COSCO SHIPPING Development Co., Ltd. — Interim / Quarterly Report 2016

Oct 28, 2016

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.

中海集裝箱運輸股份有限公司 * China Shipping Container Lines Company Limited

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

(Stock code: 02866)

2016 THIRD QUARTERLY REPORT

In accordance with the applicable rules of the Shanghai Stock Exchange of the People’s Republic of China (“ PRC ”) (being the stock exchange on which the A shares of China Shipping Container Lines Company Limited (the “ Company ”, together with its subsidiaries, the “ Group ”) are listed), the quarterly report (“ Quarterly Report ”) of the Company for the third quarter of 2016 (“ Reporting Period ”) will be published on the Shanghai Stock Exchange on 29 October 2016. 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 this 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 Directors absent

Name of directors	Position of directors	Reasons for	Name of
absent	absent	absence	proxy
SUN Yueying	Chairman	Other business	Wang Daxiong
		engagements
LIU Xiong	Director	Other business	Wang Daxiong
		engagements

• 1.3 Sun Yueying, 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 this Quarterly Report.

• 1.4 The financial statements contained in this 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	Increase/decrease
				at the end of the
	As at	As at	Reporting Period as
	the end of the	the end of previous	compared with the
	Reporting Period	year (Restated)	end of previous year
				(%)
Total assets	111,347,259,941.18	104,031,562,186.85		7.03
Net assets attributable to equity
holders of the listed company	13,924,538,667.71	36,583,615,692.48		-61.94
		From the beginning
		of the previous year
		to the end of the
	From the beginning	reporting period
	of the year to the	of previous year	Increase/decrease
	end of the Reporting	(January to	as compared with
	Period (January to	September)	the corresponding
	September)	(Restated)	period of last year
				(%)
Net cash flow from operating
activities	6,260,363,846.75	3,097,255,535.01		102.13
		From the beginning
		of the previous year
		to the end of the
	From the beginning	reporting period
	of the year to the	of previous year	Increase/decrease
	end of the Reporting	(January to	as compared with
	Period (January to	September)	the corresponding
	September)	(Restated)	period of last year
				(%)
Revenue	12,065,241,826.83	27,188,153,244.10		-55.62
Net profit attributable to equity
holders of the listed company	-634,917,959.88	-255,396,481.04		N/A
Net profit attributable to equity
holders of the listed company,
excluding extraordinary gains or
losses	-1,337,573,450.10	-351,685,766.17		N/A
Weighted average return on net assets
(%)	-2.49	-0.67		N/A
Basic earnings per share (Yuan/share)	-0.0543	-0.0219		N/A
Diluted earnings per share (Yuan/
share)	-0.0543	-0.0219		N/A
	2

Extraordinary gains or losses items and amounts

√ Applicable □ Not Applicable

√ Applicable□Not Applicable
	Unit:	Yuan Currency: RMB
		Amount from the
		beginning of the
		year to the end
	Amount for the	of the Reporting
	Reporting Period	Period (January to
Item	(July to September)	September)
Gain/loss from disposal of non-current assets	4,649,522.30	174,791,263.70
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)	274,263,119.12	296,165,422.44
Net gain/loss for the period of subsidiaries obtained
through business combination under common control
from the beginning of the period to the date of
combination		239,160,194.90
Reversal of impairment provision for receivables subject
to individual impairment assessment	4,714,362.90	4,714,362.90
Other non-operating income/expenses excluding the
items above	2,364,238.41	5,591,141.16
Impact of income tax	-7,523,114.70	-11,491,474.31
Impact of gains or losses of minority shareholders (after
tax)	-376,668.36	-6,275,420.57
Total	278,091,459.67	702,655,490.22

3

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

Unit: Shares

Total number of shareholders (household)

Total number of shareholders (hous	ehold)					441,392
		Top 10 shareholders
	Number of		Number of
	shares held		Shares
	at the end of		subject to	Number of shares
	the Reporting	Shareholding	trading	pledged or frozen		Nature of
Name of shareholders (Full name)	Period	(%)	moratorium	Status	Number	shareholders
China Shipping (Group) Company	4,410,624,386	37.75%	0	Nil	0	State-owned
						corporation
HKSCC NOMINEES LIMITED	3,733,164,625	31.95%	0	Nil	0	Foreign
						corporation
Guoxin Investment Co., Ltd.	467,325,000	4.00%	0	Nil	0	State-owned
						corporation
State Development & Investment	388,674,125	3.33%	0	Nil	0	State-owned
Corporation						corporation
China Securities Finance Corporation	195,314,795	1.67%	0	Nil	0	State-owned
Limited						corporation
Central Huijin Asset Management Ltd.	65,454,300	0.56%	0	Nil	0	State-owned
						corporation
Aegon Industrial Fund – Bank of
Shanghai – China Shipping
(Group) Company	33,399,288	0.29%	0	Nil	0	Other
Champion Property & Casualty
Insurance Company Limited –
Traditional Products	17,900,000	0.15%	0	Nil	0	Other
Bank of China Limited – ChinaAMC
New Economy Flexible Configured
Hybrid Securities Investment Fund	15,538,922	0.13%	0	Nil	0	Other
CICC-CCB-Zhongjin Ruihe Collective
Asset Management Schemes	9,999,901	0.09%	0	Nil	0	Other

Note: China Shipping (Group) Company directly held 4,410,624,386 A shares in the Company, representing 37.75% of the entire share capital; indirectly held 47,570,789 shares through a collective scheme, representing 0.41% of the entire share capital; and held aggregately 4,458,195,175 A shares in the Company, representing 38.16% of the entire share capital.

4

Top 10 shareholders who are not subject to trading moratorium

Number of

Name of shareholders

China Shipping (Group) Company HKSCC NOMINEES LIMITED

Guoxin Investment Co., Ltd. State Development & Investment Corporation China Securities Finance Corporation Limited Central Huijin Asset Management Ltd. Aegon Industrial Fund – Bank of Shanghai – China Shipping (Group) Company Champion Property & Casualty Insurance Company Limited – Traditional Products Bank of China Limited – ChinaAMC New Economy Flexible Configured Hybrid Securities Investment Fund CICC-CCB-Zhongjin Ruihe Collective Asset Management Schemes Explanation of the connected relationship or acting in concert relationship among the above shareholders:

	Number of
	shares not subject
	to trading	Type and number of shares held
	moratorium held	Type	Number of shares
	4,410,624,386	RMB ordinary shares		4,410,624,386
	3,733,164,625	Overseas listed		3,733,164,625
		foreign shares
	467,325,000	RMB ordinary shares		467,325,000
	388,674,125	RMB ordinary shares		388,674,125
	195,314,795	RMB ordinary shares		195,314,795
	65,454,300	RMB ordinary shares		65,454,300
	33,399,288	RMB ordinary shares		33,399,288
	17,900,000	RMB ordinary shares		17,900,000
	15,538,922	RMB ordinary shares		15,538,922
	9,999,901	RMB ordinary shares		9,999,901
(1)	The shares held	by China Shipping (Group) Company 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) At the end of the Reporting Period, China Shipping (Group) Company held 100,944,000 H shares in the Company, representing approximately 0.86% of the entire share capital of the Company.

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

• 2.3 Total number of holders of preference shares at the end of the Reporting Period, top 10 holders of preference shares and top 10 holders of preference shares who are not subject to trading moratorium

□ Applicable √ Not Applicable

5

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 decrease in financial assets at fair value through profit and loss by 99.9% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to redemption of monetary fund during the Reporting Period;

2. The decrease in bills receivable by 80.4% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to acceptance maturity of bank’s bills during the Reporting Period;

3. The decrease in accounts receivable by 35.8% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the writing off of current accounts of the original liner business during the Reporting Period;

4. The increase in funds paid in advance by 537.4% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to an increase in the balance of funds paid in advance during the Reporting Period as compared with the beginning of the Reporting Period;

5. The increase in reinsurance accounts receivable by 57.2% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the increase in sales achieved by insurance agents during the Reporting Period;

6. The decrease in interest receivable by 60.9% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the decrease of term deposits during the Reporting Period;

7. The decrease in inventories by 43.9% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the disposal and transfer of vessel fuels during the Reporting Period;

8. The increase in available-for-sale financial assets by 54.9% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the increase in investment projects during the Reporting Period;

9. The increase in long-term receivables by 124.8% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to increase in investment in finance lease projects during the Reporting Period;

10. The decrease in long-term deferred expenses by 38.6% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to a change in the scope of business combination following the restructuring of the Company or the disposal of subsidiaries during the Reporting Period;

6

1. The increase in deferred income tax assets by 44.6% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to change in fair value of available-for-sale financial assets during the Reporting Period;

2. The increase in short term borrowings by 50.6% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to additional bank loan facilities during the Reporting Period;

3. The increase in deposit taking and deposit in inter-bank market by 77.6% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the increase in deposits received from members of the Group at the end of Reporting Period as compared with the beginning of the Reporting Period;

4. The increase in bills payable by 2,868.8% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to increase in acceptance of bank bills for energy investment projects during the Reporting Period;

5. The decrease in accounts payable by 50% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the writing off of current accounts of the original liner business during the Reporting Period;

6. The decrease in taxes payable by 49.1% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to a change of the scope of business combination following the restructuring of the Company or the disposal of subsidiaries during the Reporting Period;

7. The increase in dividends payable by 934.8% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the increase in profits payable to the shareholders by the subsidiaries during the Reporting Period as compared with the beginning of the Reporting Period;

8. The decrease in other payables by 45.5% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the settlement of incoming original shareholders’ loans during the Reporting Period;

9. The increase in reinsurance accounts payable by 69.2% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to increase in sales of insurance agent during the Reporting Period;

10. The decrease in non-current liabilities due within one year by 44% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to repayment of non-current liabilities due within one year during the Reporting Period;

11. The increase in other current liabilities by 2,724.1% at the end of the Reporting Period as compared with the Reporting Period was mainly due to the decline in market anticipated price of interest-rate swap during the Reporting Period;

12. The increase in long-term borrowings by 123.7% at the end of the Reporting Period as compared with the beginning of Reporting Period was mainly due to the increase in borrowings for projects during the Reporting Period;

7

1. The decrease in bonds payable by 58% at the end of the Reporting Period as compared with the beginning of Reporting Period was mainly due to the reclassification of certain bonds payable to non-current liabilities due within one year during the Reporting Period;

2. The increase in long term payables by 70.1% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the increase in deposits payment as a result of the increase in projects investment during the Reporting Period;

3. The decrease in deferred income by 100% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to a change in the scope of business combination following the restructuring of the Company or the disposal of subsidiaries during the Reporting Period;

4. The increase in non-current liabilities by 99.7% in aggregate at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the increase in borrowings for projects during the Reporting Period;

5. The increase in liabilities by 45% in aggregate at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the increase in borrowings for projects during the Reporting Period;

6. The decrease in capital reserve by 94.2% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to restated figures for the beginning period as a result of business combination under common control;

7. The decrease in special reserve by 70.2% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to a change in the scope of business combination following the restructuring of the Company or the disposal of subsidiaries during the Reporting Period;

8. The decrease in retained earnings by 34.7% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to a change in the scope of business combination following the restructuring of the Company or the disposal of subsidiaries during the Reporting Period;

9. The decrease in total equity attributable to equity holders of the parent company by 61.9% during the Reporting Period was mainly due to restated figures for the beginning period as a result of business combination under common control;

10. The decrease in minority interests by 32.6% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to restructuring of the Company and a change in the scope of business combination;

11. The decrease in total shareholders’ equity by 61.5% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to restated figures for the beginning period as a result of business combination under common control;

12. The decrease in total operating revenue by 55.3% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to decrease in income from container transportation during the Reporting Period;

8

1. The decrease in operating revenue by 55.6% at the end of the Reporting Period as compared with the corresponding period of the last year was mainly due to decrease in income from container transportation during the Reporting Period;

2. The decrease in total operating cost by 53.5% during the Reporting Period as compared with the corresponding period of the last year was mainly due to the decrease in cost for container transportation business during the Reporting Period;

3. The decrease in operating cost by 58.6% during the Reporting Period as compared with the corresponding period of the last year was mainly due to the decrease in cost for container transportation business during the Reporting Period;

4. The increase in handling charges and commission income by 119% during the Reporting Period as compared with the corresponding period of the last year was mainly due to the increase in payment of bank handling charges during the Reporting Period as compared with the corresponding period of the last year;

5. The decrease in business tax and surcharges by 67.4% during the Reporting Period as compared with the corresponding period of last year was mainly due to decrease in taxable accounts during the Reporting Period as compared with the corresponding period of last year;

6. The increase in finance costs by 87.9% during the Reporting Period as compared with the corresponding period of last year was mainly due to increase in borrowings from banks and interest expenses during the Reporting Period as compared with the corresponding period of last year;

7. The increase in asset impairments loss by 401.5% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in provision for inventory impairment as a result of decrease in market price as well as the increase in provision for bad debts for account receivables based on market risks assessment;

8. The increase in gains from changes in fair value by 59.9% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in gains from changes in fair value of financial assets held during the Reporting Period as compared with the corresponding period of last year;

9. The decrease in investment income by 90.2% during the Reporting Period as compared with the corresponding period of last year was mainly due to the decrease in gains from investment during the Reporting Period as compared with the corresponding period of last year;

10. The decrease in gains in investment from associates and joint ventures by 124.6% during the Reporting Period as compared with the corresponding period of last year was mainly due to the decrease in profits of associates during the Reporting Period as compared with the corresponding period of last year;

9

1. The decrease in operating profit by 382.4% during the Reporting Period as compared with the corresponding period of last year was mainly due to the decrease in operating profit of the Company during the Reporting Period as compared with the corresponding period of last year;

2. The decrease in gain from disposal of non-current assets by 71.7% during the Reporting Period as compared with the corresponding period of last year was mainly due to the decrease in gain from disposal of old containers for the year as compared with the corresponding period of last year;

3. The decrease in non-operating expense by 96% during the Reporting Period as compared with the corresponding period of last year was mainly due to the decrease in loss from disposal of non-current assets during the Reporting Period as compared with the corresponding period of last year;

4. The decrease in loss from disposal of non-current assets during the Reporting Period by 98.4% as compared with the corresponding period of last year was mainly due to the disposal of vessels during the corresponding period of last year;

5. The decrease in total profit by 2,205.2% during the Reporting Period as compared with the corresponding period of last year was mainly due to the decrease in operating profit of the Company during the Reporting Period;

6. The decrease in income tax expenses by 31.7% during the Reporting Period as compared with the corresponding period of last year was mainly due to decreased income tax payable during the Reporting Period;

7. The decrease in net profit by 238% during the Reporting Period as compared with the corresponding period of last year was mainly due to the decrease in operating profit of the Company during the Reporting Period;

8. The decrease in profit recognized by the merged party before the combination by 72.2% as compared with the corresponding period of last year was mainly due to the decrease in operating profit of the merged party for January and February of the year during the Reporting Period;

9. The decrease in net profit attributable to equity holders of the parent company by 148.6% during the Reporting Period as compared with the corresponding period of last year was mainly due to the decrease in operating profit of the Company during the Reporting Period;

10. The decrease in gains or losses of minority shareholders by 53.4% during the Reporting Period as compared with the corresponding period of last year was mainly due to the decrease in operating profit of the Company as compared with the corresponding period of last year;

11. The decrease in other comprehensive income (net of tax) attributable to equity holders of the parent company by 124.7% during the Reporting Period as compared with the corresponding period of last year was mainly due to change in fair value of availablefor-sale financial assets during the Reporting Period;

12. The decrease in other comprehensive income which may be subsequently reclassified to profit or loss by 124.7% during the Reporting Period as compared with the corresponding period of last year was mainly due to change in fair value of availablefor-sale financial assets during the Reporting Period;

10

1. The increase in shares of other comprehensive income of investees that may be reclassified to profit or loss under the equity method by 397.4% during the Reporting Period was mainly due to substantial changes in other comprehensive income of associates during the Reporting Period;

2. The decrease in gains or losses of in fair value of available-for-sale financial assets by 167.6% during the Reporting Period as compared with the corresponding period of last year was mainly due to change in fair value of available-for-sale financial assets during the Reporting Period;

3. The decrease in difference on foreign currency translation by 131.1% during the Reporting Period as compared with the corresponding period of last year was mainly due to changes in exchange rates during the Reporting Period which led to a decrease in currency translation as compared with the corresponding period of last year;

4. The decrease in total comprehensive income attributable to shareholders of the parent by 236% during the Reporting Period as compared with the corresponding period of last year was mainly due to the decrease in operating profit of the Company during the Reporting Period;

5. The decrease in total comprehensive income attributable to shareholders of the parent by 258% during the Reporting Period as compared with the corresponding period of last year was mainly due to the decrease in operating profit of the Company during the Reporting Period;

6. The decrease in total comprehensive income attributable to minority interests by 62.2% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in operating profit of the Company during the Reporting Period as compared with the corresponding period of last year;

7. The decrease in cash received from sales of goods and provision of services by 39.9% during the Reporting Period as compared with the corresponding period of last year was mainly due to the decrease in cash received from sales of containers during the Reporting Period as compared with the corresponding period of last year;

8. The increase in net increase in deposits from customers and placements from banks and other financial institutions by 189.7% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in net deposits from members of the Group during the Reporting Period as compared with the corresponding period of last year;

9. The increase in net cash received from reinsurance business by 79.5% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in sales of insurance agent business during the Reporting Period;

10. The decrease in tax rebates by 52.5% during the Reporting Period as compared with the corresponding period of last year was mainly due to the decrease in VAT rebates during the Reporting Period;

11. The decrease in cash paid for goods purchased and service rendered by 35% during the Reporting Period was mainly due to the decrease in costs as compared with the corresponding period of last year as a result of the decrease in sales of containers during the Reporting Period;

11

1. The increase in net increase in placements with central bank and other financial institutions by 136.4% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in net increase in placements with central banks during the Reporting Period as compared with the corresponding period of last year;

2. The decrease in cash paid to and on behalf of employees by 49.3% during the Reporting Period as compared with the corresponding period of last year was mainly due to a change in the scope of business combination following the restructuring during the Reporting Period;

3. The increase in net cash inflow from operating activities by 102.1% during the Reporting Period as compared with the corresponding period of last year was mainly due to a larger rate of net increase in deposits from members of the Group than the rate of net increase in placements with central bank during the Reporting Period as compared with the corresponding period of last year;

4. The increase in cash received from disposal of investments by 530.8% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in cash received from the disposal of equity method investments as compared with the corresponding period of last year as a result of the restructuring of the Company during the Reporting Period;

5. The increase in cash received from gains in investment by 110.4% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in the Company’s receipt of proceeds from gains of investment during the Reporting Period as compared with the corresponding period of last year;

6. The increase in cash received from disposal of fixed assets, intangible assets and other long-term assets by 292.4% 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;

7. The decrease 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 absence of monetary funds as a result of restructuring or disposal of subsidiaries for the year;

8. The increase in sub-total of cash inflow from investment activities by 368.5% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in cash received from the disposal of interests in equity method investments as compared with the corresponding period of last year as a result of the restructuring of the Company;

9. The increase in cash paid for investment by 78.1% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in financial wealth management products investment during the Reporting Period as compared with the corresponding period of last year;

10. The increase in other cash received relating to investment activities by 4,635.3% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in cash outflow from the disposal of subsidiaries as compared with the corresponding period of last year as a result of the restructuring of the Company during the Reporting Period;

12

1. The increase in net cash outflow from investment activities by 33.3% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in cash received from the disposal of equity method investments as compared with the corresponding period of last year as a result of the restructuring of the Company during the Reporting Period;

2. The decrease in proceeds received from investments by 100% during the Reporting Period as compared with the corresponding period of last year was mainly due to the capital increase of subsidiaries during the corresponding period of last year which did not occur during the Reporting Period;

3. The decrease in other cash paid relating to financing activities by 100% during the Reporting Period as compared with the corresponding period of last year was mainly due to the absence of cash payment relating to financing activities during the Reporting Period;

4. The increase in cash payments for dividend and profit distribution or interest repayment by 62.1% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in the repayment of interests for the increase in loans during the Reporting Period as compared with the corresponding period of last year;

5. The increase in other cash paid relating to financing activities by 1,494.2% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in acquisition payment for mergers of subsidiaries under common control during the Reporting Period as compared with the corresponding period last year;

6. The decrease in net cash inflow from financing activities by 80.1% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in acquisition payment for mergers of subsidiaries under common control during the Reporting Period as compared with the corresponding period last year;

7. The decrease in effect on cash due to changes in foreign exchange rates by 62.7% during the Reporting Period as compared with the corresponding period of last year was mainly due to changes in foreign currency exchange rates during the Reporting Period;

8. The increase in net increase in cash and cash equivalents by 67.5% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in net cash from operating activities during the Reporting Period as compared with the corresponding period last year.

13

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

√ Applicable □ Not Applicable

The 9th meeting of the 5th Session of the Board of Directors of CSCL was held on 11 October 2016, during which the “resolution in relation to the satisfaction of the criteria for non-public issuance of A Shares of the Company”, the “resolution in relation to the Proposed Non-public Issuance of A Shares of the Company” and other resolutions regarding the Proposed Non-Public Issuance of A Shares were considered and approved by the directors. (Information on the above events have been disclosed on the website of Shanghai Stock Exchange, for further details, please refer to the following temporary announcements: LIN2016-073, LIN2016-074, LIN2016-076, LIN2016-077, LIN2016-078, LIN2016-079, LIN2016-080 and LIN2016-081).

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

• √ Applicable □ Not Applicable

		The		Date and
Background of	Types of	Undertaking	Details of	Deadline of		Executed
Undertaking	Undertaking	Party	Undertaking	Undertaking	Deadline	or Not
Undertakings made in	Other	COSCO	Upon completion of the	The undertaking	No	Yes
the Acquisition Report		SHIPPING Group	gratuitous transfer, and for	was made on 5
and Report on Changes			the period in which the	May 2016
in Equity			COSCO SHIPPING Group
			holds, directly or indirectly,
			the controlling interests of
			the Company, the COSCO
			SHIPPING Group itself, and
			also through COSCO Group and
			China Shipping, will remain
			relatively independent of the
			Company in terms of personnel,
			finance, organization, assets and
			business and strictly comply
			with the relevant regulations
			of CSRC on the independency
			of the listed companies, and
			will not take advantage of
			its position as a controlling
			shareholder to violate the
			regular operating procedures
			for the listed companies or
			intervene in the operating
			decisions of the listed company,
			so that the legal interests of
			the listed company and its
			shareholders will be impaired.
			The COSCO SHIPPING Group
			and other companies under
			its control promise that they
			will not appropriate the funds
			of the listed company and its
			subsidiaries by any means.

14

		The		Date and
Background of	Types of	Undertaking	Details of	Deadline of		Executed
Undertaking	Undertaking	Party	Undertaking	Undertaking	Deadline	or Not
Undertakings made in	Addressing	COSCO	I. For the period in which	The undertaking	No	Yes
the Acquisition Report	competition in the	SHIPPING Group	the COSCO SHIPPING	was made on 5
and Report on Changes	industry		Group holds, directly or	May 2016
in Equity			indirectly, the controlling
			shareholding of the
			Company, the COSCO
			SHIPPING Group and its
			subsidiaries will not take
			any actions or measures
			to be engaged or involved
			in the activities that
			constitute or may constitute
			substantive competition
			with the principal activities
			of the Company and its
			subsidiaries, and will not
			impair the legal interests
			of the Company and its
			subsidiaries, including
			but not limited to future
			establishment of other
			subsidiaries or joint
			ventures or associates to be
			engaged in the businesses
			that constitute substantive
			competition with the
			existing principal activities
			of the Company and its
			subsidiaries, or be involved,
			directly or indirectly, in the
			existing principal activities
			of the Company and its
			subsidiaries by any other
			means.

15

		The		Date and
Background of	Types of	Undertaking	Details of	Deadline of		Executed
Undertaking	Undertaking	Party	Undertaking	Undertaking	Deadline	or Not
			II. If there may be substantive
			competition in principal
			business or substantive
			conflict in interests between
			the Company and the
			COSCO SHIPPING Group
			and the companies under
			its control, the COSCO
			SHIPPING Group will
			give up or procure that the
			companies under its control
			will give up such business
			opportunities that may
			cause such competition, or
			transfer the business that
			may cause such competition
			in its entirety from the
			COSCO SHIPPING Group
			and the companies under
			its control to the Company
			at a fair market price at an
			appropriate time.
			III. The COSCO SHIPPING
			Group will not take
			advantage of the
			information obtained from
			the Company to assist the
			third parties to be engaged
			or involved in any business
			activities that may result
			in substantive or potential
			competition with the
			existing business of the
			Company.

IV. For any breach of the said undertakings on the part of COSCO SHIPPING Group or companies controlled by it that results in reduced interests of shareholders of the Company and other shareholders, COSCO SHIPPING Group shall indemnify the loss in accordance with the laws.

16

		The		Date and
Background of	Types of	Undertaking	Details of	Deadline of		Executed
Undertaking	Undertaking	Party	Undertaking	Undertaking	Deadline	or Not
Undertakings made in	Connected	COSCO	1. The COSCO SHIPPING	The undertaking	No	Yes
the Acquisition Report	transactions	SHIPPING Group	Group and other companies	was made on 5
and Report on Changes			under its control will do	May 2016
in Equity			everything they could
			to avoid unnecessary
			connected transactions
			with the listed company;
			for those connected
			transactions necessary for
			its on-going operations,
			they should be handled in
			a mutually-agreed manner,
			and in compliance with the
			market-oriented pricing
			principles, the requirements
			of the relevant laws,
			regulations and regulatory
			documents as well as the
			articles of association
			of the Company and the
			rules regarding connected
			transactions.
			2. The COSCO SHIPPING
			Group and other companies
			under its control will do
			everything they could to
			avoid and reduce potential
			connected transactions with
			the listed company; for
			the unavoidable connected
			transactions or those
			occurring with a reason, the
			COSCO SHIPPING Group
			will enter into connected
			transaction agreements with
			the Company in compliance
			with the relevant laws,
			regulations and regulatory
			documents as well as the
			articles of association
			of the Company and the
			rules regarding connected
			transactions and following
			the general commercial
			principle of openness,
			fairness and equitability,
			ensure the fairness and
			rule-compliance of the
			connected transactions, and
			carry out the transaction
			procedures and perform
			their information-disclosure
			obligations in accordance
			with the requirements of the
			relevant laws, regulations
			and regulatory documents.

17

		The		Date and
Background of	Types of	Undertaking	Details of	Deadline of		Executed
Undertaking	Undertaking	Party	Undertaking	Undertaking	Deadline	or Not
			3. The COSCO SHIPPING
			Group’s undertakings
			regarding the connected
			transactions will apply to
			the other companies under
			its control with equal effect;
			the COSCO SHIPPING
			Group will procure, within
			the range of its legal
			authority, that the other
			companies under its control
			will perform the obligations
			under the existing or
			potential connected
			transactions between them
			and the listed company.
Undertaking regarding	Competition in the	China Shipping	The assets, staff, finance,	The undertaking	No	Yes
the major asset	industry	Group	entities and business of each of	was made on 11
restructuring			China Shipping Group and the	December 2015
			Company shall be independent
			from each other:
			1. Independence of Assets
			China Shipping Group has
			undertaken that the Company
			shall have complete and
			sole ownership of all of its
			assets, the assets of each of
			China Shipping Group and
			the Company shall be totally
			separated and managed by each
			of China Shipping Group and
			the Company. China Shipping
			Group has undertaken that
			China Shipping Group and
			companies under its control
			shall not appropriate the funds
			and assets of the Company.

18

		The		Date and
Background of	Types of	Undertaking	Details of	Deadline of		Executed
Undertaking	Undertaking	Party	Undertaking	Undertaking	Deadline	or Not
			2. Independence of staff
			China Shipping Group has
			undertaken that the Company
			shall have independent and
			complete management systems
			of labour, human resources and
			wages, and that these systems
			shall be absolutely independent
			from those of China Shipping
			Group. China Shipping Group
			shall propose candidates for
			senior management personnel
			such as directors, supervisors
			and managers in accordance
			with statutory procedures,
			without interfering decisions
			regarding exercise of powers by
			the board and general meeting
			of the Company in relation
			to appointment and removal
			of staff. General managers,
			deputy general managers,
			finance controllers, secretary
			to the board and other senior
			management personnel shall
			solely work for the Company
			and be entitled to remunerations
			paid by the Company. They
			shall not work at China
			Shipping Group and companies
			under its control and/or be
			entitled to any remuneration
			paid by these companies.

19

		The		Date and
Background of	Types of	Undertaking	Details of	Deadline of		Executed
Undertaking	Undertaking	Party	Undertaking	Undertaking	Deadline	or Not
			3. Independence of Finance
			China Shipping Group has
			undertaken that the Company
			shall have independent finance
			functions and independent
			finance auditing systems;
			the Company shall have
			standardized and independent
			financial accounting systems;
			the Company shall maintain
			its independent bank account
			and shall not share any account
			with China Shipping Group and
			companies under its control; the
			finance staff of the Company
			shall not work at China
			Shipping Group and companies
			under its control; the Company
			shall pay tax as an independent
			entity; the Company shall make
			independent financial decisions
			and China Shipping Group
			shall not interfere with usage of
			funds by the Company.
			4. Independence of entities
			China Shipping Group has
			undertaken that the Company
			shall maintain a sound structure
			of corporate governance as
			a limited company and an
			independent and complete
			organization; the general
			meetings, board meetings,
			independent directors, board
			of supervisors and general
			managers of the Company
			shall exercise their powers
			independently in accordance
			with the laws, regulations and
			the Articles of Association of
			the Company.

20

The Date and Background of Types of Undertaking Details of Deadline of Executed Undertaking Undertaking Party Undertaking Undertaking Deadline or Not 5. Independence of business China Shipping Group has undertaken that the Company shall have an independent business management system, assets, staff, qualifications and capabilities required for independent operation of business, and the capability of independent operation in the market for sustainable operation. Other than exercise of rights by shareholders in accordance with the laws, China Shipping Group shall not interfere with the normal course of business of the Company. The undertaking shall be effective as long as the relationship of actual control between China Shipping Group and the Company exists.

Avoidance of competition among industry players:

1. Upon completion of the major asset restructuring, China Shipping Group will not, directly or indirectly, (including but not limited to wholly-own investment, joint venture, cooperation and association) be engaged in or carry out activities that may result in substantive competition with the business of the Company.

21

The Date and Background of Types of Undertaking Details of Deadline of Executed Undertaking Undertaking Party Undertaking Undertaking Deadline or Not 2. In the event that the products produced or businesses carried out by the companies whollyowned, controlled by China Shipping Group or in which it is interested constitute or may constitute competition with those of the Company, upon request of the Company, China Shipping Group undertakes that it will dispose of all its investments or shares in the above-mentioned companies, and promise to offer pre-emptive Rights to the Company or its wholly-owned subsidiaries for such investments or shares within the range of its legal authority, and use best efforts to ensure the prices for the relevant transactions are fair and reasonable and determined on the basis of normal business transactions with independent third parties.

1. In the event of infringement of the above-mentioned undertakings by China Shipping Group or the other companies under its control that cause harm to the interests of the Company and the other shareholders, China Shipping Group will be liable for the compensation.

22

		The		Date and
Background of	Types of	Undertaking	Details of	Deadline of		Executed
Undertaking	Undertaking	Party	Undertaking	Undertaking	Deadline	or Not
			Reduction of connected
			transactions:
			1. China Shipping Group
			and the other companies
			under its control will do
			everything they could to
			avoid or reduce connected
			transactions with the
			Company. For those
			unavoidable or necessary
			connected transactions,
			China Shipping Group
			promises that it will enter
			into legal agreements
			following the general
			commercial principle of
			openness, fairness and
			equitability, carry out legal
			procedures in compliance
			with the relevant laws,
			regulations and regulatory
			documents as well as the
			articles of association
			of the Company and the
			rules regarding connected
			transactions, so as to
			ensure the fairness and
			rule-compliance of the
			connected transactions
			and that no harm is caused
			to the interests of the
			Company and the other
			shareholders as a result of
			the connected transactions,
			while performing their
			information-disclosure
			obligations in accordance
			with the requirements of the
			relevant laws, regulations
			and regulatory documents.

1. China Shipping Group will exercise its rights as a shareholder in strict compliance with the Company Law and articles of association of the Company, and abstain from voting at the general meeting of the Company on the connected transactions in relation to China Shipping Group and the other companies under its control.

23

		The		Date and
Background of	Types of	Undertaking	Details of	Deadline of		Executed
Undertaking	Undertaking	Party	Undertaking	Undertaking	Deadline	or Not
Undertaking regarding	Undertaking	China Shipping	On 29 August 2007, China	29 August 2007	No	Yes
IPO	regarding	Group	Shipping (Group) Company
	addressing		(“China Shipping”) made an
	competitions in the		undertaking of noncompetition
	industry		to the Company, by which:
			1. China Shipping shall adopt
			effective steps to ensure
			that it will not and procure
			its subsidiaries to adopt
			effective steps to ensure
			that they will not engage
			in any business that may
			compete with the container
			transportation business
			and the related business
			which the Company and its
			subsidiaries engage in, or
			have rights or interests in
			such business; where China
			Shipping or its subsidiaries
			are offered any business
			opportunity related to
			container transportation
			business and the related
			business that the Company
			engages or will engage in
			the future, China Shipping
			shall and shall procure its
			subsidiaries to transfer the
			Company or its subsidiaries
			such business opportunities
			without consideration
			and the Company or its
			subsidiaries shall have the
			first rights of refusals to
			such business opportunities.
			2. China Shipping agreed to
			indemnify the Company
			and/or its subsidiaries
			all losses, damages and
			expenses incurred as
			a result of any breach
			of this undertaking by
			China Shipping and/or its
			subsidiaries.

24

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

• √ Applicable □ Not Applicable

In 2016, the Company carried out a material asset restructuring. Through the restructuring the Company is expected to experience a transformation in its business, and change from a container liner operator into an integrated financial services platform focusing on leasing businesses such as vessel leasing, container leasing and non-shipping leasing and featuring shipping finance.

Following the transformation in its business, the Company is expected to experience a change in its revenue and profit to a certain extent as compared with the corresponding period of the last year.

Company name: China Shipping Container Lines Company Limited

Legal representative: Sun Yueying Date: 28 October 2016

25

4 APPENDIx

Financial Statements

Consolidated Balance Sheet 30 September 2016

Prepared by: China Shipping Container Lines Company Limited

Unit: Yuan Currency: RMB Audit type: Unaudited

		Opening balance
Item	Closing balance	(Restated)
Current assets:
Cash and bank balances	19,497,221,530.49	16,783,206,949.31
Balances with clearing companies
Placements with banks and
other financial institutions
Financial assets at fair value
through profit and loss	268,220.25	200,349,058.93
Derivative financial assets
Bills receivable	39,584,192.81	202,294,563.09
Accounts receivable	1,589,491,871.60	2,475,811,768.48
Funds paid in advance	1,386,841,283.14	217,590,211.99
Premiums receivable
Reinsurance accounts receivable	15,714,611.46	9,999,388.57
Deposits receivable from reinsurance treaty
Interests receivable	10,674,479.89	27,308,407.65
Dividends receivable
Other receivables	647,137,969.95	534,212,733.08
Purchases of resold financial assets
Inventories	695,485,598.72	1,238,767,706.63
Assets classified as held-for-sale
Non-current assets due within one year	2,908,158,913.16	2,632,068,490.45
Other current assets	96,439,124.45	126,457,531.94
Total current assets	26,887,017,795.92	24,448,066,810.12

26

Opening balance (Restated)

Item

Closing balance

Non-current assets:
Loans and advances granted	2,485,866,142.50	3,501,522,687.00
Available-for-sale financial assets	2,091,147,017.98	1,349,914,856.02
Held-to-maturity investments
Long-term receivables	12,767,869,754.10	5,680,657,829.41
Long-term equity investment	8,972,664,697.28	12,058,564,887.71
Investment property	7,985,395.38	10,087,334.41
Fixed assets	56,260,988,179.53	54,940,787,093.39
Construction in progress	1,482,285,895.63	1,638,069,223.44
Construction materials
Disposals of fixed assets
Biological assets for production
Fuel assets
Intangible assets	246,164,819.73	249,031,066.55
Development expenditure
Goodwill
Long-term deferred expenses	39,161,744.23	63,799,550.67
Deferred income tax assets	81,464,427.98	56,339,947.77
Other non-current assets	24,644,070.92	34,720,900.36
Total non-current assets	84,460,242,145.26	79,583,495,376.73
Total assets	111,347,259,941.18	104,031,562,186.85
Current liabilities:
Short term borrowings	18,401,381,991.79	12,217,557,864.00
Borrowings from central bank
Deposit taking and deposit in inter-bank market	7,976,035,649.10	4,491,557,906.32
Placements funds
Financial liabilities at fair value
through profit and loss
Derivative financial liabilities
Bills payable	50,500,000.00	1,701,000.00
Accounts payable	2,012,777,557.57	4,025,902,562.97
Funds received in advance	137,347,462.72	144,254,895.39
Funds from disposal of repurchased financial assets
Handling charges and commissions payable
Staff remuneration payable	82,473,559.38	101,777,958.53
Taxes payable	128,787,761.22	253,212,553.03
Interests payable	210,961,153.51	188,553,808.08
Dividends payable	156,787,850.84	15,151,733.31
Other payables	818,505,283.74	1,500,725,031.65
Reinsurance accounts payable	23,778,949.29	14,050,893.77
Deposits for insurance contracts
Customer deposits for trading in securities
Customer deposits for securities underwriting
Liabilities classified as held-for-sale
Non-current liabilities due within one year	8,110,530,873.61	14,479,830,463.42
Other current liabilities	23,665,448.94	837,974.60
Total current liabilities	38,133,533,541.71	37,435,114,645.07

27

Opening balance Closing balance (Restated)

Item

Non-current liabilities:

Long term borrowings 55,988,206,677.06 25,025,086,991.64 Bonds payable 1,448,983,654.37 3,449,493,720.03 Including: Preferred shares Perpetual bonds Long term payables 1,241,263,917.33 729,533,855.04 Long-term staff remuneration payable Specific payables Projected liabilities 25,000,000.00 25,000,000.00 Deferred income 5,200,000.00 Deferred income tax liabilities 250,608,332.02 280,967,896.03 Other non-current liabilities Total non-current liabilities 58,954,062,580.78 29,515,282,462.74 Total liabilities 97,087,596,122.49 66,950,397,107.81 Owners’ equity Share capital 11,683,125,000.00 11,683,125,000.00 Other equity instruments Including: Preferred shares Perpetual bonds Capital reserve 1,306,687,584.85 22,721,743,656.18 Less: treasury shares Other comprehensive income -2,483,860,023.83 -2,291,754,040.85 Special reserve 6,290,570.94 21,089,656.31 Surplus reserve 1,355,762,889.20 1,362,073,031.79 General risk provision 82,279,883.12 65,503,696.05 Retained earnings 1,974,252,763.43 3,021,834,693.00 Total equity attributable to the owner of the parent company 13,924,538,667.71 36,583,615,692.48 Minority interests 335,125,150.98 497,549,386.56 Total owners’ equity 14,259,663,818.69 37,081,165,079.04 Total liabilities and owners’ equity 111,347,259,941.18 104,031,562,186.85

Person-in-charge of Legal representative: accounting affairs: Sun Yueying Zhang Mingwen

Head of the accounting department: Li Rong

28

Balance Sheet of the Parent Company

30 September 2016

Prepared by: China Shipping Container Lines Company Limited

Unit: Yuan Currency: RMB Audit type: Unaudited

Item	Closing balance	Opening balance
Current assets:
Cash and bank balances	5,086,706,292.03	5,611,005,082.75
Financial assets at fair value
through profit and loss
Derivative financial assets
Bills receivable	39,584,192.81	180,245,695.57
Accounts receivable	2,034,706,807.20	762,443,692.10
Funds paid in advance	375,145,879.51	46,164,936.00
Interests receivable	1,541,245.19	38,495,846.42
Dividends receivable	260.43	33,087,853.25
Other receivables	371,183,038.47	138,214,919.79
Inventories	305,526,085.63	573,141,466.61
Assets classified as held-for-sale
Non-current assets due within one year
Other current assets	41,907,839.51
Total current assets	8,256,301,640.78	7,382,799,492.49

29

Closing balance Opening balance

Item

Non-current assets:
Available-for-sale financial assets	340,000,000.00
Held-to-maturity investments	2,003,340,000.00
Long-term receivables
Long-term equity investment	18,177,668,705.92	16,089,211,176.16
Investment property
Fixed assets	14,478,144,586.17	15,116,277,795.73
Construction in progress	210,000.00	210,000.00
Construction materials
Disposals of fixed assets
Biological assets for production
Fuel assets
Intangible assets	8,816,649.73	10,031,873.60
Development expenditure
Goodwill
Long-term deferred expenses	31,205,182.68	39,459,721.93
Deferred income tax assets
Other non-current assets
Total non-current assets	35,039,385,124.50	31,255,190,567.42
Total assets	43,295,686,765.28	38,637,990,059.91
Current liabilities:
Short term borrowings	1,707,866,197.79
Financial liabilities at fair value
through profit and loss
Derivative financial liabilities
Bills payable
Accounts payable	961,732,794.04	3,574,367,511.18
Funds received in advance	28,403,440.97
Staff remuneration payable	35,228,624.21	33,149,002.76
Taxes payable	2,391,969.72	65,631,923.10
Interests payable	41,098,673.50	47,106,000.00
Dividends payable
Other payables	4,590,350,079.35	4,527,195,113.38
Liabilities classified as held-for-sale
Non-current liabilities due within one year	1,953,270,521.06
Other current liabilities
Total current liabilities	9,320,342,300.64	8,247,449,550.42

30

Closing balance Opening balance

Item

Non-current liabilities: Long-term borrowings 7,427,600,000.00 600,000,000.00 Bonds payable 1,796,432,098.56 Including: Preferred shares Perpetual bonds Long term payables Long-term staff remuneration payable Specific payables Projected liabilities 25,000,000.00 25,000,000.00 Deferred income Deferred income tax liabilities Other non-current liabilities Total non-current liabilities 7,452,600,000.00 2,421,432,098.56 Total liabilities 16,772,942,300.64 10,668,881,648.98 Owners’ equity Share capital 11,683,125,000.00 11,683,125,000.00 Other equity instruments Including: Preferred shares Perpetual bonds Capital reserve 16,352,436,385.85 17,296,763,101.95 Less: Treasury shares Other comprehensive income 15,097.55 7,506,475.30 Special reserve Surplus reserve 1,355,762,889.20 1,355,762,889.20 Retained earnings -2,868,594,907.96 -2,374,049,055.52 Total owners’ equity 26,522,744,464.64 27,969,108,410.93 Total liabilities and owners’ equity 43,295,686,765.28 38,637,990,059.91 Person-in-charge of Head of the Legal representative: accounting affairs: accounting department: Sun Yueying Zhang Mingwen Li Rong

31

Consolidated Income Statement January to September 2016

Prepared by: China Shipping Container Lines Company Limited

Unit: Yuan Currency: RMB Audit type: Unaudited

				Amount from
				the beginning of
			Amount from	last year to the
			the beginning of	end of the
		Amount for	the year to	reporting period
	Amount for	the same period	the end of the	last year
	the Reporting	last year (July to	Reporting Period	(January to
	Period (July to	September)	(January to	September)
Item	September)	(Restated)	September)	(Restated)
I. Total operating revenue	3,479,952,271.66	9,068,475,135.50	12,297,782,363.64	27,484,491,246.07
Including: Revenue from operations	3,396,352,638.65	8,986,780,671.69	12,065,241,826.83	27,188,153,244.10
Interest income	75,999,697.36	71,345,030.10	205,320,956.87	268,124,536.79
Premiums earned
Handling charges and commission income	7,599,935.65	10,349,433.71	27,219,579.94	28,213,465.18
II. Total cost of sales	3,541,859,890.92	10,236,695,818.47	13,169,805,026.64	28,293,097,240.87
Including: Operating cost	2,779,491,340.30	9,647,764,234.15	11,024,847,188.00	26,612,902,154.54
Interest expenses	19,693,039.47	11,414,458.47	39,819,778.78	42,219,836.53
Handling charges and commission expenses	159,263.02	41,892.56	285,215.40	130,213.50
Surrender payment
Net expenditure for compensation payments
Net provision for insurance deposits
Policyholder dividend expenses
Reinsurance costs
Business tax and surcharges	758,263.79	12,954,900.93	11,155,309.35	34,210,964.90
Selling expenses	678,089.55	4,706,070.41	9,460,510.71	11,469,950.22
Administrative expenses	161,293,592.72	243,575,259.95	665,159,761.77	906,728,981.49
Finance costs	442,970,107.68	247,382,895.72	1,209,856,181.25	643,718,061.33
Asset impairments loss	136,816,194.39	68,856,106.28	209,221,081.38	41,717,078.36
Add: Ga ins from changes in fair value
(loss is represented by “-”)	6,451.08	11,256.85	-88,016.98	-219,762.85
Inv estment income (loss is represented by “-”)	51,171,526.90	105,773,081.44	62,631,903.17	641,025,005.90
Including: Ga ins from investment in
associates and joint ventures	33,760,529.25	-73,491,286.60	-96,536,093.37	393,086,839.40
Gai ns from foreign currency exchange
(loss is represented by “-”)
III. Profit from operations (loss is represented by “-”)	-10,729,641.28	-1,062,436,344.68	-809,478,776.81	-167,800,751.75
Add: Non-operating income	277,950,338.15	307,473,947.70	357,635,380.95	456,227,392.38
Including: Ga in from disposal of non-current assets	1,089,190.71	122,018,558.46	49,643,676.16	171,907,875.70
Less: Non-operating expense	-1,413,193.26	239,598,685.00	10,539,511.78	266,465,123.30
Including: Lo ss from disposal of
non-current assets	-1,646,983.09	238,169,806.34	4,304,370.59	263,446,553.54
Iv. Total profit (total loss is represented by “-”)	268,633,890.13	-994,561,081.98	-462,382,907.64	21,961,517.33
Less: Income tax expenses	53,783,842.44	73,717,130.05	135,982,261.89	198,982,105.41

32

				Amount from
				the beginning of
			Amount from	last year to the
			the beginning of	end of the
		Amount for	the year to	reporting period
	Amount for	the same period	the end of the	last year
	the Reporting	last year (July to	Reporting Period	(January to
	Period (July to	September)	(January to	September)
Item	September)	(Restated)	September)	(Restated)
v. Net profit (net loss is represented by “-”)	214,850,047.69	-1,068,278,212.03	-598,365,169.53	-177,020,588.08
Ne t profit attributable to the owner of the parent company	205,929,085.54	-1,089,084,397.54	-634,917,959.88	-255,396,481.04
Minority interests	8,920,962.15	20,806,185.51	36,552,790.35	78,375,892.96
vI. Net other comprehensive income after taxes	129,492,703.12	712,043,688.10	-203,655,380.63	766,566,568.86
Ne t other comprehensive income attributable to
owners of the parent company after taxes	132,213,860.32	725,450,142.49	-192,105,982.98	778,810,835.00
(I) Items that may not be reclassified subsequently to
profit or loss
1. Changes in net liabilities or net assets arising from
the re-measurement of defined benefit plans
2. Shares of other comprehensive income of investees
that may not be reclassified to profit or loss under
the equity method
(II) Items that may be subsequently reclassified to profit
or loss	132,213,860.32	725,450,142.49	-192,105,982.98	778,810,835.00
1. Shares of other comprehensive income of investees
that may be reclassified to profit or loss under the
equity method subsequently	91,307,556.46	-40,293,371.27	125,549,862.71	-42,220,404.39
2. Gains or losses from changes in fair value of
available-for-sale financial assets	32,076,693.08	22,043,197.24	-59,034,653.17	87,380,322.89
3. Gains or losses from reclassifying held-to-maturity
investments to available-for-sale financial assets
4. Effective portion of cash flow adjusted for hedging
gains or losses	9,706,555.12	-20,747,902.20	-22,489,196.08	-25,983,735.46
5. Exchange differences from retranslation of
financial statements	-876,944.34	764,448,218.72	-236,131,996.44	759,634,651.96
6. Others
Ne t other comprehensive income attributable
to minority interests after taxes	-2,721,157.20	-13,406,454.39	-11,549,397.65	-12,244,266.14
vII. Total comprehensive income	344,342,750.81	-356,234,523.93	-802,020,550.16	589,545,980.78
To tal comprehensive income attributable to
owners of the parent company	338,142,945.86	-363,634,255.05	-827,023,942.86	523,414,353.96
To tal comprehensive income attributable to
minority shareholders	6,199,804.95	7,399,731.12	25,003,392.70	66,131,626.82
vIII. Earnings per share:
(1) Basic earnings per share (RMB per share)	0.0176	-0.0932	-0.0543	-0.0219
(2) Diluted earnings per share (RMB per share)	0.0176	-0.0932	-0.0543	-0.0219

For the business combination under common control effected in the current period, the net profit recognized by the merged party before the combination was RMB239,160,194.9, and the net profit recognized by the merged party in the previous period was RMB860,784,524.04.

Person-in-charge of Head of the Legal representative: accounting affairs: accounting department: Sun Yueying Zhang Mingwen Li Rong

33

Income Statement of the Parent Company January to September 2016

Prepared by: China Shipping Container Lines Company Limited

Unit: Yuan Currency: RMB Audit type: Unaudited

					Amount from
				Amount from	the beginning of
				the beginning of	last year to the
				the year to	end of the
		Amount for	Amount for	the end of the	reporting period
		the Reporting	the same period	Reporting Period	last year
		Period (July to	last year (July to	(January to	(January to
Item		September)	September)	September)	September)
I. Revenue from operations		608,010,568.97	3,402,662,382.68	3,118,763,786.84	10,319,231,268.24
Less: Operating cost		820,435,523.87	3,875,502,524.04	3,423,908,117.99	10,928,233,174.14
	Business tax and surcharges		3,509,426.42	1,056,301.78	10,086,555.24
	Selling expenses
	Administrative expenses	41,810,017.47	45,354,535.43	219,163,420.49	298,244,677.14
	Finance costs	100,684,158.34	8,343,670.37	276,323,921.45	9,390,264.88
	Asset impairments loss	-4,005,188.94	169,694.41	-11,429,973.99	52,729.58
Add: Ga ins from changes in fair value
	(loss is represented by “-”)
	Investment income (loss is represented
	by “-”)	2,871,506.21	40,911,852.61	40,782,853.02	183,799,469.93
	Including: Ga ins from investment in
	associates and joint ventures	-1,253,315.71	68,261,852.61	13,196,735.57	162,014,969.93
II. Pr ofit from operations (loss is represented
by “-”)		-348,042,435.56	-489,305,615.38	-749,475,147.86	-742,976,662.81
Add: Non-operating income		243,933,382.56	170,659,047.38	255,805,867.05	252,255,081.98
	Including: Ga in from disposal of
	non-current assets			167,025.64	1,934.59
Less: Non-operating expense		334,800.39	209,064,714.22	876,571.63	211,112,065.73
	Including: Lo ss from disposal of
	non-current assets	-9,107.96	195,498,434.94	16,798.91	196,891,671.71
III. Total profit (total loss is represented by “-”)		-104,443,853.39	-527,711,282.22	-494,545,852.44	-701,833,646.56
Less: Income tax expenses
Iv. Net	profit (net loss is represented by “-”)	-104,443,853.39	-527,711,282.22	-494,545,852.44	-701,833,646.56

34

					Amount from
				Amount from	the beginning of
				the beginning of	last year to the
				the year to	end of the
		Amount for	Amount for	the end of the	reporting period
		the Reporting	the same period	Reporting Period	last year
		Period (July to	last year (July to	(January to	(January to
Item		September)	September)	September)	September)
v. Net	other comprehensive income after taxes		-3,441,147.54		13,426,947.29
(I)	Items that may not be reclassified
	subsequently to profit or loss
	1. Changes in net liabilities or net assets arising from
	the remeasurement of
	defined benefit plans
	2. Shares of other comprehensive income of investees
	that may not be reclassified to profit or loss under
	the equity method
(II)	Items that may be subsequently reclassified
	to profit or loss		-3,441,147.54		13,426,947.29
	1. Shares of other comprehensive income of investees
	that may be reclassified to profit or loss under the
	equity method subsequently		-3,441,147.54		13,426,947.29
	2. Gains or losses from changes in fair value of
	available-for-sale financial assets
	3. Gains or losses from reclassifying held-to-maturity
	investments to available-for-sale financial assets
	4. Effective portion of cash flow adjusted for hedging
	gains or losses
	5. Exchange differences from retranslation of
	financial statements
	6. Others
vI. Total comprehensive income		-104,443,853.39	-531,152,429.76	-494,545,852.44	-688,406,699.27
vII. Earnings per share:
(1)	Basic earnings per share (RMB per share)
(2)	Diluted earnings per share (RMB per share)
		Person-in-charge	of	Head of the
	Legal representative:	accounting affairs:		accounting department:
	Sun Yueying	Zhang Mingwen		Li Rong

35

Consolidated Cash Flow Statement January to September 2016

Prepared by: China Shipping Container Lines Company Limited

Unit: Yuan Currency: RMB Audit type: Unaudited

		Amount from
		the beginning of
	Amount from	last year to
	the beginning	the end of the
	of the year to	reporting period
	the end of the	last year
	Reporting Period	(January to
	(January to	September)
Item	September)	(Restated)
I. Cash flow from operating activities:
Ca sh received from sales of goods and
provision of services	18,863,439,557.53	31,369,004,519.16
Ne t increase in deposits from customers and
placements from banks and other financial
institutions	3,484,477,742.78	-3,883,149,118.60
Net increase in borrowings from central bank
Ne t increase in placements from other
financial institutions
Ca sh received from premiums of original
insurance contracts
Net cash received from reinsurance business	28,610,684.18	15,937,720.08
Ne t increase in deposits from policyholders
and investments
Ne t increase in disposal of financial assets
at fair value through profit and loss
Ca sh received from interest, handling charges
and commissions	221,194,723.67	234,239,614.22
Ne t increase in capital due to banks and
other financial institutions
Net increase in repurchases business fund
Tax rebates	250,756,508.57	527,655,376.10
Ot her cash received from activities related
to operation	636,911,470.35	597,184,456.49
Sub-total of cash inflows from operating activities	23,485,390,687.08	28,860,872,567.45
Cash paid for goods purchased and service rendered	16,307,178,845.51	25,090,094,048.59
Net increase in loans and advances to customers	-1,041,699,020.00	-981,909,340.00
Ne t increase in placements with central bank and
other financial institutions	318,289,386.29	-873,702,913.30
Ca sh paid for claims on original insurance contracts
Ca sh payment for interest, handling charges and
commissions	36,257,004.50	49,746,808.83
Cash payment for policyholder dividend
Cash paid to and on behalf of employees	892,102,200.25	1,758,331,738.91
Taxes paid	318,311,520.69	380,518,659.99
Other cash paid for activities relating to operation
activities	394,586,903.09	340,538,029.42
Sub-total of cash outflow from operating activities	17,225,026,840.33	25,763,617,032.44
Net cash flows from operating activities	6,260,363,846.75	3,097,255,535.01

36

					Amount from
					the beginning of
				Amount from	last year to
				the beginning	the end of the
				of the year to	reporting period
				the end of the	last year
		Reporting Period			(January to
				(January to	September)
Item				September)	(Restated)
II. Cash flow from investment activities:
Cash received from disposal of investments			5,158,874,812.17		817,872,687.86
Cash received from gains in investments				236,668,356.21	112,470,549.55
Ne t cash received from disposal of fixed assets,
intangible assets and other long-term assets			1,243,834,568.61		316,957,492.49
Ne t cash received from disposal of subsidiaries and
other operating entities					169,733,440.00
Other cash received relating to investment activities
Sub-total of cash inflow from investment activities			6,639,377,736.99		1,417,034,169.90
Ca sh paid for purchase of fixed assets, intangible
assets and other long-term assets			9,048,256,060.56		7,765,955,665.44
Cash paid for investment			2,323,773,698.60		1,304,803,698.54
Net increase in pledged loans
Ne t cash paid for acquiring subsidiaries and other
operating entities
Other cash paid related to investment activities				379,077,430.20	8,005,312.74
Su b-total of cash outflow from investment activities		11,751,107,189.36			9,078,764,676.72
Net cash flow from investment activities		-5,111,729,452.37			-7,661,730,506.82
III. Cash flow from financing activities:
Proceeds received from investments					1,320,000,000.00
Including: Pr oceeds received by subsidiaries from
minority shareholder’s investment
Cash received from borrowings	120,322,454,065.79				93,225,351,101.28
Cash received from issue of bonds
Cash received relating to other financing activities					3,497,062,100.00
Sub-total of cash inflow from financing activities	120,322,454,065.79				98,042,413,201.28
Cash paid for repayment of debts		83,578,284,682.51			89,387,660,970.65
Ca sh payments for dividend and profit distribution or
interest repayment			1,586,290,723.54		978,597,720.66
Including: Di vidend and profit paid by subsidiary
to minority shareholders
Other cash paid relating to financing activities		34,054,067,634.94			2,136,181,776.72
Sub-total of cash outflow from financing activities	119,218,643,040.99				92,502,440,468.03
Net cash flow from financing activities			1,103,811,024.80		5,539,972,733.25
Iv. Effect on cash and cash equivalents due to
changes in foreign exchange rates				207,612,766.06	557,271,972.83
v. Net increase in cash and cash equivalents			2,460,058,185.24		1,532,769,734.27
Add: Ba lance of cash and cash equivalents at the
beginning of the period		15,860,939,443.04			14,314,872,869.02
vI.Balance of cash and cash equivalents at
the end of the period		18,320,997,628.28			15,847,642,603.29
Person-in-charge of					Head of the
Legal representative: accounting affairs:				accounting department:
Sun Yueying Zhang Mingwen					Li Rong

37

Cash Flow Statement of the Parent Company January to September 2016

Prepared by: China Shipping Container Lines Company Limited

Unit:Yuan Currency:RMB Audit type:Unaudited

		Amount from
	Amount from	the beginning of
	the beginning	last year to the
	of the year to	end of the
	end of the	reporting period
	Reporting Period	last year
	(January to	(January to
Item	September)	September)
I. Cash flow from operating activities:
Ca sh received from sales of goods and
provision of services	2,480,236,495.43	8,082,474,159.57
Tax rebates	139,816,028.82	158,223,450.07
Ot her cash received from activities related
to operation	228,166,402.89	317,755,151.99
Sub-total of cash inflow from operating activities	2,848,218,927.14	8,558,452,761.63
Cash paid for goods purchased and service rendered	5,491,542,114.87	6,533,062,369.99
Cash paid to and on behalf of employees	488,282,150.42	570,607,477.81
Taxes paid	77,983,245.92	115,283,786.16
Other cash paid for activities related to operation	436,248,121.60	437,540,708.27
Sub-total of cash outflow from operating activities	6,494,055,632.81	7,656,494,342.23
Net cash flow from operating activities	-3,645,836,705.67	901,958,419.40
II. Cash flow from investment activities:
Cash received from disposal of investments	4,725,253,113.39
Cash received from gains in investments	243,491,037.45	121,782,558.99
Ne t cash received from disposal of fixed assets,
intangible assets and other long-term assets	168,942.93	46,198,519.61
Ne t 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	4,968,913,093.77	167,981,078.60
Ca sh paid for purchase of fixed assets, intangible
assets and other long-term assets	3,374,548.86	23,628,261.83
Cash paid for investment	10,273,166,400.00
Ne t cash paid for acquiring subsidiaries and other
operating entities		10,000,000.00
Other cash paid relating to investment activities
Sub-total of cash outflow from investment activities	10,276,540,948.86	33,628,261.83
Net cash flow from investment activities	-5,307,627,855.09	134,352,816.77

38

			Amount from
		Amount from	the beginning of
		the beginning	last year to the
		of the year to	end of the
		end of the	reporting period
	Reporting Period		last year
		(January to	(January to
Item		September)	September)
III. Cash flow from financing activities:
Proceeds received from investments
Cash received from borrowings		8,767,966,197.79	611,960,000.00
Cash received relating to other financing activities
Sub-total of cash inflow from financing	activities	8,767,966,197.79	611,960,000.00
Cash paid for repayment of debts		199,876,889.08	999,476,000.00
Ca sh payments for dividend and profit distribution
or interest repayment		77,500,000.00	101,726,666.25
Other cash paid relating to financing activities		34,134,879.18
Sub-total of cash outflow from financing activities		311,511,768.26	1,101,202,666.25
Net cash flow from financing activities		8,456,454,429.53	-489,242,666.25
Iv. Effect on cash and cash equivalents due	to
changes in foreign exchange rates		-27,388,659.49	98,795,497.03
v. Net increase in cash and cash equivalents		-524,398,790.72	645,864,066.95
Add: Ba lance of cash and cash equivalents	at the
beginning of the Reporting Period		5,610,905,082.75	5,394,887,115.75
vI. Balance of cash and cash equivalents at
the end of the Reporting Period		5,086,506,292.03	6,040,751,182.70
Person-in-charge of			Head of the
Legal representative: accounting affairs:		accounting department:
Sun Yueying	Zhang Mingwen		Li Rong

39

AUDIT REPORTS

□Applicable √ Not Applicable

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 Sun Yueying Chairman

Shanghai, the PRC 28 October 2016

The Board as at the date of this announcement comprises of Ms. Sun Yueying, Mr. Wang Daxiong, Mr. Liu Chong and Mr. Xu Hui, being executive Directors, Mr. Feng Boming, Mr. Huang Jian and Mr. Chen Dong, being non-executive Directors, and Mr. Cai Hongping, Mr. Tsang Hing Lun, Ms. Hai Chi Yuet and Mr. Graeme Jack, 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”.

40