COSCO SHIPPING Development Co., Ltd. - Interim / Quarterly Report 2011

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Interim Report 2011

China Shipping Container LineS Company Limited

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Corporate information	2
results and Business highlights	4
management discussion and analysis	5
report on review of interim Financial information	16
Unaudited Condensed Consolidated interim Balance Sheet	17
Unaudited Condensed Consolidated interim income Statement	19
Unaudited Condensed Consolidated interim Statement of
Comprehensive income	20
Unaudited Condensed Consolidated interim Statement of
Changes in equity	21
Unaudited Condensed Consolidated interim Cash Flow
Statement	22
notes to the Unaudited Condensed Consolidated
interim Financial information	23

InterIm rePOrt 2011

China Shipping Container LineS Company Limited

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COrPOrAte InFOrmAtIOn

DIreCtOrS

EXECUTIVE DIRECTORS

mr. Li Shaode (Chairman) mr. Zhang guofa (Vice Chairman) mr. huang Xiaowen mr. Zhao hongzhou

NON-EXECUTIVE DIRECTORS

mr. ma Zehua (Vice Chairman) mr. Zhang Jianhua mr. Lin Jianqing mr. Wang daxiong mr. Xu hui mr. Zhang rongbiao

nOmInAtIOn COmmIttee

mr. Shen Zhongying (Chairman) ms. Zhang nan mr. Jim poon (also known as pan Zhanyuan) mr. Zhang guofa mr. Wang daxiong

InVeStment StrAteGY COmmIttee

mr. Li Shaode (Chairman) mr. ma Zehua mr. Zhang guofa mr. Lin Jianqing mr. Wang daxiong mr. huang Xiaowen ms. Zhang nan mr. Jim poon (also known as pan Zhanyuan) mr. Shen Zhongying

INDEPENDENT NON-EXECUTIVE DIRECTORS

mr. Shen Kangchen mr. Jim poon (also known as pan Zhanyuan) mr. Shen Zhongying mr. Wu daqi ms. Zhang nan

SUPerVISOrS

mr. Chen decheng (Chairman) mr. Kou Laiqi mr. tu Shiming mr. Wang Xiuping mr. hua min ms. pan yingli

remUnerAtIOn COmmIttee

mr. Shen Kangchen (Chairman) mr. Zhang Jianhua mr. Wu daqi

SHAre APPreCIAtIOn rIGHtS COmmIttee

mr. Zhang Jianhua (Chairman)

COmPAnY SeCretArY

mr. ye yumang

AUDIt COmmIttee

mr. Wu daqi (Chairman) mr. Shen Kangchen mr. Wang daxiong

CHIeF ACCOUntAnt

mr. Zhao Xiaoming

AUtHOrISeD rePreSentAtIVeS

mr. Li Shaode mr. huang Xiaowen

LeGAL ADDreSS In tHe PrC

room a-538, yangshan international trade Center no. 188 ye Sheng road yangshan Free trade port area Shanghai the prC

InterIm rePOrt 2011

China Shipping Container LineS Company Limited

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PrInCIPAL PLACe OF BUSIneSS In tHe PrC

27th Floor 450 Fu Shan road pudong new district Shanghai the prC

COmPAnY WeBSIte

www.cscl.com.cn

H SHAre LIStInG PLACe

main Board of the Stock exchange of hong Kong Limited

LIStInG DAte

PrInCIPAL PLACe OF BUSIneSS In HOnG KOnG

59/F, one island east 18 Westlands road island east hong Kong

16 June, 2004

nUmBer OF H SHAreS In ISSUe

3,751,000,000 h Shares

InternAtIOnAL AUDItOr

pricewaterhouseCoopers

BOArD LOt

1,000 shares

PrC AUDItOr

Vocation international Certified public accountants Co., Ltd.

HOnG KOnG StOCK eXCHAnGe StOCK CODe

02866

LeGAL ADVISerS tO tHe COmPAnY

King & Wood Law Firm

A SHAre LIStInG PLACe

Shanghai Stock exchange

HOnG KOnG H SHAre reGIStrAr AnD trAnSFer OFFICe

Computershare hong Kong investor Services Limited 17th Floor, hopewell Centre 183 Queen’s road east hong Kong

PrInCIPAL BAnKerS

Bank of China industrial and Commerce Bank of China Citibank China merchants Bank Shanghai pudong development Bank Bank of Communications Bank of Shanghai

LIStInG DAte

12 december, 2007

nUmBer OF A SHAreS In ISSUe

7,932,125,000 a Shares

BOArD LOt

100 shares

SHAnGHAI StOCK eXCHAnGe StOCK CODe

601866

the Company is registered as a non-hong Kong company under part Xi of the Companies ordinance (Chapter 32 of the Laws of hong Kong) under its Chinese name and the english name “China Shipping Container Lines Company Limited”.

teLePHOne nUmBer

86 (21) 6596 6105

FAX nUmBer

86 (21) 6596 6813

InterIm rePOrt 2011 3

China Shipping Container LineS Company Limited

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reSULtS AnD BUSIneSS HIGHLIGHtS UnDer HOnG KOnG FInAnCIAL rePOrtInG StAnDArDS (“HKFrS”)

Unaudited Interim results for the Six months ended 30 June 2011

	1H2011	1h2010	Change
	*(RMB)*	(RMB)
	(Unaudited)	(Unaudited)
revenue	13,966,904,000	16,026,920,000	(12.9%)
operating (loss)/profit	(528,543,000)	1,327,324,000	(139.8%)
(Loss)/profit attributable to equity
holders of the Company	(630,340,000)	1,171,404,000	(153.8%)
Basic (loss)/earnings per share	(0.05)	0.10	(153.8%)
gross profit margin	(2.3%)	10.1%	(122.8%)
gearing ratio	22.1%	22.3%	(0.9%)

BUSIneSS HIGHLIGHtS

Shipping volume of the Group reached 3,436,223TEU in the first half of 2011, representing a decrease of 3.3% over that of the same period in 2010.
Revenue of the Group amounted to RMB13,966,904,000 in the first half of 2011, representing a decrease of rmB2,060,016,000 or 12.9% as compared with the same period last year.
Shipping capacity of the Group reached 563,249TEU as at 30 June 2011, representing a net increase of 57,377teU as compared with that as at the end of 2010.

4 InterIm rePOrt 2011

China Shipping Container LineS Company Limited

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mAnAGement DISCUSSIOn AnD AnALYSIS

the board (the “Board”) of directors (the “directors”) of China Shipping Container Lines Company Limited (“CSCL” or the “Company”) hereby announces the unaudited condensed consolidated interim financial information of the Company and its subsidiaries (the “group”) for the six months ended 30 June 2011 (the “period”) prepared under hong Kong accounting Standard 34 ‘interim Financial report’, which has been reviewed by the audit committee of the Company. our auditor, pricewaterhouseCoopers, Certified public accountants, hong Kong, has reviewed the unaudited condensed consolidated interim financial information for the period in accordance with hong Kong Standard on review engagements 2410, “review of interim Financial information performed by the independent auditor of the entity” issued by the hong Kong institute of Certified public accountants (“hKiCpa”).

during the period, the group recorded a revenue of rmB13,966,904,000, representing a decrease of rmB2,060,016,000 or 12.9% as compared with that of the same period of 2010. net loss attributable to equity holders of the Company for the period amounted to rmB630,340,000, representing a decrease of rmB1,801,744,000 as compared with a net profit in the same period of 2010. Basic loss per share was rmB0.05.

OPerAtInG enVIrOnment

driven by the optimistic sentiment towards the container shipping market in 2010, a concentrated delivery of additional shipping capacity was seen during the period, reaching 780,000teU or approximately 5.2% of the world’s total shipping capacity, and most of which are super large container vessels. as a result, long hauls such as europe and trans-pacific trade lanes were seriously affected as evidenced by stagnant freight rate. Which, combined with sluggish demand in the U.S and europe, had resulted in a slowdown in the industry as a whole. in contrast with 2010, the lower freight rate, weaker market demand, higher oil prices and other negative factors had led to a downturn in the results of the group.

PerFOrmAnCe AnALYSIS

during the period, the group’ loaded container volume was 3,436,223teU, slightly down 3.3% as compared with the same period of 2010, and revenue was rmB13,966,904,000, representing a decrease of rmB2,060,016,000 or 12.9% as compared with that of the same period of 2010.

LOADeD COntAIner VOLUme BY trADe LAneS

	1H2011	1h2010	Change
*Principal Markets*	*(TEU)*	(TEU)	(%)
pacific trade lanes	597,393	662,852	(9.9%)
europe/mediterranean trade lanes	533,089	598,828	(11.0%)
asia pacific trade lanes	623,180	704,507	(11.5%)
China domestic trade lanes	1,639,545	1,549,326	5.8%
others	43,016	37,209	15.6%
total	3,436,223	3,552,722	(3.3%)

InterIm rePOrt 2011 5

China Shipping Container LineS Company Limited

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reVenUe FrOm OPerAtIOnS BY trADe LAneS

	1H2011	1h2010	Change
*Principal Markets*	*(RMB’000)*	(RMB’000)	(%)
pacific trade lanes	4,299,315	5,366,930	(19.9%)
europe/mediterranean trade lanes	3,469,337	5,269,655	(34.2%)
asia pacific trade lanes	2,295,926	2,186,822	5.0%
China domestic trade lanes	2,864,534	2,432,234	17.8%
others	1,037,792	771,279	34.6%
total	13,966,904	16,026,920	(12.9%)

during the period, because of sluggish international demand and a weaker-than-expected domestic export, the loaded container volume of the group decreased slightly by 3.3% to approximately 3,436,223teU as compared with the same period of last year.

the average freight rate per teU for international trade lanes of the group amounted to rmB5,760, decreased by 12.0% as compared with the same period of last year owing to stagnant movement in international freight rate. the revenue per teU for domestic trade lanes increased by 11.3% to rmB1,747 as compared with the same period of 2010, mainly attributable to the group’s quality trade lanes for domestic trade which are widely recognized in the domestic market, thereby enabling the freight rate to be maintained at a high level and an increase in cargo volume by approximately 5.8% as compared with the same period of last year.

COSt AnALYSIS

during the period, the group’s operation costs totaled to rmB14,284,990,000, representing a decrease of rmB122,956,000 or 0.9% as compared with the same period of 2010.

the decrease in total operation costs was due to the following factors:

During the Period, container and cargo costs amounted to RMB4,721,134,000, representing a decrease of 13.5% as compared with the same period of last year. on one hand, the decrease was due to a decrease in the volume of loaded cargoes, on the other hand, it was attributable to the successful implementation of various cost reduction measures of the group. of which, port charges amounted to rmB955,735,000, remained flat as compared with the same period of last year. the group’s stevedore charges for loaded and empty containers amounted to rmB2,630,556,000 during the period, representing a decrease of 20.5% as compared with the same period of last year. Container management cost amounted to rmB1,134,843,000, representing a decrease of 5.5% as compared with the same period of last year.
Vessel and voyage costs for the Period amounted to RMB6,680,409,000, representing an increase of 11.0% as compared with the same period of 2010, mainly due to the increase in fuel costs. during the period, fuel costs amounted to rmB4,229,934,000, representing an increase of 13.8% as compared with the same period of 2010. the increase in fuel costs was a direct result of the continual increase in international crude oil price, which was up approximately 41.9% as compared with Brent oil price in the same period of 2010. however, owing to the universal application of extra slow steaming, the group had reduced fuel consumption of approximately 160,000 tonnes during the period. Besides, the group had actively locked 520,000 tonnes of fuel during fluctuation of oil prices in the international market. those measures were proven to be successful and resulted in the increase in our fuel costs at a lower rate than the average increase in international crude oil price.
During the Period, sub-route and other costs amounted to RMB2,883,447,000, representing a mild decrease of 1.6% as compared with the same period of 2010. the decrease was mainly a result of the increase in direct routes service and minimizing of transshipment.

InterIm rePOrt 2011

China Shipping Container LineS Company Limited

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FUtUre PrOSPeCt

it is expected in the second half of 2011 and in the next one or two years, the road to recovery will be characterized by uncertainty and volatility and is not going to be an easy one. the main determining factor will be the peak period for delivery of new vessels. in general, however, risks of market downturn are still under control and change in competing relationship will become the biggest uncertain factor.

despite such complex situation, the group will face up to all future market volatility and operating pressure while fulfilling its business targets: on one hand, the group will continue to implement stringent cost control and stay competitive; on the other hand, the group will adopt effective measures to enhance profitability of the Company. the group shall take proactive and flexible approach while maintaining stable operations.

in the second half of 2011, the group will focus on the following aspects:

1. Continue to optimize fleet structure and expand shipping capacity appropriately.

in the second half of 2011, we will take delivery of three vessels each with a capacity of 14,100teU and three vessels each with a capacity of 4,700teU. By the end of 2011, the shipping capacity of our vessels will reach near 600,000teU. By the time, vessels with a capacity exceeding 4,000teU will account for 83.6% of the group’s fleet, giving us a distinctive advantage in terms of large shipping capacity.

2. Routes operation

the group will continue to closely monitor market changes and adopt a prudent approach in operation. We will commence external cooperation extensively in order to provide customers with both upward and downward logistics services while sea-to-rail intermodal transportation network will be established. in addition, the group will optimize route design and formulate flexible transportation pricing strategy which will enable us to respond swiftly to market changes, so as to seize the opportunities brought by market fluctuation and maximize efficiency of trade lanes. the second half of the year is generally the traditional peak season for the container shipping industry. the group will seize every opportunity to enhance the revenue of all trade lanes.

3. Cost control

the group will implement the refined management on an ongoing basis, strictly control cost and expenditure, and continually promote the slow steaming scheme in order to reduce fuel consumption. the group will take effective measures to manage containers, control port usage charge, transshipment cost, financial cost and vessel cost. We are determined to maintain our leading cost advantage in the highly competitive market.

4. Freight forwarding and Overseas marketing

in preparation for expanding the network of global shipping route and raising our global service level, the group will move forward the construction of freight forwarding network. Continuous attention will be paid to emerging markets and opportunities accompanying with regional economy development.

Besides, the group will also step up the supervision and assessment for its work on overseas marketing, and will focus on increasing the shipping volume of backhaul cargo and transportation of cargo through a third country, improving the organization of overseas freight forwarders and assessment mechanism, developing overseas marketing team and enhancing cargo canvassing capability.

InterIm rePOrt 2011

China Shipping Container LineS Company Limited

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5. Further strengthen team building, promote brand building and fulfill social responsibility

While the group is growing, we will implement training plan for our talent pool and improve remuneration incentive mechanism.

moreover, based on our “large clients” strategy, the group will enhance its overall brand construction, and continue to fulfill its corporate social responsibility by insisting, among others, lower carbon emission, environmental protection and following through with poverty and disaster relief etc.

LIQUIDItY, FInAnCIAL reSOUrCeS AnD CAPItAL StrUCtUre

the group’s principal source of liquidity is cash flow from operations and short-term bank loans. the group’s cash has mainly been used in paying for operating costs, repayments of loans and construction of new vessels and purchase of containers. during the period, the group generated a net operating cash outflow of rmB411,032,000 and the group had a bank balance and cash of rmB7,124,756,000 as at 30 June 2011.

as at 30 June 2011, the group’s total bank borrowings were rmB11,341,645,000. the maturity profile is spread over a period between 2011 and 2021 with rmB2,349,609,000 repayable within one year, rmB5,665,482,000 repayable within the second year, rmB702,187,000 repayable within the third to fifth year, and rmB2,624,367,000 repayable after the fifth year. the group’s long-term bank borrowings are mainly used to fund the construction of vessels and terminals.

as at 30 June 2011, the group’s long-term bank borrowings were secured by mortgages over certain containers, container vessels, and vessels under construction with a net book value of rmB3,832,666,000 (as at 31 december 2010: rmB2,074,524,000).

as at 30 June 2011, the group’s ten-year period fully repayable bonds amounted to rmB1,785,402,000, all proceeds were used in the construction of vessels. the bonds are guaranteed by the Bank of China, Shanghai branch.

as at 30 June 2011, the group’s obligations under finance leases amounted to rmB431,717,000, with the maturity profile ranging from 2011 to 2017. the amount repayable within one year is rmB203,708,000, the amount repayable within the second year is rmB174,316,000, the amount repayable within the third to fifth year is rmB43,200,000 and the amount repayable after the fifth year is rmB10,493,000. the group’s finance lease obligations are substantially arranged for the lease of containers, while the remaining small portion is arranged for the construction of terminals and port facilities.

as at 30 June 2011, the group had rmB borrowings at fixed interest rates of 5.3% to 6.1% per annum amounted to rmB2,317,145,000, USd borrowings at fixed interest rates in the amount of USd89,493,000 (equivalent to rmB579,165,000) and USd borrowings at floating interest rates ranging from London inter-bank offered rate plus 0.4% to 1.2% per annum amounted to USd1,304,984,000 (equivalent to rmB8,445,335,000). the group’s borrowings are settled in rmB and US dollars while its cash and cash equivalents are also primarily denominated in rmB and US dollars.

it is expected that capital needs for regular cash flow and capital expenditure can be funded by the internal cash flow of the group or external financing. the directors of the Company will review the operating cash flow of the group from time to time. it is the intention of the group to maintain an appropriate composition of equity and debt to constantly achieve an effective capital structure.

GeArInG rAtIO

as at 30 June 2011, the gearing ratio of the group (i.e. the ratio of net interest-bearing financial liabilities less cash and cash equivalents over total equity) was 22.1%, which is higher than that of 10.6% as at 31 december 2010 due to the reduction in equity as a result of the loss for the period.

InterIm rePOrt 2011

China Shipping Container LineS Company Limited

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FOreIGn eXCHAnGe rISK AnD HeDGInG

most of the group’s revenues and operating expenses are settled or denominated in US dollars. as a result, the negative impact on the net operating revenue due to rmB appreciation since July 2005 can be offset by each other to a certain extent. during the period, the group devoted much effort to improve the currency structure of assets in order to control the exchange loss for the period. the group recorded an exchange gains of approximately rmB57,354,000 which was recorded in the income statement, and the exchange difference which directly charged to equity amounted to approximately rmB209,592,000 during the period. the group continues to monitor the rmB exchange rate fluctuation, and convert net cash inflow from operating activities into rmB in a timely manner so as to minimise the losses brought by foreign exchange fluctuations. the group will continue to implement the policy of timely conversion of foreign monetary assets, reduce the monetary net assets denominated in foreign currency, and consider appropriate measures, including hedging instruments (e.g. forward exchange contracts) when necessary and appropriate, based on the group’s operating needs to minimise its currency exposure.

CAPItAL COmmItment

as at 30 June 2011, the group’s capital commitments which had been contracted but not provided for, in relation to vessels under construction amounted to rmB3,972,760,000 and in relation to investments was rmB285,000,000. Furthermore, the operating lease commitments of the group relating to land and buildings, and vessels and containers, are rmB149,157,000 and rmB12,695,345,000, respectively.

COntInGent LIABILItY

as at 30 June 2011, the group had a provision of rmB25,000,000 for legal claims.

SHAre CAPItAL

as at 30 June 2011, the share capital of the Company was as follows:

	number of
types of shares	shares in issue	Percentage
		(%)
a Shares	7,932,125,000	67.89
h Shares	3,751,000,000	32.11
total	11,683,125,000	100.00

InterIm rePOrt 2011

China Shipping Container LineS Company Limited

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IntereStS AnD SHOrt POSItIOnS OF DIreCtOrS, SUPerVISOrS AnD CHIeF eXeCUtIVeS In SHAreS, UnDerLYInG SHAreS AnD DeBentUreS

as at 30 June 2011, the interests or short positions of the directors, Supervisors or chief executive(s) of the Company in the shares, underlying shares or debentures of the Company or any of its associated corporations (within the meaning of part XV of the Securities and Futures ordinance (“SFo”)) which was required to be notified to the Company and the Stock exchange pursuant to divisions 7 and 8 of part XV of the SFo (including interests or short positions which any such directors, Supervisors or chief executive(s) is taken or deemed to have under such provisions of the SFo) or which was required to be entered in the register required to be kept by the Company pursuant to Section 352 of the SFo or which was otherwise required to be notified to the Company and the Stock exchange pursuant to the model Code for Securities transactions by directors of Listed issuers (the “model Code”) were as follows:

	number of	Capacity in which
	Underlying H shares	underlying H shares	Percentage in issued
name	Interested in	were held	H share capital
Directors
Li Shaode	3,382,100	Beneficial owner	0.090% (Long position)
Zhang guofa	2,218,050	Beneficial owner	0.059% (Long position)
huang Xiaowen	3,334,050	Beneficial owner	0.089% (Long position)
Zhao hongzhou	2,604,000	Beneficial owner	0.069% (Long position)
ma Zehua	1,520,550	Beneficial owner	0.041% (Long position)
Zhang Jianhua	1,240,000	Beneficial owner	0.033% (Long position)
Lin Jianqing	525,450	Beneficial owner	0.014% (Long position)
Wang daxiong	1,240,000	Beneficial owner	0.033% (Long position)
Xu hui	1,085,000	Beneficial owner	0.029% (Long position)
Supervisors
Chen decheng	948,600	Beneficial owner	0.025% (Long position)
tu Shiming	246,450	Beneficial owner	0.007% (Long position)
Kou Laiqi	156,550	Beneficial owner	0.004% (Long position)
Wang Xiuping	1,395,000	Beneficial owner	0.037% (Long position)

notes:

in accordance with the “resolution regarding adoption and approval of the h Share Share appreciation rights Scheme and implementation methods” passed at the Company’s second Special general meeting in year 2005 held on 12 october, 2005, the Company implemented a h share share appreciation rights scheme as appropriate incentive policy. details of the original Scheme were set out in the Company’s circular to shareholders dated 26 august, 2005 and each amended Scheme was produced to the annual general meetings of the Company held on 20 June, 2006, 26 June, 2007 and 26 June, 2008. the above disclosed represents the interests in h Shares of the Company held by the directors and Supervisors of the Company under the Share appreciation rights Scheme.

Save as disclosed above, as at 30 June 2011, none of the directors, Supervisors or chief executive(s) of the Company had any interests or short positions in the shares, underlying shares or debentures of the Company or any of its associated corporations (within the meaning of part XV of the SFo which was required to be notified to the Company and the Stock exchange pursuant to divisions 7 and 8 of part XV of the SFo (including interests or short positions which any such directors, Supervisors or chief executive(s) is taken or deemed to have under such provisions of the SFo) or which was required to be entered in the register required to be kept by the Company pursuant to Section 352 of the SFo or which was otherwise required to be notified to the Company and the Stock exchange pursuant to the model Code adopted by the Company.

InterIm rePOrt 2011

China Shipping Container LineS Company Limited

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IntereStS Or SHOrt POSItIOnS OF SUBStAntIAL SHAreHOLDerS Or OtHer PerSOnS In tHe SHAreS Or UnDerLYInG SHAreS

as at 30 June 2011, so far as was known to the directors, Supervisors or chief executive(s) of the Company, the interests or short positions of the shareholders who are entitled to exercise or control 5% or more of the voting power at any general meeting or other persons (other than a director, Supervisor or chief executive(s) of the Company) in the shares or underlying shares of the Company which were required to be notified to the Company pursuant to divisions 2 and 3 of part XV of the SFo, or the interests or short positions which were required to be recorded in the register kept by the Company pursuant to Section 336 of the SFo or the interests or short positions which have been notified to the Company and the Stock exchange were as follows:

		number of shares/		Percentage in the	Percentage in
		underlying		relevant class of	total share
name of shareholder	Class of shares	shares held	Capacity	share capital	capital
China Shipping (group)	a shares	5,361,837,500(L)	Beneficial owner	67.60%	45.89%
Company
the northern trust	h shares	249,945,900(p)	approved lending agent	6.66%	2.14%
Company (aLa)

(L) – Long position, (S) – Short position, (p) – Lending pool

Save as disclosed above, as at 30 June 2011, no other person (other than directors, Supervisors or chief executive(s) of the Company) had any interest or short position in any shares or underlying shares of the Company which would fall to be disclosed to the Company and the Stock exchange under the provisions of divisions 2 and 3 of part XV of the SFo, or any interest or short positions recorded in the register kept by the Company pursuant to Section 336 of the SFo or any interest or short positions which have been notified to the Company and the Stock exchange.

InterIm rePOrt 2011 11

China Shipping Container LineS Company Limited

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CHAnGeS In InFOrmAtIOn OF DIreCtOrS Or SUPerVISOrS

pursuant to the rule 13.51(B) of the rules governing the Listing of Securities on the Stock exchange of hong Kong Limited (the “Listing rules”), changes in the information of directors or Supervisors of the Company subsequent to the date of its 2010 annual report were as follows:

name of Director or Supervisor

Details of changes

Director yan Zhichong mr. yan proposed to resign as an non-executive director of the Company on 12 april 2011, which was effective upon the approval of an ordinary resolution proposed at the 2010 annual general meeting of the Company held on 28 June 2011 Zhang rongbiao[(1)] mr. Zhang was appointed as a non-executive director of the Company upon the approval of an ordinary resolution proposed at the 2010 annual general meeting of the Company held on 28 June 2011 Supervisor yao guojian mr. yao proposed to resign as a Staff representative Supervisor of the company on 14 april 2011, which was effective on 27 april 2011 tu Shiming[(2)] mr. tu was appointed as a Staff representative Supervisor on 27 april 2011

note:

mr. Zhang rongbiao (“mr. Zhang”), auditor, accountant, senior engineer. he is the general manager and party secretary of guangzhou Shipping (group) Company. mr. Zhang began his career in the shipping industry in 1979. Between January 1996 and July 1997, he was the assistant director and deputy director of Supervision and auditing division of guangzhou Shipping (group) Company. Between July 1997 and march 2005, he was the executive vice director and director of Supervision and auditing division of China Shipping (group) Company. From march 2005 to January 2007, he was party secretary of China Shipping development Company Limited tramp Co.. From January 2007 to march 2011, he was party secretary and deputy general manager of China Shipping development Company Limited tramp Co.. From april 2011 till now, he has been the general manager and party secretary of guangzhou Shipping (group) Company. mr. Zhang graduated from Wuhan river transport College, majoring in engine management. he pursued his postgraduate study at graduate School of Shanghai academy of Social Sciences from January 1999 to december 2001.
Save as disclosed above, mr. Zhang did not hold any other positions in the Company and/or its subsidiaries in the last three years. Save as disclosed above, mr. Zhang did not hold any directorship in any other publicly listed companies in hong Kong or overseas in the last three years. Save as disclosed above, mr. Zhang does not have other major appointments and professional qualifications. Save as disclosed above, mr. Zhang does not have any relationship with any directors, senior management, substantial or controlling Shareholders of the Company (within the meaning of the Listing rules).
mr. Zhang will not receive any remuneration from the Company and its subsidiaries.

InterIm rePOrt 2011

China Shipping Container LineS Company Limited

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mr. tu Shiming (“mr. tu”), senior accountant. he is the secretary of commission for discipline inspection of the Communist party Committee and a supervisor of the Company. mr. tu began his career in the shipping industry in 1983. From november 1996 to december 1997, mr. tu served as chief of the finance section of the container branch under Shanghai hai Xing Shipping Co., Ltd. From december 1997 to march 2005, he served several positions in China Shipping (group) Company, such as officer, deputy division chief and division chief of the audit division of the compliance department of China Shipping (group) Company. mr. tu was deputy general manager of the compliance department of China Shipping (group) Company from march 2005 to march 2011. he has served as the secretary of commission for discipline inspection of the Communist party Committee of the Company since april 2011.mr. tu graduated from Shanghai harbour School in 1983, majoring in maritime accounting, and obtained a bachelor degree in accounting from Shanghai University of Finance and economics in 1990.he was a supervisor of the Company from october 2005 to June 2008 and a supervisor of China Shipping (hainan) haisheng Shipping Co., Ltd. from 25 april 2008 to 25 april 2011.

Save as disclosed above, mr. tu did not hold any other positions in the Company and/or its subsidiaries in the last three years. Save as disclosed above, mr. tu did not hold any directorship in any other publicly listed companies in hong Kong or overseas in the last three years. Save as disclosed above, mr. tu does not have other major appointments and professional qualifications. Save as disclosed above, mr. tu does not have any relationship with any directors, senior management, substantial or controlling Shareholders of the Company (within the meaning of the Listing rules).

mr. tu, as the Staff representative Supervisor, is to receive an annual remuneration of rmB984,500, and the amount will be granted in accordance with the actual results of his performance appraisal.

H-SHAre APPreCIAtIOn rIGHtS SCHeme

in accordance with the “resolution regarding adoption and approval of the h Share Share appreciation rights Scheme and implementation methods” passed at the Company’s second Special general meeting in year 2005 held on 12 october, 2005, the Company implemented a h share share appreciation rights scheme as appropriate incentive policy.

in accordance with the h share appreciation rights scheme and its amendments made on 20 June 2006, 26 June 2007 and 26 June 2008 respectively, the eligible grantees are: the directors of the Company (other than independent non-executive directors), the supervisors of the Company (other than independent supervisors), the senior executives of the Company, the head of department of each of the operational and management departments of the Company and the general managers and deputy general managers of the Company’s subsidiaries.

PUrCHASe, SALe Or reDemPtIOn OF LISteD SeCUrItIeS OF tHe COmPAnY

during the period, neither the Company nor any of its subsidiaries had purchased, sold or redeemed any of the listed securities of the Company.

InterIm DIVIDenDS

the Board does not recommend the payment of an interim dividend for the period (2010: nil).

InterIm rePOrt 2011 13

China Shipping Container LineS Company Limited

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emPLOYeeS, trAInInGS AnD BeneFItS

as at 30 June 2011, the group had 4,442 employees. total staff expenses during the period were approximately rmB824,877,000. in addition, the group had entered into contracts with a number of subsidiaries of China Shipping (group) Company, pursuant to which these subsidiaries provided the group with approximately 2,721 crew members in total who mainly work on the group’s self-owned or bareboat chartered vessels.

remuneration of the group’s employees includes basic salaries, other allowances and performance-based bonuses. the group has also adopted a performance discretionary incentive scheme for its staff. the scheme links the staff’s financial benefits directly with certain business performance indicators. Such indicators may include, but not limited to, the profit target of the group.

details of such performance discretionary incentive scheme vary among the employees of the group. the group sets out certain performance indicators for each of its subsidiaries to achieve. each subsidiary has the discretion to formulate in detail its own performance-based remuneration policies according to its own circumstances.

the group has adopted a compensation scheme on 12 october 2005 and amended the same on 20 June 2006, 26 June 2007 and 20 June 2008, which is to be satisfied by cash payments and is sharebased, known as the “h Share Share appreciation rights Scheme”. the fair value change of the rights is recognised as an expense or income of the group. the directors (other than independent non-executive directors), the supervisors of the Company (other than independent Supervisors), the senior management of the Company, the head person in charge of department of each of the operational and management departments of the Company and the general managers and deputy general managers of the Company’s subsidiaries might in the future be entitled to the compensation in the form of cash payment, which is calculated based on the appreciation in the price of the group’s h share from the date of grant to the date of exercising the rights.

the group has put in place various training for its staff, including SmS training for the crewing department as well as management training for mid-to-high level management staff.

AUDIt COmmIttee

the audit committee of the Board consists of two independent non-executive directors, namely mr. Wu daqi and mr. Shen Kangchen, and one non-executive director, namely mr. Wang daxiong. the audit committee of the Company has reviewed the Company’s interim report for the reporting period and agreed with the accounting treatment adopted by the Company.

CODe On COrPOrAte GOVernAnCe PrACtICeS

the Company was in compliance with all code provisions of the “Code on Corporate governance practices” set out in appendix 14 to the Listing rules during the period.

mODeL CODe FOr SeCUrItIeS trAnSACtIOnS

the Company has adopted a code of conduct regarding directors’ and supervisors’ securities transactions on terms no less exacting than the required standard set out in the model Code as set out in appendix 10 to the Listing rules. Following specific enquiry made with all directors and supervisors, the Company has confirmed that each of them has complied with the required standard set out in the model Code regarding directors’ and supervisors’ securities transactions.

InterIm rePOrt 2011

China Shipping Container LineS Company Limited

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InFOrmAtIOn DISCLOSUre

this report will be dispatched by the Company to its shareholders and published on the website of hong Kong Stock exchange at http://www.hkexnews.hk and the Company’s website at http://www.cscl.com.cn. the interim report contains all the information as required by disclosure of Financial information as set out in appendix 16 to the Listing rules.

By order of the Board China Shipping Container Lines Company Limited Li Shaode Chairman

Shanghai, the prC 24 august, 2011

InterIm rePOrt 2011

China Shipping Container LineS Company Limited

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rePOrt On reVIeW OF InterIm FInAnCIAL InFOrmAtIOn

tO tHe BOArD OF DIreCtOrS OF CHInA SHIPPInG COntAIner LIneS COmPAnY LImIteD

(incorporated in the people’s republic of China with limited liability)

IntrODUCtIOn

We have reviewed the condensed consolidated interim financial information set out on pages 17 to 46, which comprises the interim condensed consolidated balance sheet of China Shipping Container Lines Company Limited (the “Company”) and its subsidiaries (together, the “group”) as at 30 June 2011, and the related interim condensed consolidated statement of income, comprehensive income, changes in equity and cash flows for the six-month period then ended, and a summary of significant accounting policies and other explanatory notes. the rules governing the Listing of Securities on the Stock exchange of hong Kong Limited require the preparation of a report on interim financial information to be in compliance with the relevant provisions thereof and hong Kong accounting Standard 34 “interim Financial reporting” issued by the hong Kong institute of Certified public accountants. the directors of the Company are responsible for the preparation and presentation of this interim financial information in accordance with hong Kong accounting Standard 34 “interim Financial reporting”. our responsibility is to express a conclusion on this interim financial information based on our review and to report our conclusion solely to you, as a body, in accordance with our agreed terms of engagement and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report.

SCOPe OF reVIeW

We conducted our review in accordance with hong Kong Standard on review engagements 2410, “review of interim Financial information performed by the independent auditor of the entity” issued by the hong Kong institute of Certified public accountants. a review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. a review is substantially less in scope than an audit conducted in accordance with hong Kong Standards on auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. accordingly, we do not express an audit opinion.

COnCLUSIOn

Based on our review, nothing has come to our attention that causes us to believe that the interim financial information is not prepared, in all material respects, in accordance with hong Kong accounting Standard 34 “interim Financial reporting”.

PricewaterhouseCoopers

Certified public accountants

hong Kong, 24 august 2011

InterIm rePOrt 2011

China Shipping Container LineS Company Limited

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COnDenSeD COnSOLIDAteD InterIm BALAnCe SHeet

AS AT 30 JUNE 2011

ASSetS non-current assets property, plant and equipment Leasehold land and land use rights intangible assets deferred income tax assets available-for-sale financial assets investment in associated companies investment in jointly controlled entities	30 June 2011 31 december 2010 Note *RMB’000* RMB’000 (Unaudited) (audited) 7 35,521,496 33,704,542 7 96,594 97,795 7 21,548 26,416 15,506 15,606 362,140 362,140 165,995 84,720 1,218,545 1,207,344 37,401,824 35,498,563 1,171,278 883,275 8 2,163,121 1,791,791 298,334 181,100 13,000 13,000 7,124,756 10,648,396 10,770,489 13,517,562 48,172,313 49,016,125 9 11,683,125 11,683,125 17,269,439 17,478,560 (607,725) 23,254 28,344,839 29,184,939 814,903 777,304 29,159,742 29,962,243
total non-current assets
Current assets inventories trade and notes receivables prepayments and other receivables Loan to a jointly controlled entity Cash and cash equivalents
total current assets
total assets

eQUItY equity attributable to equity holders of the Company Share capital other reserves (accumulated losses)/retained earnings
non-controlling interests
total equity

InterIm rePOrt 2011 17

China Shipping Container LineS Company Limited

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COnDenSeD COnSOLIDAteD InterIm BALAnCe SHeet (Continued)

AS AT 30 JUNE 2011

		30 June	31 december
		2011	2010
	Note	*RMB’000*	RMB’000
		(Unaudited)	(audited)
LIABILItIeS
non-current liabilities
Long-term borrowings	10	8,992,036	8,276,108
domestic corporate bonds	11	1,785,402	1,784,176
Finance lease obligations	12	228,009	339,512
deferred income tax liabilities		60	61
total non-current liabilities		11,005,507	10,399,857
Current liabilities
trade payables	14	4,582,044	4,339,287
accrual and other payables		812,207	788,118
Short-term bank borrowings	10	517,728	529,816
Long-term bank borrowings – current portion	10	1,831,881	2,695,432
Finance lease obligations – current portion	12	203,708	210,574
Current income tax liabilities		34,496	59,439
provisions	13	25,000	31,359
total current liabilities		8,007,064	8,654,025
total liabilities		19,012,571	19,053,882
total equity and liabilities		48,172,313	49,016,125
net current assets		2,763,425	4,863,537
total assets less current liabilities		40,165,249	40,362,100

the notes on pages 23 to 46 form an integral part of this condensed consolidated interim financial information.

18 InterIm rePOrt 2011

China Shipping Container LineS Company Limited

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COnDenSeD COnSOLIDAteD InterIm InCOme StAtement

FOR THE SIX MONTHS ENDED 30 JUNE 2011

revenue Costs of services	Six months ended 30 June 2011 2010 Note *RMB’000* RMB’000 (Unaudited) (Unaudited) 6 13,966,904 16,026,920 (14,284,990) (14,407,946) (318,086) 1,618,974 16 92,088 46,812 17 93,792 50,508 (396,337) (388,970) 15 (528,543) 1,327,324 18 (86,538) (111,282) 11,627 1,321 18,731 15,700 (584,723) 1,233,063 19 (25,951) (47,003) (610,674) 1,186,060 (630,340) 1,171,404 19,666 14,656 (610,674) 1,186,060 21 rmB(0.05) rmB0.10
Gross (loss)/profit other gains, net other income Selling, administrative and general expenses
Operating (loss)/profit Finance costs Share of results of associated companies Share of results of jointly controlled entities
(Loss)/profit before income tax income tax expense
(Loss)/profit for the period

Attributable to: equity holders of the Company non-controlling interests


(Loss)/earnings per share for (loss)/profit attributable to equity holders of the Company (expressed in rmB per share) – Basic and diluted

the notes on pages 23 to 46 form an integral part of this condensed consolidated interim financial information.

Dividends 20 – –

InterIm rePOrt 2011 19

China Shipping Container LineS Company Limited

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COnDenSeD COnSOLIDAteD InterIm StAtement OF COmPreHenSIVe InCOme

FOR THE SIX MONTHS ENDED 30 JUNE 2011

	Six months ended 30 June	Six months ended 30 June
	2011	2010
	*RMB’000*	RMB’000
	(Unaudited)	(Unaudited)
(Loss)/profit for the period	(610,674)	1,186,060
Other comprehensive (loss)/income
Share of other comprehensive income of jointly controlled entities	471	183
Currency translation differences, net of tax	(209,592)	(37,558)
total comprehensive (loss)/income for the period	(819,795)	1,148,685
Attributable to:
equity holders of the Company	(839,461)	1,134,029
non-controlling interests	19,666	14,656
	(819,795)	1,148,685

the notes on pages 23 to 46 form an integral part of this condensed consolidated interim financial information.

20 InterIm rePOrt 2011

China Shipping Container LineS Company Limited

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COnDenSeD COnSOLIDAteD InterIm StAtement OF CHAnGeS In eQUItY

FOR THE SIX MONTHS ENDED 30 JUNE 2011

Balance at 1 January 2010	Unaudited
	Attributable to equity holders of the Company Share capital Other reserves (Accumulated losses)/ retained earnings total non- controlling Interests total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 11,683,125 17,664,548 (4,120,974) 25,226,699 751,499 25,978,198
profit for the period Share of other comprehensive income of jointly controlled entities Currency translation differences, net of tax	– – 1,171,404 1,171,404 14,656 1,186,060 – 183 – 183 – 183 – (37,558) – (37,558) – (37,558)
total comprehensive income for the period ended 30 June 2010	– (37,375) 1,171,404 1,134,029 14,656 1,148,685
transactions with owners in their capacity as owners dividends to non-controlling interests	– – – – (4,301) (4,301)
Balance at 30 June 2010	11,683,125 17,627,173 (2,949,570) 26,360,728 761,854 27,122,582

Balance at 1 January 2011	11,683,125 17,478,560 23,254 29,184,939 777,304 29,962,243
(Loss)/profit for the period Share of other comprehensive income of jointly controlled entities Currency translation differences, net of tax	– – (630,340) (630,340) 19,666 (610,674) – 471 – 471 – 471 – (209,592) – (209,592) – (209,592)
total comprehensive loss for the period ended 30 June 2011	– (209,121) (630,340) (839,461) 19,666 (819,795)
transactions with owners in their capacity as owners Capital injection dividends to non-controlling interests others	– – – – 24,300 24,300 – – – – (6,159) (6,159) – – (639) (639) (208) (847)
Balance at 30 June 2011	11,683,125 17,269,439 (607,725) 28,344,839 814,903 29,159,742

the notes on pages 23 to 46 form an integral part of this condensed consolidated interim financial information.

InterIm rePOrt 2011

China Shipping Container LineS Company Limited

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COnDenSeD COnSOLIDAteD InterIm CASH FLOW StAtement

FOR THE SIX MONTHS ENDED 30 JUNE 2011

	Six months ended 30 June	Six months ended 30 June
	2011	2010
	*RMB’000*	RMB’000
	(Unaudited)	(Unaudited)
Cash flows (used in)/generated from operating activities – net	(411,032)	1,439,279
Cash flows used in investing activities – net	(2,807,391)	(873,376)
Cash flows (used in)/generated from financing activities – net	(264,656)	1,284,701
net (decrease)/increase in cash and cash equivalents	(3,483,079)	1,850,604
Cash and cash equivalents at beginning of the period	10,648,396	6,936,708
exchange losses on cash and cash equivalents	(40,561)	(2,927)
Cash and cash equivalents at end of the period	7,124,756	8,784,385

the notes on pages 23 to 46 are an integral part of this condensed consolidated interim financial information.

22 InterIm rePOrt 2011

China Shipping Container LineS Company Limited

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nOteS tO tHe COnDenSeD COnSOLIDAteD InterIm FInAnCIAL InFOrmAtIOn

FOR THE SIX MONTHS ENDED 30 JUNE 2011

1 GenerAL InFOrmAtIOn

China Shipping Container Lines Company Limited (the “Company”) was incorporated in the people’s republic of China (the “prC”) on 28 august 1997 as a company with limited liability under the Company Law of the prC. on 3 march 2004, the Company was transformed into a joint stock limited company under the Company Law of the prC. in 2004, the Company issued overseas public shares (“h Share”), which were listed on the main Board of the Stock exchange of hong Kong Limited (“hong Kong Stock exchange”) on 16 June 2004. in 2007, the Company issued prC domestic public shares (“a Share”), which were listed on the Shanghai Stock exchange on 12 december 2007.

the address of the Company’s registered office is room a-538, yangshan international trade Center, no.188 ye Sheng road, yangshan Free trade port area, Shanghai, the prC.

the Company and its subsidiaries (together, the “group”) are principally engaged in owning, chartering and operating container vessels for the provision of international and domestic container marine transportation services, and the operation of container terminals.

this condensed consolidated interim financial information is presented in renminbi (“rmB”), unless otherwise stated. this condensed consolidated interim financial information has been approved for issue by the board of directors of the Company on 24 august 2011.

this condensed consolidated interim financial information has not been audited.

2 BASIS OF PrePArAtIOn

this condensed consolidated interim financial information for the six months ended 30 June 2011 has been prepared in accordance with hKaS 34, ‘interim financial reporting’. the condensed consolidated interim financial information should be read in conjunction with the annual financial statements for the year ended 31 december 2010, which were prepared in accordance with hong Kong Financial reporting Standards (“hKFrSs”).

InterIm rePOrt 2011 23

China Shipping Container LineS Company Limited

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nOteS tO tHe COnDenSeD COnSOLIDAteD InterIm FInAnCIAL InFOrmAtIOn (Continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2011

3 SIGnIFICAnt ACCOUntInG POLICIeS

except as described below, the accounting policies applied are consistent with those of the annual financial statements for the year ended 31 december 2010, as described in those annual financial statements.

taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings.

(a) new and amended standards adopted by the group

the following new standard and amendment to standards are mandatory for the first time for the financial year beginning 1 January 2011.

HKAS 24 (Revised), “Related Party Disclosures” is effective for annual period beginning on or after January 2011. it introduces an exemption from all of the disclosure requirements of hKaS 24 for transactions among government related entities and the government. those disclosures are replaced with a requirement to disclose:
the name of the government and the nature of their relationship;
the nature and amount of any individually significant transactions; and
the extent of any collectively-significant transactions qualitatively or quantitatively.

it also clarifies and simplifies the definition of a related party. See note 23 for disclosures of transactions among government related entities.

Amendment to HKAS 34 “Interim financial reporting” is effective for annual periods beginning on or after 1 January 2011. it emphasises the existing disclosure principles in hKaS34 and adds further guidance to illustrate how to apply these principles. greater emphasis has been placed on the disclosure principles for significant events and transactions. additional requirements cover disclosure of changes to fair value measurement (if significant), and the need to update relevant information from the most recent annual report. the change in accounting policy only results in additional disclosures.

24 InterIm rePOrt 2011

China Shipping Container LineS Company Limited

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nOteS tO tHe COnDenSeD COnSOLIDAteD InterIm FInAnCIAL InFOrmAtIOn (Continued) FOR THE SIX MONTHS ENDED 30 JUNE 2011

3 SIGnIFICAnt ACCOUntInG POLICIeS (Continued)

(b) amendments and interpretations to existing standards effective in 2011 but not currently relevant to the group
Amendment to HKAS 32 “Classification of rights issues” is effective for annual periods beginning on or after 1 February 2010. this is not currently applicable to the group, as it has not made any rights issue.
Amendment to HKFRS 1 “Limited exemption from comparative HKFRS 7 disclosures for first-time adopters” is effective for annual periods beginning on or after 1 July 2010. this is not applicable to the group, as it is not a first-time adopter of hKFrS.
Amendment to HK(IFRIC) – Int-14 “Prepayments of a minimum funding requirement” is effective for annual periods beginning on or after 1 January 2011. this is not currently relevant to the group, as it does not have a minimum funding requirement.
HK(IFRIC) – Int 19 “Extinguishing financial liabilities with equity instruments” is effective for annual periods beginning on or after 1 July 2010. this is not currently applicable to the group, as it has no extinguishment of financial liabilities replaced with equity instruments currently.
Third improvements to Hong Kong Financial Reporting Standards (2010) were issued in May 2010 by the hKiCpa, except for amendment to hKaS 34 “interim financial reporting” as disclosed in note 3(a) and the clarification to allow the presentation of an analysis of the components of other comprehensive income by item within the notes, all are not currently relevant to the group. all improvements are effective in the financial year of 2011.
(c) the following new standards and amendments to standards have been issued but are not effective for the financial year beginning 1 January 2011 and have not been early adopted:
HKFRS 7 (Amendment) “Disclosures – Transfers of financial assets” introduces new disclosure requirement on transfers of financial assets. the amendment is applicable to annual periods beginning on or after 1 July 2011 with early adoption permitted.
HKAS 1 (Amendment) “Presentation of financial statements” changes the disclosure of items presented in other comprehensive income in the statement of comprehensive income. the amendment is applicable to annual periods beginning on or after 1 July 2012 with early adoption permitted.

InterIm rePOrt 2011 25

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nOteS tO tHe COnDenSeD COnSOLIDAteD InterIm FInAnCIAL InFOrmAtIOn (Continued) FOR THE SIX MONTHS ENDED 30 JUNE 2011

3 SIGnIFICAnt ACCOUntInG POLICIeS (Continued)

(c) the following new standards and amendments to standards have been issued but are not effective for the financial year beginning 1 January 2011 and have not been early adopted: (continued)

the new standards and amendments to standards are effective for annual periods beginning on or after 1 January 2013 and permitted to early adopt as following:

HKFRS 9 “Financial instruments” addresses the classification, measurement and derecognition of financial assets and financial liabilities.
HKFRS 10 “Consolidated financial statements” replaces all of the guidance on control and consolidation in hKaS 27, “Consolidated and separate financial statements”, and hK(SiC)-12, “Consolidation – special purpose entities”.
HKFRS 11 ”Joint arrangements” changes the definitions to reduce the types of joint arrangements to two, joint operations and joint ventures.
HKFRS 12 “Disclosure of interests in other entities” sets out the required disclosures for entities reporting under the two new standards, hKFrS 10, “Consolidated financial statements”, and hKFrS 11, “Joint arrangements”.
HKFRS 13 “Fair value measurements” explains how to measure fair value and aims to enhance fair value disclosures.
HKAS 19 (Amendment) “Employee benefits” makes significant changes to the recognition and measurement of defined benefit pension expense and termination benefits, and to the disclosures for all employee benefits.

4 eStImAteS

the preparation of condensed consolidated interim financial information requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. actual results may differ from these estimates.

in preparing these condensed consolidated interim financial information, the significant judgements made by management in applying the group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 31 december 2010.

26 InterIm rePOrt 2011

China Shipping Container LineS Company Limited

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nOteS tO tHe COnDenSeD COnSOLIDAteD InterIm FInAnCIAL InFOrmAtIOn (Continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2011

5 FInAnCIAL rISK mAnAGement

5.1 Financial risk factors

the group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, cash flow and fair value interest rate risk, and bunker price risk), credit risk and liquidity risk.

the condensed consolidated interim financial information does not include all financial risk management information and disclosures required in the annual consolidated financial statements, and should be read in conjunction with the group’s annual consolidated financial statements for the year ended 31 december 2010.

there have been no changes in the risk management department since year end or in any risk management policies.

5.2 Liquidity risk

Compared to year end, there was no material change in the contractual undiscounted cash out flows for financial liabilities.

5.3 Fair value estimation

as at 30 June 2011 and 31 december 2010, the group did not have any financial asset or liability that was measured at fair value.

in 2011 there were no significant changes in the business or economic circumstances that significantly affect the fair value of the group’s financial assets and financial liabilities recognised at amortised cost, and there were no reclassifications of financial assets.

6 reVenUe AnD SeGment InFOrmAtIOn

the chief operating decision-maker has been identified as the Board. the decision-maker reviews the group’s internal reporting in order to assess performance and allocate resources. management has determined the operating segments based on these reports.

the chief operating decision-maker considers the business from industry segment prospective and assesses the performance of container shipping and related business and container terminal and related business.

the chief operating decision-maker assesses the performance of the operating segments based on a measure of operating (loss)/profit, which is reconciled to (loss)/profit before tax. this measurement is consistent with that in the annual financial statements.

InterIm rePOrt 2011 27

China Shipping Container LineS Company Limited

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nOteS tO tHe COnDenSeD COnSOLIDAteD InterIm FInAnCIAL InFOrmAtIOn (Continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2011

6 reVenUe AnD SeGment InFOrmAtIOn (Continued)

Segment assets are those operating assets that are employed by a segment in its operating activities. they exclude investments in associates not related to the segment and deferred income tax assets. Segment liabilities are those operating liabilities that result from the operating activities of a segment. Segment liabilities do not include deferred income tax liabilities and current income tax liabilities.

Unallocated assets mainly represent investments in associates not related to the segment and deferred income tax assets. Unallocated liabilities mainly represent deferred income tax liabilities and current income tax liabilities.

as at 30 June 2011, the investments in associations in the unallocated assets represent the investment in a finance company and a company engaged in providing motor transportation services. during the six months ended 30 June 2011, the group acquired 20.07% equity shares in the motor transport company at a cash consideration of rmB64 million approximately.

revenue from the major shipping lanes and other business is set out below:

	Six months ended 30 June	Six months ended 30 June
	2011	2010
	*RMB’000*	RMB’000
	(Unaudited)	(Unaudited)
pacific	4,299,315	5,366,930
europe/mediterranean	3,469,337	5,269,655
asia pacific	2,295,926	2,186,822
China domestic	2,864,534	2,432,234
others	1,037,792	771,279
turnover	13,966,904	16,026,920

InterIm rePOrt 2011

China Shipping Container LineS Company Limited

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nOteS tO tHe COnDenSeD COnSOLIDAteD InterIm FInAnCIAL InFOrmAtIOn (Continued) FOR THE SIX MONTHS ENDED 30 JUNE 2011

6 reVenUe AnD SeGment InFOrmAtIOn (Continued)

Container shipping and related business Container terminal and related business Inter-segment elimination *RMB’000* *RMB’000* *RMB’000* Segment results for the six months ended 30 June 2011 (Unaudited) total segment revenue 13,797,049 254,251 (84,396) Less: inter-segment revenue – (84,396) 84,396	Group *RMB’000* 13,966,904 – 13,966,904 (528,543) (86,538) 26 18,731 (596,324) 11,601 (584,723) (25,951) (610,674) 672,839 2,782,986
revenue of the group, from external customers 13,797,049 169,855 –

Segment operating (loss)/profit (611,233) 82,690 – Finance costs (64,404) (22,134) – Share of results of associated companies – 26 – Share of results of jointly controlled entities 466 18,265 –
Segment (loss)/profit before income tax (675,171) 78,847 – Share of result of associated companies Loss before income tax income tax expense Loss for the period Other items depreciation and amortisation 630,653 42,186 – additions to non-current assets (other than financial instruments and deferred income tax assets) 2,724,104 58,882 –

InterIm rePOrt 2011 29

China Shipping Container LineS Company Limited

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nOteS tO tHe COnDenSeD COnSOLIDAteD InterIm FInAnCIAL InFOrmAtIOn (Continued) FOR THE SIX MONTHS ENDED 30 JUNE 2011

6 reVenUe AnD SeGment InFOrmAtIOn (Continued)

reVenUe AnD SeGment InFOrmAtIOn(Continued)
Container shipping and related business Container terminal and related business Inter-segment elimination *RMB’000* *RMB’000* *RMB’000* Segment assets and liabilities as at 30 June 2011 (Unaudited) other segment assets 42,456,443 4,069,186 (115,502) Jointly controlled entities 40,286 1,178,259 – associated companies – 10,026 – available-for-sale financial assets – 362,140 –	Group *RMB’000* 46,410,127 1,218,545 10,026 362,140
total segment assets 42,496,729 5,619,611 (115,502) Unallocated assets – associated companies – deferred income tax assets total assets Segment liabilities 16,636,447 2,457,070 (115,502) Unallocated liabilities – deferred income tax liabilities – Current income tax liabilities total liabilities	48,000,838 155,969 15,506
	48,172,313

	18,978,015 60 34,496
	19,012,571

InterIm rePOrt 2011

China Shipping Container LineS Company Limited

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6 reVenUe AnD SeGment InFOrmAtIOn (Continued)

Container shipping and related business Container terminal and related business inter-segment elimination RMB’000 RMB’000 RMB’000 Segment results for the six months ended 30 June 2010 (Unaudited) total segment revenue 15,887,970 214,518 (75,568) Less: inter-segment revenue – (75,568) 75,568	group RMB’000 16,026,920 –
revenue of the group, from external customers 15,887,970 138,950 –	16,026,920

Segment operating profit 1,173,003 154,321 – Finance costs (85,859) (25,423) – Share of results of jointly controlled entities 608 15,092 –	1,327,324 (111,282) 15,700
Segment profit before income tax 1,087,752 143,990 – Share of result of an associated company profit before income tax income tax expense profit for the period Other items depreciation and amortisation 658,308 40,743 – additions to non-current assets (other than financial instruments and deferred income tax assets) 675,855 280,137 –	1,231,742 1,321
	1,233,063 (47,003)
	1,186,060

	699,051 955,992

InterIm rePOrt 2011 31

China Shipping Container LineS Company Limited

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6 reVenUe AnD SeGment InFOrmAtIOn (Continued)

reVenUe AnD SeGment InFOrmAtIOn(Continued)
Container shipping and related business Container terminal and related business inter-segment elimination RMB’000 RMB’000 RMB’000 Segment assets and liabilities as at 31 December 2010 (Audited) other segment assets 43,400,800 4,021,881 (76,366) Jointly controlled entities 39,819 1,167,525 – available-for-sale financial assets – 362,140 –	group RMB’000 47,346,315 1,207,344 362,140
total segment assets 43,440,619 5,551,546 (76,366) Unallocated assets – an associated company – deferred income tax assets total assets Segment liabilities 16,627,438 2,443,310 (76,366) Unallocated liabilities – deferred income tax liabilities – Current income tax liabilities total liabilities	48,915,799 84,720 15,606
	49,016,125

	18,994,382 61 59,439
	19,053,882

the directors of the Company consider that the nature of the group’s business precludes a meaningful allocation of the group’s non-current assets of container shipping business to specific geographical segments as they mainly include container vessels and containers which are utilised across geographical markets for shipment of cargoes throughout the world. all of the group’s container terminals are located in the prC.

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China Shipping Container LineS Company Limited

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7 PrOPertY, PLAnt AnD eQUIPment, LeASeHOLD LAnD AnD LAnD USe rIGHtS AnD IntAnGIBLe ASSetS

ASSetS
		Leasehold
	Property, plant	land and land	Intangible
	and equipment	use rights	assets	total
	RMB’000	RMB’000	RMB’000	RMB’000
Six months ended 30 June 2011
(Unaudited)
Opening net book amount as at
1 January 2011	33,704,542	97,795	26,416	33,828,753
additions	2,772,251	–	735	2,772,986
disposals	(16,928)	–	–	(16,928)
depreciation and amortisation_(Note 15)_	(666,035)	(1,201)	(5,603)	(672,839)
exchange difference	(272,334)	–	–	(272,334)
Closing net book amount as at
30 June 2011	35,521,496	96,594	21,548	35,639,638
Six months ended 30 June 2010
(Unaudited)
Opening net book amount as at
1 January 2010	33,234,405	100,214	26,227	33,360,846
additions	787,115	–	877	787,992
disposals	(4,348)	–	–	(4,348)
depreciation and amortisation_(Note 15)_	(695,857)	(1,213)	(1,981)	(699,051)
exchange difference	(62,778)	–	–	(62,778)
Closing net book amount as at
30 June 2010	33,258,537	99,001	25,123	33,382,661

as at 30 June 2011, the net book value of container vessels, containers and port and depot infrastructure of the group pledged as securities for the bank borrowings amounted to approximately rmB3,832,666,000 (2010: 2,074,524,000) (note 10).

InterIm rePOrt 2011 33

China Shipping Container LineS Company Limited

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FOR THE SIX MONTHS ENDED 30 JUNE 2011

8 trADe AnD nOteS reCeIVABLeS

trADe AnD nOteS reCeIVABLeS
	30 June	31 december
	2011	2010
	*RMB’000*	RMB’000
	(Unaudited)	(audited)
trade receivables
– related parties_(Note 23(b))_	181,979	142,470
– third parties	1,784,923	1,375,844
	1,966,902	1,518,314
notes receivables	196,219	273,477
	2,163,121	1,791,791

the ageing analysis of the trade and notes receivables based on invoice dates is as follows:

	30 June	31 december
	2011	2010
	*RMB’000*	RMB’000
	(Unaudited)	(audited)
Within 3 months	1,994,089	1,618,516
4 to 6 months	183,707	55,084
7 to 9 months	9,389	71,393
10 to 12 months	46,561	97,103
over one year	15,150	25,836
	2,248,896	1,867,932
Less: provision for impairment of receivables	(85,775)	(76,141)
	2,163,121	1,791,791

generally, credit terms in the range within 3 months are granted to those customers with good payment history.

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China Shipping Container LineS Company Limited

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9 SHAre CAPItAL

								number of	A Share of	H Share of
								shares	rmB1 each	rmB1 each	total
								(thousand)	RMB’000	RMB’000	RMB’000
at	1	January	2010	till	30	June	2011	11,683,125	7,932,125	3,751,000	11,683,125

as at 30 June 2011, all issued shares are registered, fully paid and divided into 11,683,125,000 shares (2010: 11,683,125,000 shares) of rmB1.00 each, comprising 7,932,125,000 a Share and 3,751,000,000 h Share (2010: 7,932,125,000 a Share and 3,751,000,000 h Share).

10 BOrrOWInGS

BOrrOWInGS
	30 June	31 december
	2011	2010
	*RMB’000*	RMB’000
	(Unaudited)	(audited)
non-Current
Long-term bank borrowings	8,893,730	8,196,108
Loan from a related party	98,306	80,000
	8,992,036	8,276,108
Current
Short-term bank borrowings	517,728	529,816
Long-term bank borrowings
– current portion	1,831,881	2,695,432
	2,349,609	3,225,248
	11,341,645	11,501,356
representing:
Loan from a related party_(Note 23(b))_
– unsecured	98,306	80,000
Bank borrowings
– unsecured	9,000,140	9,929,512
– secured	2,243,199	1,491,844
	11,341,645	11,501,356

Legal mortgage over certain container vessels, containers and port and depot infrastructure of the group with net book value of approximately rmB3,832,666,000 (2010: 2,074,524,000) (note 7).

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China Shipping Container LineS Company Limited

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FOR THE SIX MONTHS ENDED 30 JUNE 2011

10 BOrrOWInGS (Continued)

an analysis of the carrying amounts of the group’s borrowings by currency is as follows:

	30 June	31 december
	2011	2010
	*RMB’000*	RMB’000
	(Unaudited)	(audited)
rmB	2,317,145	2,315,150
USd	9,024,500	9,186,206
	11,341,645	11,501,356
the maturity periods of the borrowings are as follows:
	30 June	31 december
	2011	2010
	*RMB’000*	RMB’000
	(Unaudited)	(audited)
Within one year	2,349,609	3,225,248
in the second year	5,665,482	3,701,890
in the third to fifth year	702,187	2,764,767
after fifth year	2,624,367	1,809,451
	11,341,645	11,501,356
movements in bank borrowings are analysed as follows:
		RMB’000
Six months ended 30 June 2011 (Unaudited)
Opening amount as at 1 January 2011		11,501,356
additions		1,122,054
repayments of bank borrowings		(1,083,769)
exchange difference		(197,996)
Closing amount as at 30 June 2011		11,341,645
Six months ended 30 June 2010 (Unaudited)
Opening amount as at 1 January 2010		10,784,469
additions		3,872,769
repayments of bank borrowings		(2,235,257)
exchange difference		(51,713)
Closing amount as at 30 June 2010		12,370,268

36 InterIm rePOrt 2011

China Shipping Container LineS Company Limited

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11 DOmeStIC COrPOrAte BOnDS

DOmeStIC COrPOrAte BOnDS
	30 June	31 december
	2011	2010
	*RMB’000*	RMB’000
	(Unaudited)	(audited)
non-current domestic corporate bonds	1,785,402	1,784,176

in June 2007, the Company issued domestic corporate bonds in the prC with face value of rmB1,800,000,000. the bonds are for a ten-year period fully repayable by 12 June 2017, and bear interest at a fixed rate of 4.51% per annum. the bonds are guaranteed by Bank of China, Shanghai branch, and have been listed on the interbank bond market in the prC.

12 FInAnCe LeASe OBLIGAtIOnS

		30 June 2011		31	december 2010
			net present			net present
			value of			value of
	minimum		minimum	minimum		minimum
	lease	Finance	lease	lease	Finance	lease
	payments	charges	payments	payments	charges	payments
	*RMB’000*	*RMB’000*	*RMB’000*	RMB’000	RMB’000	RMB’000
	(Unaudited)	(Unaudited)	(Unaudited)	(audited)	(audited)	(audited)
Finance lease obligations
Within one year	226,977	23,269	203,708	241,710	31,136	210,574
in the second year	184,117	9,801	174,316	225,590	17,115	208,475
in the third to fifth year	47,706	4,506	43,200	123,587	7,508	116,079
after fifth year	10,920	427	10,493	15,807	849	14,958
	469,720	38,003	431,717	606,694	56,608	550,086
Less: current portion	(226,977)	(23,269)	(203,708)	(241,710)	(31,136)	(210,574)
	242,743	14,734	228,009	364,984	25,472	339,512

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China Shipping Container LineS Company Limited

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FOR THE SIX MONTHS ENDED 30 JUNE 2011

13 PrOVISIOnS

PrOVISIOnS
	Onerous
	contracts	Legal claims	total
	RMB’000	RMB’000	RMB’000
Six months ended 30 June 2010 (Unaudited)
Opening amount as at 1 January 2010	67,093	25,000	92,093
Utilised during the period	(39,704)	–	(39,704)
Closing amount as at 30 June 2010	27,389	25,000	52,389
Six months ended 30 June 2011 (Unaudited)
Opening amount as at 1 January 2011	6,359	25,000	31,359
Utilised during the period	(6,359)	–	(6,359)
Closing amount as at 30 June 2011	–	25,000	25,000

the onerous contracts provision represented the amount of the unavoidable costs under the vessels chartering in contracts that exceed the future economic benefits expected to be received under the vessels chartering out contracts. provision amounting to rmB6,359,000 was utilised and credited to the condensed consolidated interim income statement within costs of services for the period ended 30 June 2011.

14 trADe PAYABLeS

trADe PAYABLeS
	30 June	31 december
	2011	2010
	*RMB’000*	RMB’000
	(Unaudited)	(audited)
trade payables
– related parties_(Note 23(b))_	1,052,406	1,671,588
– third parties	3,529,638	2,667,699
	4,582,044	4,339,287
the ageing analysis of trade payables based on invoice date is as follows:
	30 June	31 december
	2011	2010
	*RMB’000*	RMB’000
	(Unaudited)	(audited)
Within 3 months	4,425,844	4,243,731
4 to 6 months	127,883	6,940
7 to 9 months	25,800	8,229
10 to 12 months	1,170	17,662
1 to 2 years	1,347	62,725
	4,582,044	4,339,287

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China Shipping Container LineS Company Limited

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FOR THE SIX MONTHS ENDED 30 JUNE 2011

15 OPerAtInG (LOSS)/PrOFIt

the following items have been charged to the operating (loss)/profit during the period:

	Six months	ended 30 June	ended 30 June
	2011		2010
	*RMB’000*		RMB’000
	(Unaudited)		(Unaudited)
Costs of bunker consumed	4,234,620		3,717,540
depreciation and amortisation_(Note 7)_	672,839		699,051
operating lease rental	1,753,620		1,778,763
provision for impairment of receivables	11,276		19,537
OtHer GAInS, net
	Six months	ended 30 June
	2011		2010
	*RMB’000*		RMB’000
	(Unaudited)		(Unaudited)
net foreign exchange gains/(losses)	57,354		(47,783)
gains on disposal of investment in a jointly controlled entity	–		92,272
net gains on disposal of property, plant and equipment	34,734		2,323
	92,088		46,812

16 OtHer GAInS, net

during the six months ended 30 June 2010, the group disposed all of its investment in a jointly controlled entity, CSX World terminal yan tai Co., Ltd. in exchange for equity interest in yantai port., Ltd. and resulted in a gain of rmB92,272,000.

17 OtHer InCOme

OtHer InCOme
	Six months ended 30 June
	2011	2010
	*RMB’000*	RMB’000
	(Unaudited)	(Unaudited)
interest income	61,795	26,605
government grant related to income	20,335	12,711
information services income	960	11,170
dividend income from available-for-sale financial assets	10,702	22
	93,792	50,508

InterIm rePOrt 2011 39

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FOR THE SIX MONTHS ENDED 30 JUNE 2011

18 FInAnCe COStS

FInAnCe COStS
	Six months ended 30 June
	2011	2010
	*RMB’000*	RMB’000
	(Unaudited)	(Unaudited)
interest expenses:
– Bank borrowings	120,859	111,872
– domestic corporate bonds	39,462	41,768
– Finance lease obligations	15,679	25,790
total interest expenses	176,000	179,430
Less: amount capitalised in vessels under construction and
construction in progress	(89,462)	(68,148)
	86,538	111,282

19 InCOme tAX eXPenSe

InCOme tAX eXPenSe
	Six months ended 30 June
	2011	2010
	*RMB’000*	RMB’000
	(Unaudited)	(Unaudited)
Current income tax
– prC corporate income tax (b)	25,943	37,448
– hong Kong profits tax (a)	–	847
deferred income tax	8	8,708
	25,951	47,003

taxes on income for the interim periods are accrued using the tax rate that would be applicable to the expected total annual earnings. the tax rates of the group’s companies applied during the interim periods are set out below:

(a) Hong Kong profits tax

hong Kong profits tax is provided at the rate of 16.5% (2010: 16.5%) on the estimated assessable profits of the group’s companies operated in hong Kong for the six months ended 30 June 2011.

(b) PRC corporate income tax (“CIT”)

the Company is a joint stock limited company under the Company Law of the prC and is registered in the yangshan Free trade port area, Shanghai pudong new area. the original Cit rate applicable to the Company was 15%. Under the new Cit Law, the Cit rate applicable to the Company will increase gradually to 25% within 5 years from 2008 to 2012. the applicable income tax rate of the Company for the six months ended 30 June 2011 is 24%. Under the new Cit Law, except for certain subsidiaries whose Cit rates will increase gradually to 25% within 5 years from 2008 to 2012, the Cit rates for other subsidiaries have been changed to 25% since 1 January 2008.

pursuant to relevant Cit regulations, the profits derived from the Company’s overseas subsidiaries are subject to Cit when dividends are declared by these overseas subsidiaries. the Company uses an applicable tax rate according to Cit regulations on the profits of the overseas subsidiaries for Cit purposes.

40 InterIm rePOrt 2011

China Shipping Container LineS Company Limited

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FOR THE SIX MONTHS ENDED 30 JUNE 2011

20 DIVIDenDS

the directors of the Company do not recommend the payment of an interim dividend for the six months ended 30 June 2011 (2010: nil).

21 (LOSS)/eArnInGS Per SHAre

Basic (loss)/earnings per share is calculated by dividing the (loss)/profit attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the period.

	Six months ended 30 June	Six months ended 30 June
	2011	2010
	(Unaudited)	(Unaudited)
(Loss)/profit attributable to equity holders of the Company (rmB’000)	(630,340)	1,171,404
Weighted average number of ordinary shares in issue (thousands)	11,683,125	11,683,125
Basic (loss)/earnings per share (rmB per share)	rmB(0.05)	rmB0.10

diluted (loss)/earnings per share is the same as the basic (loss)/earnings per share, as the Company does not have any potential dilutive ordinary shares during the period ended 30 June 2011 (2010: nil).

22 COmmItmentS

(a) Capital commitments

as at 30 June 2011 and 31 december 2010, the group had the following significant capital commitments which were not provided for in the balance sheets:

	30 June	31 december
	2011	2010
	*RMB’000*	RMB’000
	(Unaudited)	(audited)
Contracted but not provided for:
– Vessels under construction	3,972,760	6,608,210

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FOR THE SIX MONTHS ENDED 30 JUNE 2011

22 COmmItmentS (Continued)

(b) Lease commitments – the Group is the lessee

as at 30 June 2011 and 31 december 2010, the group had future aggregate minimum lease payments under non-cancellable operating leases as follows:

	30 June	31 december
	2011	2010
	*RMB’000*	RMB’000
	(Unaudited)	(audited)
Land and buildings:
– Within one year	56,245	62,379
– in the second to fifth year	76,607	57,634
– after the fifth year	16,305	17,458
	149,157	137,471
Vessels and containers under operating leases:
– Within one year	2,524,353	2,482,213
– in the second to fifth year	6,180,904	6,426,439
– after the fifth year	3,990,088	4,734,519
	12,695,345	13,643,171
	12,844,502	13,780,642

(c) Future operating lease arrangements – the Group is the lessor

as at 30 June 2011 and 31 december 2010, the group had future aggregate minimum lease receipts under non-cancellable operating leases, where the group is the lessor as follows:

	30 June	31 december
	2011	2010
	*RMB’000*	RMB’000
	(Unaudited)	(audited)
Vessels chartered-out under operating leases:
– Within one year	444,035	511,823
– in the second to fifth year	724,861	797,713
– after fifth year	520,784	608,870
	1,689,680	1,918,406

42 InterIm rePOrt 2011

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22 COmmItmentS (Continued)

(d) Other commitments

as at 30 June 2011 and 31 december 2010, the group had the following significant other commitments which were not provided for in the balance sheets:

	30 June	31 december
	2011	2010
	*RMB’000*	RMB’000
	(Unaudited)	(audited)
investments
– authorised but not contracted for	275,000	283,891
– Contracted but not provided for	10,000	–
	285,000	283,891

23 SIGnIFICAnt reLAteD PArtY trAnSACtIOnS

the group is part of a larger group of companies under China Shipping group, a state-owned enterprise, has extensive transactions and relationships with members of the China Shipping group incorporated in the prC.

InterIm rePOrt 2011

China Shipping Container LineS Company Limited

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FOR THE SIX MONTHS ENDED 30 JUNE 2011

23 SIGnIFICAnt reLAteD PArtY trAnSACtIOnS (Continued)

in addition to the related party information shown elsewhere in this condensed consolidated interim financial information, the following is a summary of significant related party transactions entered into in the ordinary course of business between the group and its related parties during the period and balances arising from related party transactions for the six months ended 30 June 2011 and 2010.

(a) Significant transactions with related parties

Significant transactions with related parties
	Six months	ended 30 June
	2011		2010
	*RMB’000*		RMB’000
	(Unaudited)		(Unaudited)
Transactions with fellow subsidiaries
income:
Liner services	136,758		204,428
port services	10,077		14,917
information services income	960		11,170
expenditure:
Lease of containers	133,097		156,150
Lease of chassis	11,927		20,043
Lease of properties	6,796		7,101
Cargo and liner agency services	216,966		294,190
Container management services	60,602		40,014
Bareboat charter services	2,500		–
Ship repair services	22,107		28,103
Supply of fresh water, vessel fuel, lubricants, spare parts
and other materials	996,687		770,267
depot services	7,620		6,063
information technology services charges	17,631		14,613
provision of crew members	8,487		13,663
Loading and unloading services	220,239		287,729
purchase of containers	80,863		252,489
ground container transport costs	2,507		3,285

Transactions with China Shipping Finance Co., Ltd. (“CS Finance”, a fellow subsidiary and associated company)

interest income from deposits 33,304 12,129

44 InterIm rePOrt 2011

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FOR THE SIX MONTHS ENDED 30 JUNE 2011

23 SIGnIFICAnt reLAteD PArtY trAnSACtIOnS (Continued)

(b) Balances with related parties

ICAnt reLAteD PArtY trAnSACtIOnS(Continued) Balances with related parties
	30 June	31 december
	2011	2010
	*RMB’000*	RMB’000
	(Unaudited)	(audited)
Balances with fellow subsidiaries
trade receivables_(Note 8)_	207,178	169,730
Less: provisions	(25,199)	(27,260)
	181,979	142,470
trade payables_(Note 14)_	(1,052,406)	(1,671,588)
these balances are unsecured and interest free.
Balances with CS Finance
interest receivables	6,962	28,817
deposits	1,784,732	3,994,545
Loan from a related party_(Note 10)_	(98,306)	(80,000)
Balances with a jointly controlled entity
Loan to a jointly controlled entity	13,000	13,000

InterIm rePOrt 2011 45

China Shipping Container LineS Company Limited

==> picture [554 x 37] intentionally omitted <==

nOteS tO tHe COnDenSeD COnSOLIDAteD InterIm FInAnCIAL InFOrmAtIOn (Continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2011

23 SIGnIFICAnt reLAteD PArtY trAnSACtIOnS (Continued)

(c) Transactions with other state-owned enterprises

the group has transactions with other state-controlled entities including but not limited to the following:

Purchases of services, bunker and spare parts etc
Purchase of assets
Bank deposits and borrowings
Interest income and expense

these transactions are conducted in the ordinary course of business.

(d) Key management compensation

Key management compensation
	Six months ended 30 June
	2011	2010
	*RMB’000*	RMB’000
	(Unaudited)	(Unaudited)
Basic salaries and allowances	1,940	1,987
pension and others welfare	886	836
	2,826	2,823

46 InterIm rePOrt 2011

AI assistant

COSCO SHIPPING Development Co., Ltd. — Interim / Quarterly Report 2011

50782_rns_2011-09-27_fb3f7960-fd15-4b76-93b8-b89fc8f3705f.pdf

Contents

COrPOrAte InFOrmAtIOn

DIreCtOrS

EXECUTIVE DIRECTORS

NON-EXECUTIVE DIRECTORS

nOmInAtIOn COmmIttee

InVeStment StrAteGY COmmIttee

INDEPENDENT NON-EXECUTIVE DIRECTORS

SUPerVISOrS

remUnerAtIOn COmmIttee

SHAre APPreCIAtIOn rIGHtS COmmIttee

COmPAnY SeCretArY

AUDIt COmmIttee

CHIeF ACCOUntAnt

AUtHOrISeD rePreSentAtIVeS

LeGAL ADDreSS In tHe PrC

PrInCIPAL PLACe OF BUSIneSS In tHe PrC

COmPAnY WeBSIte

H SHAre LIStInG PLACe

LIStInG DAte

PrInCIPAL PLACe OF BUSIneSS In HOnG KOnG

nUmBer OF H SHAreS In ISSUe

InternAtIOnAL AUDItOr

BOArD LOt

PrC AUDItOr

HOnG KOnG StOCK eXCHAnGe StOCK CODe

LeGAL ADVISerS tO tHe COmPAnY

A SHAre LIStInG PLACe

HOnG KOnG H SHAre reGIStrAr AnD trAnSFer OFFICe

PrInCIPAL BAnKerS

LIStInG DAte

nUmBer OF A SHAreS In ISSUe

BOArD LOt

SHAnGHAI StOCK eXCHAnGe StOCK CODe

teLePHOne nUmBer

FAX nUmBer

Unaudited Interim results for the Six months ended 30 June 2011

BUSIneSS HIGHLIGHtS

mAnAGement DISCUSSIOn AnD AnALYSIS

OPerAtInG enVIrOnment

PerFOrmAnCe AnALYSIS

LOADeD COntAIner VOLUme BY trADe LAneS

reVenUe FrOm OPerAtIOnS BY trADe LAneS

COSt AnALYSIS

FUtUre PrOSPeCt

2. Routes operation

3. Cost control

4. Freight forwarding and Overseas marketing

LIQUIDItY, FInAnCIAL reSOUrCeS AnD CAPItAL StrUCtUre

GeArInG rAtIO

FOreIGn eXCHAnGe rISK AnD HeDGInG

CAPItAL COmmItment

COntInGent LIABILItY

SHAre CAPItAL

IntereStS AnD SHOrt POSItIOnS OF DIreCtOrS, SUPerVISOrS AnD CHIeF eXeCUtIVeS In SHAreS, UnDerLYInG SHAreS AnD DeBentUreS

IntereStS Or SHOrt POSItIOnS OF SUBStAntIAL SHAreHOLDerS Or OtHer PerSOnS In tHe SHAreS Or UnDerLYInG SHAreS

CHAnGeS In InFOrmAtIOn OF DIreCtOrS Or SUPerVISOrS

name of Director or Supervisor

Details of changes

H-SHAre APPreCIAtIOn rIGHtS SCHeme

PUrCHASe, SALe Or reDemPtIOn OF LISteD SeCUrItIeS OF tHe COmPAnY

InterIm DIVIDenDS

emPLOYeeS, trAInInGS AnD BeneFItS

AUDIt COmmIttee

CODe On COrPOrAte GOVernAnCe PrACtICeS

mODeL CODe FOr SeCUrItIeS trAnSACtIOnS

InFOrmAtIOn DISCLOSUre

rePOrt On reVIeW OF InterIm FInAnCIAL InFOrmAtIOn

tO tHe BOArD OF DIreCtOrS OF CHInA SHIPPInG COntAIner LIneS COmPAnY LImIteD

IntrODUCtIOn

SCOPe OF reVIeW

COnCLUSIOn

PricewaterhouseCoopers

COnDenSeD COnSOLIDAteD InterIm BALAnCe SHeet

COnDenSeD COnSOLIDAteD InterIm BALAnCe SHeet (Continued)

COnDenSeD COnSOLIDAteD InterIm InCOme StAtement

COnDenSeD COnSOLIDAteD InterIm StAtement OF COmPreHenSIVe InCOme

COSCO SHIPPING Development Co., Ltd. Interim / Quarterly Report 2011