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

Sep 26, 2012

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interim rePOrt 2012

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Contents

Corporate Information	2
Results and Business Highlights under Hong Kong
Financial Reporting Standards (“HKFRS”)	4
Management Discussion and Analysis	5
Report on Review of Interim Financial Information	15
Condensed Consolidated Interim Statement of
Financial Position	16
Condensed Consolidated Interim Income Statement	18
Condensed Consolidated Interim Statement of
Comprehensive Income	19
Condensed Consolidated Interim Statement of
Changes in Equity	20
Condensed Consolidated Interim Statement of Cash Flows	21
Notes to the Condensed Consolidated
Interim Financial Information	22

China Shipping Container LineS Company Limited InterIm rePOrt 2012

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CORPORATE INFORMATION

DIRECTORS

EXECUTIVE DIRECTORS

Mr. Li Shaode (Chairman) Mr. Xu Lirong (Vice Chairman) Mr. Huang Xiaowen (Vice Chairman) Mr. Zhang Guofa Mr. Zhao Hongzhou

INVESTMENT STRATEGY COMMITTEE

Mr. Li Shaode (Chairman) Mr. Xu Lirong Mr. Huang Xiaowen Mr. Zhang Guofa Mr. Wang Daxiong Ms. Zhang Nan Mr. Jim Poon (also known as Pan Zhanyuan) Mr. Shen Zhongying

NON-EXECUTIVE DIRECTORS

Mr. Zhang Jianhua Mr. Wang Daxiong Mr. Xu Hui Mr. Zhang Rongbiao

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. Liu Chong

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

PRINCIPAL PLACE OF BUSINESS IN THE PRC

27th Floor 450 Fu Shan Road Pudong New District Shanghai The PRC

NOMINATION COMMITTEE

Mr. Shen Zhongying (Chairman) Ms. Zhang Nan Mr. Jim Poon (also known as Pan Zhanyuan) Mr. Zhang Guofa Mr. Wang Daxiong

PRINCIPAL PLACE OF BUSINESS IN HONG KONG

59/F, One Island East 18 Westlands Road Island East Hong Kong

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INTERNATIONAL AUDITOR

Ernst & Young

NUMBER OF H SHARES IN ISSUE

3,751,000,000 H Shares

DOMESTIC AUDITOR

Baker Tilly China

BOARD LOT

1,000 shares

LEGAL ADVISERS TO THE COMPANY

King & Wood Mallesons

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

THE STOCK EXCHANGE OF HONG KONG LIMITED (“STOCK EXCHANGE”) STOCK CODE 02866

A SHARE LISTING PLACE

Shanghai Stock Exchange

LISTING DATE

12 December 2007

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

NUMBER OF A SHARES IN ISSUE

7,932,125,000 A Shares

BOARD LOT

100 shares

SHANGHAI STOCK EXCHANGE STOCK CODE

601866

TELEPHONE NUMBER

86 (21) 6596 6105

FAX NUMBER

• 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”.

86 (21) 6596 6813

COMPANY WEBSITE

www.cscl.com.cn

H SHARE LISTING PLACE

Main Board of The Stock Exchange of Hong Kong Limited

LISTING DATE

16 June 2004

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RESULTS AND BUSINESS HIGHLIGHTS UNDER HONG KONG FINANCIAL REPORTING STANDARDS (“HKFRS”)

Unaudited Interim Results For The Six Months ended	Unaudited Interim Results For The Six Months ended	Unaudited Interim Results For The Six Months ended	30 June 2012
	1H 2012		1H 2011	Change
	RMB		RMB
	(Unaudited)		(Unaudited)
Revenue	15,309,835,000	13,966,904,000		9.6%
Operating loss	(1,029,892,000)		(528,543,000)	94.9%
Loss attributable to owners of the parent	(1,280,985,000)		(630,340,000)	103.2%
Basic loss per share	(0.11)		(0.05)	120.0%
Gross profit margin	(5.8%)		(2.3%)	152.2%
Gearing ratio	56.5%		22.1%	155.8%

BUSINESS HIGHLIGHTS

• Shipping volume of the Group reached 3,959,327TEU in the first half of 2012, representing an increase of 15.2% over that of the same period of 2011.

• Revenue of the Group amounted to RMB15,309,835,000 in the first half of 2012, representing an increase of RMB1,342,931,000 or 9.6% as compared with the same period last year.

• Shipping capacity of the Group reached 616,318TEU as at 30 June 2012, representing a net increase of 12,862TEU compared with that as at the end of 2011.

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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 2012 (the “Period”) prepared under Hong Kong Accounting Standard 34, “Interim Financial Reporting”, which has been reviewed by the audit committee of the Company. Our auditor, Ernst & Young, 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 RMB15,309,835,000, representing an increase of RMB1,342,931,000 or 9.6% as compared with the same period of 2011. Net loss attributable to owners of the parent for the Period amounted to RMB1,280,985,000, representing an increase of RMB650,645,000 compared with a net loss for the same period of 2011. Basic loss per share was RMB0.11.

OPERATING ENVIRONMENT

At the beginning of 2012, the shipping market extended the sluggish trend of 2011. Demand from the European and U.S. economies remained weak, while the container transportation capacity expanded continuously. Fuel prices also remained persistently high, creating immense pressure on shipping companies. Market trends then showed signs of improvement, demand in container transportation increased and freight rates recovered gradually. The Group was able to grasp the opportunities in these volatile markets and correctly predict market trends, thus implementing effective measures to maximize efficiency of trade lanes. As a result, operation performance achieved vast improvement in the second quarter.

PERFORMANCE ANALySIS

During the Period, the Group’s loaded container volume was 3,959,327TEU, up by 15.2% as compared with the same period of 2011, and revenue was RMB15,309,835,000, representing an increase of RMB1,342,931,000 or 9.6% as compared with that of the same period of 2011.

LOADED CONTAINER VOLUME By TRADE LANES

	1H 2012	1H 2011	Change
Principal Markets	(TEU)	(TEU)	(%)
Pacific trade lanes	637,226	597,393	6.7%
Europe/Mediterranean trade lanes	678,979	533,089	27.4%
Asia Pacific trade lanes	766,754	623,180	23.0%
China domestic trade lanes	1,841,693	1,639,545	12.3%
Others	34,675	43,016	(19.4%)
Total	3,959,327	3,436,223	15.2%

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REVENUE FROM OPERATIONS By TRADE LANES

	1H 2012	1H 2011	Change
Principal Markets	(RMB’000)	(RMB’000)	(%)
Pacific trade lanes	4,719,399	4,299,315	9.8%
Europe/Mediterranean trade lanes	4,045,087	3,469,337	16.6%
Asia Pacific trade lanes	2,755,314	2,295,926	20.0%
China domestic trade lanes	2,891,669	2,864,534	0.9%
Others	898,366	1,037,792	(13.4%)
Total	15,309,835	13,966,904	9.6%

During the Period, the Group seized the opportunity to increase the shipping capacity for international trade lanes while consolidating its market share for domestic trade lanes. The loaded container volume of the Group was 3,959,327TEU, up by 15.2% compared with the same period of last year.

International freight rate started to rise in the second quarter following a dip, an opposite trend as compared with the same period of last year. However the Group’s average freight rate per TEU for international trade lanes was RMB5,585, still representing a 3.0% decrease compared with the same period of last year. The revenue per TEU for domestic trade lanes amounted to RMB1,570, down by 10.1% compared with the same period of last year.

COST ANALySIS

During the Period, the Group’s operation costs totaled to RMB16,191,352,000, representing an increase of RMB1,906,362,000 or 13.3% as compared with the same period of 2011.

The increase in total operation costs was due to the following factors:

• During the Period, container and cargo costs amounted to RMB5,372,831,000, representing an increase of 13.8% as compared with the same period of last year, which was mainly due to a significant increase in loaded cargo volume. Port charges amounted to RMB934,423,000, remained flat as compared with the same period of last year. The Group’s stevedore charges for loaded and empty containers amounted to RMB3,323,604,000 during the Period, representing an increase of 26.3% as compared with the same period of last year.

• Vessel and voyage costs for the Period amounted to RMB7,798,307,000, representing an increase of 16.7% as compared with the same period of 2011, mainly due to the increase in fuel costs. During the Period, fuel costs amounted to RMB5,296,115,000, representing an increase of 25.2% as compared with the same period last year. The increase in fuel costs was a direct result of the continual increase in international crude oil price during the first quarter of 2012. Meanwhile, the increase in shipping volume and loaded cargo volume also led to the increase in fuel consumption.

• During the Period, sub-route and other costs amounted to RMB3,020,214,000, representing an increase of 4.7% as compared with the same period of 2011. The increase was mainly a result of the effective arrangements of extended services.

China Shipping Container LineS Company Limited 6 InterIm rePOrt 2012

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OPERATION REVIEW

In the first half of 2012, in face of a complex operating environment and volatile shipping markets, the Group adopted a flexible and active business strategy with an emphasis on efficiency. The pressure from slow markets was converted into motivation for refined management, costs and expenses were strictly controlled while strong and comprehensive strategies were implemented on all aspects of production and operations.

1. The Group closely followed market changes and adjusted capacity accordingly, thus maximizing trade lanes efficiency. The Group also correctly predicted market trends and reallocated resources effectively in a volatile market, enabling it to plan capacity, grasp opportunities and enhance efficiency.

2. Practical measures were taken to reinforce cost control and to maintain a competitive advantage in the market.

Fuel costs have always been the focal point of the Company’s cost control. The Group took advantage of savings in technology, management and operations to promote extra slow steaming. The Group was also able to take advantage of volatile international fuel markets and enter into timely deals to lock in the prices of oil, thus effectively lowering fuel costs.

For container management, the Group took advantage of the slow-moving container management market and rented containers at low cost, which guaranteed that the Company’s container demands were met and also saved container rental costs.

In addition, the Group took advantage of large vessels, upgraded trade lanes and more containers to increase bargaining power, conduct more thorough research and better control port charges.

1. More resources were put into marketing which targeted big clients. Marketing was conducted under the principles of thoughtfulness, intelligence, innovation, service and value in order to meet customer demands and build a stable, long-lasting, win-win relationship.

2. The Group strived to optimize its trade lanes through increased collaboration with external parties. Through external cooperative strategies such as joint bidding of vessels, swapping and buying of shipping space, the Group was able to lower costs, expand lane coverage and optimize lane distribution.

3. The Group also actively expanded extended services to optimize the logistics supply chain. This was done by actively developing the container business in the Yangtze River region, strengthening sea-rail joint transportation, developing logistics distribution and appropriation services to provide differentiated services and one-stop services for its customers.

4. The information systems network was reinforced, enhancing operational capability. Information construction was fully implemented while information systems was optimized, which upgraded management capabilities.

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FUTURE PROSPECT

In the second half of 2012, the European economy is expected to be affected by the ongoing debt crisis while the prospect for recovery remains unclear. The U.S. economy on the other hand shows initial signs of recovery which is likely to stimulate trading demand. In Asia, the trend for steady growth will continue. With the continued increase in capacity, the supply of transportation capacity will remain greater than demand for an extended period. The container shipping market will have to endure factors such as volatile oil prices and competition as challenges and opportunities coexist.

Operating in such a complex and ever-changing market, CSCL shall endure these challenges by establishing clear corporate development strategies and cope with the ever-changing and developing shipping market through innovative business methods, management policies and thinking. The Company will continue to adhere to the principles of “cautious, flexible, controlled and exploration” for business development, to further implement refined management, enhance comprehensive competitiveness, take full advantage of its strength and explore new opportunities. In the second half of 2012, the following procedures will be firmly implemented:

1. The Group will consistently improve its service standards, starting from the details to provide customers with convenient and outstanding service. Customer needs will be addressed. The Group will also strive for excellence and provide value-added services for customers, enhancing market clustering through solid and excellent service.

2. The Group will continue to put more resources in marketing and increase the shipping volume of backhaul cargo. The Group will actively look for opportunities and develop markets, promoting innovation in the system, mechanism and method of marketing. Also, more effort will be put in establishing an overseas sales team to enhance the shipping volume of backhaul cargo.

3. The Group will thoroughly implement refined management and strictly control cost expenses. Through refining cost control, the Group will enhance analysis of global fossil fuel price trends and foreign exchange volatility. Refined management will be implemented in all aspects of production and operations, effectively controlling cost expenses.

4. The Group will swiftly adjust shipping capacity, actively increase freight rates and focus on the efficiency of trade lanes. Through keen observation of market changes and active exploration of market, the Group will make efforts to recover freight rates and strive to maximize the efficiency of trade lanes.

5. The Group will increase collaboration with other trade lanes to enhance service capability. The Group will continue promoting the “Large Cooperation” strategy to expand external cooperation, upgrade trade lanes, continuously improve trade lane coverage and enhance service capability.

6. The Group will expedite overseas network construction, refine the global service network and actively explore extended services. Greater effort will be made to open up overseas market, set up overseas network points and improve the global service network. Meanwhile, the Group will also actively explore the integrated logistics business to provide one-stop tailor made logistics solution for its customers.

7. The Group will continue to enhance team execution, caring for staff and carry out corporate social responsibility. The Group will promote innovations in management and provide sound development platform for its staff. The Group will also implement a low carbon environment protection policy to fulfill its social responsibility.

China Shipping Container LineS Company Limited 8 InterIm rePOrt 2012

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LIQUIDITy, FINANCIAL RESOURCES AND CAPITAL STRUCTURE

The Group’s principal sources of working capital are the operating cash inflow and short-term bank borrowings. Cash is mainly used in operation cost expenses, repayment of loans, construction of new vessels and the purchase of containers. During the Period, the Group’s net operating cash outflow was RMB1,452,091,000. As at 30 June 2012, the Group’s cash balance in banks was RMB13,705,204,000.

As at 30 June 2012, the Group’s total bank borrowings were RMB25,984,984,000. The maturity profile is spread over a period between 2012 and 2021 with RMB9,830,102,000 repayable within one year, RMB1,526,188,000 repayable within the second year, RMB11,873,344,000 repayable within the third to the fifth year, and RMB2,755,350,000 repayable after the fifth year. The Group’s long-term bank borrowings are mainly used to finance the construction of vessels and ports.

As at 30 June 2012, the Group’s long-term bank borrowings were secured by mortgages over certain containers, container vessels, and vessels under construction with a book value of RMB6,170,648,000 (as at 31 December 2011: RMB4,930,645,000).

As at 30 June 2012, the Group’s bonds payable in ten-year period amounted to RMB1,787,853,000, all proceeds from the bonds were used in the construction of vessels. The issue of bonds is guaranteed by the Bank of China, Shanghai branch.

As at 30 June 2012, the Group’s obligations under finance leases amounted to RMB457,743,000, with the maturity profile ranging from 2012 to 2019. The amount repayable within one year is RMB191,885,000; the amount repayable within the second year is RMB54,540,000; the amount repayable within the third to the fifth year is RMB117,819,000 and the amount repayable after the fifth year is RMB93,499,000. The Group’s obligations under the finance leases are substantially used in the lease of new containers, while the remaining small portion is used in the construction of ports and depot infrastructure.

As at 30 June 2012, the Group’s RMB borrowings at fixed interest rates amounted to RMB4,083,840,000, with annual interest rate at 5.02%-6.56%. USD borrowings at fixed interest rates amounted to USD628,307,000 (equivalent to RMB3,973,977,000) and USD borrowings at floating interest rates amounted to USD2,834,380,000 (equivalent to RMB17,927,167,000), with annual interest rates ranging between London Interbank Offered Rate plus 0.4% to 2.5%. The Group’s borrowings are settled in RMB or USD 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.

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GEARING RATIO

As at 30 June 2012, 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 56.5%, which is higher than that of 40.5% as at 31 December 2011. The increase on one hand was due to the increase in borrowings for the finance of vessel construction and operation needs, and on the other hand, reduction in equity as a result of the loss for the Period.

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 impact on the net operating revenue due to RMB exchange rate fluctuation 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 loss of approximately RMB12,960,000 which was recorded in the income statement, and the exchange difference which directly charged to equity amounted to approximately RMB28,043,000 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 2012, the Group’s capital commitments which had been contracted but not provided for or authorised but not contracted for, in relation to vessels under construction amounted to RMB4,828,430,000 and in relation to investments was RMB387,000,000. Furthermore, the operating lease commitments of the Group relating to land and buildings, and vessels and containers, are RMB122,374,000 and RMB9,263,268,000, respectively.

CONTINGENT LIABILITy

As at 30 June 2012, the Group had a provision of RMB25,000,000 for legal claims. The provision is related to legal claim brought against the Company by customers of the Company. In the opinion of the Company’s directors after taking into account of the legal advice, the outcome of this legal claim will not give rise to any significant loss beyond the amounts provided as at 30 June 2012.

SHARE CAPITAL

As at 30 June 2012, 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

China Shipping Container LineS Company Limited 10 InterIm rePOrt 2012

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INTERESTS AND SHORT POSITIONS OF DIRECTORS, SUPERVISORS AND CHIEF EXECUTIVES IN SHARES, UNDERLyING SHARES AND DEBENTURES

As at 30 June 2012, 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(1)	were held	H share capital
Directors
Li Shaode	3,382,100	Beneficial owner	0.090% (Long position)
Huang Xiaowen	3,334,050	Beneficial owner	0.089% (Long position)
Zhang Guofa	2,218,050	Beneficial owner	0.059% (Long position)
Zhao Hongzhou	2,604,000	Beneficial owner	0.069% (Long position)
Zhang Jianhua	1,240,000	Beneficial owner	0.033% (Long position)
Lin Jianqing(2)	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)

Note:

1. 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.

2. Lin Jianqing has resigned from the post of Director of the Company since 26 June 2012.

Save as disclosed above, as at 30 June 2012, 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.

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INTERESTS OR SHORT POSITIONS OF SUBSTANTIAL SHAREHOLDERS OR OTHER PERSONS IN THE SHARES OR UNDERLyING SHARES

As at 30 June 2012, 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
		underlying		relevant class of	in the total
Name of shareholder	Class of shares	shares held	Capacity	share capital	share capital
China Shipping(Group)	A shares	5,361,837,500(L)	Beneficial owner	67.60%	45.89%
Company
UBS AG_(note(a))_	H shares	210,094,224(L)	Beneficial owner, persons	5.60%(L)	1.80%(L)
		188,890,363(S)	having a security interest	5.04%(S)	1.62%(S)
			in shares and interest in a
			controlled corporation
Deutsche Bank	H shares	238,976,710(L)	Beneficial owner, investment	6.37%(L)	2.05%(L)
Aktiengesellschaft		169,615,903(S)	manager, persons having a	4.52%(S)	1.45%(S)
(note(b))		3,570,000(P)	security interest in shares	0.09%(P)	0.03%(P)
			and custodian
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

Notes:

• (a) According to the form of disclosure of interests submitted by UBS AG on 14 June 2012 (the date of the relevant event being 12 June 2012), these shares were held through certain subsidiaries of UBS AG. The 210,094,224 H shares (long position) were held as to 99,347,967 H shares in the capacity of beneficial owner; 314,000 H shares in the capacity of persons having a security interest in shares, and 110,432,257 H shares were held in the capacity of having interest in a controlled corporation. The 188,890,363 H shares (short position) were held as to 79,778,706 H shares in the capacity of beneficial owner, 109,111,657 H shares in the capacity of having interest in a controlled corporation.

• (b) According to the form of disclosure of interests submitted by Deutsche Bank Aktiengesellschaft on 13 June 2012 (the date of the relevant event being 6 June 2012), these shares were held through certain subsidiaries of Deutsche Bank Aktiengesellschaft. The 238,976,710 H shares (long position) were held as to 90,480,662 H shares in the capacity of beneficial owner; 49,169,000 H shares in the capacity of investment manager, 95,757,048 H shares were held in the capacity of persons having a security interest in shares and 3,570,000 H shares were held in the capacity of a custodian. The 169,615,903 H shares (short position) were held as to 75,853,620 H shares in the capacity of beneficial owner, 93,762,283 H shares in the capacity of persons having a security interest in shares.

Save as disclosed above, as at 30 June 2012, 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.

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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 2011 Annual Report were as follows:

Name of Director or Supervisor Details of changes

Director Lin Jianqing Resigned from the post of non-executive director of the Company on 18 June 2012, with effect from 26 June 2012.

H SHARE SHARE APPRECIATION RIGHTS SCHEME

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 share based, 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.

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 (2011: nil).

EMPLOyEES, TRAINING AND BENEFITS

As at 30 June 2012, the Group had 4,596 employees. Total staff expenses during the Period were approximately RMB908,774,000. 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 2,635 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 put in place various training for its staff, including Safety Management Systems (SMS) training for the crewing department as well as management training for mid-to-high level management staff.

China Shipping Container LineS Company Limited InterIm rePOrt 2012 13

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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 results for the 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 Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited (“Stock Exchange”) (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 for Securities Transactions by Directors of Listed Issuers (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.

INFORMATION DISCLOSURE

This report will be dispatched by the Company to its shareholders and published on the website of the 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 29 August 2012

China Shipping Container LineS Company Limited InterIm rePOrt 2012

14

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REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATION

TO THE SHAREHOLDERS 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 16 to 44, which comprises the condensed consolidated interim statement of financial position of China Shipping Container Lines Company Limited (the “Company”) and its subsidiaries (together, the “Group”) as at 30 June 2012, and the related condensed consolidated interim statements 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”.

Ernst & Young

Certified Public Accountants

Hong Kong 29 August 2012

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CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2012

				30 June		31 December
				2012		2011
		Notes		RMB’000		RMB’000
				(unaudited)		(Audited)
NON-CuRRENT ASSETS
Property, plant and equipment		7		38,349,149		37,049,240
Leasehold land and land use rights		7		94,186		95,388
Intangible assets		7		30,292		22,991
Deferred income tax assets				12,610		12,593
Available-for-sale financial assets				362,140		362,140
Investments in associated companies				274,468		257,309
Investments in jointly-controlled entities				1,311,468		1,294,881
Total non-current assets				40,434,313		39,094,542
CuRRENT ASSETS
Inventories				1,368,554		1,206,379
Trade and notes receivables		8		2,348,829		1,801,106
Prepayments and other receivables				427,546		237,190
Cash and cash equivalents				13,705,204		7,073,273
Total current assets				17,850,133		10,317,948
Total assets				58,284,446		49,412,490
EQuITY
Equity attributable to owners of the parent
Share capital		9		11,683,125		11,683,125
Other reserves				17,089,188		17,061,062
Accumulated losses				(4,002,315)		(2,720,854)
				24,769,998		26,023,333
Non-controlling interests				921,713		877,356
Total equity				25,691,711		26,900,689

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CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION (Continued) AS AT 30 JUNE 2012

				30 June		31 December
				2012		2011
		Notes		RMB’000		RMB’000
				(unaudited)		(Audited)
NON-CuRRENT LIABILITIES
Long-term borrowings		10		16,154,882		10,808,547
Domestic corporate bonds		11		1,787,853		1,786,627
Finance lease obligations		12		265,858		124,648
Deferred income tax liabilities				31		31
Total non-current liabilities				18,208,624		12,719,853
CuRRENT LIABILITIES
Trade payables		14		3,595,665		3,820,428
Accruals and other payables				712,833		663,417
Short-term bank borrowings		10		3,763,316		819,117
Long-term bank borrowings – current portion		10		6,066,786		4,230,182
Finance lease obligations – current portion		12		191,885		194,729
Current income tax liabilities				28,626		39,075
Provisions		13		25,000		25,000
Total current liabilities				14,384,111		9,791,948
Total liabilities				32,592,735		22,511,801
Total equity and liabilities				58,284,446		49,412,490
Net current assets				3,466,022		526,000
Total assets less current liabilities				43,900,335		39,620,542

The notes on pages 22 to 44 form an integral part of this condensed consolidated interim financial information.

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CONDENSED CONSOLIDATED INTERIM INCOME STATEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2012

				Six months ended	Six months ended	Six months ended	30 June
				2012			2011
		Notes		RMB’000			RMB’000
				(unaudited)			(Unaudited)
Revenue		6		15,309,835			13,966,904
Cost of services				(16,191,352)			(14,284,990)
Gross loss				(881,517)			(318,086)
Other gains, net		16		42,475			92,088
Other income		17		256,101			93,792
Selling, administrative and general expenses				(446,951)			(396,337)
Operating loss		15		(1,029,892)			(528,543)
Finance costs		18		(226,985)			(86,538)
Share of results of associated companies				19,779			11,627
Share of results of jointly controlled entities				23,054			18,731
Loss before income tax				(1,214,044)			(584,723)
Income tax expense		19		(38,795)			(25,951)
Loss for the period				(1,252,839)			(610,674)
Attributable to:
Owners of the parent				(1,280,985)			(630,340)
Non-controlling interests				28,146			19,666
				(1,252,839)			(610,674)
Loss per share for loss attributable
to equity holders of the parent
(Expressed in RMB per share)
– Basic and diluted		21		RMB(0.11)			RMB(0.05)
Dividends		20		–			–

The notes on pages 22 to 44 form an integral part of this condensed consolidated interim financial information.

China Shipping Container LineS Company Limited 18 InterIm rePOrt 2012

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CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2012

	Six months ended	30 June
	2012	2011
	RMB’000	RMB’000
	(unaudited)	(Unaudited)
Loss for the period	(1,252,839)	(610,674)
Other comprehensive income/(loss)
Share of other comprehensive income of jointly-controlled entities	–	471
Currency translation differences	28,043	(209,592)
Total comprehensive loss for the period	(1,224,796)	(819,795)
Attributable to:
Owners of the parent	(1,252,942)	(839,461)
Non-controlling interests	28,146	19,666
	(1,224,796)	(819,795)

The notes on pages 22 to 44 form an integral part of this condensed consolidated interim financial information.

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CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQuITY

FOR THE SIX MONTHS ENDED 30 JUNE 2012

At 1 January 2011	Owners of the parent Share capital Other reserves Retained earnings/ (accumulated losses) Total Non- controlling interests Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 11,683,125 17,478,560 23,254 29,184,939 777,304 29,962,243
Profit/(loss) for the period Share of other comprehensive income of jointly controlled entities Currency translation differences	– – (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 (unaudited)	11,683,125 17,269,439 (607,725) 28,344,839 814,903 29,159,742
At 1 January 2012	11,683,125 17,061,062 (2,720,854) 26,023,333 877,356 26,900,689
Profit/(loss) for the period Currency translation differences	– – (1,280,985) (1,280,985) 28,146 (1,252,839) – 28,043 – 28,043 – 28,043
Total comprehensive loss for the period ended 30 June 2012	– 28,043 (1,280,985) (1,252,942) 28,146 (1,224,796)
Transactions with owners in their capacity as owners Capital injection Dividends to non-controlling interests Others	– – – – 45,000 45,000 – – – – (28,635) (28,635) – 83 (476) (393) (154) (547)
Balance at 30 June 2012 (unaudited)	11,683,125 17,089,188 (4,002,315) 24,769,998 921,713 25,691,711

The notes on pages 22 to 44 form an integral part of this condensed consolidated interim financial information.

China Shipping Container LineS Company Limited 20 InterIm rePOrt 2012

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CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2012

	Six months ended	30 June
	2012	2011
	RMB’000	RMB’000
	(unaudited)	(Unaudited)
Cash flows used in operating activities – net	(1,452,091)	(411,032)
Cash flows used in investing activities – net	(1,607,484)	(2,807,391)
Cash flows generated from/(used in) financing activities – net	9,679,160	(264,656)
Net increase/(decrease) in cash and cash equivalents	6,619,585	(3,483,079)
Cash and cash equivalents at beginning of the period	7,073,273	10,648,396
Exchange gains/(losses) on cash and cash equivalents	12,346	(40,561)
Cash and cash equivalents at end of the period	13,705,204	7,124,756

The notes on pages 22 to 44 form an integral part of this condensed consolidated interim financial information.

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NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION

FOR THE SIX MONTHS ENDED 30 JUNE 2012

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 29 August 2012.

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 2012 has been prepared in accordance with Hong Kong Standards on Accounting 34 “Interim Financial Reporting”. The condensed consolidated interim financial information should be read in conjunction with the annual financial statements of the Group for the year ended 31 December 2011, which were prepared in accordance with Hong Kong Financial Reporting Standards (“HKFRSs”).

China Shipping Container LineS Company Limited 22 InterIm rePOrt 2012

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NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (Continued) FOR THE SIX MONTHS ENDED 30 JUNE 2012

3. SIGNIFICANT ACCOuNTING POLICIES

Except as described below, the significant accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2011, as described in those annual financial statements.

Taxes on income in the interim period 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 2012.

HKFRS 1 Amendments	Amendments to HKFRS 1_First-time Adoption of Hong Kong Financial_
	Reporting Standards – Severe Hyperinflation and Removal of Fixed
	Dates for First-time Adopters
HKFRS 7 Amendments	Amendments to HKFRS 7_Financial Instruments:_
	Disclosures – Transfers of Financial Assets
HKAS 12 Amendments	Amendments to HKAS 12_Income Taxes – Deferred Tax:_
	Recovery of Underlying Assets

The adoption of these new and revised HKFRSs had no significant financial effect on these financial statements.

China Shipping Container LineS Company Limited InterIm rePOrt 2012 23

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NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (Continued) FOR THE SIX MONTHS ENDED 30 JUNE 2012

3. SIGNIFICANT ACCOuNTING POLICIES (Continued)

• (b) The following new standards and amendments to standards have been issued but are not effective for the financial year beginning on or after 1 January 2012 and have not been early adopted:

HKFRS 1 Amendments	Amendments to HKFRS 1_First-time adoption of International_
	_Financial Reporting Standards_2
HKFRS 7 Amendments	Amendments to HKFRS 7_Financial Instruments: Disclosures –_
	_Offsetting Financial Assets and Financial Liabilities_2
HKFRS 9	Financial Instruments4
HKFRS 10	Consolidated Financial Statements2
HKFRS 11	Joint Arrangements2
HKFRS 12	Disclosure of Interests in Other Entities2
HKFRS 13	Fair Value Measurement2
HKAS 1 Amendments	Amendments to HKFRS 1_Presentation of Financial Statements –_
	_Presentation of Items of Other Comprehensive Income_1
HKAS 19 (2011)	Employee Benefits2
HKAS 27 (2011)	Separate Financial Statements2
HKAS 28 (2011)	Investments in Associates2
HKAS 32 Amendments	Amendments to HKAS 32_Financial Instruments: Presentation –_
	_Offsetting Financial Assets and Financial Liabilities_3
HK(IFRIC)-Int 20	Stripping Costs in the Production Phase of a Surface Mine2
Improvements to HKFRSs	Amendments to a number of HKFRSs issued in May 20122
2009-2011 Cycle

• 1 Effective for annual periods beginning on or after 1 July 2012

• 2 Effective for annual periods beginning on or after 1 January 2013

• 3 Effective for annual periods beginning on or after 1 January 2014

• 4 Effective for annual periods beginning on or after 1 January 2015

The Group is in the process of making an assessment of the impact of these new and revised HKFRSs upon initial application. So far, the Group considers that these new and revised HKFRSs are unlikely to have a significant impact on the Group’s results of operations and financial position.

China Shipping Container LineS Company Limited 24 InterIm rePOrt 2012

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NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (Continued) FOR THE SIX MONTHS ENDED 30 JUNE 2012

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 2011, with the exception of changes in estimates of the useful life of containers which was changed from 8-10 years to 12 years effective from 1 April 2012 based on the actual use of the assets.

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 2011.

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

5.2 Liquidity risk

Compared to the 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 2012 and 31 December 2011, the Group did not have any financial asset or liability that was measured at fair value.

In 2012, there were no significant changes in the business or economic circumstances that significantly affect the fair values of the Group’s financial assets and financial liabilities recognised at amortised cost, and there were no reclassifications of financial assets.

China Shipping Container LineS Company Limited InterIm rePOrt 2012 25

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NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (Continued) FOR THE SIX MONTHS ENDED 30 JUNE 2012

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, which is reconciled to loss before tax. This measurement is consistent with that in the annual financial statements.

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 associated companies 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 2012, the investments in associated companies in the unallocated assets represent the investment in a finance company and a company engaged in providing motor transportation services.

Revenue from the major shipping lanes and other businesses is set out below:

	Six months ended	30 June
	2012	2011
	RMB’000	RMB’000
	(unaudited)	(Unaudited)
Pacific	4,719,399	4,299,315
Europe/Mediterranean	4,045,087	3,469,337
Asia Pacific	2,755,314	2,295,926
China Domestic	2,891,669	2,864,534
Others	898,366	1,037,792
Turnover	15,309,835	13,966,904

China Shipping Container LineS Company Limited 26 InterIm rePOrt 2012

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NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (Continued) FOR THE SIX MONTHS ENDED 30 JUNE 2012

6. REVENuE AND SEGMENT INFORMATION (Continued)

Segment results for the six months ended 30 June 2012 (unaudited) Total segment revenue Less: inter-segment revenue	Container Container shipping and terminal and Inter- related related segment business business elimination RMB’000 RMB’000 RMB’000 15,112,706 282,705 (85,576) – (85,576) 85,576	Group RMB’000 15,309,835 – 15,309,835 (1,029,892) (226,985) 212 23,054 (1,233,611) 19,567 (1,214,044) (38,795) (1,252,839) 758,267 2,025,353
Revenue of the Group, from external customers	15,112,706 197,129 –
Segment operating (loss)/profit Finance costs Share of results of associated companies Share of results of jointly controlled entities	(1,130,591) 100,699 – (205,291) (21,694) – – 212 – 1,891 21,163 –
Segment (loss)/profit before income tax Share of results of associated companies Loss before income tax Income tax expense Loss for the period Other items Depreciation and amortisation Additions to non-current assets (other than financial instruments and deferred income tax assets)	(1,333,991) 100,380 – 717,732 40,535 – 1,968,989 56,364 –

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NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (Continued) FOR THE SIX MONTHS ENDED 30 JUNE 2012

6. REVENuE AND SEGMENT INFORMATION (Continued)

REVENuE AND SEGMENT INFORMATION(Continued)
Container Container shipping and terminal and Inter- related related segment business business elimination RMB’000 RMB’000 RMB’000 Segment assets and liabilities as at 30 June 2012 (unaudited) Other segment assets 52,382,176 4,212,584 (271,000) Jointly controlled entities 47,395 1,264,073 – Associated companies 65,471 20,412 – Available-for-sale financial assets – 362,140 –	Group RMB’000 56,323,760 1,311,468 85,883 362,140
Total segment assets 52,495,042 5,859,209 (271,000) Unallocated assets – Associated companies – Deferred income tax assets Total assets Segment liabilities 30,362,414 2,472,664 (271,000) Unallocated liabilities – Deferred income tax liabilities – Current income tax liabilities Total liabilities	58,083,251 188,585 12,610
	58,284,446
	32,564,078 31 28,626
	32,592,735

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NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (Continued) FOR THE SIX MONTHS ENDED 30 JUNE 2012

6. REVENuE AND SEGMENT INFORMATION (Continued)

Segment results for the six months ended 30 June 2011 (unaudited) Total segment revenue Less: inter-segment revenue	Container Container shipping and terminal and Inter- related related segment business business elimination RMB’000 RMB’000 RMB’000 13,797,049 254,251 (84,396) – (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 profit/(loss) Finance costs Share of results of associated companies Share of results of jointly controlled entities	(611,233) 82,690 – (64,404) (22,134) – – 26 – 466 18,265 –
Segment profit/(loss) before income tax Share of results of associated companies Loss before income tax Income tax expense Loss for the period Other items Depreciation and amortisation Additions to non-current assets (other than financial instruments and deferred income tax assets)	(675,171) 78,847 – 630,653 42,186 – 2,724,104 58,882 –

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NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (Continued) FOR THE SIX MONTHS ENDED 30 JUNE 2012

6. REVENuE AND SEGMENT INFORMATION (Continued)

REVENuE AND SEGMENT INFORMATION(Continued)
Container Container shipping and terminal and Inter- related related segment business business elimination RMB’000 RMB’000 RMB’000 Segment assets and liabilities as at 31 December 2011 (Audited) Other segment assets 43,613,488 4,115,331 (243,252) Jointly controlled entities 41,000 1,253,881 – Associated companies 66,433 10,200 – Available-for-sale financial assets – 362,140 –	Group RMB’000 47,485,567 1,294,881 76,633 362,140
Total segment assets 43,720,921 5,741,552 (243,252) Unallocated assets – Associated companies – Deferred income tax assets Total assets Segment liabilities 20,261,181 2,454,766 (243,252) Unallocated liabilities – Deferred income tax liabilities – Current income tax liabilities Total liabilities	49,219,221 180,676 12,593
	49,412,490
	22,472,695 31 39,075
	22,511,801

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.

No revenue from a single customer or a group of customers under common control derived 10% or more of the Group’s revenue for the six months ended 30 June 2012 and 2011.

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NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (Continued) FOR THE SIX MONTHS ENDED 30 JUNE 2012

7. PROPERTY, PLANT AND EQuIPMENT, LEASEHOLD LAND AND LAND uSE RIGHTS AND INTANGIBLE 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 2012
(unaudited)
Opening net book amount as at
1 January 2012		37,049,240		95,388		22,991		37,167,619
Additions		2,012,796		–		12,557		2,025,353
Disposals		(19,754)		–		–		(19,754)
Depreciation and amortisation_(Note 15)_		(751,781)		(1,202)		(5,284)		(758,267)
Exchange difference		58,648		–		28		58,676
Closing net book amount as at
30 June 2012		38,349,149		94,186		30,292		38,473,627
Year ended 31 December 2011
(Audited)
Opening net book amount as at
1 January 2011		33,704,542		97,795		26,416		33,828,753
Additions		5,510,916		–		923		5,511,839
Disposals		(27,258)		–		–		(27,258)
Depreciation and amortisation		(1,451,395)		(2,407)		(4,348)		(1,458,150)
Exchange difference		(687,565)		–		–		(687,565)
Closing net book amount as at
31 December 2011		37,049,240		95,388		22,991		37,167,619

As at 30 June 2012, 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 RMB6,170,648,000 (31 December 2011: 4,930,645,000) (Note 10).

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NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (Continued) FOR THE SIX MONTHS ENDED 30 JUNE 2012

8. TRADE AND NOTES RECEIVABLES

TRADE AND NOTES RECEIVABLES
		30 June			31 December
		2012			2011
		RMB’000			RMB’000
		(unaudited)			(Audited)
Trade receivables
– Related parties_(Note 23(b))_		305,426			172,495
– Third parties		1,750,348			1,285,898
		2,055,774			1,458,393
Notes receivable		293,055			342,713
		2,348,829			1,801,106
The aging analysis of the trade and notes receivables based on the invoice dates is as follows:
		30 June			31 December
		2012			2011
		RMB’000			RMB’000
		(unaudited)			(Audited)
Within 3 months		2,028,596			1,509,191
4 to 6 months		248,759			123,301
7 to 9 months		30,448			74,682
10 to 12 months		74,628			101,864
Over one year		40,241			41,036
		2,422,672			1,850,074
Less: provision for impairment of receivables		73,843			48,968
		2,348,829			1,801,106

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

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NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (Continued) FOR THE SIX MONTHS ENDED 30 JUNE 2012

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	2011	till	30	June	2012	11,683,125	7,932,125	3,751,000	11,683,125

As at 30 June 2012, all issued shares are registered, fully paid and divided into 11,683,125,000 shares (31 December 2011: 11,683,125,000 shares) of RMB1.00 each, comprising 7,932,125,000 A Share and 3,751,000,000 H Share (31 December 2011: 7,932,125,000 A Share and 3,751,000,000 H Share).

10. BORROWINGS

BORROWINGS
		30 June		31 December
		2012		2011
		RMB’000		RMB’000
		(unaudited)		(Audited)
Non-current
Long-term bank borrowings		14,154,882		10,808,547
Loan from an associated company_(Note 23(b))_		2,000,000		–
		16,154,882		10,808,547
Current
Short-term bank borrowings		3,763,316		819,117
Long-term bank borrowings
– current portion		6,066,786		4,230,182
		9,830,102		5,049,299
		25,984,984		15,857,846
Representing:
Loan from an associated company_(Note 23(b))_
– unsecured		2,000,000		–
Bank borrowings
– unsecured		18,919,199		11,478,694
– secured		5,065,785		4,379,152
		25,984,984		15,857,846

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NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (Continued) FOR THE SIX MONTHS ENDED 30 JUNE 2012

10. BORROWINGS (Continued)

As at 30 June 2012, there was a legal mortgage over certain container vessels, containers and port and depot infrastructure of the Group with net book value of approximately RMB6,170,648,000 (31 December 2011: 4,930,645,000) (Note 7).

An analysis of the carrying amounts of the Group’s borrowings by currency is as follows:

			30 June		31 December
			2012		2011
			RMB’000		RMB’000
			(unaudited)		(Audited)
	RMB		4,083,840		2,132,840
	USD		21,901,144		13,725,006
			25,984,984		15,857,846
	The maturity periods of the borrowings are as follows:
			30 June		31 December
			2012		2011
			RMB’000		RMB’000
			(unaudited)		(Audited)
	Within one year		9,830,102		5,049,299
	In the second year		1,526,188		2,938,735
	In the third to fifth year		11,873,344		4,446,634
	After the fifth year		2,755,350		3,423,178
			25,984,984		15,857,846
	DOMESTIC CORPORATE BONDS
			30 June		31 December
			2012		2011
			RMB’000		RMB’000
			(unaudited)		(Audited)
	Non-current domestic corporate bonds		1,787,853		1,786,627

11. DOMESTIC CORPORATE BONDS

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.

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NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (Continued) FOR THE SIX MONTHS ENDED 30 JUNE 2012

12. FINANCE LEASE OBLIGATIONS

		30 June 2012			31 December 2011
			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	214,297	22,412	191,885	210,449	15,720	194,729
– In the second year	68,502	13,962	54,540	99,878	4,371	95,507
– In the third to fifth year	145,727	27,908	117,819	26,535	3,422	23,113
– After the fifth year	101,045	7,546	93,499	6,177	149	6,028
	529,571	71,828	457,743	343,039	23,662	319,377
Less: current portion	214,297	22,412	191,885	210,449	15,720	194,729
	315,274	49,416	265,858	132,590	7,942	124,648

13. PROVISIONS

PROVISIONS
		Onerous
		contracts		Legal claims		Total
		RMB’000		RMB’000		RMB’000
Six months ended 30 June 2012 (unaudited)
At 1 January 2012 and 30 June 2012		–		25,000		25,000
Year ended 31 December 2011 (Audited)
At 1 January 2011		6,359		25,000		31,359
Amounts utilised during the year		(6,359)		–		(6,359)
At 31 December 2011		–		25,000		25,000

The provision for legal claims of RMB25,000,000 is related to legal claims brought against the Company by customers of the Company. In the opinion of the Company’s directors, after taking into account of legal advice, the outcome of these legal claims will not give rise to any significant loss beyond the amounts provided as at 30 June 2012.

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NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (Continued) FOR THE SIX MONTHS ENDED 30 JUNE 2012

14. TRADE PAYABLES

TRADE PAYABLES
	30 June	31 December
	2012	2011
	RMB’000	RMB’000
	(unaudited)	(Audited)
Trade payables
– Related parties_(Note 23(b))_	220,460	1,083,587
– Third parties	3,375,205	2,736,841
	3,595,665	3,820,428

An aged analysis of the trade and bills payables as at the end of the reporting period, based on the invoice date, is as follows:

	30 June	31 December
	2012	2011
	RMB’000	RMB’000
	(unaudited)	(Audited)
Within 3 months	3,308,984	3,522,619
4 to 6 months	152,075	106,086
7 to 9 months	98,378	68,627
10 to 12 months	36,206	123,069
1 to 2 years	22	27
	3,595,665	3,820,428

15. OPERATING LOSS

The following items have been charged to the operating loss during the period:

	Six months ended	30 June
	2012	2011
	RMB’000	RMB’000
	(unaudited)	(Unaudited)
Cost of bunker consumed	5,296,115	4,234,620
Depreciation and amortisation_(Note 7)_	758,267	672,839
Operating lease rental	1,403,223	1,753,620
Provision for impairment of receivables	26,775	11,276

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NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (Continued) FOR THE SIX MONTHS ENDED 30 JUNE 2012

16. OTHER GAINS, NET

OTHER GAINS, NET
	Six months ended	30 June
	2012	2011
	RMB’000	RMB’000
	(unaudited)	(Unaudited)
Net foreign exchange (losses)/gains	(12,960)	57,354
Compensation	15,882	–
Net gains on disposal of property, plant and equipment	39,553	34,734
	42,475	92,088

17. OTHER INCOME

OTHER INCOME
	Six months ended	30 June
	2012	2011
	RMB’000	RMB’000
	(unaudited)	(Unaudited)
Interest income	53,048	61,795
Government grant related to income	192,788	20,335
Information services income	3,367	960
Dividend income from available-for-sale financial assets	6,898	10,702
	256,101	93,792

18. FINANCE COSTS

FINANCE COSTS
	Six months ended	30 June
	2012	2011
	RMB’000	RMB’000
	(unaudited)	(Unaudited)
Interest expenses
– Borrowings and domestic corporate bonds	322,157	160,321
– Finance lease obligations	16,575	15,679
Total interest expenses	338,732	176,000
Less: amount capitalised in vessels under construction
and construction in progress	111,747	89,462
	226,985	86,538

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NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (Continued) FOR THE SIX MONTHS ENDED 30 JUNE 2012

19. INCOME TAX

INCOME TAX
	Six months ended	30 June
	2012	2011
	RMB’000	RMB’000
	(unaudited)	(Unaudited)
Current income tax
– PRC corporate income tax (b)	38,795	25,943
– Hong Kong profits tax (a)	–	–
Deferred income tax	–	8
Total tax charge for the year	38,795	25,951

Taxes on income for the interim period 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 period are set out below:

(a) Hong Kong profits tax

Hong Kong profits tax is provided at the rate of 16.5% (2011: 16.5%) on the estimated assessable profits of the Group’s companies operating in Hong Kong for the six months ended 30 June 2012.

(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 five years from 2008 to 2012. The applicable income tax rate of the Company for the six months ended 30 June 2012 was 25%. Under the new CIT Law, except for certain subsidiaries whose CIT rates will increase gradually to 25% within five years from 2008 to 2012, the CIT rates for the subsidiaries have been changed to 25% since 1 January 2008.

Pursuant to the 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 to calculate the tax on the profits of the overseas subsidiaries for CIT purposes.

20. DIVIDENDS

The directors of the Company do not recommend the payment of an interim dividend for the six months ended 30 June 2012 (2011: Nil).

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NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (Continued) FOR THE SIX MONTHS ENDED 30 JUNE 2012

21. LOSS PER SHARE

Basic loss per share is calculated by dividing the loss attributable to owners of the parent by the weighted average number of ordinary shares in issue during the period.

	Six months ended	30 June
	2012	2011
	(unaudited)	(Unaudited)
Loss attributable to owners of the parent (RMB’000)	(1,280,985)	(630,340)
Weighted average number of ordinary shares in issue (thousands)	11,683,125	11,683,125
Basic loss per share (RMB per share)	RMB(0.11)	RMB(0.05)

Diluted loss per share is the same as the basic loss per share, as the Company does not have any potentially dilutive ordinary shares during the period ended 30 June 2012 (2011: Nil).

22. COMMITMENTS

(a) Capital commitments

As at 30 June 2012 and 31 December 2011, the Group had the following significant capital commitments which were not provided for in the statement of financial position:

	30 June	31 December
	2012	2011
	RMB’000	RMB’000
	(unaudited)	(Audited)
Contracted, but not provided for:
– Vessels under construction	4,828,430	6,334,295

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NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (Continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2012

22. COMMITMENTS (Continued)

• (b) Lease commitments – the Group is the lessee

As at 30 June 2012 and 31 December 2011, the Group had future aggregate minimum lease payments under non-cancellable operating leases as follows:

	30 June	31 December
	2012	2011
	RMB’000	RMB’000
	(unaudited)	(Audited)
Land and buildings:
– Within one year	43,792	45,226
– In the second to fifth year	67,249	62,071
– After the fifth year	11,333	4,941
	122,374	112,238
Vessels and containers under operating leases:
– Within one year	2,025,145	2,239,010
– In the second to fifth year	5,547,755	6,268,493
– After the fifth year	1,690,368	3,348,241
	9,263,268	11,855,744
	9,385,642	11,967,982

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

As at 30 June 2012 and 31 December 2011, the Group had the following future aggregate minimum lease receipts under non-cancellable operating leases where the Group is the lessor:

	30 June	31 December
	2012	2011
	RMB’000	RMB’000
	(unaudited)	(Audited)
Vessels chartered-out under operating leases:
– Within one year	255,329	278,925
– In the second to fifth year	610,868	651,947
– After the fifth year	347,379	434,017
	1,213,576	1,364,889

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NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (Continued) FOR THE SIX MONTHS ENDED 30 JUNE 2012

22. COMMITMENTS (Continued)

(d) Other commitments

As at 30 June 2012 and 31 December 2011, the Group had the following significant other commitments which were not provided for in the statement of financial position:

	30 June	31 December
	2012	2011
	RMB’000	RMB’000
	(unaudited)	(Audited)
Investments
– Authorised, but not contracted for	332,000	–
– Contracted, but not provided for	55,000	152,000
	387,000	152,000

23. SIGNIFICANT RELATED PARTY TRANSACTIONS

The Group is part of a larger group of companies under China Shipping (Group) Company, a state-owned enterprise, and has extensive transactions and relationships with members of the China Shipping Group incorporated in the PRC.

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 2012 and 2011.

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NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (Continued) FOR THE SIX MONTHS ENDED 30 JUNE 2012

23. SIGNIFICANT RELATED PARTY TRANSACTIONS (Continued)

• (a) Significant transactions with related parties

Significant transactions with related parties
		Six months ended			30 June
		2012			2011
		RMB’000			RMB’000
		(unaudited)			(Unaudited)
Transactions with fellow subsidiaries
Income:
Liner services		111,991			136,758
Port services		21,699			10,077
Information services income		–			960
Expenditure:
Lease of containers		187,299			133,097
Lease of chassis		17,578			11,927
Lease of properties		9,410			6,796
Cargo and liner agency services		286,279			216,966
Container management services		87,965			60,602
Bareboat charter services		–			2,500
Ship repair services		8,548			22,107
Supply of fresh water, vessel fuel, lubricants,
spare parts and other materials		1,191,445			996,687
Depot services		8,411			7,620
Information technology services charges		5,032			17,631
Provision of crew members		12,978			8,487
Loading and unloading services		278,365			220,239
Purchase of containers		62,996			80,863
Ground container transport costs		3,011			2,507
Vessel management services		1,122			–
Transactions with China Shipping Finance Co., Ltd.
(“CS Finance”, a fellow subsidiary and associated company)
Non-current borrowings		2,000,000			–
Interest expense from non-current borrowings		31,436			–
Interest income from deposits		20,852			33,304

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NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (Continued) FOR THE SIX MONTHS ENDED 30 JUNE 2012

23. SIGNIFICANT RELATED PARTY TRANSACTIONS (Continued)

(b) Balances with related parties

Balances with related parties
		30 June		31 December
		2012		2011
		RMB’000		RMB’000
		(unaudited)		(Audited)
Balances with fellow subsidiaries
Trade receivables_(Note 8)_		314,872		178,813
Less: provisions		9,446		6,318
		305,426		172,495
Trade payables_(Note 14)_		220,460		1,083,587
The balances are unsecured and interest-free.
Balances with CS Finance
Interest receivables		–		629
Deposits		3,320,502		1,296,360
Non-current borrowings_(Note 10)_		(2,000,000)		–
		1,320,502		1,296,989

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NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (Continued) FOR THE SIX MONTHS ENDED 30 JUNE 2012

23. SIGNIFICANT RELATED PARTY TRANSACTIONS (Continued)

• (c) Transactions with other state-owned enterprises

The Group had transactions with other state-owned 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 were conducted in the ordinary course of business.

(d) Key management compensation

Key management compensation
	Six months ended	30 June
	2012	2011
	RMB’000	RMB’000
	(unaudited)	(Unaudited)
Basic salaries and allowances	1,750	1,940
Pension and other welfare	789	886
	2,539	2,826

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