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

Apr 29, 2014

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

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

(Stock code: 02866)

2014 FIRST QUARTERLY REPORT

In accordance with the applicable rules of the Shanghai Stock Exchange of the People’s Republic of China (the “ PRC ”) (being the stock exchange on which the A shares of China Shipping Container Lines Company Limited (the “ Company ”, together with its subsidiaries, the “ Group ”) are listed), the quarterly report (the “ Quarterly Report ”) of the Company for the first quarter of 2014 (the “ Reporting Period ”) will be published on the Shanghai Stock Exchange on 30 April 2014. The financial information set out in the Quarterly Report was prepared in accordance with the Generally Accepted Accounting Principles of the PRC.

This announcement is made pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “ Listing Rules ”) and the provisions about inside information (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

§1 IMPORTANT NOTICES

• 1.1 The board of directors, the supervisory committee, the directors, the supervisors and the senior management of the Company warrant the truthfulness, accuracy and completeness of the Quarterly Report and that there are no false records or misleading statements contained therein or material omissions; and severally and jointly accept legal responsibility.

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

• 1.3 Zhang Guofa, the person-in-charge of the Company, Zhang Mingwen, the person-in-charge of accounting affairs, and Li Rong, the head of the accounting department (officer in charge of accounting) have warranted the truthfulness, accuracy and completeness of the financial statements contained in the Quarterly Report.

Name of the person-in-charge of the Company Zhang Guofa Name of the person-in-charge of accounting affairs Zhang Mingwen Name of the head of the accounting department Li Rong (officer in charge of accounting)

• 1.4 The financial statements contained in the Quarterly Report have not been audited.

1

§2 CHANGES IN PRINCIPAL FINANCIAL DATA AND SHAREHOLDERS

2.1 Principal financial data

Unit: Yuan Currency: RMB

			Increase/decrease
			at the end of the
			Reporting Period
			as compared
	As at the end of the	As at the end	with the end of
	Reporting Period	of previous year	previous year
			(%)
Total assets	49,073,067,480.90	50,816,887,518.15	-3.43
Net assets attributable to equity
holders of the Company	23,847,667,955.70	23,771,459,717.03	0.32
		From the beginning
	From the beginning	of the previous year
	of the year to the	to the end of the	Increase/decrease
	end of the Reporting	reporting period of	as compared with
	Period (January to	previous year	the corresponding
	March)	(January to March)	period of last year
			(%)
Net cash flow from operating
activities	65,478,290.48	-738,383,678.49	N/A
		From the beginning
	From the beginning	of the previous year
	of the year to the	to the end of the	Increase/decrease
	end of the Reporting	reporting period of	as compared with
	Period	previous year	the corresponding
	(January to March)	(January to March)	period of last year
			(%)
Revenue	8,565,507,289.53	8,101,598,975.36	5.73
Net profit attributable to equity
holders of the Company	61,393,302.15	-688,916,384.40	N/A
Net profit attributable to equity
holders of the Company, excluding
extraordinary gains or losses	-163,285,890.37	-709,052,793.93	N/A
Weighted average return on			Increased 2.89
net assets_(%)_	0.26	-2.63	percentage points
Basic earnings per share
(Yuan/share)	0.0053	-0.0590	N/A
Diluted earnings per share
(Yuan/share)	0.0053	-0.0590	N/A

2

Excluding extraordinary gains or losses items and amounts:

Unit: Yuan Currency: RMB

Item

Amount for the Reporting Period (January to March)

Gain/loss from disposal of non-current assets Government grants recognized in the income statement for the period (exclusive of those that are closely related to the normal operation of the Company and received in a certain amount or fixed quantity according to the requirements of State policy and State standards) Other non-operating income/expenses excluding the items above Impact of income tax Impact of gains or losses of minority shareholders (after tax) Total

280,563,367.70 19,449,655.90 -338,821.54 -74,802,317.26 -192,692.28

224,679,192.52

• 2.2 Total number of shareholders at the end of the Reporting Period, the top 10 shareholders and the top 10 shareholders who are not subject to trading moratorium

Total number of shareholders (household)

395,374

Shareholding of top 10 shareholders

				Number
				of shares
				subject	Number of
	Nature of		Total number	to trading	shares pledged
Name of shareholders	shareholders	Shareholding	of shares	moratorium	or frozen
		(%)
China Shipping (Group) Company	State-owner
	corporation	45.89	5,361,837,500	0	Nil
HKSCC Nominees Limited	Offshore
	corporation	31.92	3,728,700,141	0	Nil
Account No. 2 of the National	State-owner
Council for Social Security Fund	corporation	2.00	233,662,500	0	Nil

3

				Number
				of shares
				subject	Number of
	Nature of		Total number	to trading	shares pledged
Name of shareholders	shareholders	Shareholding	of shares	moratorium	or frozen
		(%)
中國人壽保險股份有限公司－分紅
－個人分紅－005L－FH002滬	Other	0.11	12,999,926	0	Nil
Bank of China Limited – Jiashi					Pledged or
Hushen 300 Trading Open-end					frozen
Index Securities Investment Fund	Other	0.10	11,359,935	0	4,000 Shares
Industrial and Commercial Bank
of China – Huaxia Hushen
300 Trading Open-end Index
Securities Investment Fund	Other	0.08	9,012,200	0	Nil
Xu Kaidong	Domestic
	natural person	0.08	8,996,900	0	Nil
Industrial and Commercial Bank of
China – Huatai-PineBridge CSI 300
Open-end Trading Index Securities
Investment Fund	Other	0.06	6,718,764	0	Nil
中國人壽保險股份有限公司－傳統
－普通保險產品－005L－CT001滬	Other	0.05	5,499,907	0	Nil
中國建設銀行－工銀瑞信
紅利股票型證券投資基金	Other	0.05	5,474,345	0	Nil

4

Shareholding of top 10 shareholders who are not subject to trading moratorium

	Number of shares
	not subject to
	trading moratorium
	held at the
	end of the
Name of shareholders (in full)	Reporting Period	Type of shares
China Shipping (Group) Company	5,361,837,500	A Share
HKSCC Nominees Limited	3,728,700,141	H Share
Account No. 2 of the National
Council for Social Security Fund	233,662,500	A Share
中國人壽保險股份有限公司－分紅
－個人分紅－005L－FH002滬	12,999,926	A Share
Bank of China Limited – Jiashi Hushen 300 Trading
Open-end Index Securities Investment Fund	11,359,935	A Share
Industrial and Commercial Bank of China – Huaxia
Hushen 300 Trading Open-end Index Securities
Investment Fund	9,012,200	A Share
Xu Kaidong	8,996,900	A Share
Industrial and Commercial Bank of China
– Huatai-PineBridge CSI 300 Open-end
Trading Index Securities Investment Fund	6,718,764	A Share
中國人壽保險股份有限公司－傳統
－普通保險產品－005L－CT001滬	5,499,907	A Share
中國建設銀行－工銀瑞信紅利股票型證券投資基金	5,474,345	A Share

Explanation of the connected relationship or acting in concert relationship among the above shareholders:

• (1) The shares held by China Shipping (Group) Company (“ China Shipping ”) were not pledged, frozen or under custody and etc. during the Reporting Period.

• (2) HKSCC Nominees Limited is a private company, the main business of which is holding shares for other companies or individuals.

• (3) During the period from 2 April to 12 June in 2008, China Shipping through its whollyowned subsidiary, China Shipping (HK) Holdings Co., Ltd.’s wholly-owned subsidiary, Ocean Fortune Investment Limited, further acquired 132,882,000 H shares in the Company, representing approximately 1.14% of the total issued shares of the Company. Such shares were registered in the name of HKSCC Nominees Limited.

5

In 2012, China Shipping through its wholly-owned subsidiary, China Shipping (HK) Holdings Co., Ltd.’s wholly-owned subsidiary, Ocean Fortune Investment Limited, further acquired 51,879,000 H shares in the Company, representing approximately 0.44% of the total issued shares of the Company. Such shares were registered in the name of HKSCC Nominees Limited.

As at the end of the Reporting Period, China Shipping through its wholly-owned subsidiary, China Shipping (HK) Holdings Co., Ltd.’s wholly-owned subsidiary, Ocean Fortune Investment Limited, held an aggregate amount of 184,761,000 H shares in the Company. Such shares accounted for approximately 4.93% of the H share capital and approximately 1.58% of the total share capital.

• (4) The Company was not notified of any connected relationship or acting in concert relationship among the above shareholders.

§3 SIGNIFICANT EVENTS

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

√Applicable □ Not Applicable

• (1) The increase in dividends receivable by 2,558.88% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the increase in dividends distributed from associates during the Reporting Period as compared with the beginning of the Reporting Period;

• (2) The increase in long-term receivables by 50.99% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the increase in finance lease receivables at the end of the Reporting Period as compared with the beginning of the Reporting Period;

• (3) The decrease in intangible assets by 70.10% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the decrease in the land use rights of the Company as a result of the disposal of subsidiaries during the Reporting Period;

• (4) The decrease in taxes payable by 66.21% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the decrease in the balance of taxes payable as compared with the beginning of the Reporting Period, as a result of settlement of the taxes payable for the previous year during the Reporting Period;

• (5) The decrease in interest payable by 36% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the decrease in unpaid interest of borrowings at the end of the Reporting Period as compared with the corresponding period of last year;

• (6) The increase in asset impairment loss by 773.33% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in the balance of accounts receivable as compared with the corresponding period of last year;

6

• (7) The increase in investment income by 6,146.35% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in the gains from disposal of subsidiaries during the Reporting Period as compared with the corresponding period of last year;

• (8) The decrease in gains from investment in associates and joint ventures by 62.56% during the Reporting Period as compared with the corresponding period of last year was mainly due to the decrease in the profit of the associates during the Reporting Period as compared with the corresponding period of last year;

• (9) The increase in profit from operations by 93.45% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in the gross profit from operations of the Company and the gains from disposal of assets during the Reporting Period as compared with the corresponding period of last year;

• (10) The increase in non-operating income by 353.62% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in VAT rebates during the Reporting Period as compared with the corresponding period of last year;

• (11) The increase in non-operating expense by 200.22% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in pension benefits to retired employees during the Reporting Period as compared with the corresponding period of last year;

• (12) The increase in loss from disposal of non-current assets by 168.48% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in disposal of fixed assets during the Reporting Period as compared with the corresponding period of last year;

• (13) The increase in total profit by 110.96% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in profit from operations during the Reporting Period as compared with the corresponding period of last year;

• (14) The increase in net profit by 109.64% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in profit from operations during the Reporting Period as compared with the corresponding period of last year;

• (15) The increase in net profit attributable to the owner of the parent company by 108.91% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in profit from operations during the Reporting Period as compared with the corresponding period of last year;

• (16) The increase in minority interests by 537.33% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in the profit from operations of terminal subsidiaries of the Company during the Reporting Period as compared with the corresponding period of last year;

• (17) The increase in basic earnings per share by 108.98% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in profit from operations of the Company during the Reporting Period as compared with the corresponding period of last year;

7

• (18) The increase in other comprehensive income by 194.17% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in currency translation differences as a result of changes in exchange rates during the Reporting Period;

• (19) The increase in total comprehensive income by 112.89% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in profit from operations of the Company during the Reporting Period as compared with the corresponding period of last year;

• (20) The increase in total comprehensive income attributable to the owner of the parent company by 112.20% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in profit from operations of the Company during the Reporting Period as compared with the corresponding period of last year;

• (21) The increase in total comprehensive income attributable to minority interests by 534.66% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in profit from operations of terminal subsidiaries of the Company during the Reporting Period as compared with the corresponding period of last year;

• (22) The increase in tax rebates by 1,624.36% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in VAT rebates during the Reporting Period as compared with the corresponding period of last year;

• (23) The increase in taxes paid by 338.60% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in taxes paid during the Reporting Period as compared with the corresponding period of last year;

• (24) The increase in net cash flows from operating activities by 108.87% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in cash received from sales of goods and provision of services by the Company during the Reporting Period as compared with the corresponding period of last year;

• (25) The decrease in cash received form disposal of fixed assets, intangible assets and other long-term assets by 97.64% during the Reporting Period as compared with the corresponding period of last year was mainly due to the decrease in disposal of vessels during the Reporting Period as compared with the corresponding period of last year;

• (26) The increase in net cash received from disposal of subsidiaries and other operating entities by 100% during the Reporting Period as compared with the corresponding period of last year was mainly due to the disposal of Shanghai China Shipping International Container Storage and Transportation Co., Ltd. and Shanghai Zhengjin Industrials Co., Ltd. during the Reporting Period;

• (27) The increase in sub-total of cash inflows from investment activities by 1,846.86% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in cash received from disposal of subsidiaries during the Reporting Period as compared with the corresponding period of last year;

8

• (28) The increase in net cash flows from investment activities by 106.09% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in cash received from disposal of subsidiaries during the Reporting Period as compared with the corresponding period of last year;

• (29) The decrease in proceeds received from investments by 93.73% during the Reporting Period as compared with the corresponding period of last year was mainly due to the decrease in proceeds received by subsidiaries as compared with the corresponding period of last year;

• (30) The increase in cash received from borrowings by 1,680.09% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in bank borrowings during the Reporting Period as compared with the corresponding period of last year;

• (31) The increase in sub-total of cash inflow from financing activities by 1,653.76% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in bank borrowings during the Reporting Period as compared with the corresponding period of last year;

• (32) The increase in cash paid for repayment of debts by 17,609.73% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in repayment of bank borrowings during the Reporting Period as compared with the corresponding period of last year;

• (33) The decrease in other cash paid relating to financing activities by 51.41% during the Reporting Period as compared with the corresponding period of last year was mainly due to the decrease in other cash paid relating to financing activities, such as handling charges, during the Reporting Period as compared with the corresponding period of last year;

• (34) The increase in sub-total of cash outflow from financing activities by 4,600.57% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in repayment of bank borrowings during the Reporting Period as compared with the corresponding period of last year;

• (35) The decrease in net cash flow from financing activities by 629.80% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in repayment of bank borrowings during the Reporting Period as compared with the corresponding period of last year;

• (36) The increase in effect on cash due to changes in foreign exchange rates by 227.67% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in range of changes in foreign currency exchange rates during the Reporting Period as compared with the corresponding period of last year;

• (37) The decrease in the net increase in cash and cash equivalents by 206.52% at the end of the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in repayment of bank borrowings during the Reporting Period.

9

3.2 Analysis of the development of important events and their impacts and solutions

√Applicable □ Not Applicable

The Company intended to transfer its 100% equity interest in China Shipping Terminal Development Co., Ltd. (“ CSTD ”), a wholly-owned subsidiary of the Company, to China Shipping Terminal Development (H.K.) Co., Ltd. (“ CSTD HK ”) (the “ Equity Transfer ”). CSTD HK is a subsidiary of China Shipping, which is the controlling shareholder of the Company. As consideration for the Equity Transfer, CSTD HK will issue shares to the Company. Meanwhile, China Shipping (HK) Holdings Co., Ltd., the shareholder of CSTD HK, will inject new capital into CSTD HK by cash contribution (the “ Transaction ”).

The Transaction will consolidate China Shipping’s port business and assets into one platform, which will result in economies of scale. The port business will receive more support from China Shipping in terms of financial resources, management and operation, etc. and it will have a better development while allowing the Company to better focus on the development of its container transportation business. The consideration of the Transaction is RMB3,418,357,000, being the valuation result of the appraised net asset value of CSTD as of 30 June 2013 after approval by State-owned Assets Supervision and Administration Commission of the PRC (“ SASAC ”). The Transaction is subject to approval by SASAC and Ministry of Commerce of the PRC (“ MOFCOM ”). The board of directors of the Company estimates that the Transaction will bring approximately RMB630 million profit before tax to the Company in 2014.

As at the date of this Quarterly Report, the Company has received the written approval from SASAC on the Equity Transfer, while MOFCOM is in the process of reviewing the relevant materials on the Equity Transfer. The Company and the relevant parties are actively advancing the Equity Transfer, and all work is progressing as planned.

For the detailed information and progress of the Transaction, please see the announcements of the Company dated 11 October 2013 and 30 December 2013, respectively.

10

• 3.3 Performance of undertakings given by the Company and the shareholders with shareholding of more than 5%

√Applicable □ Not Applicable

Non-competition undertakings: On 29 August 2007, China Shipping, the controlling shareholder of the Company, made non-competition undertakings to the Company that:

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

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

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

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

□Applicable √Not Applicable

11

§4 APPENDIX

4.1

Consolidated Balance Sheet

Prepared by: China Shipping Container Lines
Company Limited	31 March 2014 Unit:	Yuan Currency: RMB
		Audit type: Unaudited
Item	Closing balance	Opening balance
Current assets:
Cash and bank balances	7,321,561,046.23	9,604,903,754.01
Balances with clearing companies
Placements with banks and
other financial institutions
Financial assets held-for-trading
Bills receivable	305,430,408.30	324,975,052.65
Accounts receivable	2,279,864,698.51	2,252,118,870.31
Funds paid in advance	97,507,982.35	86,668,864.78
Premiums receivable
Reinsurance accounts receivable
Deposits receivable from reinsurance treaty
Interests receivable	87,843,849.21	73,043,512.80
Dividends receivable	34,196,766.49	1,286,133.68
Other receivables	188,642,477.82	182,473,453.83
Purchases of resold financial assets
Inventories	1,650,215,646.60	1,557,061,758.10
Non-current assets due within one year
Other current assets	48,743,565.80	45,296,132.14
Total current assets	12,014,006,441.31	14,127,827,532.30
Non-current assets:
Loans and advances granted
Available-for-sale financial assets
Held-to-maturity investments
Long-term receivables	761,715.22	504,489.82
Long-term equity investment	2,281,034,182.96	2,298,930,967.59
Investment property	2,134,289.42	2,148,208.70
Fixed assets	31,863,827,710.75	31,394,902,614.65
Construction in progress	2,363,552,140.18	2,364,124,567.47
Construction materials
Disposals of fixed assets	40,545.51
Biological assets for production
Fuel assets
Intangible assets	32,832,219.28	109,812,622.34
Development expenditure
Goodwill
Long-term deferred expenses	18,199,510.01	22,102,869.80
Deferred income tax assets	496,678,726.26	496,533,645.48
Other non-current assets
Total non-current assets	37,059,061,039.59	36,689,059,985.85
Total assets	49,073,067,480.90	50,816,887,518.15

12

Item	Closing balance	Opening balance
Current liabilities:
Short term borrowings	4,290,439,350.00	4,395,892,000.00
Borrowings from central bank
Deposit taking and deposit
in inter-bank market
Placements funds
Financial liabilities held-for-trading
Bills payable
Accounts payable	3,379,304,327.41	3,907,974,315.27
Funds received in advance	81,512,809.40	79,096,608.31
Funds from disposal of
repurchased financial assets
Handling charges and commissions payable
Staff remuneration payable	97,977,741.72	92,132,297.16
Taxes payable	44,032,688.49	130,328,817.79
Interest payable	98,587,025.13	154,049,066.70
Dividend payable	114,646,137.99	114,646,137.99
Other payables	497,223,449.49	402,746,514.21
Reinsurance accounts payable
Deposits for insurance contracts
Customer deposits for trading in securities
Customer deposits for securities underwriting
Non-current liabilities due within one year	4,335,199,329.31	3,987,676,029.31
Other current liabilities
Total current liabilities	12,938,922,858.94	13,264,541,786.74
Non-current liabilities:
Long term borrowings	9,791,439,913.31	11,331,131,007.57
Bonds payable	1,791,529,638.56	1,791,529,638.56
Long term payables	215,293,383.16	186,596,394.00
Specific payables
Projected liabilities	25,000,000.00	25,000,000.00
Deferred income tax liabilities	27,314.01	27,314.01
Other non-current liabilities	7,403.93	7,492.42
Total non-current liabilities	11,823,297,652.97	13,334,291,846.56
Total liabilities	24,762,220,511.91	26,598,833,633.30

13

Closing balance

Opening balance

Item

Owners’ equity (or shareholders’ equity):	Owners’ equity (or shareholders’ equity):
Paid-in capital (or share capital)		11,683,125,000.00	11,683,125,000.00
Capital reserve		17,173,209,600.70	17,173,209,600.70
Less: treasury shares
Special reserve		27,102,326.99	38,278,394.98
Surplus reserve		1,362,073,031.79	1,362,073,031.79
General risk provision
Retained earnings		-4,969,063,418.69	-5,030,456,720.84
Foreign currency translation differences		-1,428,778,585.09	-1,454,769,589.60
Total equity attributable to the owner
of the parent company		23,847,667,955.70	23,771,459,717.03
Minority interests		463,179,013.29	446,594,167.82
Total owners’ equity		24,310,846,968.99	24,218,053,884.85
Total liabilities and	owners’ equity	49,073,067,480.90	50,816,887,518.15
	Person-in-charge of Head		of the accounting
Legal representative:	accounting affairs:		department:
Zhang Guofa	Zhang	Mingwen	Li Rong
	Balance Sheet of	the Parent Company
Prepared by: China Shipping Container Lines
Company Limited		31 March 2014 Unit:	Yuan Currency: RMB
			Audit type: Unaudited
Item		Closing balance	Opening balance
Current assets:
Cash and bank balances		3,975,439,409.62	5,445,944,368.70
Financial assets held-for-trading
Bills receivable		171,207,474.05	251,464,616.75
Accounts receivable		1,096,313,604.82	937,065,895.10
Funds paid in advance
Interests receivable		84,235,123.84	71,021,671.03
Dividends receivable		239.93	237.78
Other receivables		380,908,149.77	130,849,633.79
Inventories		810,661,224.90	912,976,976.78
Non-current assets due within one year
Other current assets
Total current assets		6,518,765,226.93	7,749,323,399.93

14

Closing balance

Opening balance

Item

Non-current assets:
Available-for-sale financial assets
Held-to-maturity investments
Long-term receivables
Long-term equity investment	14,557,632,108.91	15,150,067,518.11
Investment property
Fixed assets	17,162,900,174.10	17,371,238,397.24
Construction in progress	35,134,498.16	18,543,485.63
Construction materials
Disposals of fixed assets	19,656.00
Biological assets for production
Fuel assets
Intangible assets	11,270,486.68	11,206,215.56
Development expenditure
Goodwill
Long-term deferred expenses
Deferred income tax assets	491,888,604.94	491,888,604.94
Other non-current assets
Total non-current assets	32,258,845,528.79	33,042,944,221.48
Total assets	38,777,610,755.72	40,792,267,621.41
Current liabilities:
Short term borrowings	2,017,888,800.00	1,999,783,200.00
Financial liabilities held-for-trading
Bills payable
Accounts payable	2,836,162,804.05	2,719,408,587.96
Funds received in advance
Staff remuneration payable	41,994,002.35	54,098,766.13
Taxes payable	27,330,901.16	21,689,972.91
Interest payable	69,156,121.25	125,892,530.58
Dividend payable
Other payables	3,370,496,347.31	3,363,315,246.21
Non-current liabilities due within one year
Other current liabilities
Total current liabilities	8,363,028,976.12	8,284,188,303.79
Non-current liabilities:
Long-term borrowings	600,000,000.00	2,600,000,000.00
Bonds payable	1,791,529,638.56	1,791,529,638.56
Long term payables
Specific payables
Projected liabilities	25,000,000.00	25,000,000.00
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities	2,416,529,638.56	4,416,529,638.56
Total liabilities	10,779,558,614.68	12,700,717,942.35

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Item

Closing balance

Opening balance

Owners’ equity (or shareholders’ equity): Paid-in capital (or share capital) 11,683,125,000.00 11,683,125,000.00 Capital reserve 17,296,536,619.43 17,296,536,619.43 Less: Treasury shares Special reserve 20,588,884.99 34,831,624.16 Surplus reserve 1,355,762,889.20 1,355,762,889.20 General risk provision Retained earnings -2,357,961,252.58 -2,278,706,453.73 Total owners’ equity (or shareholders’ equity) 27,998,052,141.04 28,091,549,679.06 Total liabilities and owners’ equity (or shareholders’ equity) 38,777,610,755.72 40,792,267,621.41 Person-in-charge of Head of the accounting Legal representative: accounting affairs: department: Zhang Guofa Zhang Mingwen Li Rong 4.2 Consolidated Income Statement

Prepared by: China Shipping Container Lines Company Limited

January to March 2014

Unit: Yuan Currency: RMB

Audit type: Unaudited

Item

I. Total operating revenue

Including: Revenue from operations Interest income Premiums earned Handling charges and commission income

Amount for Amount for the the Reporting Period same previous year 8,565,507,289.53 8,101,598,975.36 8,565,507,289.53 8,101,598,975.36

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Amount for Amount for the the Reporting Period same previous year

Item

II.	Total cost of sales	Total cost of sales	8,906,313,178.21	8,812,551,899.71
	Including: Operating cost		8,542,266,992.65	8,485,253,108.79
		Interest expenses
		Handling charges and
		commission expenses
		Surrender payment
		Net expenditure for
		compensation payments
		Net provision for
		insurance deposits
		Policyholder dividend expenses
		Reinsurance costs
		Business tax and surcharges	9,199,993.39	11,202,733.37
		Selling expenses
		Administrative expenses	245,594,239.44	231,217,600.08
		Finance costs	108,179,481.56	85,037,737.00
		Asset impairments loss	1,072,471.17	-159,279.53
	Add: Ga ins from changes in fair value
		(loss is represented by “–”)
		Investment income	294,546,165.74	4,715,495.42
		Including: Ga ins from investment in
		associates and joint
		ventures	1,765,537.80	4,715,495.42
		Gains from foreign currency exchange
		(loss is represented by “–”)
III.	Pr ofit from operations
		(loss is represented by “–”)	-46,259,722.94	-706,237,428.93
	Add: Non-operating income		123,945,300.72	27,323,739.49
	Less: Non-operating expense		3,175,657.18	1,057,793.96
		Including: Lo ss from disposal of
		non-current assets	188,360.68	70,157.09
IV.	To tal profit
		(total loss is represented by “–”)	74,509,920.60	-679,971,483.40
	Less: Income tax expenses		7,980,604.39	10,119,296.55
V.	Net profit (net loss is represented by “–”)		66,529,316.21	-690,090,779.95
	Net profit attributable to the shareholder
	of the parent company		61,393,302.15	-688,916,384.40
	Minority interests		5,136,014.06	-1,174,395.55
VI.	Earnings per share
	(I)	Basic earnings per share	0.0053	-0.0590
	(II) Diluted earnings per share		0.0053	-0.0590

17

Item

Amount for Amount for the Item the Reporting Period same previous year VII. Other comprehensive income 25,991,004.51 -27,600,689.23 VIII. Total comprehensive income 92,520,320.72 -717,691,469.18 Total comprehensive income attributable to the owner of the parent company 87,384,306.66 -716,509,850.25 Total comprehensive income attributable to minority interests 5,136,014.06 -1,181,618.93 Person-in-charge of Head of the accounting Legal representative: accounting affairs: department: Zhang Guofa Zhang Mingwen Li Rong Income Statement of the Parent Company Prepared by: China Shipping Container Lines January to Company Limited March 2014 Unit: Yuan Currency: RMB Audit type: Unaudited Amount for Amount for the Item the Reporting Period same previous year I. Revenue from operations 3,652,356,368.46 3,477,185,481.76 Less: Operating cost 3,740,459,586.43 3,710,799,766.82 Business tax and surcharges 7,595,512.01 6,108,880.09 Selling expenses Administrative expenses 119,535,797.48 112,316,835.00 Finance costs 39,419,808.19 8,507,260.63 Asset impairments loss 12,658,955.43 -679,373.30 Add: Ga ins from changes in fair value (loss is represented by “–”) Investment income (loss is represented by “–”) 75,033,567.61 8,996,948.42 Including: Ga ins from investment in associates and joint ventures 46,505.37 II. Pr ofit from operations (loss is represented by “–”) -192,279,723.47 -350,870,939.06 Add: Non-operating income 114,899,851.28 5,325,549.11 Less: Non-operating expense 1,874,926.66 866,548.28 Including: Lo ss from disposal of non-current assets 19,301.60

18

Amount for Amount for the Item the Reporting Period same previous year

III.	To tal profit
	(total loss is represented by “–”)			-79,254,798.85	-346,411,938.23
	Less: Income tax expenses
IV.	Net profit (net loss is represented by “–”)			-79,254,798.85	-346,411,938.23
V.	Earnings per share:
	(I) Basic earnings per share
	(II) Diluted earnings per share
VI.	Other comprehensive income
VII.	Total comprehensive income			-79,254,798.85	-346,411,938.23
	Person-in-charge of			Head	of the accounting
	accounting affairs:				department:
	Zhang Guofa Zhang Mingwen				Li Rong
4.3	Consolidated Cash Flow Statement
Prepared by: China Shipping Container Lines		January		to
Company Limited		March	2014 Unit:		Yuan Currency: RMB
					Audit type: Unaudited
			Amount for the		Amount for the same
Item		Reporting Period			period last year
I.	Cash flow from operating activities
	Cash received from sales of goods
	and provision of services	8,918,131,728.87			8,310,197,572.12
	Net increase in deposits from customers
	and placements from banks and other
	financial institutions
	Net increase in borrowings from central bank
	Net increase in placements from other
	financial institutions
	Cash received from premiums of original
	insurance contracts
	Net cash received from reinsurance business
	Net increase in deposits from policyholders
	and investments
	Net increase in disposal of held-for-trading
	financial assets
	Cash received from interest, handling
	charges and commissions
	Net increase in capital due to banks and
	other financial institutions
	Net increase in repurchases business fund
	Tax rebates			18,977,180.95	1,100,531.94
	Other cash received from activities related
	to operation		148,212,218.74		155,542,707.22
	Sub-total of cash inflows from
	operating activities	9,085,321,128.56			8,466,840,811.28

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Amount for the Amount for the same Reporting Period period last year

Item		Reporting Period	period last year
	Cash paid for goods purchased and
	service rendered	8,093,009,108.89	8,375,213,598.93
	Net increase in loans and advances to
	customers
	Net increase in placements with central
	bank and other financial institutions
	Cash paid for claims on original insurance
	contracts
	Cash payment for interest, handling charges
	and commissions
	Cash payment for policyholder dividend
	Cash paid to and on behalf of employees	475,495,262.71	529,195,312.53
	Taxes paid	207,058,724.95	47,209,482.38
	Other cash paid for activities relating to
	operation	244,279,741.53	253,606,095.93
	Sub-total of cash outflow from
	operating activities	9,019,842,838.08	9,205,224,489.77
	Net cash flows from operating
	activities	65,478,290.48	-738,383,678.49
II.	Cash flow from investment activities:
	Cash received from disposal of investments
	Cash received from gains in investments
	Net cash received from disposal of fixed
	assets, intangible assets and other
	long-term assets	442,580.12	18,774,900.75
	Net cash received from disposal of
	subsidiaries and other operating entities	365,077,801.63
	Other cash received relating to investment
	activities
	Sub-total of cash inflows from
	investment activities	365,520,381.75	18,774,900.75
	Cash paid for purchase of fixed assets,
	intangible assets and other long-term
	assets	340,327,328.08	432,467,301.61
	Cash paid for investment
	Net increase in pledged loans
	Net cash paid for acquiring subsidiaries
	and other operating entities
	Other cash paid related to investment
	activities
	Sub-total of cash outflow from
	investment activities	340,327,328.08	432,467,301.61
	Net cash flow from investment
	activities	25,193,053.67	-413,692,400.86

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Amount for the Amount for the same Reporting Period period last year

Item

III.	Cash flow from financing activities
	Proceeds received from investments		762,221.27	12,150,000.00
	Including: Pr oceeds received by subsidiaries
	from minority shareholder’s
	investment		762,221.27	12,150,000.00
	Cash received from borrowings	14,352,120,700.00		806,257,368.00
	Cash received from issue of bonds
	Cash received relating to other financing
	activities
	Sub-total of cash inflow from
	financing activities	14,352,882,921.27		818,407,368.00
	Cash paid for repayment of debts	16,586,223,837.96		93,655,986.14
	Cash payments for dividend and profit
	distribution or interest repayment	184,995,952.92		213,165,158.45
	Including: Di vidend and profit paid
	by subsidiary to minority
	shareholders		–	5,634,725.60
	Other cash paid relating to financing
	activities		24,533,682.50	50,492,223.93
	Sub-total of cash outflow from
	financing activities	16,795,753,473.38		357,313,368.52
	Net cash flow from financing
	activities	-2,442,870,552.11		461,093,999.48
IV.	Ef fect on cash and cash equivalents due
	to changes in foreign exchange rates		68,856,500.18	-53,931,172.83
V.	Net increase in cash and cash equivalents	-2,283,342,707.78		-744,913,252.70
	Add: Ba lance of cash and cash equivalents
	at the beginning of the period	9,602,803,754.01		8,830,970,235.81
VI.	Ba lance of cash and cash equivalents
	at the end of the period	7,319,461,046.23		8,086,056,983.11
	Person-in-charge of		Head	of the accounting
	Legal representative: accounting	affairs:		department:
	Zhang Guofa Zhang Mingwen			Li Rong

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Cash Flow Statement of the Parent Company

Prepared by: China Shipping Container Lines	Prepared by: China Shipping Container Lines	January to
Company Limited		March 2014 Unit:	Yuan Currency: RMB
			Audit type: Unaudited
		Amount for the	Amount for the same
Item		Reporting Period	period last year
I.	Cash flow from operating activities:
	Cash received from sales of goods and
	provision of services	1,904,777,071.09	1,957,054,276.61
	Tax rebates	17,273,142.54
	Other cash received from activities related
	to operation	252,361,611.72	267,323,821.91
	Sub-total of cash inflow from
	operating activities	2,174,411,825.35	2,224,378,098.52
	Cash paid for goods purchased and
	service rendered	1,556,517,683.30	1,864,416,317.58
	Cash paid to and on behalf of employees	235,419,996.45	247,329,466.05
	Taxes paid	94,925,277.58	6,780,786.95
	Other cash paid for activities related to
	operation	50,345,885.01	46,139,180.06
	Sub-total of cash outflow from
	operating activities	1,937,208,842.34	2,164,665,750.64
	Net cash flow from operating
	activities	237,202,983.01	59,712,347.88
II.	Cash flow from investment activities:
	Cash received from disposal of investments	417,228,110.08
	Cash received from gains in investments
	Net cash received from disposal of fixed
	assets, intangible assets and other
	long-term assets	20,000.00
	Net cash received from disposal of
	subsidiaries and other operating entities
	Other cash received relating to investment
	activities
	Sub-total of cash inflow from
	investment activities	417,248,110.08
	Cash paid for purchase of fixed
	assets, intangible assets and other
	long-term assets	17,521,372.89	6,695,718.34
	Cash paid for investment
	Net cash paid for acquiring subsidiaries
	and other operating entities	10,665,255.90
	Other cash paid relating to investment
	activities
	Sub-total of cash outflow from
	investment activities	28,186,628.79	6,695,718.34
	Net cash flow from investment
	activities	389,061,481.29	-6,695,718.34

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Amount for the Amount for the same Reporting Period period last year

Item

III.	Cash flow from financing activities:
	Proceeds received from investments
	Cash received from borrowings
	Cash received from issue of bonds
	Cash received relating to other financing
	activities
	Sub-total of cash inflow from
	financing activities
	Cash paid for repayment of debts	2,000,000,000.00
	Cash payments for dividend and profit
	distribution or interest repayment	101,681,953.68		108,818,663.90
	Other cash paid relating to financing
	activities		11,348,725.00	3,969,393.09
	Sub-total of cash outflow from
	financing activities	2,113,030,678.68		112,788,056.99
	Net cash flow from financing
	activities	-2,113,030,678.68		-112,788,056.99
IV.	Ef fect on cash and cash equivalents due
	to changes in foreign exchange rates		16,261,255.30	-2,051,875.81
V.	Net increase in cash and cash equivalents	-1,470,504,959.08		-61,823,303.26
	Add: Ba lance of cash and cash equivalents
	at the beginning of the
	Reporting Period	5,445,944,368.70		4,225,896,558.46
VI.	Ba lance of cash and cash equivalents
	at the end of the Reporting Period	3,975,439,409.62		4,164,073,255.20
	Person-in-charge of		Head	of the accounting
	Legal representative: accounting	affairs:		department:
	Zhang Guofa Zhang Mingwen			Li Rong

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CAUTION STATEMENT

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

By order of the Board China Shipping Container Lines Company Limited Zhang Guofa Chairman

Shanghai, the PRC 29 April 2014

The Board as at the date of this announcement comprises of Mr. Zhang Guofa, Mr. Huang Xiaowen and Mr. Zhao Hongzhou, being executive Directors, Mr. Wang Daxiong, Ms. Su Min, Mr. Ding Nong, Mr. Chen Jihong and Mr. Zhang Rongbiao, being non-executive Directors, and Ms. Zhang Nan, Mr. Teo Siong Seng, Mr. Chen Lishen, Mr. Guan Yimin and Mr. Shi Xin, being independent non-executive Directors.

• 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”.

24