COSCO SHIPPING Development Co., Ltd. - Interim / Quarterly Report 2014

==> picture [440 x 74] intentionally omitted <==

2014 interim repOrt Pursuing sustainable OppOrtunities

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 Statement of Profit or Loss	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 2014

COrPOrAte InFOrmAtIOn

DIreCtOrS

EXECUTIVE DIRECTORS

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

nOmInAtIOn COmmIttee

ms. Zhang nan (Chairman) mr. Zhang guofa mr. yu Zenggang mr. teo Siong Seng mr. Shi Xin

NON-EXECUTIVE DIRECTORS

remUnerAtIOn COmmIttee

ms. Su min mr. ding nong mr. Liu Xihan mr. yu Zenggang mr. Chen Jihong

mr. Chen Lishen (Chairman) mr. yu Zenggang mr. Shi Xin

AUDIt COmmIttee

INDEPENDENT NON-EXECUTIVE DIRECTORS

ms. Zhang nan mr. teo Siong Seng mr. Chen Lishen mr. guan yimin mr. Shi Xin

SUPerVISOrS

mr. Xu Wenrong (Chairman) mr. ye hongjun mr. tu Shiming mr. Zhu donglin mr. Shen Kangchen mr. Shen Zhongying

mr. guan yimin (Chairman) ms. Su min ms. Zhang nan

CHIeF ACCOUntAnt

mr. Zhang mingwen

JOInt COmPAnY SeCretArIeS

mr. yu Zhen/ms. ng Sau mei

AUtHOrISeD rePreSentAtIVeS

mr. huang Xiaowen mr. yu Zhen

LeGAL ADDreSS In tHe PrC

InVeStment StrAteGY COmmIttee

mr. Zhang guofa (Chairman) mr. huang Xiaowen mr. Zhao hongzhou mr. yu Zenggang ms. Zhang nan mr. teo Siong Seng mr. Shi Xin

room a-538, international trade Center China (Shanghai) pilot Free trade Zone Shanghai the prC

PrInCIPAL PLACe OF BUSIneSS In tHe PrC

628 minsheng road pudong new area Shanghai the prC

China Shipping Container LineS Company Limited InterIm rePOrt 2014

PrInCIPAL PLACe OF BUSIneSS In HOnG KOnG

31/F, tower 2 Kowloon Commerce Centre 51 Kwai Cheong road Kwai Chung new territories hong Kong

COmPAnY WeBSIte

www.cscl.com.cn

H SHAre LIStInG PLACe

main Board of the Stock exchange of hong Kong Limited (“Stock exchange”)

LIStInG DAte

InternAtIOnAL AUDItOr

16 June 2004

ernst & young 22/F, CitiC tower 1 tim mei avenue Central, hong Kong

DOmeStIC AUDItOr

Baker tilly China

LeGAL ADVISer

Clifford Chance (hong Kong Laws) Zhong Lun Law Firm (prC Laws)

nUmBer OF H SHAreS In ISSUe

3,751,000,000 h Shares

BOArD LOt

1,000 shares

StOCK eXCHAnGe StOCK CODe

02866

A SHAre LIStInG PLACe

HOnG KOnG H SHAre reGIStrAr AnD trAnSFer

Shanghai Stock exchange

OFFICe

LIStInG DAte

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

12 december 2007

nUmBer OF A SHAreS In ISSUe

7,932,125,000 a Shares

PrInCIPAL BAnKerS

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

teLePHOne nUmBer

86 (21) 6596 6105

BOArD LOt

100 shares

SHAnGHAI StOCK eXCHAnGe StOCK CODe

601866

the Company is a registered non-hong Kong company as defined in the Companies ordinance (Chapter 622 of the Laws of hong Kong) and it is registered under its Chinese name and under the english name “China Shipping Container Lines Company Limited”.

FAX nUmBer

86 (21) 6596 6813

China Shipping Container LineS Company Limited InterIm rePOrt 2014

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

Unaudited Interim results For the Six months ended 30 June 2014

	1H 2014	1h 2013	Change
	*RMB*	RMB	(%)
	(Unaudited)	(Unaudited)
revenue	17,406,834,000	16,037,068,000	8.5%
operating income/(loss)	619,245,000	(1,041,935,000)	(159.4%)
profit/(loss) attributable to owners of the parent	431,637,000	(1,258,077,000)	(134.3%)
Basic earnings/(loss) per share	0.04	(0.11)	(134.3%)
gross profit margin	(0.7%)	(5.4%)	(87.0%)
gearing ratio	57.1%	47.0%	21.5%

BUSIneSS HIGHLIGHtS

Shipping volume of China Shipping Container Lines Company Limited (the “Company”) and its subsidiaries (the “group”) reached 3,953,287teU in the first half of 2014, representing an increase of 1.4% over that of the same period of 2013.
revenue of the group amounted to rmB17,406,834,000 in the first half of 2014, representing an increase of rmB1,369,766,000 or 8.5% as compared with the same period of 2013.
Shipping capacity of the group reached 669,452teU as at 30 June 2014, representing a net increase of 58,810teU as compared with that at the end of 2013.

China Shipping Container LineS Company Limited InterIm rePOrt 2014

mAnAGement DISCUSSIOn AnD AnALYSIS

OPerAtInG enVIrOnment

in the first half of 2014, the world’s major economies showed slow recovery while demand for global container transportation increased steadily. however, given the continuous increase in shipping capacity of containers, freight rates of main trade lanes showed no substantial recovery and the pace of recovery of the container transportation market was still fragile. in face of such volatile market, the group responded in a steady manner and seized the opportunities to increase trade lanes efficiency by accurately assessing market conditions. as a result, we were able to achieve improved operating results as compared with the same period of last year.

PerFOrmAnCe AnALYSIS

during the six months ended 30 June 2014 (the “period”), the group’s loaded container volume was 3,953,287teU, increased by 1.4% as compared with the same period of 2013, and revenue was rmB17,406,834,000, representing an increase of rmB1,369,766,000 or 8.5% as compared with the same period of 2013.

LOADeD COntAIner VOLUme BY trADe LAneS

*Principal Markets*	1H 2014	1h 2013	Change
	*(TEU)*	(TEU)	(%)
pacific trade lanes	649,140	640,131	1.4%
europe/mediterranean trade lanes	760,273	722,023	5.3%
asia pacific trade lanes	931,621	878,629	6.0%
China domestic trade lanes	1,562,384	1,623,499	(3.8%)
other trade lanes	49,869	33,000	51.1%
total	3,953,287	3,897,282	1.4%
BreAKDOWn OF reVenUe
*Principal Markets*	1H 2014	1h 2013	Change
	*(RMB’000)*	(RMB’000)	(%)
pacific trade lanes	4,473,300	4,893,404	(8.6%)
europe/mediterranean trade lanes	4,402,181	3,923,373	12.2%
asia pacific trade lanes	2,968,948	2,911,244	2.0%
China domestic trade lanes	2,885,645	2,881,592	0.1%
other trade lanes	446,823	297,239	50.3%
Logistics and other businesses	2,229,937	1,130,216	97.3%
total	17,406,834	16,037,068	8.5%

6 China Shipping Container LineS Company Limited InterIm rePOrt 2014

during the period, while the group consolidated domestic market share, the domestic shipping capacity was reasonably allocated, domestic freight volume thus reduced by 3.8% as compared to the corresponding period of last year. on the other hand, the group flexibly adjusted shipping capacity allocated to international lanes based on market demand, which led to an increase of freight volume of international lanes by 5.2% as compared to the corresponding period of last year. due to the factors above, during the period, the number of loaded containers of the group amounted to 3,953,287teU, representing an increase of 1.4% as compared to the corresponding period of 2013.

despite the Company’s effort to recover the freight rate in the first half of this year, the imbalance between supply and demand in the international shipping market was still profound and suppressed freight rate rising. the freight rate of international trade lanes bumped up and down and towards a downward trend. average freight rate per teU for international trade lanes amounted to rmB5,141, representing a decrease of 2.8% as compared with the same period of last year. average freight rate per teU for domestic trade lanes amounted to rmB1,847, representing an increase of 4.1% as compared with the same period of last year, mainly due to the Company constantly optimizing design for domestic trade lanes and increase of their freight rate.

COSt AnALYSIS

during the period, the group’s operational costs totalled rmB17,523,018,000, representing an increase of rmB626,906,000 or 3.7% as compared with the same period of 2013.

the increase in total operational costs was due to the following reasons:

during the period, container and cargo costs amounted to rmB6,545,885,000, representing an increase of 8.7% as compared with the same period of last year. of which, port charges amounted to rmB970,014,000, representing an increase of 2.2% as compared with the same period of last year. the group’s stevedore charges for loaded and empty containers amounted to rmB3,874,695,000 during the period, representing an increase of 8.5% as compared with the same period of last year. Container management and cargo arrangement expenses amounted to rmB1,701,176,000, representing an increase of 13.3% as compared to the same period of last year, mainly due to an increase in loaded cargo volume for international trade lanes, empty container allocation fee and container stevedore charges.
Vessel and voyage costs for the period amounted to rmB5,768,900,000 representing a decrease of 15.5% as compared with the same period of 2013, mainly due to decrease in fuel costs. during the period, fuel costs amounted to rmB3,499,168,000, representing a decrease of 20.4% as compared with the same period of last year. this was mainly due to the reduction in international oil price in the first half of 2014, which caused the unit price of fuel consumption of the Company to decrease by 6.2% as compared with the same period of last year, and along with the Company’s effort to continue to reinforce fuel saving measures, which led to the fuel consumption reduced by 15.2% as compared with the corresponding period of last year.
during the period, the costs of logistics and other businesses amounted to rmB2,054,615,000. the increase in costs was primarily due to the Company’s subordinated enterprises having updated its service method for material supply which led to a change in the cost recognition method during the period, i.e. from recognition of differences to total amount recognition.
during the period, sub-route and other costs amounted to rmB3,153,618,000, representing an increase of 4.3% as compared with the same period of last year. the increase was mainly due to the increase in door-to-door transportation services provided by the Company, which led to an increase in the sub-route shipping volume.

China Shipping Container LineS Company Limited InterIm rePOrt 2014

BUSIneSS reVIeW

in the first half of 2014, in face of the complicated and ever changing market situation and various pressures, the group adopted a relatively steady operating strategy that focused on cost control and increasing efficiency. the group continued to pursue excellent operation, improve internal management and enhance overall operating standard through practical and effective measures.

in the first half of 2014, the Company implemented differentiated operation based on the characteristics of different trade lanes. For international trade lanes, it controlled contracts entered into at low price while increasing the number of contracts with small and medium value customers so as to secure stable source of customers. For domestic trade lanes, the Company stepped up marketing efforts toward quality customers and reasonably allocated shipping capacity in accordance with market needs in order to increase trade lanes efficiency.

during the period, the Company set up a cost management team directly led by senior management of the Company, refined the control measures for all cost items and achieved satisfactory results. in the first half of the year, all cost control measures were successfully implemented, and all cost items including fuel, stevedore, transship, container control costs as well as spare parts costs were kept within budget. in particular, fuel costs control had achieved remarkable results, fuel consumption decreased by 15.2% as compared with the same period of last year despite an increase of 1.4% in loaded containers volume year-on-year, and fuel costs decreased 20.4% as compared with the same period of last year.

the Company continued to optimize its fleet structure. in the first half of 2014, the Company took in six new vessels (each with a capacity of 10,000teU) as well as stepped up its processing efforts in surrendering and abandoning leases of old and high fuel consumption vessels. meanwhile, the Company also entered into leases for high efficient vessels at lower prices based on its fleet structure and trade lane operation needs. as at 30 June 2014, the total shipping capacity of the group’s fleet reached 669,000teU, and average capacity per vessel was 4,523teU, making it the world’s no.7 largest container shipping liner in terms of shipping capacity.

moreover, in order to address the different market situation and operation needs of each trade lane, the Company constantly explored collaboration opportunities with other container liners. through joint bidding for vessels, swapping shipping space, buying and selling of shipping space and other means, our trade lane products, service coverage and service quality were enhanced.

FUtUre PrOSPeCt

in the second half of 2014, the global economic fundamentals display a continuous improving trend, which is expected to boost the steady recovery of container transportation demand. however, due to the imbalance in the overall supply and demand in the industry, whether freight rate will be able to maintain at a reasonable level is still unknown and faces tremendous challenges and resistance. the shipping transportation market is subject to the influence of the global economic recovery pace, fuel price fluctuation, regional political situation as well as changes in strategic alliance among the container liners and other factors. in view of the numerous uncertainties, it is too early to say that the overall situation is optimistic for the shipping industry.

8 China Shipping Container LineS Company Limited InterIm rePOrt 2014

Confronted with such severe market environment, the group will take all efforts to refine trade lane management and increase trade lane efficiency by pursuing excellent standard, with an aim to push the overall standards of operation onto a new stage. in the second half of 2014, the group will focus on the implementation of the following measures: actively explore cargo source, strengthen returning cargoes, local cargoes and high value added cargoes canvassing, improve cargo source structure; practically strengthen refined management of operation costs by exploring every possibility to reduce cost and increase cost competitiveness; explore collaboration with other container liners to improve trade lane distribution based on the principles of “equality, openness and mutual benefit”; actively and steadily adjust fleet structure, optimize fleet planning and flexibility in allocation of capacity; adhere to service-based culture, strengthen and improve service standard to provide convenient and quality services to customers; further improve fiscal and taxation management and enhance capital operation ability.

in addition, the group will strive to enhance innovative thinking, actively identify effective ways for transformation and development as well as press forward the development of new operating mode for e-commerce for the shipping industry in an “active, steady, safe and compliant” manner. meanwhile, the Company will also strengthen the systemization, processlization and standardization of internal management to increase the risk prevention ability of the Company.

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 inflow was rmB608,470,000. as at 30 June 2014, the group’s cash balance in banks was rmB8,216,036,000.

as at 30 June 2014, the group’s total bank borrowings were rmB20,090,738,000. the maturity profile is spread over a period between 2014 to 2026 with rmB10,970,773,000 repayable within one year, rmB2,854,447,000 repayable within the second year, rmB3,892,692,000 repayable within the third to the fifth year, and rmB2,372,826,000 repayable after the fifth year. the group’s long-term bank borrowings are mainly used to finance the construction of vessels.

as at 30 June 2014, the group’s long-term bank borrowings were secured by mortgages over certain container vessels and vessels under construction with a book value of rmB7,736,311,000 (as at 31 december 2013: rmB5,942,678,000).

as at 30 June 2014, the group’s obligations under finance leases amounted to rmB206,757,000, with maturity profile ranging from 2014 to 2019. the amount repayable within one year is rmB36,131,000, the amount repayable within the second year is rmB38,309,000, the amount repayable within the third to the fifth year is rmB113,430,000 and the amount repayable after the fifth year is rmB18,887,000. the group’s obligations under the finance leases are all used in the lease of new containers.

as at 30 June 2014, the group’s bonds payable in ten-year period amounted to rmB1,792,755,000, and all proceeds raised from the bonds were used in the construction of vessels. the issuance of such bonds is guaranteed by Bank of China, Shanghai branch. the group’s rmB borrowings at fixed interest rates amounted to rmB600,000,000. USd borrowings at fixed interest rates amounted to USd55,933,000 (equivalent to rmB344,147,000) and USd borrowings at floating interest rates amounted to USd3,111,850,000 (equivalent to rmB19,146,591,000). 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.

China Shipping Container LineS Company Limited InterIm rePOrt 2014

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 Board will review the operating cash flow of the group from time to time. it is the intention of the group to maintain an appropriate composition of equity and debt to constantly achieve an effective capital structure.

GeArInG rAtIO

as at 30 June 2014, 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 57.1%, which is higher than that of 49.3% as at 31 december 2013. the increase was primarily due to the increase of interest-bearing financial liabilities during 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 recorded an exchange loss of approximately rmB13,787,000 in the income statement, and the exchange difference which directly charged to equity amounted to approximately rmB55,067,000 during the period. the group has continued 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 such as forward exchange contracts when necessary and appropriate, based on the actual needs of the group’s operation in order to minimise the group’s exposure to foreign exchange risk.

CAPItAL COmmItment

as at 30 June 2014, the group’s capital commitments and investment commitments which had been contracted but not provided for and which had been authorised by the Board but not contracted for, in relation to vessels under construction amounted to rmB3,695,550,000 and nil, respectively. Furthermore, the operating lease commitments of the group relating to land and buildings, and vessels and containers, were rmB308,235,000 and rmB8,620,634,000, respectively.

COntInGent LIABILItY

as at 30 June 2014, the group had a provision of rmB25,000,000 for legal claims. the provision was related to legal claims brought against the group by customers of the group. after taking legal advice, the Board is of the view that the outcome of the legal claims should not give rise to any significant loss beyond the amounts provided for as at 30 June 2014.

China Shipping Container LineS Company Limited InterIm rePOrt 2014

SHAre CAPItAL

as at 30 June 2014, the share capital of the Company was as follows:

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

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

as at 30 June 2014, 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:

(I) IntereStS In tHe SHAreS OF tHe COmPAnY

	number of
	underlying	Capacity in which	Percentage in
	H shares	underlying H shares	the issued
name	interested in	were held	H share capital
Director
teo Siong Seng	200,000(L)	Beneficial owner	0.005%

(L) – long position

China Shipping Container LineS Company Limited InterIm rePOrt 2014

(II) IntereStS In tHe SHAreS OF tHe COmPAnY UnDer tHe rIGHtS SCHeme[(1)]

	number of
	Underlying		Percentage in total
nAme	H shares	Capacity	H share capital
Directors:
Zhang guofa	2,218,050(L)	Beneficial owner	0.059%
huang Xiaowen	3,334,050(L)	Beneficial owner	0.089%
Zhao hongzhou	2,604,000(L)	Beneficial owner	0.069%
Wang daxiong(2)	1,240,000(L)	Beneficial owner	0.033%
Supervisors:
tu Shiming	246,450(L)	Beneficial owner	0.007%
Wang Xiuping(3)	1,395,000(L)	Beneficial owner	0.037%

(L) – long position

Notes:

in accordance with the “resolution regarding adoption and approval of the h Share Share appreciation rights Scheme and implementation methods” passed at the Company’s second Special general meeting held on 12 october 2005, the Company implemented a h share share appreciation rights scheme (the”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.
Wang daxiong has resigned as director of the Company due to work arrangement, with effect from 26 June 2014.
Wang Xiuping has resigned as supervisor of the Company due to work arrangement, with effect from 27 January 2014.

Save as disclosed above, as at 30 June 2014, 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.

China Shipping Container LineS Company Limited InterIm rePOrt 2014

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

as at 30 June 2014, so far as was known to the directors, Supervisors or chief executive(s) of the Company, the interests or short positions of the shareholders who are entitled to exercise or control 5% or more of the voting power at any general meeting or other persons (other than a director, Supervisor or chief executive(s) of the Company) in the shares or underlying shares of the Company which were required to be notified to the Company pursuant to divisions 2 and 3 of part XV of the SFo, or the interests or short positions which were required to be recorded in the register kept by the Company pursuant to Section 336 of the SFo or the interests or short positions which have been notified to the Company and the Stock exchange were as follows:

		number of shares/		Percentage in the	Percentage in
		underlying		relevant class of	total share
name of shareholder	Class of shares	shares held	Capacity	share capital	capital
				(%)	(%)
China Shipping (group) Company	a Shares	5,361,837,500(L)	Beneficial owner	67.60	45.89
(“China Shipping”)(1)
earnest partners, LLC	h Shares	226,920,250(L)	investment manager	6.05	1.94
the northern trust Company	h Shares	249,945,900(p)	approved lending agent	6.66	2.14
(aLa)

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

Note:

as notified by ocean Fortune investment Limited (“ocean Fortune”), it held 184,761,000 h Shares of the Company as at 30 June 2014. as China Shipping held the entire issued share capital of China Shipping (hK) holdings Co., Ltd., which in turn held the entire issued share capital of ocean Fortune, China Shipping is deemed to be interested in 184,761,000 h Shares of the Company as at 30 June 2014, accounting for approximately 4.93% of the relevant class of share capital of the Company and approximately 1.58% of the total number of shares issued by the Company as at 30 June 2014.

Save as disclosed above, as at 30 June 2014, 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.

China Shipping Container LineS Company Limited InterIm rePOrt 2014

CHAnGeS In InFOrmAtIOn OF DIreCtOrS Or SUPerVISOrS

pursuant to rule 13.51B(1) 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 2013 annual report were as follows:

DIreCtOrS, SUPerVISOrS – DetAILS OF CHAnGeS

the Company selected a new session of the Board of directors and Supervisors at the 2013 annual general meeting held on 26 June 2014. the table below provides information of directors and Supervisors who have ceased to be in office due to completion of their terms of service and those who have been elected to be in office for the new session.

name	Position	Change	reason of change
Liu Xihan	director	elected to be	took office since 26 June 2014
		in office
yu Zenggang	director	elected to be	took office since 26 June 2014
		in office
Wang daxiong	director	ceased to be	due to work arrangement
		in office
Zhang rongbiao	director	ceased to be	due to work arrangement
		in office
Zhu donglin	Supervisor	elected to be	elected at the Fifth meeting of the Fourth
		in office	Session of the Staff representative meeting
Wang Xiuping	Supervisor	ceased to be	due to work arrangement
		in office

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 (six months ended 30 June 2013: nil).

emPLOYeeS, trAInInG AnD BeneFItS

as at 30 June 2014, the group had 8,851 employees, of which 4,228 were outsourced labour employees. total staff expenses during the period amounted to approximately rmB899,539,000.

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

China Shipping Container LineS Company Limited InterIm rePOrt 2014

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

the group 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 the independent non-executive directors), the supervisors of the Company (other than the independent supervisors), the senior management of the Company, the head person in charge of the operational and management departments of the Company, the general managers and deputy general managers of the Company’s subsidiaries and others might in the future be entitled to the compensation in the form of cash payment, which is calculated based on the appreciation in the price of the group’s h share from the date of grant to the date of exercising the rights.

the group has put in place various trainings 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.

AUDIt COmmIttee

the Board has set up an audit committee which consists of two independent non-executive directors, namely mr. guan yimin and ms. Zhang nan, and one non-executive director, namely ms. Su min. the audit committee has reviewed the Company’s interim results for the period and agreed with the accounting treatment adopted by the Company.

COrPOrAte GOVernAnCe CODe

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

mODeL CODe FOr SeCUrItIeS trAnSACtIOnS

the Company has adopted a code of conduct regarding directors’, supervisors’ and relevant employees’ securities transactions on terms no less exacting than the required standard set out in the model Code as set out in appendix 10 to the Listing rules. Following specific enquiry made with all the directors and supervisors of the Company, each of them has confirmed that he/she has complied with the required standard set out in the model Code regarding directors’ and supervisors’ securities transactions during the period. the Company is not aware of any non-compliance with these guidelines by the relevant employees.

By order of the Board

China Shipping Container Lines Company Limited Zhang Guofa Chairman

Shanghai, the prC 28 august 2014

China Shipping Container LineS Company Limited InterIm rePOrt 2014

==> picture [85 x 64] intentionally omitted <==

rePOrt On reVIeW OF InterIm FInAnCIAL InFOrmAtIOn tO tHe BOArD OF DIreCtOrS OF CHInA SHIPPInG COntAIner LIneS COmPAnY LImIteD

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

IntrODuCtIOn

We have reviewed the interim financial information set out on pages 16 to 44, which comprises the condensed consolidated statement of financial position of China Shipping Container Lines Company Limited (the “Company”) and its subsidiaries (together, the “group”) as at 30 June 2014, and the related condensed consolidated statements of profit or loss, 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 main Board Listing 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. our report is made 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 28 august 2014

China Shipping Container LineS Company Limited InterIm rePOrt 2014

COnDenSeD COnSOLIDAteD InterIm StAtement OF FInAnCIAL POSItIOn

AS AT 30 JUNE 2014

		30 June	31 december
		2014	2013
	Notes	*RMB’000*	RMB’000
		(unaudited)	(audited)
nOn-Current ASSetS
property, plant and equipment	7	34,327,593	32,290,294
investment properties		2,120	2,148
Leasehold land and land use rights	7	–	75,991
intangible assets	7	20,013	20,406
deferred tax assets		496,532	496,534
interests in associates	15	3,731,304	297,303
interests in joint ventures		54,799	51,067
total non-current assets		38,632,361	33,233,743
Current ASSetS
inventories		1,481,461	1,545,370
trade and notes receivables	8	2,513,637	2,476,402
prepayments and other receivables		769,931	375,245
restricted deposits		2,100	2,100
Cash and cash equivalents		8,216,036	9,014,462
		12,983,165	13,413,579
assets of a disposal group classified as held for sale	15	–	4,169,566
total current assets		12,983,165	17,583,145
total assets		51,615,526	50,816,888
eQuItY
equity attributable to owners of the parent
issued capital	9	11,683,125	11,683,125
Special reserves		8,715	38,278
other reserves		16,946,378	16,895,316
accumulated losses		(4,385,407)	(4,845,260)
		24,252,811	23,771,459
non-controlling interests		42,104	446,595
total equity		24,294,915	24,218,054

China Shipping Container LineS Company Limited InterIm rePOrt 2014

COnDenSeD COnSOLIDAteD InterIm StAtement OF FInAnCIAL POSItIOn (Continued)

AS AT 30 JUNE 2014

		30 June	31 december
		2014	2013
	Notes	*RMB’000*	RMB’000
		(unaudited)	(audited)
nOn-Current LIABILItIeS
interest-bearing bank and other borrowings	10	9,119,965	10,917,131
domestic corporate bonds	11	1,792,755	1,791,530
Finance lease obligations	12	170,626	186,597
deferred tax liabilities		27	27
total non-current liabilities		11,083,373	12,895,285
Current LIABILItIeS
trade payables	13	4,116,639	3,890,379
other payables and accruals		1,065,178	757,256
interest-bearing bank and other borrowings	10	10,970,773	8,020,195
Finance lease obligations – current portion	12	36,131	34,773
tax payable		23,517	14,060
provisions	14	25,000	25,000
		16,237,238	12,741,663
Liabilities directly associated with the assets classified
as held for sale		–	961,886
total current liabilities		16,237,238	13,703,549
total liabilities		27,320,611	26,598,834
total equity and liabilities		51,615,526	50,816,888
net current (liabilities)/assets		(3,254,073)	3,879,596
total assets less current liabilities		35,378,288	37,113,339

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

China Shipping Container LineS Company Limited InterIm rePOrt 2014

COnDenSeD COnSOLIDAteD InterIm StAtement OF PrOFIt Or LOSS

FOR THE SIX MONTHS ENDED 30 JUNE 2014

		Six months ended	30 June
		2014	2013
	Notes	*RMB’000*	RMB’000
		(unaudited)	(Unaudited)
COntInuInG OPerAtIOnS
revenue	6	17,406,834	16,037,068
Cost of services		(17,523,018)	(16,896,112)
Gross loss		(116,184)	(859,044)
Selling, administrative and general expenses		(473,380)	(423,999)
other income	17	322,791	198,163
other gains, net	18	886,018	42,945
Operating profit/(loss)	16	619,245	(1,041,935)
Finance costs	19	(215,770)	(225,666)
Share of profits and losses of:
associates		28,824	19,007
Joint ventures		3,606	2,036
Profit/(loss) before income tax from continuing operations		435,905	(1,246,558)
income tax expense	20	(29,839)	(22,048)
Profit/(loss) for the period from continuing operations		406,066	(1,268,606)
DISCOntInueD OPerAtIOn
profit for the period from a discontinued operation	22	38,756	14,136
PrOFIt/(LOSS) FOr tHe PerIOD		444,822	(1,254,470)
Attributable to:
owners of the parent		431,637	(1,258,077)
non-controlling interests		13,185	3,607
		444,822	(1,254,470)
eArnInGS/(LOSS) Per SHAre AttrIButABLe tO OrDInArY
eQuItY HOLDerS OF tHe PArent
(expressed in rmB per share)	23
– Basic and diluted
For profit/(loss) for the period		rmB0.04	rmB(0.11)
For profit/(loss) from continuing operations		rmB0.04	rmB(0.11)

details of the dividends payable and proposed for the period are disclosed in note 21 to the financial statements.

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

China Shipping Container LineS Company Limited InterIm rePOrt 2014

COnDenSeD COnSOLIDAteD InterIm StAtement OF COmPreHenSIVe InCOme

FOR THE SIX MONTHS ENDED 30 JUNE 2014

	Six months ended	30 June
	2014	2013
	*RMB’000*	RMB’000
	(unaudited)	(Unaudited)
Profit/(loss) for the period	444,822	(1,254,470)
Other comprehensive income/(loss) to be reclassified
to profit or loss in subsequent periods:
exchange differences on translation of foreign operations	55,067	(137,448)
others, net off income tax effects	2,054	413
net other comprehensive income/(loss) to be reclassified
to profit or loss in subsequent periods	57,121	(137,035)
total comprehensive income/(loss) for the period	501,943	(1,391,505)
Attributable to:
owners of the parent	488,626	(1,394,911)
non-controlling interests	13,317	3,406
	501,943	(1,391,505)

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

China Shipping Container LineS Company Limited InterIm rePOrt 2014

COnDenSeD COnSOLIDAteD InterIm StAtement OF CHAnGeS In eQuItY

FOR THE SIX MONTHS ENDED 30 JUNE 2014

At 1 January 2013	Owners of the parent non- Issued Special Other Accumulated controlling capital reserves reserve losses total interests total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 11,683,125 2,229 17,041,861 (2,198,638) 26,528,577 945,084 27,473,661
(Loss)/profit for the period other comprehensive income for the period: Share of other comprehensive income of joint ventures exchange differences on translation of foreign operations	– – – (1,258,077) (1,258,077) 3,607 (1,254,470) – – 413 – 413 – 413 – – (137,247) – (137,247) (201) (137,448)
total comprehensive (loss)/income for the period ended 30 June 2013	– – (136,834) (1,258,077) (1,394,911) 3,406 (1,391,505)
transactions with owners Capital injection from non-controlling interests dividends paid to non-controlling interests accrued special reserve during the period Used special reserve during the period others	– – – – – 22,500 22,500 – – – – – (10,332) (10,332) – 87,421 – (87,421) – – – – (79,848) – 79,848 – – – – – – (473) (473) – (473)
Balance at 30 June 2013 (unaudited)	11,683,125 9,802 16,905,027 (3,464,761) 25,133,193 960,658 26,093,851

At 1 January 2014	11,683,125 38,278 16,895,316 (4,845,260) 23,771,459 446,595 24,218,054
profit for the period other comprehensive income for the period: Share of other comprehensive income of joint ventures exchange differences on translation of foreign operations	– – – 431,637 431,637 13,185 444,822 – – 2,054 – 2,054 – 2,054 – – 54,935 – 54,935 132 55,067
total comprehensive income for the period ended 30 June 2014	– – 56,989 431,637 488,626 13,317 501,943
transactions with owners Capital injection from non-controlling interests disposal of subsidiaries dividends paid to non-controlling interests accrued special reserve during the period Used special reserve during the period others	– – – – – 10,081 10,081 – (883) (6,395) – (7,278) (422,270) (429,548) – – – – – (5,468) (5,468) – 87,627 – (87,627) – – – – (116,307) – 116,307 – – – – – 468 (464) 4 (151) (147)
Balance at 30 June 2014 (unaudited)	11,683,125 8,715 16,946,378 (4,385,407) 24,252,811 42,104 24,294,915

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

China Shipping Container LineS Company Limited InterIm rePOrt 2014

COnDenSeD COnSOLIDAteD InterIm StAtement OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2014

		Six months ended	30 June
		2014	2013
	Notes	*RMB’000*	RMB’000
		(unaudited)	(Unaudited)
CASH FLOWS FrOm OPerAtInG ACtIVItIeS
Cash generated from/(used in) operations		638,649	(383,362)
income tax paid		(30,179)	(35,014)
net cash generated from/(used in) operating activities		608,470	(418,376)
CASH FLOWS FrOm InVeStInG ACtIVItIeS
purchase of items of property, plant and equipment
and intangible assets		(2,650,522)	(1,477,961)
proceeds from disposal of items of property,
plant and equipment		77,014	30,640
disposal of subsidiaries	15	(880)	–
increase in investments in joint ventures and associates		–	(20,000)
increase in investments in available for sales financial assets		(499,445)	–
dividends received from associates		19,308	16,800
dividends received from joint ventures		1,286	22,334
dividends received from available-for-sale financial assets		12,600	12,471
interest received		63,363	28,243
net cash used in investing activities		(2,977,276)	(1,387,473)
CASH FLOWS FrOm FInAnCInG ACtIVItIeS
interest paid		(363,369)	(390,118)
Capital injection from non-controlling shareholders		7,897	22,500
new bank loans		4,403,639	1,545,321
repayment of bank loans		(3,076,687)	(941,376)
Capital element of finance lease payments		(17,154)	(89,716)
interest element of finance lease payments		(6,433)	(10,212)
dividends paid to non-controlling interests		(946)	(11,286)
net cash generated from financing activities		946,947	125,113
net decrease in cash and cash equivalents		(1,421,860)	(1,680,736)
Cash and cash equivalents at beginning of the period		9,602,804	8,830,970
effect of foreign exchange rate changes – net		35,092	(87,096)
Cash and cash equivalents at end of the period		8,216,036	7,063,138

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

China Shipping Container LineS Company Limited InterIm rePOrt 2014

nOteS tO tHe COnDenSeD COnSOLIDAteD InterIm FInAnCIAL InFOrmAtIOn

FOR THE SIX MONTHS ENDED 30 JUNE 2014

1. GenerAL InFOrmAtIOn

China Shipping Container Lines Company Limited (the “Company”) was established 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, international trade Center, China (Shanghai) pilot Free trade Zone, 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.

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 28 august 2014.

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 2014 has been prepared in accordance with hong Kong accounting Standards 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 2013, which were prepared in accordance with hong Kong Financial reporting Standards (“hKFrSs”).

China Shipping Container LineS Company Limited InterIm rePOrt 2014

nOteS tO tHe COnDenSeD COnSOLIDAteD InterIm FInAnCIAL InFOrmAtIOn (Continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2014

3. SIGnIFICAnt ACCOuntInG POLICIeS

the accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the group’s annual consolidated financial statements for the year ended 31 december 2013, except for the adoption of new standards and interpretations effective as of 1 January 2014.

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 revised standards adopted by the group

the following amendments to standards are mandatory for the first time for the financial year beginning 1 January 2014.

hKFrS 10, hKFrS 12 and	amendments to hKFrS 10, hKFrS 12 and hKaS 27 (2011)
hKaS 27 (2011)	–Investment Entities
hKaS 32 amendments	amendments to hKaS 32_Financial Instruments: Presentation_
	– Offsetting Financial Assets and Financial Liabilities
hKaS 39 amendments	amendments to hKaS 39_Financial Instruments: Recognition_
	and Measurement – Novation of Derivatives and Continuation
	of Hedge Accounting
hK(iFriC)-int 21	Levies

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 2014

nOteS tO tHe COnDenSeD COnSOLIDAteD InterIm FInAnCIAL InFOrmAtIOn (Continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2014

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 2014 and have not been early adopted:

hKFrS 9 Financial Instruments[4] hKFrS 9, hKFrS 7 and Hedge Accounting and amendments to HKFRS 9, HKFRS 7 hKaS 39 amendments and HKAS 39[4] hKFrS 11 amendments amendments to hKFrS 11 – Accounting for Acquisitions of Interests in Joint Operations[2] hKFrS 14 Regulatory Deferral Accounts[2] hKFrS 15 Revenue from Contracts with Customers[3] hKaS 16 and hKaS 38 amendments to hKaS 16 and hKaS 38 – Clarification amendments of Acceptable Methods of Depreciation and Amortisation[2] hKaS 19 amendments amendments to hKaS 19 Employee Benefits – Defined Benefit Plans: Employee Contributions[1] annual improvements amendments to a number of hKFrSs issued in January 2014[1] 2010-2012 Cycle annual improvements amendments to a number of hKFrSs issued in January 2014[1] 2011-2013 Cycle hKaS 16 and hKaS 40 amendments to hKaS 16 and hKaS 40 – Agriculture: Bearer Plants[2] amendments hKaS 27 amendments to hKaS 27 Equity Method in Separate Financial Statements[2]

1 effective for annual periods beginning on or after 1 July 2014

2 effective for annual periods beginning on or after 1 January 2016

3 effective for annual periods beginning on or after 1 January 2017

4 effective for annual periods beginning on or after 1 January 2018

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.

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 2013.

China Shipping Container LineS Company Limited InterIm rePOrt 2014

nOteS tO tHe COnDenSeD COnSOLIDAteD InterIm FInAnCIAL InFOrmAtIOn (Continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2014

5. FInAnCIAL InStrumentS

Set out below is an overview of financial instruments, other than cash and cash equivalents and restricted deposits, held by the group as at 30 June 2014:

		Loans and
		receivables
		*RMB’000*
		(unaudited)
Financial assets:
trade and notes receivables		2,513,637
other receivables		600,459
total current assets		3,114,096
total		3,114,096
		Other financial
		liabilities
		at amortised cost
		*RMB’000*
		(unaudited)
Financial liabilities:
interest-bearing bank and other borrowings		9,119,965
domestic corporate bonds		1,792,755
Finance lease obligations		170,626
total non-current liabilities		11,083,346
trade payables		4,116,639
other payables		840,449
interest-bearing bank and other borrowings		10,970,773
Finance lease obligations – current portion		36,131
total current liabilities		15,963,992
total		27,047,338

China Shipping Container LineS Company Limited InterIm rePOrt 2014

nOteS tO tHe COnDenSeD COnSOLIDAteD InterIm FInAnCIAL InFOrmAtIOn (Continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2014

5. FInAnCIAL InStrumentS (Continued)

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 2013.

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

Set out below is a comparison of the carrying amounts and fair values of financial instruments as at 30 June 2014:

	Carrying amount	Fair value
	*RMB’000*	*RMB’000*
	(unaudited)	(unaudited)
Financial liabilities:
interest-bearing bank and other borrowings	20,090,738	20,063,370
domestic corporate bonds	1,792,755	1,734,207
Finance lease obligations	206,757	206,757
total	22,090,250	22,004,334

Fair value hierarchy

all financial instruments for which fair value is recognised or disclosed are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1 – Quoted market prices in an active market (that are unadjusted) for identical assets or liabilities
Level 2 – Valuation techniques (for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable)
Level 3 – Valuation techniques (for which the lowest level input that is significant to the fair value measurement is unobservable)

as at 30 June 2014, the group did not hold any financial instruments measured at fair value.

China Shipping Container LineS Company Limited InterIm rePOrt 2014

nOteS tO tHe COnDenSeD COnSOLIDAteD InterIm FInAnCIAL InFOrmAtIOn (Continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2014

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 assesses the performance of the operating segments based on a measure of operating profit, which is reconciled to profit before tax. this measurement is consistent with that in the annual financial statements.

the container terminal and related business was classified as held for sale and its carrying amount will be recovered principally through a sale transaction approved by the Board rather than through continuing operation. For the period ended 30 June 2014 and 2013, all the profits or losses from continuing operations were generated through container shipping and related business.

revenue from the major trade districts and shipping lanes is set out below:

	Six months ended	30 June
	2014	2013
	*RMB’000*	RMB’000
	(unaudited)	(Unaudited)
pacific	4,473,300	4,893,404
europe/mediterranean	4,402,181	3,923,373
asia pacific	2,968,948	2,911,244
China domestic	2,885,645	2,881,592
other Lanes	446,823	297,239
Logistic Services and others	2,229,937	1,130,216
turnover	17,406,834	16,037,068

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 by geographical location as they mainly include container vessels and containers which are utilised across geographical markets for shipment of cargoes throughout the world.

no revenue derived from a single customer or a group of customers under common control amounted to 10% or more of the group’s revenue for the six months ended 30 June 2014 and 2013.

China Shipping Container LineS Company Limited InterIm rePOrt 2014

nOteS tO tHe COnDenSeD COnSOLIDAteD InterIm FInAnCIAL InFOrmAtIOn (Continued) FOR THE SIX MONTHS ENDED 30 JUNE 2014

7. PrOPertY, PLAnt AnD eQuIPment, LeASeHOLD LAnD AnD LAnD uSe rIGHtS AnD IntAnGIBLe ASSetS

ASSetS
	Property,	Leasehold
	plant and	land and land	Intangible
	equipment	use rights	assets	total
	RMB’000	RMB’000	RMB’000	RMB’000
Six months ended 30 June 2014
(unaudited)
opening net book amount
as at 1 January 2014	32,290,294	75,991	20,406	32,386,691
additions	3,018,254	–	2,775	3,021,029
disposals	(120,047)	–	–	(120,047)
disposal of subsidiaries	(254,365)	(75,991)	(191)	(330,547)
depreciation and amortisation_(note 16)_	(751,027)	–	(3,007)	(754,034)
exchange difference	144,484	–	30	144,514
Closing net book amount
as at 30 June 2014	34,327,593	–	20,013	34,347,606
Year ended 31 December 2013 (Audited)
opening net book amount
as at 1 January 2013	35,676,940	92,981	28,730	35,798,651
additions	2,567,121	–	2,506	2,569,627
disposals	(179,647)	–	–	(179,647)
disposal of subsidiaries	(2,321,996)	–	–	(2,321,996)
assets included in a discontinued operation	(1,486,113)	(14,583)	(3,555)	(1,504,251)
depreciation and amortisation	(1,540,612)	(2,407)	(7,152)	(1,550,171)
exchange difference	(425,399)	–	(123)	(425,522)
Closing net book amount
as at 31 december 2013	32,290,294	75,991	20,406	32,386,691

as at 30 June 2014, the net book value of container vessels and vessels under construction of the group pledged as securities for bank borrowings amounted to approximately rmB7,736,311,000 (31 december 2013: rmB5,942,678,000) (note 10).

China Shipping Container LineS Company Limited InterIm rePOrt 2014

nOteS tO tHe COnDenSeD COnSOLIDAteD InterIm FInAnCIAL InFOrmAtIOn (Continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2014

8. trADe AnD nOteS reCeIVABLeS

trADe AnD nOteS reCeIVABLeS
	30 June	31 december
	2014	2013
	*RMB’000*	RMB’000
	(unaudited)	(audited)
trade receivables
– Fellow subsidiaries_(note 25(b))_	389,703	345,561
– third parties	1,961,262	1,805,866
	2,350,965	2,151,427
notes receivable	162,672	324,975
	2,513,637	2,476,402

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

	30 June	31 december
	2014	2013
	*RMB’000*	RMB’000
	(unaudited)	(audited)
Within 3 months	2,554,724	2,064,190
4 to 6 months	25,136	333,358
7 to 9 months	3,442	74,461
10 to 12 months	2,148	70,223
over one year	967	2,525
	2,586,417	2,544,757
Less: provision for impairment of receivables	(72,780)	(68,355)
	2,513,637	2,476,402

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

China Shipping Container LineS Company Limited InterIm rePOrt 2014

nOteS tO tHe COnDenSeD COnSOLIDAteD InterIm FInAnCIAL InFOrmAtIOn (Continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2014

9. ISSueD CAPItAL

								number of	A Shares of	H Shares of
								shares	rmB1 each	rmB1 each	total
								(thousand)	RMB’000	RMB’000	RMB’000
at	1	January	2014	till	30	June	2014	11,683,125	7,932,125	3,751,000	11,683,125

as at 30 June 2014, all issued shares were registered, fully paid and divided into 11,683,125,000 shares (31 december 2013: 11,683,125,000 shares) of rmB1.00 each, comprising 7,932,125,000 a Shares and 3,751,000,000 h Shares (31 december 2013: 7,932,125,000 a Shares and 3,751,000,000 h Shares).

10. IntereSt-BeArInG BAnK AnD OtHer BOrrOWInGS

IntereSt-BeArInG BAnK AnD OtHer BOrrOWInGS
	30 June	31 december
	2014	2013
	*RMB’000*	RMB’000
	(unaudited)	(audited)
non-current
Long-term bank borrowings	8,519,965	8,317,131
Borrowing from parent and ultimate holding company_(note 25(b))_	600,000	2,600,000
	9,119,965	10,917,131
Current
Short-term bank borrowings	1,722,784	1,707,132
Commercial paper notes	2,461,120	2,438,760
Long-term bank borrowings – current portion	6,786,869	3,874,303
	10,970,773	8,020,195
	20,090,738	18,937,326
representing:
Borrowing from parent and ultimate holding company_(note 25(b))_
– unsecured	600,000	2,600,000
Bank borrowings
– unsecured	13,723,944	12,379,878
– secured	5,766,794	3,957,448
	20,090,738	18,937,326

China Shipping Container LineS Company Limited InterIm rePOrt 2014

nOteS tO tHe COnDenSeD COnSOLIDAteD InterIm FInAnCIAL InFOrmAtIOn (Continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2014

10. IntereSt-BeArInG BAnK AnD OtHer BOrrOWInGS (Continued)

as at 30 June 2014, there was a legal mortgage over certain container vessels and vessels under construction of the group with a net book value of approximately rmB7,736,311,000 (31 december 2013: rmB5,942,678,000) (note 7).

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

	30 June	31 december
	2014	2013
	*RMB’000*	RMB’000
	(unaudited)	(audited)
rmB	600,000	2,600,000
USd	19,490,738	16,337,326
	20,090,738	18,937,326
the maturity periods of the borrowings are as follows:
	30 June	31 december
	2014	2013
	*RMB’000*	RMB’000
	(unaudited)	(audited)
Within one year	10,970,773	8,020,195
in the second year	2,854,447	7,067,374
in the third to fifth years	3,892,692	2,454,772
after the fifth year	2,372,826	1,394,985
	20,090,738	18,937,326

the carrying amounts of the current bank borrowings approximated their fair values as at the end of the reporting period as the impact of discounting was not significant.

the carrying amounts and the fair values of the non-current borrowings, which are based on cash flows discounted using a rate of 6.55% (31 december 2013: 6.55%), are as follows:

	30 June	31 december
	2014	2013
	*RMB’000*	RMB’000
	(unaudited)	(audited)
Carrying amounts	9,119,965	10,917,131
Fair values	9,092,597	10,872,225

China Shipping Container LineS Company Limited InterIm rePOrt 2014

nOteS tO tHe COnDenSeD COnSOLIDAteD InterIm FInAnCIAL InFOrmAtIOn (Continued) FOR THE SIX MONTHS ENDED 30 JUNE 2014

11. DOmeStIC COrPOrAte BOnDS

DOmeStIC COrPOrAte BOnDS
	30 June	31 december
	2014	2013
	*RMB’000*	RMB’000
	(unaudited)	(audited)
non-current domestic corporate bonds	1,792,755	1,791,530

in June 2007, the Company issued domestic corporate bonds in the prC with a 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.

the bonds were initially recognised at their fair value of rmB1,800,000,000, after deducting the transaction costs of approximately rmB24,512,000 that were directly attributable to the bonds. as at 30 June 2014, the estimated fair value of the bonds was approximately rmB1,734,207,000 (31 december 2013: rmB1,706,526,000). the fair value is calculated based on the discounted cash flows using applicable discount rates from the prevailing market interest rates offered to the group for debts with substantially the same characteristics and maturity dates. the discount rate used was approximately 6.55% (31 december 2013: 6.55%) per annum.

12. FInAnCe LeASe OBLIGAtIOnS

		30 June 2014		31	december 2013
			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	47,427	11,296	36,131	46,996	12,223	34,773
– in the second year	47,445	9,136	38,309	46,991	10,120	36,871
– in the third to fifth years	126,677	13,247	113,430	129,835	16,898	112,937
– after the fifth year	19,308	421	18,887	38,284	1,495	36,789
	240,857	34,100	206,757	262,106	40,736	221,370
Less: wi thin one year
(current portion)	(47,427)	(11,296)	(36,131)	(46,996)	(12,223)	(34,773)
	193,430	22,804	170,626	215,110	28,513	186,597

China Shipping Container LineS Company Limited InterIm rePOrt 2014

nOteS tO tHe COnDenSeD COnSOLIDAteD InterIm FInAnCIAL InFOrmAtIOn (Continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2014

13. trADe PAYABLeS

	30 June	31 december
	2014	2013
	*RMB’000*	RMB’000
	(unaudited)	(audited)
trade payables
– Fellow subsidiaries_(note 25(b))_	345,628	795,372
– third parties	3,771,011	3,095,007
	4,116,639	3,890,379

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
	2014	2013
	*RMB’000*	RMB’000
	(unaudited)	(audited)
Within 3 months	4,076,979	3,642,819
4 to 6 months	12,822	121,760
7 to 9 months	18,454	89,017
10 to 12 months	2,274	15,353
1 to 2 years	6,110	21,430
	4,116,639	3,890,379
PrOVISIOnS
		Legal claims
		RMB’000
Six months ended 30 June 2014 (unaudited)
At 1 January 2014 and 30 June 2014		25,000
Year ended 31 December 2013 (Audited)
At 1 January 2013 and 31 December 2013		25,000

14. PrOVISIOnS

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 2014.

China Shipping Container LineS Company Limited InterIm rePOrt 2014

nOteS tO tHe COnDenSeD COnSOLIDAteD InterIm FInAnCIAL InFOrmAtIOn (Continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2014

15. DISPOSAL OF SuBSIDIArIeS

DISPOSAL OF SuBSIDIArIeS
		Six months
		ended 30 June
		2014
		*RMB’000*
		(unaudited)
net assets disposed of:
property, plant and equipment		254,365
Leasehold land and land use rights		75,991
intangible assets		191
inventories		829
trade and notes receivables		11,855
prepayments and other receivables		2,035
Cash and bank balances		52,150
assets of a disposal group classified as held for sale		4,514,164
trade payables		(13,586)
other payables and accruals		(938)
Liabilities directly associated with the assets classified as held for sale		(1,314,407)
Special reserves		(883)
other reserves		(6,395)
non-controlling interests		(422,270)
		3,153,101
gain on disposal of subsidiaries		948,093
		4,101,194
Satisfied by:
Cash		678,134
interests in associates		3,423,060
		4,101,194

on 22 november 2013, the Company listed 100% equity interest in its subsidiary, Shanghai China Shipping international Container Storage and transportation Co., Ltd. (“CS yangshan”) on the Shanghai United assets and equity exchange (“SUaee”) for open bidding by public bidders in compliance with the relevant laws and regulations on transfer of state-owned equity interests in the prC. on 3 January 2014, China Shipping Logistics Co., Ltd. bid the equity interest at a consideration of rmB305,411,000 and entered into the equity transfer agreement with the Company. the equity transaction certificate by SUaee with respect to the disposal has been issued and the agreement has become effective on 6 January 2014.

China Shipping Container LineS Company Limited InterIm rePOrt 2014

nOteS tO tHe COnDenSeD COnSOLIDAteD InterIm FInAnCIAL InFOrmAtIOn (Continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2014

15. DISPOSAL OF SuBSIDIArIeS (Continued)

on 22 november 2013, the Company listed 100% equity interest in its subsidiary, Shanghai Zhengjin industrials Co., Ltd. (“Zhengjin”) on SUaee for open bidding by public bidders in compliance with the relevant laws and regulations on transfer of state-owned equity interests in the prC. on 3 January 2014, China Shipping investment Co., Ltd. bid the equity interest at a consideration of rmB372,723,000 and entered into the equity transfer agreement with the Company. the equity transaction certificate by SUaee with respect to the disposal has been issued and the agreement has become effective on 6 January 2014.

on 20 June 2014, the Company disposed of 100% equity interest in its subsidiary, China Shipping terminal development Co., Ltd (“CStd”) to China Shipping terminal development (h.K.) Co., Ltd. (“CStd hK”) at a consideration equivalent to the valuation result of the appraised net assets value of CStd as of 30 June 2013 after approval by State-owned assets Supervision and administration Commission of the State Council of the prC which was settled through the issuance of 2,782,975,935 new shares which is equal to 49% equity interest in CStd hK to the Company. the consideration of the subscription which equals to the valuation result was rmB3,423,060,000.

an analysis of the net inflow of cash and cash equivalents in respect of the disposal of subsidiaries is as follows:

	Six months
	ended 30 June
	2014
	*RMB’000*
	(unaudited)
Cash consideration	491,768
Cash and bank balances disposed of	(492,648)
net inflow of cash and cash equivalents in respect of the disposal of subsidiaries	(880)

16. OPerAtInG PrOFIt/(LOSS)

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

	Six months ended	30 June
	2014	2013
	*RMB’000*	RMB’000
	(unaudited)	(Unaudited)
Bunker consumed or sold	4,807,980	4,396,813
depreciation and amortisation_(note 7)_	754,034	703,076
operating lease rentals	1,670,057	1,605,984
provision for impairment of receivables	13,944	9,236

China Shipping Container LineS Company Limited InterIm rePOrt 2014

nOteS tO tHe COnDenSeD COnSOLIDAteD InterIm FInAnCIAL InFOrmAtIOn (Continued) FOR THE SIX MONTHS ENDED 30 JUNE 2014

17. OtHer InCOme

OtHer InCOme
	Six months ended	30 June
	2014	2013
	*RMB’000*	RMB’000
	(unaudited)	(Unaudited)
interest income	89,786	59,869
government grant related to income	70,414	14,736
refund of value-added tax (“Vat”)	156,775	116,969
information technology service fees	5,816	6,589
	322,791	198,163

18. OtHer GAInS, net

OtHer GAInS, net
	Six months ended	30 June
	2014	2013
	*RMB’000*	RMB’000
	(unaudited)	(Unaudited)
(Losses)/gains on disposal of items of property, plant and equipment	(48,288)	11,396
gains on disposal of subsidiaries	948,093	–
Compensation	–	5,241
net foreign exchange (losses)/gains	(13,787)	26,308
	886,018	42,945

19. FInAnCe COStS

FInAnCe COStS
	Six months ended	30 June
	2014	2013
	*RMB’000*	RMB’000
	(unaudited)	(Unaudited)
interest expenses
– Borrowings and domestic corporate bonds	236,029	251,360
– Finance lease obligations	6,433	9,046
total interest expenses	242,462	260,406
Less: amount capitalised in vessels under construction
and construction in progress	(26,692)	(34,740)
	215,770	225,666

China Shipping Container LineS Company Limited InterIm rePOrt 2014

nOteS tO tHe COnDenSeD COnSOLIDAteD InterIm FInAnCIAL InFOrmAtIOn (Continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2014

20. InCOme tAX

InCOme tAX
	Six months ended	30 June
	2014	2013
	*RMB’000*	RMB’000
	(unaudited)	(Unaudited)
Current income tax
– prC corporate income tax_(a)_	29,373	22,048
– hong Kong profits tax_(b)_	–	–
– others	466	–
deferred income tax	–	–
	29,839	22,048

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) PRC corporate income tax (“CIT”)

according to the Corporate income tax Law of the people’s republic of China, which was effective from 1 January 2008, the Cit rate applicable of the Company and its subsidiaries established in mainland China was 25% for the six months ended 30 June 2014 and 2013.

pursuant to relevant Cit regulations, the dividends received by the Company from its overseas subsidiaries are subject to Cit at a rate of 25%.

(b) Hong Kong profits tax

hong Kong profits tax was provided at the rate of 16.5% (six months ended 30 June 2013: 16.5%) on the estimated assessable profits of the group’s companies operating in hong Kong for the six months ended 30 June 2014.

21. DIVIDenDS

the directors did not recommend an interim dividend for the six months ended 30 June 2014 (six months ended 30 June 2013: nil).

China Shipping Container LineS Company Limited InterIm rePOrt 2014

nOteS tO tHe COnDenSeD COnSOLIDAteD InterIm FInAnCIAL InFOrmAtIOn (Continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2014

22. DISCOntInueD OPerAtIOn

on 11 october 2013, the Company announced the decision of its board of directors to dispose of China Shipping terminal Company Limited. China Shipping terminal Company Limited engages in operating container terminals. the disposal was completed on 10 June 2014.

the results and cash flows of China Shipping terminal Company Limited for the period are presented below:

	Six months ended	30 June
	2014	2013
	*RMB’000*	RMB’000
	(unaudited)	(Unaudited)
revenue	132,876	195,355
Costs of services	(79,620)	(111,415)
Selling, administrative and general expenses	(25,745)	(29,892)
other income	22,945	15,064
other (losses)/gains, net	(7,023)	1,594
Finance costs	(21,786)	(48,187)
Share of profits and losses of:
associates	1,289	586
Joint ventures	25,617	10,864
profit of the discontinued operation	48,553	33,969
Loss recognised on the remeasurement to fair value	–	–
profit before tax from the discontinued operation	48,553	33,969
income tax:
related to pre-tax profit	(9,797)	(19,833)
profit for the period from the discontinued operation	38,756	14,136
operating activities	19,112	71,439
investing activities	(483,783)	12,217
Financing activities	313,926	13,260
exchange loss on cash and cash equivalents	2,901	–
net cash (outflow)/inflow	(147,844)	96,916

China Shipping Container LineS Company Limited InterIm rePOrt 2014

nOteS tO tHe COnDenSeD COnSOLIDAteD InterIm FInAnCIAL InFOrmAtIOn (Continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2014

23. eArnInGS/(LOSS) Per SHAre

Basic earnings/(loss) per share is calculated by dividing the profit/(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
	2014	2013
	(unaudited)	(Unaudited)
earnings
profit/(loss) attributable to ordinary equity holders of the parent,
used in the basic earnings per share calculation (rmB’000)
– From continuing operations	396,977	(1,270,869)
– From a discontinued operation	36,046	12,792
Shares
Weighted average number of ordinary shares in issue (thousands)	11,683,125	11,683,125

diluted earnings per share for the period ended 30 June 2014 was the same as the basic earnings per share, as the Company did not have any potentially dilutive ordinary shares during the period.

24. COmmItmentS

(a) Capital commitments

as at 30 June 2014 and 31 december 2013, the group had the following significant capital commitments which were not provided for in the statement of financial position:

	30 June	31 december
	2014	2013
	*RMB’000*	RMB’000
	(unaudited)	(audited)
Contracted, but not provided for:
– Vessels under construction	3,695,550	6,492,589

China Shipping Container LineS Company Limited InterIm rePOrt 2014

nOteS tO tHe COnDenSeD COnSOLIDAteD InterIm FInAnCIAL InFOrmAtIOn (Continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2014

24. COmmItmentS (Continued)

(b) Lease commitments – the Group is the lessee

as at 30 June 2014 and 31 december 2013, the group had future aggregate minimum lease payments under non-cancellable operating leases as follows:

	30 June	31 december
	2014	2013
	*RMB’000*	RMB’000
	(unaudited)	(audited)
Land and buildings:
– Within one year	80,590	38,988
– in the second to fifth years	194,188	59,239
– after the fifth year	33,457	12,651
	308,235	110,878
Vessels chartered in and containers under operating leases:
– Within one year	2,615,397	2,548,751
– in the second to fifth years	5,406,749	6,032,487
– after the fifth year	598,488	868,228
	8,620,634	9,449,466
	8,928,869	9,560,344

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

as at 30 June 2014 and 31 december 2013, 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
	2014	2013
	*RMB’000*	RMB’000
	(unaudited)	(audited)
Vessels chartered out under operating leases:
– Within one year	514,586	53,656
– in the second to fifth years	710,439	16,875
– after the fifth year	–	3,125
	1,225,025	73,656

China Shipping Container LineS Company Limited InterIm rePOrt 2014

nOteS tO tHe COnDenSeD COnSOLIDAteD InterIm FInAnCIAL InFOrmAtIOn (Continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2014

24. COmmItmentS (Continued)

(d) Other commitments

as at 30 June 2014 and 31 december 2013, the group had the following significant other commitments which were not provided for in the statement of financial position:

	30 June	31 december
	2014	2013
	*RMB’000*	RMB’000
	(unaudited)	(audited)
investments
– authorised, but not contracted for	–	39,200
– Contracted, but not provided for	–	312,000
	–	351,200

25. SIGnIFICAnt reLAteD PArtY trAnSACtIOnS

the group is part of a larger group of companies under China Shipping (group) Company (“China Shipping group”), 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 2014 and 2013.

(a) Significant transactions with related parties

Significant transactions with related parties
	Six months ended	30 June
	2014	2013
	*RMB’000*	RMB’000
	(unaudited)	(Unaudited)
Transaction with parent and ultimate holding company
interest expense from non-current borrowings	27,929	53,768
Transactions with fellow subsidiaries
income:
Liner services	50,025	102,288
Fuel supply	1,210,192	15,820
port services	13,069	10,302

China Shipping Container LineS Company Limited InterIm rePOrt 2014

nOteS tO tHe COnDenSeD COnSOLIDAteD InterIm FInAnCIAL InFOrmAtIOn (Continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2014

25. SIGnIFICAnt reLAteD PArtY trAnSACtIOnS (Continued)

(a) Significant transactions with related parties (Continued)

Significant transactions with related parties (Continued)
	Six months ended	30 June
	2014	2013
	*RMB’000*	RMB’000
	(unaudited)	(Unaudited)
expenditure:
Lease of containers	78,554	95,359
Lease of chassis	9,610	11,509
Lease of properties	31,121	9,148
Cargo and liner agency services	260,790	293,293
Container management services	87,450	74,178
Ship repair services	31,940	26,958
Supply of fresh water, vessel fuel, lubricants,
spare parts and other materials	676,663	878,264
depot services	6,150	4,279
information technology service charges	3,598	11,671
provision of crew members	167,910	16,104
Loading and unloading services	339,702	281,334
purchase of containers	39,034	479,025
ground container transport costs	1,502	2,593
Transactions with China Shipping Finance Co., Ltd.
(“CS Finance”, a fellow subsidiary and associated company)
non-current borrowings	–	114,000
interest expense from non-current borrowings	6,899	–
interest income from deposits	23,107	20,323

disposal of subsidiary

on 6 January 2014, the Company disposed of 100% equity interest in its subsidiaries, CS yangshan and Zhengjin to fellow subsidiaries with a consideration of rmB305,411,000 and rmB372,723,000 respectively (note 15).

on 22 June 2014, the Company disposed of 100% equity interest in its subsidiary, CStd to a fellow subsidiary and associated company, CStd hK, with a consideration of 49% equity interest in CStd hK (note 15).

China Shipping Container LineS Company Limited InterIm rePOrt 2014

nOteS tO tHe COnDenSeD COnSOLIDAteD InterIm FInAnCIAL InFOrmAtIOn (Continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2014

25. SIGnIFICAnt reLAteD PArtY trAnSACtIOnS (Continued)

(b) Balances with related parties

Balances with related parties
	30 June	31 december
	2014	2013
	*RMB’000*	RMB’000
	(unaudited)	(audited)
Balances with parent and ultimate holding company
Borrowing_(note 10)_	(600,000)	(2,600,000)
interest payables	(480)	(79,247)
Balances with fellow subsidiaries
trade receivables_(note 8)_	401,756	349,396
Less: provisions	(12,053)	(10,482)
	389,703	338,914
trade payables_(note 13)_	(345,628)	(795,372)
the balances are unsecured and interest-free.
Balances with CS Finance
interest receivables	10,029	10,468
interest payables	–	(402)
deposits	3,822,778	3,052,729
non-current borrowings	–	(363,040)

China Shipping Container LineS Company Limited InterIm rePOrt 2014

nOteS tO tHe COnDenSeD COnSOLIDAteD InterIm FInAnCIAL InFOrmAtIOn (Continued)

FOR THE SIX MONTHS ENDED 30 JUNE 2014

25. 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 part and others
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
	2014	2013
	*RMB’000*	RMB’000
	(unaudited)	(Unaudited)
Basic salaries and allowances	2,330	1,560
pension and other welfare	927	852
	3,257	2,412

AI assistant

COSCO SHIPPING Development Co., Ltd. — Interim / Quarterly Report 2014

50782_rns_2014-09-26_499e3181-0c0a-49db-9f86-51a6e9c9bd92.pdf

COrPOrAte InFOrmAtIOn

DIreCtOrS

EXECUTIVE DIRECTORS

nOmInAtIOn COmmIttee

NON-EXECUTIVE DIRECTORS

remUnerAtIOn COmmIttee

AUDIt COmmIttee

INDEPENDENT NON-EXECUTIVE DIRECTORS

SUPerVISOrS

CHIeF ACCOUntAnt

JOInt COmPAnY SeCretArIeS

AUtHOrISeD rePreSentAtIVeS

LeGAL ADDreSS In tHe PrC

InVeStment StrAteGY COmmIttee

PrInCIPAL PLACe OF BUSIneSS In tHe PrC

PrInCIPAL PLACe OF BUSIneSS In HOnG KOnG

COmPAnY WeBSIte

H SHAre LIStInG PLACe

LIStInG DAte

InternAtIOnAL AUDItOr

DOmeStIC AUDItOr

LeGAL ADVISer

nUmBer OF H SHAreS In ISSUe

BOArD LOt

StOCK eXCHAnGe StOCK CODe

A SHAre LIStInG PLACe

HOnG KOnG H SHAre reGIStrAr AnD trAnSFer

OFFICe

LIStInG DAte

nUmBer OF A SHAreS In ISSUe

PrInCIPAL BAnKerS

teLePHOne nUmBer

BOArD LOt

SHAnGHAI StOCK eXCHAnGe StOCK CODe

FAX nUmBer

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

BUSIneSS HIGHLIGHtS

mAnAGement DISCUSSIOn AnD AnALYSIS

OPerAtInG enVIrOnment

PerFOrmAnCe AnALYSIS

LOADeD COntAIner VOLUme BY trADe LAneS

COSt AnALYSIS

BUSIneSS reVIeW

FUtUre PrOSPeCt

LIQUIDItY, FInAnCIAL reSOUrCeS AnD CAPItAL StrUCtUre

GeArInG rAtIO

FOreIGn eXCHAnGe rISK AnD HeDGInG

CAPItAL COmmItment

COntInGent LIABILItY

SHAre CAPItAL

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

(I) IntereStS In tHe SHAreS OF tHe COmPAnY

(II) IntereStS In tHe SHAreS OF tHe COmPAnY UnDer tHe rIGHtS SCHeme[(1)]

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

CHAnGeS In InFOrmAtIOn OF DIreCtOrS Or SUPerVISOrS

DIreCtOrS, SUPerVISOrS – DetAILS OF CHAnGeS

PUrCHASe, SALe Or reDemPtIOn OF LISteD SeCUrItIeS OF tHe COmPAnY

InterIm DIVIDenDS

emPLOYeeS, trAInInG AnD BeneFItS

AUDIt COmmIttee

COrPOrAte GOVernAnCe CODe

mODeL CODe FOr SeCUrItIeS trAnSACtIOnS

rePOrt On reVIeW OF InterIm FInAnCIAL InFOrmAtIOn tO tHe BOArD OF DIreCtOrS OF CHInA SHIPPInG COntAIner LIneS COmPAnY LImIteD

IntrODuCtIOn

SCOPe OF reVIeW

COnCLuSIOn

ernst & Young

COnDenSeD COnSOLIDAteD InterIm StAtement OF FInAnCIAL POSItIOn

COnDenSeD COnSOLIDAteD InterIm StAtement OF PrOFIt Or LOSS

COnDenSeD COnSOLIDAteD InterIm StAtement OF COmPreHenSIVe InCOme

COnDenSeD COnSOLIDAteD InterIm StAtement OF CHAnGeS In eQuItY

COnDenSeD COnSOLIDAteD InterIm StAtement OF CASH FLOWS

nOteS tO tHe COnDenSeD COnSOLIDAteD InterIm FInAnCIAL InFOrmAtIOn

1. GenerAL InFOrmAtIOn

2. BASIS OF PrePArAtIOn

nOteS tO tHe COnDenSeD COnSOLIDAteD InterIm FInAnCIAL InFOrmAtIOn (Continued)

3. SIGnIFICAnt ACCOuntInG POLICIeS

COSCO SHIPPING Development Co., Ltd. Interim / Quarterly Report 2014