COSCO SHIPPING Development Co., Ltd. — Earnings Release 2023

Jan 19, 2024

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)

ESTIMATED ANNUAL RESULTS OF 2023

This announcement is made pursuant to Rule 13.09(2)(a) of the Listing Rules and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the SFO.

Based on the preliminary estimation made by the finance department of the Company, the Board wishes to inform the Shareholders and potential investors of the Company that the Company expects to record (i) a net profit attributable to Shareholders of the listed company for the year ended 31 December 2023 in the range of RMB1.400 billion to RMB1.550 billion, representing a decrease of approximately 60.48% to 64.32% as compared with that of the same period for the year ended 31 December 2022; (ii) the net profit attributable to Shareholders of the listed company, excluding extraordinary gains or losses for the year ended 31 December 2023 in the range of RMB1.200 billion to RMB1.350 billion, representing a decrease of approximately 64.33% to 68.30% as compared with that of the same period for the year ended 31 December 2022.

Shareholders and potential investors of the Company should exercise caution when dealing in the securities of the Company.

This announcement is made by the board of directors (the “ Board ”) of COSCO SHIPPING Development Co., Ltd. (the “ Company ”, and together with its subsidiaries, the “ Group ”) 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) (the “ SFO ”).

Based on the preliminary estimation made by the finance department of the Company, the Board wishes to inform the shareholders of the Company (the “ Shareholders ”) and potential investors that the Company expects to record a net profit attributable to Shareholders of the listed company for the year ended 31 December 2023 (the “ Reporting Period ”) in the range of RMB1.400 billion to RMB1.550 billion, representing a year-on-year decrease of approximately 60.48% to 64.32%.

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It is estimated that for the Reporting Period, the Company will record a net profit attributable to Shareholders of the listed company, excluding extraordinary gains or losses in the range of RMB1.200 billion to RMB1.350 billion, representing a year-on-year decrease of approximately 64.33% to 68.30%.

For the year ended 31 December 2022, the Company recorded a net profit attributable to Shareholders of the listed company of approximately RMB3.922 billion and a net profit attributable to Shareholders of the listed company, excluding extraordinary gains or losses of approximately RMB3.784 billion based on the China Accounting Standards for Business Enterprises (《中國企業 會計準則》). Earnings per share were RMB0.29.

Since 1 January 2023, the Company has implemented the Interpretation No. 16 of Accounting Standards for Business Enterprises issued by the Ministry of Finance of the People’s Republic of China and restated the financial information for the same period last year, and the restated adjustment amount was relatively small. After such restatement, the Company recorded a net profit attributable to Shareholders of the listed company of approximately RMB3.922 billion and a net profit attributable to Shareholders of the listed company, excluding extraordinary gains or losses of approximately RMB3.785 billion for the year ended 31 December 2022.

The main reasons for the expected changes in the Company’s operating results for the Reporting Period are as follows:

In 2023, due to factors including the slowdown in the global trade and the turbulence in the geopolitical situation, demand in the container transportation market has decreased, the monetary policy of the Federal Reserve has continued to tighten, and the cost of capital has remained high. In the case of a higher performance base for the same period of last year, the Company’s revenue during the Reporting Period declined year-on-year, and the performance in the current Reporting Period decreased compared with the same period of last year.

During the Reporting Period, in the face of a complex and severe market environment, the Company insisted on the concept of high-quality development, anchoring on the two major tracks of digital intelligence and green and low carbon. With “industry-finance-investment” as its three major focuses, the Company strived to improve quality and efficiency, practiced in-depth science and technology leadership, and continued to improve the risk prevention and control system. The Company will continue to focus on the main line of integrated logistics industry, continuously enhance the synergy between leasing and manufacturing and leverage the advantages of the container logistics industry chain. Also, the Company will strengthen science and technology innovation, digital empowerment and green and low-carbon transformation to accumulate new impetus for high-quality development.

The Company is still in the process of finalizing the consolidated results of the Group for the Reporting Period. The information contained in this announcement is only based on a preliminary inspection of the management accounts of the Company and has not been reviewed or audited by the auditors of the Company. The actual results of the Group for the Reporting Period may differ from those disclosed in this announcement. Further details of the performance of the Group will be disclosed in the announcement of the annual results of the Group for the year ended 31 December 2023.

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Shareholders and potential investors of the Company should exercise caution when dealing in the securities of the Company.

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

Shanghai, the People’s Republic of China 19 January 2024

As at the date of this announcement, the Board comprises Mr. Zhang Mingwen, being an executive Director, Mr. Huang Jian, Mr. Liang Yanfeng and Mr. Ip Sing Chi, being non-executive Directors, and Mr. Lu Jianzhong, Ms. Zhang Weihua, Mr. Shao Ruiqing and Mr. Chan Kwok Leung being independent non-executive 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.”.

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