COSCO SHIPPING Development Co., Ltd. — Interim / Quarterly Report 2004

Aug 24, 2004

Listed Company Information

Listed Company Information
CSCL<02866> - Results Announcement China Shipping Container Lines Company Limited announced on 24/8/2004: (stock code: 02866 ) Year end date: 31/12/2004 Currency: RMB Auditors' Report: N/A Interim report reviewed by: Both Audit Committee and Auditors (Unaudited ) (Unaudited ) Last Current Corresponding Period Period from 1/1/2004 from 1/1/2003 to 30/6/2004 to 30/6/2003 Note ('000 ) ('000 ) Turnover : 9,894,306 6,390,514 Profit/(Loss) from Operations : 2,203,236 604,515 Finance cost : (267,735) (216,429) Share of Profit/(Loss) of Associates : 4,130 3,988 Share of Profit/(Loss) of Jointly Controlled Entities : N/A N/A Profit/(Loss) after Tax & MI : 1,524,555 390,601 % Change over Last Period : +290.3 % EPS/(LPS)-Basic (in dollars) : 0.38 0.14 -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : 1,524,555 390,601 Interim Dividend : NIL N/A per Share (Specify if with other : N/A N/A options) B/C Dates for Interim Dividend : N/A Payable Date : N/A B/C Dates for (-) General Meeting : N/A 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 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 have been listed on the Main Board of The Stock Exchange of Hong Kong Limited since 16th June, 2004. Pursuant to a group reorganization (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. and China Shipping Container Lines (Asia) Co., Ltd. from a fellow subsidiary on 15th October, 2003. The Reorganisation is accounted for using merger accounting as permitted by the Hong Kong Statement of Standard Accounting Practice ("SSAP") 27 "Accounting for group reconstructions" issued by the Hong Kong Society of Accountants ("HKSA"). These unaudited condensed consolidated accounts ("Condensed Accounts") have been prepared in accordance with SSAP 25 (revised) "Interim financial reporting" issued by the HKSA. The accounting policies and methods of computation used in the preparation of these Condensed Accounts are consistent with those used in and should be read in conjunction with the accountants' report as contained in Appendix I to the Prospectus. 2. Earnings per share Basic earnings per share is calculated based on the profit attributable to shareholders of RMB390,601,000 and RMB1,524,555,000 for the six months ended 30th June, 2003 and 2004 respectively, and the weighted average number of 2,801,050,000 shares and 4,001,456,593 shares in issue for each of the periods respectively. Diluted earnings per share has not been presented as the Company had no dilutive potential ordinary shares during the periods. 3. Special dividend to ultimate holding company 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 the 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 profit before taxation for the Special Period amounted to RMB480,099,000. As the approval for consolidation tax filing for 2004 has not yet been obtained, income tax of RMB153,898,000 based on 33% on the profit of the period from 1st January, 2004 to 2nd March, 2004 has been provided for.