COSCO SHIPPING Development Co., Ltd. — Interim / Quarterly Report 2012

Oct 30, 2012

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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(A joint stock limited company incorporated in the People’s Republic of China with limited liability)

(Stock code: 02866)

2012 THIRD QUARTERLY REPORT

In accordance with the applicable rules of the Shanghai Stock Exchange of the People’s Republic of China (“ PRC ”) (being the stock exchange on which the A shares of China Shipping Container Lines Company Limited (the “ Company ”, together with its subsidiaries, the “ Group ”) are listed), the quarterly report (“ Quarterly Report ”) of the Company for the third quarter of 2012 (“ Reporting Period ”) will be published on the Shanghai Stock Exchange on 31 October 2012. The financial information set out in the Quarterly Report was prepared in accordance with the Generally Accepted Accounting Principles of the PRC.

This announcement is made pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

§1 IMPORTANT NOTICES

• 1.1 The board of directors, the supervisory committee, the directors, the supervisors and senior management of the Company warrant that there are no false records or misleading statements contained in or material omissions from this report; and severally and jointly accept responsibility for the truthfulness, accuracy and completeness of the contents in this report.

• 1.2 All members of the board of directors of the Company attended the board of directors meeting.

• 1.3 The third quarterly financial statements of the Company have not been audited.

• 1.4 Mr. Li Shaode, the person-in-charge of the Company, Mr. Liu Chong, the person overseeing the accounting operations, and Ms Li Rong, the person-in-charge of the accounting department (chief accountant) have declared and warranted the truthfulness and completeness of the financial statements contained in this Quarterly Report.

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§2 BASIC INFORMATION OF THE COMPANY

2.1 Principal accounting data and financial indicators

			Currency: RMB
			Increase/
			decrease at the
			end of the
			Reporting Period
	As at the	As at the	as compared
	end of the	end of	with the end of
	Reporting Period	previous year	previous year
			(%)
Total assets_(RMB)_	57,645,912,377.43	49,412,490,452.47	16.66
Owner’s equity (or equity
holders’ equity)(RMB)	25,764,377,268.46	26,023,333,339.68	-1.00
Net assets per share attributable to
equity holders of the
Company_(RMB/share)_	2.21	2.23	-1.00
		From beginning
		of the year	Increase/
		to end of the	decrease as
		Reporting Period	compared with
		(January to	the corresponding
		September)	period of last year
			(%)
Net cash flow from operating activities_(RMB)_		-444,188,312.40	64.96
Net cash flow per share from operating activities
(RMB/share)		-0.04	64.96
			Increase/
		From beginning	decrease during
		of the year	the Reporting
		to end of the	Period as
		Reporting Period	compared with
	Reporting Period	(January to	the corresponding
	(July to September)	September)	period of last year
			(%)
Net profit attributable to equity
holders of the Company_(RMB)_	991,052,588.98	-289,932,776.82	204.19
Basic earnings per share_(RMB/share)_	0.0848	-0.0248	204.19
Basic earnings per share,
excluding extraordinary gains or
losses_(RMB/share)_	0.0761	-0.0432	192.70
Diluted earnings per share_(RMB/share)_	0.0848	-0.0248	204.19
			Increased 7.34
Weighted average return on net assets_(%)_	3.92	-1.12	percentage points
Weighted average return on
net assets, excluding extraordinary			Increased 6.97
gains or losses_(%)_	3.52	-1.95	percentage points

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Excluding extraordinary gains or losses items and amounts:

			Unit: Yuan		Currency: RMB
					Amount from
					the beginning
					of the year
				to the end of the
				Reporting Period
					(January to
Item					September)
Gain/loss from disposal of non-current assets					55,704,064.38
Government grants recognized in the income statement for
the period (exclusive of those that are closely related to the
normal operation of the Company and received in a certain
amount or fixed quantity according to the requirements of
State policy and State standards)					84,974,128.38
Other non-operating income/expenses excluding the items above					78,643,526.42
Impact of income tax					-3,364,929.53
Impact of gains or losses of minority shareholders (after tax)					-1,736,990.54
Total					214,219,799.11
2.2 Total number of shareholders at the end of the		Reporting Period and the top 10
shareholders of the Company who are not subject to		trading moratorium
					Unit: share
Total number of shareholders at the end of the Reporting Period			((household))		421,816
Top 10 shareholders of the Company who are not	subject to trading moratorium
			Number of
shares not subject
			to trading
	moratorium held
		at	the end of the
Name of shareholders (in full)	Reporting Period				Type
China Shipping (Group) Company			5,361,837,500		A Share
HKSCC NOMINEES LIMITED			3,727,761,441		H Share
China Construction Bank – Huaxia Chengshi Selected			21,543,330		A Share
Securities Investment Fund
中國建設銀行股份有限公司－
華夏盛世精選股票型證券投資基金
ICBC – Baoying Pan-Coastal Regional Growth Equity			19,258,890		A Share
Securities Investment Fund
中國工商銀行－寶盈泛沿海區域增長
股票證券投資基金

3

Top 10 shareholders of the Company who are not subject to trading moratorium

	Number of
	shares not subject
	to trading
	moratorium held
	at the end of the
Name of shareholders (in full)	Reporting Period	Type
Industrial and Commercial Bank of China –	15,976,309	A Share
Fullgoal CSI 300 Enhanced Index Fund
中國工商銀行股份有限公司－
富國滬深300增強證券投資基金
Agricultural Bank of China – Yinhua Domestic Demand	12,312,953	A Share
Selected Stock Fund中國農業銀行－
銀華內需精選股票型證券投資基金
Industrial and Commercial Bank of China Limited –	11,544,643	A Share
Nanfang Longyuan Production Themed Equity
Securities Investment Fund
中國工商銀行－
南方隆元產業主題股票型證券投資基金
Bank of China Limited – Jiashi Hushen 300 Trading	11,522,505	A Share
Open-end Index Securities Investment Fund
中國銀行股份有限公司－
嘉實滬深300交易型開放式指數證券投資基金
National Social Security Fund 108	10,948,700	A Share
全國社保基金一零二組合
Industrial and Commercial Bank of China Limited –	10,706,619	A Share
Huatai-PineBridge CSI 300 Open-end Trading Index
Securities Investment Fund
中國工商銀行股份有限公司－
華泰柏瑞滬深300交易型開放式指數證券投資基金

§3 SIGNIFICANT EVENTS

3.1 Particulars of material changes in major accounting items and financial indicators of the Company and reasons

• √ Applicable □ Not Applicable

• 1) The increase in money capital by 72.87% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the increase in bank borrowings during the Reporting Period;

• 2) The increase in account receivables by 40.25% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the increase in sea freight rate as a result of higher freight rate and more containers;

• 3) The increase in interest receivables by 1,264.16% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the increase in the amount of time deposits as compared with corresponding period of last year;

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• 4) The decrease in dividend receivables by 100% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the cash dividend received from our investees distributed at the beginning of the Reporting Period;

• 5) The increase in other receivables by 46.41% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the increase in agency collection at the end of the Reporting Period;

• 6) The increase in inventories by 40.11% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the increase in oil prices during the Reporting Period;

• 7) The increase in current assets in aggregate by 60.78% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the increase in money capital, account receivables and inventories at the end of the Reporting Period as compared with the beginning of the Reporting Period;

• 8) The increase in deferred income tax assets by 3,913.45% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the provision for deferred income tax assets;

• 9) The increase in short-term borrowings by 282.41% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the increase in borrowings for operation during the Reporting Period;

• 10) The increase in staff remuneration payable by 36.12% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the increase in the provision for unpaid staff remuneration at the end of the Reporting Period as compared with the same period of last year;

• 11) The decrease in taxes payable by 56.36% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the reason that following the launch of “BT to VAT” during the year, the increase in VAT during the current period resulted in a decrease in taxes payable;

• 12) The increase in interest payables by 51.82% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to increase in bank borrowings in the Reporting Period which resulted in the increase in interest payables at the end of the Reporting Period;

• 13) The increase in dividend payables by 62.38% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the outstanding cash dividend distributed by Lianyungang Xinsanli Container Service Co., Ltd. and Shanghai Inchon International Ferry Co., Ltd., both being subsidiaries of the Company;

• 14) The increase in non-current liabilities due within one year by 36.08% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the increase in long-term borrowings due as at 30 September 2013 under contractual agreement;

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• 15) The increase in current liabilities in aggregate by 41.66% during the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the increase in short-term bank borrowings and long-term borrowings due within one year at the end of the Reporting Period as compared with the beginning of the Reporting Period;

• 16) The increase in long-term borrowings by 38.48% at the end of the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in bank borrowings during the current period;

• 17) The increase in long-term payables by 161.63% at the end of the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in finance lease of container during the current period as compared with corresponding period of last year;

• 18) The increase in non-current liabilities in aggregate by 34.23% at the end of the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in finance lease of container and bank borrowings during the current period;

• 19) The increase in liabilities in aggregate by 37.45% at the end of the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in finance lease of container and bank borrowings during the current period;

• 20) The increase in finance cost by 2,456.21% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in bank borrowings, resulting in the increase in the interest expenses as compared with corresponding period of last year;

• 21) The increase in losses from impairment of assets by 93.93% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in the degree of increase/decrease in the balance of account receivables as compared with the corresponding period of last year;

• 22) The increase in operating profit by 30.76% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in operating profit of the Company during the Reporting Period;

• 23) The increase in non-operating income by 535.24% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in income from port grant and the VAT tax rebates during the Reporting Period;

• 24) The increase in non-operating expenses by 802.47% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in disposal of non-current assets during the Reporting Period;

• 25) The increase in loss from disposal of non-current assets by 14,085.29% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in disposal of container during the Reporting Period;

6

• 26) The increase in total profit by 55.10% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in operating profit of the Company during the Reporting Period;

• 27) The decrease in income tax by 1,154.41% during the Reporting Period as compared with the corresponding period of last year was mainly due to the provision for deferred income tax assets during the Reporting Period;

• 28) The increase in net profit by 84.17% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in operating profit of the Company during the Reporting Period;

• 29) The increase in net profit attributable to equity holders of the parent company by 81.67% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in operating profit of the Company during the Reporting Period;

• 30) The increase in gains or losses of minority shareholders by 30.53% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in operating profit of the Company;

• 31) The increase in basic earnings per share by 81.67% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in operating profit of the Company during the Reporting Period;

• 32) The increase in other comprehensive income by 108.56% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in changes in currency translation differences during the Reporting Period as compared with the corresponding period of last year;

• 33) The increase in total comprehensive income by 88.82% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in operating profit of the Company during the Reporting Period;

• 34) The increase in total comprehensive income attributable to equity holders of the parent company by 86.71% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in operating profit of the Company during the Reporting Period;

• 35) The increase in total comprehensive income attributable to minority shareholders by 30.53% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in operating profit of the Company during the Reporting Period;

• 36) The increase in tax rebates by 1,672.81% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in VAT tax rebates during the Reporting Period;

• 37) The increase in taxes paid by 133.87% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in taxes paid by the Company during the Reporting Period;

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• 38) The increase in net cash flows from operating activities by 64.96% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in cash paid for goods purchased and services rendered by the Company during the Reporting Period as compared with the corresponding period of last year;

• 39) The increase in cash proceeds from investment income by 47.01% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in dividends received from our investees during the Reporting Period as compared with the corresponding period of last year;

• 40) The increase in net cash from disposal of fixed assets, intangible assets and other long term assets by 202.39% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in cash from disposal of fixed assets during the Reporting Period;

• 41) The increase in sub-total of cash inflows from investment activities by 137.90% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in cash dividends received and cash received from disposal of fixed assets during the Reporting Period as compared with the corresponding period of last year;

• 42) The decrease in cash paid for the purchase and construction of fixed assets, intangible assets and other long term assets by 36.41% during the Reporting Period as compared with the corresponding period of last year was mainly due to the decrease in payment for purchase and construction of vessels as compared with the corresponding period of last year;

• 43) The decrease in cash paid for investment by 94.92% during the Reporting Period as compared with the corresponding period of last year was mainly due to the decrease the cash paid for external investment during the current period;

• 44) The decrease in the sub-total of cash outflows for investment activities by 39.50% during the Reporting Period as compared with the corresponding period of last year was mainly due to the decrease in cash payment for the purchase and construction of fixed assets, intangible assets and other long term assets as compared with the corresponding period of last year;

• 45) The decrease in net cash flows from investment activities by 42.42% during the Reporting Period as compared with the corresponding period of last year was mainly due to the decrease in cash payment for the purchase and construction of fixed assets, intangible assets and other long term assets during the Reporting Period as compared with the corresponding period of last year;

• 46) The increase in cash received from borrowings by 383.41% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in bank borrowings during the Reporting Period as compared with the corresponding period of last year;

• 47) The increase in the sub-total of cash inflows from financing activities by 373.61% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in bank borrowings during the Reporting Period as compared with the corresponding period of last year;

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• 48) The increase in cash paid for debts by 149.42% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in repayments of bank borrowings during the Reporting Period as compared with the corresponding period of last year;

• 49) The increase in cash paid for dividends, profit distribution or interests by 68.91% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in the interests due during the Reporting Period;

• 50) The decrease in cash dividend paid by subsidiaries to minority shareholders by 46.73% during the Reporting Period as compared with the corresponding period of last year was mainly due to the decrease in dividend paid to minority shareholders during the Reporting Period as compared with the corresponding period of last year;

• 51) The increase in sub-total of cash outflows from financing activities by 117.66% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in repayment of bank borrowings during the Reporting Period as compared with the corresponding period of last year;

• 52) The increase in net cash flows from financing activities by 916.87% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in bank borrowings during the Reporting Period as compared with the corresponding period of last year;

• 53) The increase in impact on cash caused by changes in foreign exchange rates by 124.57% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in the degree of changes in foreign exchange rates of the Company during the Reporting Period;

• 54) The increase in the cash and cash equivalents by 219.69% at the end of the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in bank borrowings during the Reporting Period;

• 55) The decrease in the balance of cash and cash equivalents by 33.57% at the beginning of the Reporting Period as compared with the corresponding period of last year was mainly due to the net cash outflows last year;

• 56) The increase in the balance of cash and cash equivalents by 92.80% at the end of the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in net cash flows from financing activities.

• 3.2 Analysis and explanation on the progress of significant events and their impact and resolutions

• Applicable √ Not Applicable

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• 3.3 Performance of undertakings given by the Company, the shareholders and the actual controlling person

• √Applicable □ Not Applicable

Non-competition undertakings:

On 29 August 2007, China Shipping (Group) Company (“ China Shipping ”), the controlling shareholder of the Company made non-competition undertakings to the Company that:

1. it shall, or shall procure the subsidiaries controlled by it, to take effective steps not to engage in or participate in any business which may compete with the container shipping business or related businesses currently carried on by the Company or any subsidiaries controlled by the Company, nor to hold any right or interest in the said businesses. If there is an opportunity for China Shipping or any subsidiaries controlled by it to participate in any container shipping business or related businesses currently principally engaged in by the Company or any subsidiaries controlled by it, or in any project in relation to the businesses in which the Company or any subsidiaries controlled by it shall in the future principally engage, China Shipping shall, or shall procure the subsidiaries controlled by it, to grant to the Company or any subsidiaries controlled by it the priority to participate in the said business or project.

2. China Shipping will fully indemnify the Company and/or the subsidiaries controlled by the Company against all losses, damage and costs incurred by the Company as a result of any breach of the undertakings by China Shipping and/or the subsidiaries controlled by it set forth above.

During the Reporting Period, China Shipping did not breach the undertakings as stated above.

• 3.4 Disclosure as to, and reason for, the warning in respect of forecast of a probable loss in respect of the accumulated net profit from the beginning of next year to the end of the next Reporting Period or any significant changes in profit as compared with that of the corresponding period of last year

□ Applicable √Not Applicable

3.5 Implementation of cash dividends distribution policy during the Reporting Period

There was no cash dividends distribution during the Reporting Period.

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§4 APPENDIx

4.1

Consolidated Balance Sheet

Prepared by: China Shipping Container Lines
Company Limited	30 September 2012	Unit: RMB
		Unaudited
Item	Closing balance	Opening balance
Current assets:
Cash and bank balances	12,227,565,950.30	7,073,272,758.43
Balances with clearing companies
Placements with banks and
other financial institutions
Financial assets held-for-trading
Bills receivable	252,465,608.03	342,713,674.83
Accounts receivable	2,045,466,357.78	1,458,392,770.78
Funds paid in advance	169,979,473.29	142,340,134.15
Premiums receivable
Reinsurance accounts receivable
Deposits receivable from reinsurance treaty
Interests receivable	74,279,934.40	5,445,111.00
Dividends receivable		1,273,977.15
Other receivables	129,029,650.94	88,130,573.52
Purchases of resold financial assets
Inventories	1,690,293,867.70	1,206,379,307.23
Non-current assets due within one year
Other current assets
Total current assets	16,589,080,842.44	10,317,948,307.09
Non-current assets:
Loans and advances granted
Available-for-sale financial assets
Held-to-maturity investments
Long-term receivables
Long-term equity investment	1,965,750,306.01	1,914,329,912.90
Investment property
Fixed assets	33,587,331,497.57	30,172,032,898.92
Construction in progress	4,860,224,782.81	6,861,498,307.73
Construction materials
Disposals of fixed assets	1,029.20
Biological assets for production
Fuel assets
Intangible assets	117,456,862.91	115,699,990.49
Development expenditure
Goodwill
Long-term deferred expenses	20,648,161.75	18,387,923.04
Deferred income tax assets	505,418,894.74	12,593,112.30
Other non-current assets
Total non-current assets	41,056,831,534.99	39,094,542,145.38
Total assets	57,645,912,377.43	49,412,490,452.47

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Item		Closing balance	Opening balance
Current liabilities:
Short term borrowings		3,132,355,000.00	819,117,000.00
Borrowings from central bank
Deposit taking and deposit
in inter-bank market
Placements funds
Financial liabilities held-for-trading
Bills payable
Accounts payable		3,953,286,112.09	3,820,428,318.56
Funds received in advance		90,062,554.50	109,922,581.98
Funds from disposal of
repurchased financial assets
Handling charges and commissions payable
Staff remuneration payable		158,869,560.64	116,715,981.91
Taxes payable		50,758,394.59	116,304,289.58
Interest payable		117,550,528.45	77,425,156.14
Dividend payable		4,043,414.08	2,490,116.38
Other payables		307,696,011.98	279,633,345.54
Reinsurance accounts payable
Deposits for insurance contracts
Customer deposits for trading in securities
Customer deposits for securities underwriting
Non-current liabilities due within one year		6,021,430,131.35	4,424,910,788.25
Other current liabilities
Total current liabilities		13,836,051,707.68	9,766,947,578.34
Non-current liabilities:
Long term borrowings		14,967,272,158.36	10,808,546,822.22
Bonds payable		1,788,465,601.06	1,786,627,178.56
Long term payables		326,114,740.59	124,648,202.75
Specific payables
Projected liabilities		25,000,000.00	25,000,000.00
Deferred income tax liabilities		31,527.39	31,303.54
Other non-current liabilities
Total non-current liabilities		17,106,884,027.40	12,744,853,507.07
Total liabilities		30,942,935,735.08	22,511,801,085.41
Owners’ equity (or shareholders’ equity):
Paid-in capital (or share capital)		11,683,125,000.00	11,683,125,000.00
Capital reserve		17,172,550,725.19	17,172,325,183.96
Less: treasury shares
Special reserve
Surplus reserve		1,362,073,031.79	1,362,073,031.79
General risk provision
Retained earnings		-3,196,458,681.21	-2,906,050,684.74
Foreign currency translation differences		-1,256,912,807.31	-1,288,139,191.33
Total equity attributable to the owner
of the parent company		25,764,377,268.46	26,023,333,339.68
Minority interests		938,599,373.89	877,356,027.38
Total owners’ equity		26,702,976,642.35	26,900,689,367.06
Total liabilities and owners’ equity		57,645,912,377.43	49,412,490,452.47
	Person-in-charge of Head		of the accounting
Legal representative:	accounting affairs:		department:
Li Shaode		Liu Chong	Li Rong

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Balance Sheet of the Parent Company

Prepared by: China Shipping Container Lines
Company Limited	30 September 2012	Unit: RMB
		Unaudited
Item	Closing balance	Opening balance
Current assets:
Cash and bank balances	5,242,947,093.21	1,882,610,587.87
Financial assets held-for-trading
Bills receivable	153,671,730.86	274,430,684.82
Accounts receivable	1,263,719,356.50	1,284,440,121.10
Funds paid in advance	10,150,000.00
Interests receivable	55,119,861.00	5,104,111.00
Dividends receivable	247.30	245.74
Other receivables	443,030,253.77	276,178,214.70
Inventories	703,346,734.65	514,058,399.39
Non-current assets due within one year
Other current assets
Total current assets	7,871,985,277.29	4,236,822,364.62
Non-current assets:
Available-for-sale financial assets
Held-to-maturity investments
Long-term receivables
Long-term equity investment	14,714,915,436.17	14,699,936,518.16
Investment property
Fixed assets	16,884,907,857.85	15,618,940,544.34
Construction in progress	1,528,990,275.07	2,199,087,285.74
Construction materials
Disposals of fixed assets
Biological assets for production
Fuel assets
Intangible assets	21,438,849.61	15,330,027.46
Development expenditure
Goodwill
Long-term deferred expenses
Deferred income tax assets	491,888,604.94	6,250,000.00
Other non-current assets
Total non-current assets	33,642,141,023.64	32,539,544,375.70
Total assets	41,514,126,300.93	36,776,366,740.32

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Item	Closing balance	Opening balance
Current liabilities:
Short term borrowings	2,536,400,000.00	189,027,000.00
Financial liabilities held-for-trading
Bills payable
Accounts payable	2,867,079,538.96	2,705,863,841.52
Funds received in advance
Staff remuneration payable	109,538,097.51	62,264,768.18
Taxes payable	19,156,604.88	60,501,471.93
Interest payable	83,207,172.25	45,788,922.22
Dividend payable
Other payables	2,024,535,864.02	2,341,708,201.27
Non-current liabilities due within one	year
Other current liabilities
Total current liabilities	7,639,917,277.62	5,405,154,205.12
Non-current liabilities:
Long-term borrowings	2,951,150,000.00
Bonds payable	1,788,465,601.06	1,786,627,178.56
Long term payables
Specific payables
Projected liabilities	25,000,000.00	25,000,000.00
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities	4,764,615,601.06	1,811,627,178.56
Total liabilities	12,404,532,878.68	7,216,781,383.68
Owners’ equity (or shareholders’ equity):
Paid-in capital (or share capital)	11,683,125,000.00	11,683,125,000.00
Capital reserve	17,296,536,619.43	17,296,536,619.43
Less: Treasury shares
Special reserve
Surplus reserve	1,355,762,889.20	1,355,762,889.20
General risk provision
Retained earnings	-1,225,831,086.38	-775,839,151.99
To tal owners’ equity
(or shareholders’ equity)	29,109,593,422.25	29,559,585,356.64
To tal liabilities and owners’ equity
(or shareholders’ equity)	41,514,126,300.93	36,776,366,740.32
	Person-in-charge of Head	of the accounting
Legal representative:	accounting affairs:	department:
Li Shaode	Liu Chong	Li Rong

14

4.2

Consolidated Income Statement

Prepared by: China Shipping Container Lines Compnay Limited

Unit: RMB Unaudited

					Amount from
				Amount from	the beginning
			Amount for	beginning of the	of the previous
		Amount for the	the same period	year to end of the	year to end of the
		Reporting Period	last year	Reporting Period	reporting period
		(July to	(July to	(January to	(January to
Item		September)	September)	September)	September)
I.	Total operating revenue	9,279,165,857.26	7,199,533,385.22	24,599,165,404.99	21,171,540,944.17
	Including: Revenue from operations	9,279,165,857.26	7,199,533,385.22	24,599,165,404.99	21,171,540,944.17
	Interest income
	Premiums earned
	Handling charges and
	commission income
II.	Total cost of sales	8,932,893,750.43	8,155,177,344.83	25,764,413,757.85	22,810,269,386.06
	Including: Operating cost	8,594,865,766.16	7,926,728,975.61	24,751,245,629.58	22,176,830,377.25
	Interest expenses
	Handling charges and
	commission expenses
	Surrender payment
	Net expenditure for
	compensation payments
	Net provision for
	insurance deposits
	Policyholder dividend expenses
	Reinsurance costs
	Business tax and surcharges	25,362,565.13	22,845,470.12	71,909,966.73	67,631,721.68
	Selling expenses
	Administrative expenses	215,426,038.53	168,688,917.56	604,698,331.92	539,972,078.85
	Finance costs	97,428,378.79	34,480,999.85	309,974,300.21	12,126,335.67
	Asset impairments loss	-188,998.18	2,432,981.69	26,585,529.41	13,708,872.61
	Add: Gains from changes in fair value
	(loss is represented by “—”)
	Investment income
	(loss is represented by “—”)	27,141,840.77	25,469,787.97	76,873,323.92	66,842,551.12
	Including: Gains from investment
	associates and joint
	ventures	22,543,026.93	25,356,694.56	65,376,289.32	55,714,869.49
	Gains from foreign currency exchange
	(loss is represented by “—”)

15

					Amount from
				Amount from	the beginning
			Amount for	beginning of the	of the previous
		Amount for the	the same period	year to end of the	year to end of the
		Reporting Period	last year	Reporting Period	reporting period
		(July to	(July to	(January to	(January to
Item		September)	September)	September)	September)
III.	Profit from operations
	(loss is represented by “—”)	373,413,947.60	-930,174,171.64	-1,088,375,028.94	-1,571,885,890.77
	Add: Non-operating income	181,621,661.57	9,797,230.26	430,358,096.33	67,747,242.92
	Less: Non-operating expense	17,239,794.74	1,059,406.02	18,231,662.51	2,020,201.48
	Including: Loss from disposal of
	non-current assets	10,086,099.12	44,003.02	10,150,190.60	71,554.36
IV.	Total profit (total loss is represented by “—”)	537,795,814.43	-921,436,347.40	-676,248,595.12	-1,506,158,849.33
	Less: Income tax expenses	-470,143,342.06	14,957,740.90	-431,348,767.58	40,908,843.16
V.	Net profit (net loss is represented by “—”)	1,007,939,156.49	-936,394,088.30	-244,899,827.54	-1,547,067,692.49
	Net profit attributable to the owner
	of the parent company	991,052,588.98	-951,229,495.92	-289,932,776.82	-1,581,568,828.62
	Minority interests	16,886,567.51	14,835,407.62	45,032,949.28	34,501,136.13
VI.	Earnings per share:
	(I) Basic earnings per share	0.0848	-0.0814	-0.0248	-0.1354
	(II) Diluted earnings per share	0.0848	-0.0814	-0.0248	-0.1354
VII.	Other comprehensive income	3,183,703.94	-155,774,677.59	31,226,580.93	-364,895,848.99
VIII.	Total comprehensive income	1,011,122,860.43	-1,092,168,765.89	-213,673,246.61	-1,911,963,541.48
	Total comprehensive income attributable to
	the owner of the parent company	994,236,292.92	-1,107,004,173.51	-258,706,195.89	-1,946,464,677.61
	Total comprehensive income attributable to
	minority interests	16,886,567.51	14,835,407.62	45,032,949.28	34,501,136.13
		Person-in-charge of		Head of the	accounting
	Legal representative:	accounting	affairs:	department:
	Li Shaode	Liu Chong		Li Rong

16

Income Statement of the Parent Company

Prepared by: China Shipping Container Lines Compnay Limited

Unit: RMB Unaudited

					Amount from
				Amount from	the beginning
			Amount for	beginning of the	of the previous
		Amount for the	the same period	year to end of the	year to end of the
		Reporting Period	last year	Reporting Period	reporting period
		(July to	(July to	(January to	(January to
Item		September)	September)	September)	September)
I.	Revenue from operations	4,314,265,141.94	3,732,563,653.53	11,704,812,043.96	10,848,662,653.41
	Less: Operating cost	4,216,639,963.42	4,159,057,661.64	12,606,393,881.46	11,730,968,907.95
	Business tax and surcharges	9,633,788.40	6,806,442.67	21,672,864.24	20,296,309.90
	Selling expenses
	Administrative expenses	106,107,532.69	70,609,189.23	279,879,157.29	235,372,144.58
	Finance costs	35,834,927.72	-12,561,786.64	105,805,362.90	-88,331,995.19
	Asset impairments loss	-603,278.06	2,151,903.67	2,728,689.98	7,400,071.67
	Add: Gains from changes in fair value
	(loss is represented by “—”)
	Investment income
	(loss is represented by “—”)	9,249,306.07	52,187,937.12	77,186,727.60	68,639,417.62
	Including: Gains from investment in
	associates and joint
	ventures	8,995,805.01	13,519,909.60	27,599,972.28	24,425,828.29
II.	Profit from operations
	(loss is represented by “—”)	-44,098,486.16	-441,311,819.92	-1,234,481,184.31	-988,403,367.88
	Add: Non-operating income	127,512,773.74	2,000,000.00	306,640,485.73	5,032,694.63
	Less: Non-operating expense	7,012,431.05	327,539.26	7,789,840.75	1,068,454.35
	Including: Lo ss from disposal of
	non-current assets	305.00	-3,960.11	27,864.07
III.	Total profit (total loss is represented by “—”)	76,401,856.53	-439,639,359.18	-935,630,539.33	-984,439,127.60
	Less: Income tax expenses	-485,638,604.94		-485,638,604.94
IV.	Net profit (net loss is represented by “—”)	562,040,461.47	-439,639,359.18	-449,991,934.39	-984,439,127.60
V.	Earnings per share:
	(I) Basic earnings per share
	(II) Diluted earnings per share
VI.	Other comprehensive income
VII.	Total comprehensive income	562,040,461.47	-439,639,359.18	-449,991,934.39	-984,439,127.60
		Person-in-charge of		Head of the	accounting
	Legal representative:	accounting	affairs:	department:
	Li Shaode	Liu Chong		Li Rong

17

4.3

Consolidated Cash Flow Statement

Prepared by: China Shipping Container Lines Compnay Limited

Prepared by: China Shipping Container Lines	Prepared by: China Shipping Container Lines
Compnay Limited		January to September	2012	Unit: RMB
				Unaudited
		Amount from		Amount from
		beginning of the year		the beginning of the
		to end of the	previous year to end of
		Reporting Period	the reporting period
Item		(January to September)	(January to September)
I.	Cash flow from operating activities
	Cash received from sales of goods
	and provision of services	24,729,429,523.87		23,417,780,766.32
	Net increase in deposits from customers
	and placements from banks and other
	financial institutions
	Net increase in borrowings from central bank
	Net increase in placements from other
	financial institutions
	Cash received from premiums of original
	insurance contracts
	Net cash received from reinsurance business
	Net increase in deposits from policyholders
	and investments
	Net increase in disposal of held-for-trading
	financial assets
	Cash received from interest, handling
	charges and commissions
	Net increase in capital due to banks and
	other financial institutions
	Net increase in repurchases business fund
	Tax rebates	124,336,900.50		7,013,568.25
	Other cash received from activities related
	to operation	419,437,934.19		472,705,848.89
	Sub-total of cash inflows from operating
	activities	25,273,204,358.56		23,897,500,183.46
	Cash paid for goods purchased and service
	rendered	23,722,240,285.02		23,541,305,324.46
	Net increase in loans and advances to customers
	Net increase in placements with central
	bank and other financial institutions
	Cash paid for claims on original insurance
	contracts
	Cash payment for interest, handling charges
	and commissions
	Cash payment for policyholder dividend
	Cash paid to and on behalf of employees	1,219,874,521.19		1,065,943,411.28
	Taxes paid	418,735,585.92		179,047,306.31
	Other cash paid for activities relating to operation	356,542,278.83		378,942,122.08
	Sub-total of cash outflow from operating
	activities	25,717,392,670.96		25,165,238,164.13
	Ne t cash flows from operating
	activities	-444,188,312.40		-1,267,737,980.67

18

		Amount from	Amount from
		beginning of the year	the beginning of the
		to end of the	previous year to end of
		Reporting Period	the reporting period
Item		(January to September)	(January to September)
II.	Cash flow from investment activities:
	Cash received from disposal of investments
	Cash received from gains in investments	36,950,053.33	25,135,102.52
	Net cash received from disposal of fixed
	assets, intangible assets and other
	long-term assets	107,122,714.40	35,425,081.12
	Net cash received from disposal of
	subsidiaries and other operating entities
	Other cash received relating to investment
	activities
	Sub-total of cash inflows from investment
	activities	144,072,767.73	60,560,183.64
	Cash paid for purchase of fixed assets,
	intangible assets and other long-term
	assets	2,250,217,498.24	3,538,858,606.64
	Cash paid for investment	10,000,000.00	196,971,559.00
	Net increase in pledged loans
	Net cash paid for acquiring subsidiaries
	and other operating entities
	Other cash paid related to investment
	activities
	Sub-total of cash outflow from investment
	activities	2,260,217,498.24	3,735,830,165.64
	Ne t cash flow from investment activities	-2,116,144,730.51	-3,675,269,982.00
III.	Cash flow from financing activities
	Proceeds received from investments	45,000,000.00	57,150,000.00
	Including: Pr oceeds received by subsidiaries
	from minority shareholder’s
	investment	45,000,000.00	57,150,000.00
	Cash received from borrowings	11,132,054,981.60	2,302,820,393.70
	Cash received from issue of bonds
	Cash received relating to other financing activities
	Sub-total of cash inflow from financing activities	11,177,054,981.60	2,359,970,393.70
	Cash paid for repayment of debts	2,840,973,787.09	1,139,034,638.81
	Cash payments for dividend and profit
	distribution or interest repayment	487,476,553.33	288,602,860.41
	Including: Dividend and profit paid
	by subsidiary to minority
	shareholders	4,593,288.92	8,621,954.95
	Other cash paid relating to financing activities	163,223,927.31	176,548,068.57
	Sub-total of cash outflow from financing
	activities	3,491,674,267.73	1,604,185,567.79
	Ne t cash flow from financing activities	7,685,380,713.87	755,784,825.91

19

				Amount from	Amount from
				beginning of the year	the beginning of the
				to end of the	previous year to end of
				Reporting Period	the reporting period
Item				(January to September)	(January to September)
IV.	Ef fect on cash and cash equivalents due to
	changes in foreign exchange rates			29,245,520.91	-119,008,236.92
V.	Net increase in cash and cash equivalents			5,154,293,191.87	-4,306,231,373.68
	Add: Balance of cash and cash equivalents
	at the beginning of the period			7,073,272,758.43	10,648,395,705.94
VI.	Ba lance of cash and cash equivalents
	at the end of the period			12,227,565,950.30	6,342,164,332.26
		Person-in-charge of Head of the accounting
	Legal representative:		accounting affairs:		department:
	Li Shaode			Liu Chong	Li Rong
	Cash Flow Statement of the Parent Company
Prepared by: China Shipping Container Lines
Compnay Limited				January to September	2012 Unit: RMB
					Unaudited
					Amount from
				Amount from	the beginning
				beginning of the	of the previous
				year to end of the	year to end of the
				Reporting Period	reporting period
				(January to	(January to
Item				September)	September)
I.	Cash flow from operating activities
	Cash received from sales of goods and
	provision of services			7,639,004,372.68	5,827,615,139.67
	Tax rebates			118,130,810.94
	Other cash received from activities related
	to operation			371,444,891.68	472,300,195.59
	Sub-total of cash inflow from operating
	activities			8,128,580,075.30	6,299,915,335.26
	Cash paid for goods purchased and
	service rendered			7,947,048,715.23	6,770,626,096.60
	Cash paid to and on behalf of employees			551,763,158.02	500,810,620.82
	Taxes paid			248,771,730.10	50,390,217.17
	Other cash paid for activities related to
	operation			186,795,969.89	183,449,943.69
	Sub-total of cash outflow from operating
	activities			8,934,379,573.24	7,505,276,878.28
	Ne t cash flow from operating
	activities			-805,799,497.94	-1,205,361,543.02

20

			Amount from
		Amount from	the beginning
		beginning of the	of the previous
		year to end of the	year to end of the
		Reporting Period	reporting period
		(January to	(January to
Item		September)	September)
II.	Cash flow from investment activities:
	Cash received from disposal of investments
	Cash received from gains in investments	62,207,809.59	48,143,392.58
	Net cash received from disposal of fixed
	assets, intangible assets and other
	long-term assets	54,000.00	68,694.63
	Net cash received from disposal of
	subsidiaries and other operating entities
	Other cash received relating to investment
	activities
	Sub-total of cash inflow from investment
	activities	62,261,809.59	48,212,087.21
	Cash paid for purchase of fixed
	assets, intangible assets and
	other long-term assets	1,020,872,584.03	1,070,277,912.17
	Cash paid for investment		138,971,559.00
	Net cash paid for acquiring subsidiaries
	and other operating entities
	Other cash paid relating to investment
	activities
	Sub-total of cash outflow from investment
	activities	1,020,872,584.03	1,209,249,471.17
	Ne t cash flow from investment
	activities	-958,610,774.44	-1,161,037,383.96
III.	Cash flow from financing activities
	Proceeds received from investments
	Cash received from borrowings	5,468,745,000.00	220,249,819.25
	Cash received from issue of bonds
	Cash received relating to other financing
	activities
	Sub-total of cash inflow from financing
	activities	5,468,745,000.00	220,249,819.25
	Cash paid for repayment of debts	188,361,000.00	207,781,819.25
	Cash payments for dividend and profit
	distribution or interest repayment	149,132,508.29	82,952,024.76
	Other cash paid relating to financing
	activities	44,448.34
	Sub-total of cash outflow from financing
	activities	337,537,956.63	290,733,844.01
	Ne t cash flow from financing
	activities	5,131,207,043.37	-70,484,024.76

21

			Amount from
		Amount from	the beginning
		beginning of the	of the previous
		year to end of the	year to end of the
		Reporting Period	reporting period
		(January to	(January to
Item		September)	September)
IV.	Ef fect on cash and cash equivalents due to
	changes in foreign exchange rates	-6,460,265.65	-15,144,109.25
V.	Net increase in cash and cash equivalents	3,360,336,505.34	-2,452,027,060.99
	Add: Balance of cash and cash equivalents at
	the beginning of the reporting period	1,882,610,587.87	5,449,383,991.97
VI.	Ba lance of cash and cash equivalents
	at the end of the Reporting Period	5,242,947,093.21	2,997,356,930.98
	Person-in-charge of Head		of the accounting
	Legal representative: accounting affairs:		department:
	Li Shaode Liu Chong		Li Rong

CAUTION STATEMENT

The board of directors wishes to remind investors that the above extracts from the Quarterly Report are prepared on the basis of the Group’s internal information and management accounts and have not been reviewed or audited by the auditors. Investors are cautioned against market risks and should not rely unduly on the extracts from the Quarterly Report stated above. In addition, investors are advised to exercise caution when dealing in the shares of the Company.

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

Shanghai, the PRC 30 October 2012

The Board as at the date of this announcement comprises of Mr. Li Shaode, Mr. Xu Lirong, Mr. Huang Xiaowen, Mr. Zhang Guofa and Mr. Zhao Hongzhou, being executive Directors, Mr. Zhang Jianhua, Mr. Wang Daxiong, Mr. Zhang Rongbiao and Mr. Xu Hui, being non-executive Directors, and Mr. Shen Kangchen, Mr. Jim Poon (also known as Pan Zhanyuan), Mr. Shen Zhongying, Mr. Wu Daqi and Ms. Zhang Nan, being independent non-executive Directors.

• 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 under the English name “China Shipping Container Lines Company Limited”.

22