dollars) : 0 0 Extraordinary (ETD) Gain/(Loss) : 0 0 Profit/(Loss) after ETD Items : 4,022,409 1,382,872 Final Dividend : RMB0.20 N/A per Share (Specify if with other : N/A N/A options) B/C Dates for Final Dividend : 26/04/2005 to 26/05/2005 bdi. Payable Date : 20/06/2005 B/C Dates for Annual General Meeting : 26/04/2005 to 26/05/2005 bdi. Other Distribution for : N/A Current Period B/C Dates for Other Distribution : N/A Remarks: 1. Basis of preparation The Company was established in the People's Republic of China (the "PRC") on 28th August 1997 as a company with limited liability under the Company Law of the PRC. On 3rd March 2004, the Company was transformed into a joint stock limited company under the Company Law of the PRC (the " Transformation") by converting its registered capital and reserves as at 31st October 2003 into 3,830,000,000 shares of RMB1 each. The Company's H shares (the "Share Issue") have been listed on the Main Board of The Stock Exchange of Hong Kong Limited (the "Main Board") since 16th June 2004. Pursuant to a group reorganisation (the "Reorganisation") as detailed in Section 2 of Appendix VIII to the Company's prospectus dated 4th June 2004 (the "Prospectus"), the Company acquired the entire issued share capital of China Shipping Container Lines (Hong Kong) Co., Ltd ("CS Hong Kong") and China Shipping Container Lines (Asia) Co., Ltd ("CS Asia") from a fellow subsidiary on 15th October 2003. The Reorganisation is accounted for using merger accounting as permitted by Hong Kong Statement of Standard Accounting Practice ("SSAP") 27 "Accounting for group reconstructions" issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA"). The accounts have been prepared in accordance with accounting principals generally accepted in Hong Kong and comply with accounting standards issued by the HKICPA. They have been prepared under the historical cost convention. The HKICPA has issued a number of new and revised Hong Kong Financial Reporting Standards and Hong Kong Accounting Standards ("new HKFRSs") which are effective for accounting periods beginning on or after 1st January 2005. The Group has not early adopted these new HKFRSs in the accounts for the year ended 31st December 2004. The Group has already commenced an assessment of the impact of these new HKFRSs but is not yet in a position to state whether these new HKFRSs would have a significant impact on its results of operations and financial position. 2. Earnings per share Basic earnings per share is based on the profit attributable to shareholders of RMB4,022,409,000 (2003: RMB1,382,872,000) and the weighted average number of 5,026,174,863 (2003: 3,023,754,247) shares in issue during the year. In determining the weighted average numbers of shares in issue during 2003 and 2004, the conversion of registered capital and reserves of RMB3,830, 000,000 into share capital on 3rd March 2004 was deemed to have occurred on 1st January 2003. Diluted earnings per share has not been presented as the Company has no dilutive potential ordinary shares during the year. 3. Dividends 2004 2003 RMB'000 RMB'000 Special dividend (note (i)) 480,098 - Final, proposed of RMB[0.2] (2003: Nil) (note (ii)) - per domestic share 722,000 - - per H share 484,000 - - 1,206,000 1,686,098 - (i) Special dividend In accordance with the "Provisional Regulation relating to Corporate Reorganisation of Enterprises and Related Management of State-owned Capital and Financial Treatment", which was issued by the Ministry of Finance and became effective from 27th August 2002, the Company is required to distribute to China Shipping (Group) Company the Company's net profit for the period from 1st November 2003 (being the first day after the date of the valuation of the assets of the Company) to 2nd March 2004 (being the day immediately prior to the conversion of the Company into a joint stock limited company) (the "Special Period"), determined in accordance with Accounting Standards for Business Enterprises and Accounting Systems for Business Enterprises of the PRC, payable out of the Company's internal resources and/or cash generated from the Company's operating activities (the "Profit Appropriation"). Holders of H Shares are not entitled to participate in the distribution arising from the Profit Appropriation. The Company has engaged BDO Zhong Hua Certified Public Accountants to perform a special audit on the Special Period to determine the profit for the Special Period for distribution to China Shipping (Group) Company. According to the audited financial statements, the net profit for the Special Period amounted to RMB480,098,000. As the approval for consolidation tax filing for the Special Period obtained, no income tax for the Special Period was provided. (ii) At a meeting held on 8th March 2005, the directors proposed a final dividend of RMB0.2 per ordinary share. This proposed dividend is not reflected as a dividend payable in these accounts, but will be reflected as an appropriation of retained earnings for the year ending 31st December 2005.