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

Apr 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.

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

(Stock code: 02866)

2016 FIRST 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 first quarter of 2016 (“ Reporting Period ”) will be published on the Shanghai Stock Exchange on 29 April 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 All members of the board of directors of the Company attended the board of directors meeting for review and approval of the Quarterly Report.

• 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 this Quarterly Report.

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

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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 with
	As at the end of the	As at the end of	the end of
	Reporting Period	previous year	previous year
		(Restated)	(%)
Total assets	102,824,379,987.26	107,546,124,220.07	-4.39
Net assets attributable to equity
holders of the Company	18,019,307,518.42	40,100,916,906.34	-55.07
		From the beginning
	From the beginning	of the previous year	Increase/decrease
	of the year to the	to the end of the	as compared with
	end of the	reporting period of	the corresponding
	Reporting Period	previous year	period of last year
		(Restated)	(%)
Net cash flow from operating
activities	696,225,792.30	976,475,399.48	-28.70
		From the beginning
	From the beginning	of the previous year	Increase/decrease
	of the year to the	to the end of the	as compared with
	end of the	reporting period of	the corresponding
	Reporting Period	previous year	period of last year
		(Restated)	(%)
Revenue	5,317,247,541.86	9,100,198,405.59	-41.57
Net profit attributable to equity
holders of the Company	-859,475,165.12	685,513,472.00	-225.38
Net profit attributable to equity
holders of the Company, excluding
extraordinary gains or losses	-1,019,431,503.38	677,130,498.32	-250.55
Weighted average return			Decreased by 6.21
on net assets_(%)_	-4.60	1.61	percentage points
Basic earnings per share
(Yuan/share)	-0.0736	0.0587	-225.38
Diluted earnings per share
(Yuan/share)	-0.0736	0.0587	-225.38

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Extraordinary gains or losses items and amounts:

√ Applicable □ Not Applicable

Unit: Yuan Currency: RMB

Item Gain/loss from disposal of non-current assets Go vernment 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 gains or losses of minority shareholders (after tax) Impact of income tax Total

Amount for the Reporting Period 147,552,112.44 13,846,833.22 2,270,004.00 -3,392,240.25 -320,371.15

159,956,338.26

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)

498,853

Top 10 shareholders

	Number of		Number of
	shares held at the		shares subject	Number of shares
	end of the	Shareholding	to trading	pledged or frozen		Nature of
Name of shareholders (Full name)	Reporting Period	(%)	moratorium	Status	Number	shareholders
China Shipping (Group) Company	4,410,624,386	37.75	0	Nil	0	State-owned
						corporation
HKSCC NOMINEES LIMITED	3,733,074,025	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 Corporation	388,674,125	3.33	0	Nil	0	State-owned
						corporation
China Securities Finance Corporation Limited	195,314,795	1.67	0	Nil	0	State-owned
						corporation
Huaxia Life Insurance Co., Ltd.	74,699,812	0.64	0	Nil	0	Domestic non-
– Universal Insurance Products						state-owned
						legal person
Central Huijin Asset Management Ltd.	65,454,300	0.56	0	Nil	0	State-owned
						corporation
Aegon Industrial Fund – Bank of Shanghai	33,399,288	0.29	0	Nil	0	Non-state-owned
– China Shipping (Group) Company						legal person
Bank of China Limited – ChinaAMC New	15,538,922	0.13	0	Nil	0	Domestic non-
Economy Flexible Configured Hybrid						state-owned
Securities Investment Fund						legal person
China Construction Bank Corporation –E Fund	10,914,065	0.09	0	Nil	0	Domestic non-
Mergers and Acquisitions Index Classified						state-owned
Securities Investment Fund						legal person

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Top 10 shareholders who are not subject to trading moratorium

	Number of
	shares not subject
	to trading	Type and number of shares held
Name of shareholders	moratorium held	Type	Number of shares
China Shipping (Group) Company	4,410,624,386	RMB ordinary shares	4,410,624,386
		Overseas listed
HKSCC NOMINEES LIMITED	3,733,074,025	foreign shares	3,733,074,025
Guoxin Investment Co., Ltd.	467,325,000	RMB ordinary shares	467,325,000
State Development & Investment
Corporation	388,674,125	RMB ordinary shares	388,674,125
China Securities Finance
Corporation Limited	195,314,795	RMB ordinary shares	195,314,795
Huaxia Life Insurance Co., Ltd.
– Universal Insurance Products	74,699,812	RMB ordinary shares	74,699,812
Central Huijin Asset Management Ltd.	65,454,300	RMB ordinary shares	65,454,300
Aegon Industrial Fund – Bank of
Shanghai – China Shipping (Group)
Company	33,399,288	RMB ordinary shares	33,399,288
Bank of China Limited – ChinaAMC
New Economy Flexible Configured
Hybrid Securities Investment Fund	15,538,922	RMB ordinary shares	15,538,922
China Construction Bank Corporation
Limited – E Fund Mergers and
Acquisitions Index Classified Securities
Investment Fund	10,914,065	RMB ordinary shares	10,914,065
Explanation of the connected	(1) The shares held by	China Shipping (Group) Company were not
relationship or acting in concert	pledged, frozen or under custody and etc. during the Reporting
relationship among the above	Period.
shareholders:

(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.

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.

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• 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

3. SIGNIFICANT EvENTS

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

The First EGM 2016 of China Shipping Container Lines Company Limited was convened on 1 February 2016, during which resolutions regarding material assets restructuring plan of the Company were considered and approved. For details of the material assets restructuring, please refer to the Report in Relation to Major Asset Disposal and Major Asset Acquisition and Connected Transactions of China Shipping Container Lines Company Limited.

As at 31 March 2016, the disposal of 29 subsidiaries including Shanghai Puhai Shipping Co., Ltd. and China Shipping (Singapore) Petroleum Pte. Ltd. under the material assets restructuring was completed.

As at 31 March 2016, a total of eight subsidiaries obtained through business combination under common control as a results of the material assets restructuring, i.e. Helen Insurance Brokers Limited, China Shipping Nauticgreen Holding Company Limited, Dong Fang International Investment Limited, Florens Container Holdings Limited, Long Honour Investments Limited, China Shipping Leasing Co., Ltd., China Shipping Investment Co. Ltd. and China Shipping Finance Co., Ltd., had completed consolidation with the Company.

According to the “PRC Accounting Standards for Business Enterprises No.33 – Consolidated Financial Statements”, combination of entities or businesses under common control in the reporting period shall be treated as if the reporting entity formed after the consolidation had been in existence since the ultimate controlling party started to exercise effective control.

In compliance with the Accounting Standards for Business Enterprises, we have restated the figures for the beginning of the period in the Consolidated Balance Sheet, the figures for previous period in the Consolidated Income Statement and Consolidated Cash Flow Statement of the 2016 First Quarterly Report of the Company.

√ Applicable □ Not Applicable

• 1) The decrease in financial assets at fair value through profit and loss by 89.24% 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 51.87% 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;

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• 3) The increase in reinsurance accounts receivable by 49.46% 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;

• 4) The decrease in interest receivable by 44.03% 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;

• 5) The decrease in inventories by 54.37% 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;

• 6) The decrease in non-current assets due within one year by 30.09% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the transfer out of investment projects during the year after completing the procedures that remained unfinished last year;

• 7) The decrease in other current assets by 91.65% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to restructuring and a change in the scope of business combination following the disposal of subsidiaries during the Reporting Period;

• 8) The decrease in loans and advances granted by 45.93% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to recovery of loans granted by members of the Group during the Reporting Period;

• 9) The increase in long-term receivables by 30.02% 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 37.46% 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 following the disposal of subsidiaries during the Reporting Period;

• 11) The increase in deferred income tax assets by 36.01% 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;

• 12) The decrease in other current assets by 83.17% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to transferal of wealth management to non-current assets with a maturity of one year during the Reporting Period;

• 13) The increase in short term borrowings by 94.61% 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;

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• 14) The increase in deposit taking and deposit in inter-bank market by 41.45% 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;

• 15) The increase in bills payable by 4814.76% 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 investment projects during the Reporting Period;

• 16) The decrease in funds received in advance by 34.24% 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 following disposal of subsidiaries during the Reporting Period;

• 17) The decrease in staff remuneration payable by 31.47% 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 following disposal of subsidiaries during the Reporting Period;

• 18) The decrease in taxes payable by 74.21% 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 of the scope of business combination following disposal of subsidiaries during the Reporting Period;

• 19) The decrease in dividends payable by 100% 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 of the scope of business combination following disposal of subsidiaries during the Reporting Period;

• 20) The increase in reinsurance accounts payable by 76.73% 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;

• 21) The decrease in non-current liabilities due within one year by 69.14% 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;

• 22) The decrease in other current liabilities by 98.55% at the end of the Reporting Period as compared with the Reporting Period was mainly due to repayment of current liabilities during the Reporting Period;

• 23) The increase in long-term borrowings by 64.50% 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;

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• 24) 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 restructuring of the Company and a change in the scope of business combination following disposal of subsidiaries during the Reporting Period;

• 25) The increase in non-current liabilities by 54.22% 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;

• 26) The decrease in capital reserve by 82.90% 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;

• 27) The decrease in special reserve by 88.34% 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 following the disposal of subsidiaries during the Reporting Period;

• 28) The decrease in total equity attributable to equity holders of the parent company by 55.07% during the Reporting Period was mainly due to restated figures for the beginning period as a result of business combination under common control;

• 29) The decrease in minority interests by 34.51% 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;

• 30) The decrease in total shareholders’ equity by 54.81% 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;

• 31) The decrease in total operating revenue by 41.55% 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;

• 32) The decrease in operating revenue by 41.57% 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;

• 33) The decrease in interest income by 46.75% during the Reporting Period as compared with the corresponding period of the last year was mainly due to the decrease in bank interest rate;

• 34) The increase in handling charges and commission income by 33.43% during the Reporting Period as compared with the corresponding period of the last year was mainly due to the increase in insurance agent business as compared with the corresponding period of last year;

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• 35) The decrease in operating cost by 30.18% 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;

• 36) The decrease in interest expenses by 64.47% during the Reporting Period as compared with the corresponding period of the last year was mainly due to the decrease in bank interest rate;

• 37) The increase in handling charges and commission expenses by 93.83% during the Reporting Period as compared with the corresponding period of the last year was mainly due to increase in payment of bank handling charges as compared with the corresponding period of the last year;

• 38) The decrease in business tax and surcharges by 40.98% 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;

• 39) The decrease in selling expenses by 189.54% during the Reporting Period as compared with the corresponding period of last year was mainly due to a decrease in the sales of shipping containers and the price for shipping container business that resulted in the decrease in transportation service fees;

• 40) The increase in finance costs by 77.60% during the Reporting Period as compared with the corresponding period of last year was mainly due to increase in borrowings from banks during the Reporting Period as compared with the corresponding period of last year that resulted in the increase in interest expenses as compared with the corresponding period of last year;

• 41) The increase in asset impairments loss by 186.72% during the Reporting Period as compared with the corresponding period of last year was mainly due to the provision for bad debts in respect of account receivables due;

• 42) The decrease in investment income by 55.65% 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;

• 43) The decrease in gains in investment from associates and joint ventures by 144.39% 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;

• 44) The decrease in operating profit by 209.99% 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;

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• 45) The decrease in non-operating income by 37.90% during the Reporting Period as compared with the corresponding period of last year was mainly due to the decrease of VAT rebates during the Reporting Period as compared with the corresponding period of last year;

• 46) The increase in non-operating expense by 809.70% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in loss from disposal of non-current assets during the Reporting Period as compared with the corresponding period of last year;

• 47) The increase in loss from disposal of non-current assets during the Reporting Period by 2503.90% as compared with the corresponding period of last year was mainly due to the increase in disposal of container fixed assets during the Reporting Period as compared with the corresponding period of last year;

• 48) The decrease in total profit by 203.43% 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;

• 49) The decrease in net profit by 216.91% 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;

• 50) The decrease in net profit attributable to equity holders of the parent company by 225.38% 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;

• 51) The decrease in gains or losses of minority shareholders by 47.97% 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;

• 52) The decrease in other comprehensive income (net of tax) attributable to equity holders of the parent company by 244.56% 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;

• 53) The decrease in other comprehensive income which may be subsequently reclassified to profit or loss by 244.56% 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;

• 54) The increase in shares of other comprehensive income of investees that may be reclassified to profit or loss under the equity method by 3556.24% during the Reporting Period was mainly due to changes in fair value of available-for-sale financial assets of associates during the Reporting Period;

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• 55) The decrease in gains or losses of in fair value of available-for-sale financial assets by 199.55% 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;

• 56) The decrease in the valid part of hedging profit or loss of cash flows by 61.86% during the Reporting Period as compared with the corresponding period of last year was mainly due to change in market value of hedging instruments during the Reporting Period;

• 57) The decrease in difference on foreign currency translation by 250.69% 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;

• 58) The decrease in total comprehensive income attributable to shareholders of the parent by 220.19% 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;

• 59) The decrease in total comprehensive income attributable to shareholders of the parent by 227.92% 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;

• 60) The decrease in total comprehensive income attributable to minority interests by 63.76% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in operating profit of the Company during the Reporting Period as compared with the corresponding period of last year;

• 61) The increase in net increase in deposits from customers and placements from banks and other financial institutions by 131.38% 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;

• 62) The increase in net cash received from reinsurance business by 378.75% 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;

• 63) The decrease in cash received from interest, handling charges and commissions by 92.52% during the Reporting Period as compared with the corresponding period of last year was mainly due to the decrease in cash received from bank interest during the Reporting Period;

• 64) The decrease in tax rebates by 80.84% 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 as compared with the corresponding period of last year;

• 65) The decrease in sub-total of cash inflows from operating activities by 45.04% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in net increase in deposits from members of the Group during the Reporting Period;

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• 66) The increase in net increase in loans and advances to customers by 624.17% during the Reporting Period as compared with the corresponding period of last year was mainly due to net increase in loans granted to members of the Group during the Reporting Period;

• 67) The increase in net increase in placements with central bank and other financial institutions by 152.36% during the Reporting Period was mainly due to the increase in net increase in placements with central banks during the Reporting Period;

• 68) The decrease in cash payment for interest, handling charges and commissions by 78.75% during the Reporting Period as compared with the corresponding period of last year was mainly due to the decrease in payment for bank interest and handing charges during the Reporting Period;

• 69) The increase in taxes paid by 40.47% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in various taxes paid during the Reporting Period;

• 70) The increase in sub-total of cash outflow from operating activities by 54.58% 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;

• 71) The increase in cash received from disposal of investments by 1969.16% during the Reporting Period as compared with the corresponding period of last year was mainly due to restructuring of the Company and net cash received from disposal of subsidiaries during the Reporting Period;

• 72) The increase in cash received from gains in investment by 137.06% 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;

• 73) The increase in cash received from disposal of fixed assets, intangible assets and other long-term assets by 620.73% 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;

• 74) The decrease in net cash received from disposal of subsidiaries and other operating entities by 2539.68% during the Reporting Period as compared with the corresponding period of last year was mainly due to restructuring that resulted in disposal of monetary funds at carrying amounts of subsidiaries;

• 75) The increase in sub-total of cash inflow from investment activities by 1138.79% during the Reporting Period as compared with the corresponding period of last year was mainly due to restructuring of the Company that resulted in the increase in disposal of cash received from disposal of investments of subsidiaries;

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• 76) The increase in cash paid for purchase of fixed assets, intangible assets and other long-term assets by 151.48% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in containers purchased during the Reporting Period as compared with the corresponding period of last year;

• 77) The increase in cash paid for investment by 4832.69% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in cash paid by the Company for acquisition of subsidiaries for restructuring during the Reporting Period as compared with the corresponding period of last year;

• 78) The increase in sub-total of cash outflow from investment activities by 1657.17% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in cash paid by the Company for acquisition of subsidiaries for restructuring during the Reporting Period as compared with the corresponding period of last year;

• 79) The decrease in net cash flow from investment activities by 1756.55% during the Reporting Period as compared with the corresponding period of last year was mainly due to restructuring of the Company that resulted in the increase in net cash outflow for acquisition and disposal of subsidiaries in restructuring;

• 80) 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;

• 81) The increase in cash received from borrowings obtained by 260.82% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase of funds received from bank borrowings during the Reporting Period as compared with the corresponding period of last year;

• 82) The increase in sub-total of cash inflows of financing activities by 255.00% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase of funds received from bank borrowings obtained during the Reporting Period as compared with the corresponding period of last year;

• 83) The increase in cash paid for repayment of debts by 95.03% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in cash paid for repayment of bank loans during the Reporting Period as compared with the corresponding period of last year;

• 84) The increase in cash payments for dividend and profit distribution or interest repayment by 233.35% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in dividend distribution during the Reporting Period;

• 85) The increase in sub-total of cash outflow from financing activities by 95.90% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase of repayment of debts during the Reporting Period as compared with the corresponding period of last year;

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• 86) The increase in net cash flows from financing activities by 1882.97% during the Reporting Period as compared with the corresponding period of last year was mainly due to the net increase in bank loans during the Reporting Period as compared with the corresponding period last year;

• 87) The decrease in effect on cash due to changes in foreign exchange rates by 707.61% 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;

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

• √ Applicable □ Not Applicable

At the first 2016 Extraordinary General Meeting of the Company held on 1 February 2016, the relevant resolution with respect to Material Asset Restructuring, along with the Report in Relation to Major Asset Disposal and Major Asset Acquisition and Connected Transactions of China Shipping Container Lines Company Limited, was considered and approved. (Please refer to Announcement 2016-007 of the Company for details)

As at 31 March 2016, other than the transactions with respect to Material Asset Restructuring involving sales of 100% equity interests in China Shipping Container Lines Agency (Shenzhen) Co.(中海集裝箱運輸代理（深圳）有限公司), acquisition of 100% equity interests in Universal Logistics Co.,Ltd. (深圳中海五洲物流有限公司),acquisition of 13.67% of the China Bohai Bank Co., Ltd. (渤海銀行股份有限公司) and COSCO Finance Co., Ltd. capital increase that require approvals from the competent authorities, all other transactions have been completed. (Please refer to the announcements of EGM 2016-015, EGM 2016-016, EGM2016-018, EGM2016-022, EGM2016-023)

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

√ Applicable □ Not Applicable

Background of the	Types of	The	Details of the Undertaking	Date of
Undertakings	Undertaking	Undertaking	Non-competition undertaking	Undertaking
		Party
Undertaking with	Undertaking	China Shipping	To avoid competition among	The undertaking
respect to Material	with respect	Group	industry players:	was made on 11
Asset Restructuring	to avoid			December 2015
	competition		1. Following the completion
	among industry		of the major asset
	players		restructuring, China
	and reduce		Shipping Group shall not
	connected		directly or indirectly engage
	transactions		in business activities that
			compete or may compete
			with the businesses that
			the Company engages in,
			including but not limited
			to wholly-owned business,
			joint ventures, cooperation
			enterprises and associates.
			2. For any product to be
			produced or any business
			to be engaged by wholly-
			owned companies,
			subsidiaries or joint stock
			companies that compete
			or may compete with the
			Company, China Shipping
			Group has undertaken
			that it shall transfer its
			contribution or shares
			in the enterprises upon
			the Company’s request,
			and shall ensure that the
			Company or its wholly-
			owned subsidiaries will
			have the first right of refusal
			to the said contribution
			or shares in accordance
			with laws and regulations.
			China Shipping Group shall
			also use best endeavours
			to ensure that the prices
			of such transactions are
			fair and reasonable and
			determined by independent
			third parties on the basis of
			normal practice of business
			transactions.

15

Background of the Types of The Undertakings Undertaking Undertaking Party

Details of the Undertaking	Date of
Non-competition undertaking	Undertaking
3. For any breach of the
said undertakings on the
part of China Shipping
Group or companies
controlled by it that results
in reduced interests of
shareholders of CSCL
and other shareholders,
China Shipping Group
shall indemnify the loss in
accordance with the laws.
Reduce connected transactions:

1. China Shipping Group and other companies under its control shall avoid or reduce connected transactions with the Company as much as possible. For those unavoidable or necessary connected transactions, China Shipping Group has undertaken that it shall enter into agreements in accordance with the laws and on the principles of equality, fairness and open at the market, and shall complete statutory procedures in accordance with laws and regulations, governing documents and the Articles of Associations of the Company. China Shipping Group has further undertaken that it shall ensure that all connected transactions are fair and in compliance with the laws, and that it shall not cause harm to the legal interests of the Company and other shareholders through connected transactions, and shall make disclosure of information in a timely matter in accordance with relevant laws and regulations and governing documents.

16

Background of the	Types of	The	Details of the Undertaking	Date of
Undertakings	Undertaking	Undertaking	Non-competition undertaking	Undertaking
		Party
			2. China Shipping Group
			shall exercise the rights of
			shareholders in accordance
			with the Company Law and
			other laws and regulations
			as well as the relevant
			requirements as stipulated
			in Articles of Association of
			the Company; it shall refrain
			from voting in respect of
			any resolution proposed
			at the general meeting of
			the Company in relation to
			connected transactions with
			China Shipping Group and
			other companies under its
			control.
	Undertaking	China Shipping	The assets, staff, finance,	The undertaking
	with respect to	Group	entities and business of each	was made on 11
	maintaining the		of China Shipping Group and	December 2015
	independence of		CSCL shall be independent
	the Company		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.

17

Background of the Types of The Details of the Undertaking Date of Undertakings Undertaking Undertaking Non-competition undertaking Undertaking Party 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.

1. 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.

18

Background of the Types of The Details of the Undertaking Date of Undertakings Undertaking Undertaking Non-competition undertaking Undertaking Party 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. 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.

19

Background of the	Types of	The	Details of the Undertaking	Date of
Undertakings	Undertaking	Undertaking	Non-competition undertaking	Undertaking
		Party
Undertaking regarding	Undertaking	China Shipping	On 29 August 2007, China	29 August 2007
IPO	regarding	Group	Shipping (Group) Company
	addressing		(“China Shipping Group”)
	competitions in		made an undertaking of non-
	the industry		competition to the Company,
			by which: 1. China Shipping
			Group 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 Group 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 Group
			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 Group and/
			or its subsidiaries.

20

• 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.

4 APPENDIx

4.1 Financial Statements

Consolidated Balance Sheet

31 March 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	16,139,867,667.35	16,783,206,956.37
Balances with clearing companies
Placements with banks and
other financial institutions
Financial assets at fair value
through profit and loss	21,556,206.34	200,349,058.94
Derivative financial assets
Bills receivable	97,372,896.40	202,294,563.09
Accounts receivable	2,416,914,451.62	2,485,222,550.33
Funds paid in advance	237,275,487.47	217,590,212.40
Premiums receivable
Reinsurance accounts receivable	21,047,952.34	14,083,090.83
Deposits receivable from reinsurance treaty
Interests receivable	17,896,363.48	31,976,579.07
Dividends receivable
Other receivables	543,903,313.94	537,694,779.97
Purchases of resold financial assets
Inventories	565,292,535.62	1,238,767,706.63
Assets classified as held-for-sale
Non-current assets due within one year	1,843,694,273.60	2,637,349,705.79
Other current assets	10,557,590.47	126,457,531.94
Total current assets	21,915,378,738.63	24,474,992,735.36

21

Item

Opening balance Closing balance (restated)

Non-current assets:
Loans and advances granted	1,893,267,625.00	3,501,522,687.00
Available-for-sale financial assets	1,164,783,887.54	1,199,914,856.02
Held-to-maturity investments
Long-term receivables	7,417,866,131.13	5,705,382,093.38
Long-term equity investment	11,660,117,425.00	14,835,677,992.89
Investment property	7,888,570.30	10,087,334.41
Fixed assets	56,822,322,102.56	55,626,585,832.22
Construction in progress	1,554,508,946.78	1,638,069,223.44
Construction materials
Disposals of fixed assets
Biological assets for production
Fuel assets
Intangible assets	240,634,142.89	249,031,066.55
Development expenditure
Goodwill
Long-term deferred expenses	39,899,551.40	63,799,550.67
Deferred income tax assets	76,625,943.86	56,339,947.77
Other non-current assets	31,086,922.17	184,720,900.36
Total non-current assets	80,909,001,248.63	83,071,131,484.71
Total assets	102,824,379,987.26	107,546,124,220.07
Current liabilities:
Short term borrowings	23,922,287,418.40	12,292,557,868.37
Borrowings from central bank
Deposit taking and deposit in inter-bank market	6,353,482,556.14	4,491,557,906.32
Placements funds
Financial liabilities at fair value
through profit and loss
Derivative financial liabilities
Bills payable	83,600,000.00	1,701,000.00
Accounts payable	2,844,498,984.28	4,023,404,979.33
Funds received in advance	96,399,998.57	146,604,303.32
Funds from disposal of
repurchased financial assets
Handling charges and commissions payable
Staff remuneration payable	69,743,751.19	101,777,958.65
Taxes payable	65,293,279.18	253,215,169.84
Interests payable	231,673,045.39	190,052,627.87
Dividends payable		15,151,733.31
Other payables	799,995,103.09	1,075,000,960.63
Reinsurance accounts payable	38,056,844.88	21,534,224.97
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	3,894,889,748.57	12,623,007,999.22
Other current liabilities	26,906,639.81	1,851,513,974.60
Total current liabilities	38,426,827,369.50	37,087,080,706.43

22

Item

Opening balance Closing balance (restated)

Non-current liabilities:

Long term borrowings Bonds payable Including: Preferred shares Perpetual bonds Long term payables Long-term staff remuneration payable Specific payables Projected liabilities Deferred income Deferred income tax liabilities Other non-current liabilities Total non-current liabilities Total liabilities

Owners’ equity

Share capital Other equity instruments Including: Preferred shares Perpetual bonds Capital reserve Less: treasury shares Other comprehensive income Special reserve Surplus reserve General risk provision Retained earnings Total equity attributable to the owner of the parent company Minority interests Total owners’ equity Total liabilities and owners’ equity

41,709,317,968.42	25,355,760,157.25
3,315,745,939.48	3,449,493,747.17
710,607,175.45	712,490,303.73
352,554.94	601,381.81
25,000,000.00	25,000,000.00
	5,200,000.00
274,617,668.51	295,545,012.59
17,088,000.00	17,088,000.00
46,052,376,751.86	29,860,577,220.74
84,479,204,121.36	66,947,657,927.17
11,683,125,000.00	11,683,125,000.00
4,294,220,514.72	25,108,574,195.51
-2,326,412,119.54	-2,170,321,215.55
2,459,021.72	21,089,656.31
1,355,762,889.20	1,362,073,031.79
65,503,696.04	65,503,696.04
2,944,648,516.28	4,030,872,542.24
18,019,307,518.42	40,100,916,906.34
325,868,347.48	497,549,386.56
18,345,175,865.90	40,598,466,292.90
102,824,379,987.26	107,546,124,220.07

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

Head of the accounting department: Li Rong

23

Balance Sheet of the Parent Company 31 March 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	3,229,082,095.82	5,611,005,082.75
Financial assets at fair value
through profit and loss
Derivative financial assets
Bills receivable	97,372,896.40	180,245,695.57
Accounts receivable	485,131,343.38	762,443,692.10
Funds paid in advance	49,192,356.72	46,164,936.00
Interests receivable	8,905,219.92	38,495,846.42
Dividends receivable	251.99	33,087,853.25
Other receivables	402,337,442.63	138,214,919.79
Inventories	331,310,312.91	573,141,466.61
Assets classified as held-for-sale
Non-current assets due within one year
Other current assets
Total current assets	4,603,331,919.77	7,382,799,492.49
Non-current assets:
Available-for-sale financial assets
Held-to-maturity investments	1,938,360,000.00
Long-term receivables
Long-term equity investment	18,180,505,255.11	16,089,211,176.16
Investment property
Fixed assets	14,902,899,065.66	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	9,712,496.91	10,031,873.60
Development expenditure
Goodwill
Long-term deferred expenses	36,708,208.85	39,459,721.93
Deferred income tax assets
Other non-current assets
Total non-current assets	35,068,395,026.53	31,255,190,567.42
Total assets	39,671,726,946.30	38,637,990,059.91

24

Opening balance (restated)

Item

Closing balance

Current liabilities: Short term borrowings Financial liabilities at fair value through profit and loss Derivative financial liabilities Bills payable Accounts payable 1,848,346,805.49 3,574,367,511.18 Funds received in advance Staff remuneration payable 43,247,649.21 33,149,002.76 Taxes payable -26,690,029.93 65,631,923.10 Interests payable 71,949,888.53 47,106,000.00 Dividends payable Other payables 3,879,764,399.08 4,527,195,113.38 Liabilities classified as held-for-sale Non-current liabilities due within one year Other current liabilities Total current liabilities 5,816,618,712.38 8,247,449,550.42 Non-current liabilities: Long-term borrowings 5,660,100,000.00 600,000,000.00 Bonds payable 1,796,432,098.56 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 7,481,532,098.56 2,421,432,098.56 Total liabilities 13,298,150,810.94 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 16,352,436,305.85 17,296,763,101.95 Less: Treasury shares Other comprehensive income 15,097.56 7,506,475.30 Special reserve Surplus reserve 1,355,762,889.20 1,355,762,889.20 Retained earnings -3,017,763,157.25 -2,374,049,055.52 Total owners’ equity 26,373,576,135.36 27,969,108,410.93 Total liabilities and owners’ equity 39,671,726,946.30 38,637,990,059.91 Person-in-charge of Head of the accounting Legal representative: accounting affairs: department: Zhang Guofa Zhang Mingwen Li Rong

25

Consolidated Income Statement January to March 2016

Prepared by: China Shipping Container Lines Company Limited

Unit: Yuan Currency: RMB Audit type: Unaudited

			Amount for the
		Amount for the	same period
Item		Reporting Period	last year (restated)
I.	Total operating revenue	5,391,286,892.75	9,223,737,864.46
	Including: Revenue from operations	5,317,247,541.86	9,100,198,405.59
	Interest income	60,304,220.08	113,245,696.23
	Premiums earned
	Handling charges and
	commission income	13,735,130.81	10,293,762.64
II.	Total cost of sales	6,297,827,490.64	8,696,381,086.89
	Including: Operating cost	5,642,450,460.92	8,081,721,490.31
	Interest expenses	12,379,613.17	34,844,482.41
	Handling charges and
	commission expenses	-16,620.76	-269,341.13
	Surrender payment
	Net expenditure for compensation
	payments
	Net provision for insurance deposits
	Policyholder dividend expenses
	Reinsurance costs
	Business tax and surcharges	6,905,765.98	11,700,819.29
	Selling expenses	-63,358,293.01	70,763,671.56
	Administrative expenses	347,855,753.45	350,070,055.51
	Finance costs	322,227,498.27	181,432,269.63
	Asset impairments loss	29,383,312.62	-33,882,360.69
	Add: Gains from changes in fair value
	(loss is represented by “–”)	-93,854.73	-150,593.17
	Investment income
	(loss is represented by “–”)	93,617,849.88	211,102,797.04
	Including: Gains from investment
	associates and joint
	ventures	-67,005,113.84	150,932,298.75
	Gains from foreign currency exchange
	(loss is represented by “–”)	398,470.43	498,222.90
III.	Profit from operations
	(loss is represented by “–”)	-812,618,132.31	738,807,204.34
	Add: Non-operating income	23,716,627.32	38,190,861.84
	Including: Gain from disposal of
	non-current assets	6,263,716.65	7,755,850.34
	Less: Non-operating expense	13,224,730.32	1,453,744.56
	Including: Loss from disposal of
	non-current assets	11,888,656.87	456,571.98
Iv.	Total profit (total loss is represented by “–”)	-802,126,235.31	775,544,321.62
	Less: Income tax expenses	39,482,955.85	55,690,883.97

26

				Amount for the
			Amount for the	same period
Item			Reporting Period	last year (restated)
v.	Net	profit (net loss is represented by “–”)	-841,609,191.16	719,853,437.65
	Net	profit attributable to the owner of the
	parent company		-859,475,165.12	685,513,472.00
	Minority interests		17,865,973.96	34,339,965.65
vI.	Net	other comprehensive income after taxes	-155,413,635.25	109,697,568.29
	Net	other comprehensive income
	attributable to owners of the parent
	company after taxes		-151,711,656.69	104,950,784.12
	(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	-151,711,656.69	104,950,784.12
		1. Shares of other comprehensive income
		of investees that may be reclassified to
		profit or loss under the equity method
		subsequently	15,257,261.76	-441,441.00
		2. Gains or losses from changes in fair
		value of available-for-sale financial
		assets	-82,373,329.45	82,747,579.14
		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	-26,138,218.08	-16,148,691.26
		5. Exchange differences from retranslation
		of financial statements	-58,457,370.92	38,793,337.24
		6. Others
	Net	other comprehensive income attributable
	to minority interests after taxes		-3,701,978.56	4,746,784.17
**vII. **	Total comprehensive income		-997,022,826.41	829,551,005.94
	Total comprehensive income attributable to
	owners of the parent company		-1,011,186,821.81	790,905,697.12
	Total comprehensive income attributable to
	minority shareholders		14,163,995.40	39,086,749.82
vIII.Earnings per share:
	(1)	Basic earnings per share (RMB per share)	-0.0736	0.0587
	(2)	Diluted earnings per share (RMB per share)	-0.0736	0.0587

For the business combination under common control effected in the current period, the net profit recognized by the merged party before the combination was RMB221,843,608.69, and the net profit recognized by the merged party in the previous period was RMB490,337,437.15.

Person-in-charge of accounting affairs: Zhang Mingwen

Head of the accounting department: Li Rong

Legal representative: Zhang Guofa

27

Income Statement of the Parent Company January to March 2016

Prepared by: China Shipping Container Lines Company Limited

Unit: Yuan Currency: RMB Audit type: Unaudited

				Amount for the
			Amount for the	same period last
Item			Reporting Period	year (restated)
I.	Revenue from operations		1,959,549,755.14	3,400,749,325.85
	Less: Operating cost		2,442,807,564.69	3,336,699,569.63
		Business tax and surcharges	1,054,881.38	2,927,895.63
		Selling expenses
		Administrative expenses	148,343,528.21	141,443,283.15
		Finance costs	63,455,009.05	7,452,854.85
		Asset impairments loss		1,845,963.11
	Add: Gains from changes in fair value
		(loss is represented by “–”)
		Investment income
		(loss is represented by “–”)	47,608,931.96	39,030,493.96
		Including: Gains from investment in
		associates and joint ventures	-22,245,830.60	39,030,493.96
II.	Profit from operations
	(loss is represented by “–”)		-648,502,296.23	-50,589,746.56
	Add: Non-operating income		2,720,747.33	24,067,005.21
		Including: Gain from disposal of
		non-current assets	143,521.37	13,216.64
	Less: Non-operating expense		469,322.79	516,932.13
		Including: Loss from disposal of
		non-current assets	25,948.42	67,763.99
III.	Total profit (total loss is represented by “–”)		-646,250,871.69	-27,039,673.48
	Less: Income tax expenses
Iv.	Net profit (net loss is represented by “–”)		-646,250,871.69	-27,039,673.48
v.	Net other comprehensive income after taxes		-2,839,212.08	16,143,431.69
	(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

28

Amount for the Amount for the same period last Reporting Period year (restated)

Item

	(II)	Items that may be subsequently reclassified to	Items that may be subsequently reclassified to
		profit or loss		-2,839,212.08	16,143,431.69
		1.	Shares of other comprehensive income
			of investees that may be reclassified to
			profit or loss under the equity method
			subsequently	-2,839,212.08	16,143,431.69
		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			-649,090,083.77	-10,896,241.79
vII.	Earnings per share:
	(1)	Basic earnings per share (RMB per share)		-0.0736	0.0608
	(2)	Diluted earnings per share (RMB per share)		-0.0736	0.0608
			Person-in-charge of	Head of the accounting
	Legal representative: accounting affairs:			department:
		Zhang Guofa Zhang Mingwen			Li Rong

29

Consolidated Cash Flow Statement January to March 2016

Prepared by: China Shipping Container Lines Company Limited

Unit: Yuan Currency: RMB Audit type: Unaudited

			Amount
			for the same
		Amount for the	period last
Item		Reporting Period	year (restated)
I.	Cash flow from operating activities:
	Cash received from sales of goods and
	provision of services	11,087,497,765.28	11,572,498,028.43
	Net increase in deposits from customers
	and placements from banks and
	other financial institutions	1,054,787,670.46	-3,361,493,557.28
	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	18,281,906.65	-6,558,565.61
	Net increase in deposits from policyholders
	and investments
	Net increase in disposal of financial assets
	at fair value through profit and loss
	Cash received from interest, handling
	charges and commissions	4,909,784.59	65,676,780.16
	Net increase in capital due to banks and
	other financial institutions
	Net increase in repurchases business fund
	Tax rebates	18,814,596.51	98,192,642.30
	Other cash received from activities related
	to operation	176,979,517.36	154,274,553.66
	Sub-total of cash inflows from
	operating activities	12,361,271,240.85	8,522,589,881.66
	Cash paid for goods purchased and service
	rendered	7,068,853,633.57	9,503,805,103.63
	Net increase in loans and advances to
	customers	1,900,415,680.00	-362,559,058.08
	Net increase in placements with central
	bank and other financial institutions	1,511,909,989.86	-2,887,484,423.95
	Cash paid for claims on original insurance
	contracts
	Cash payment for interest, handling charges
	and commissions	2,104,750.22	9,905,882.41
	Cash payment for policyholder dividend
	Cash paid to and on behalf of employees	504,795,625.53	508,441,922.06
	Taxes paid	192,824,202.43	137,268,097.17
	Other cash paid for activities relating
	to operation activities	484,141,566.94	636,736,958.94
	Sub-total of cash outflow from
	operating activities	11,665,045,448.55	7,546,114,482.18
	Net cash flows from operating activities	696,225,792.30	976,475,399.48

30

Amount for the same Amount for the period last Reporting Period year (restated)

			Amount for the	Amount for the same period last
Item			Reporting Period	year (restated)
II.	Cash flow from investment activities:
	Cash received from disposal of investments		4,762,702,076.61	230,176,118.52
	Cash received from gains in investments		2,666,950.38	1,124,987.46
	Net cash received from disposal of fixed
	assets, intangible assets and other
	long-term assets		311,545,435.18	43,226,118.95
	Net cash received from disposal of
	subsidiaries and other operating entities	-1,111,641,921.58		45,565,148.31
	Other cash received relating to investment
	activities
	Sub-total of cash inflow from
	investment activities		3,965,272,540.59	320,092,373.24
	Cash paid for purchase of fixed assets,
	intangible assets and other long-term assets		3,394,398,910.14	1,349,766,240.16
	Cash paid for investment	31,569,228,674.21		640,000,000.00
	Net increase in pledged loans
	Net cash paid for acquiring subsidiaries
	and other operating entities
	Other cash paid related to investment activities
	Sub-total of cash outflow from
	investment activities	34,963,627,584.35		1,989,766,240.16
	Net cash flow from investment activities	-20,858,707,317.31		-1,669,673,866.92
III.	Cash flow from financing activities:
	Proceeds received from investments			320,000,000.00
	Including: Proceeds received by
	subsidiaries from minority
	shareholder’s investment
	Cash received from borrowings	70,484,754,368.00		19,534,719,124.00
	Cash received from issue of bonds
	Cash received relating to other financing activities
	Sub-total of cash inflow from
	financing activities	70,484,754,368.00		19,854,719,124.00
	Cash paid for repayment of debts	41,349,215,703.44		21,201,229,917.78
	Cash payments for dividend and profit distribution
	or interest repayment		628,098,970.43	188,421,809.03
	Including: Dividend and profit paid by
	subsidiary to minority shareholders		276,987,579.91
	Other cash paid relating to financing activities		44,525,114.84	61,445,332.35
	Sub-total of cash outflow from financing activities	42,021,839,788.71		21,451,097,059.16
	Net cash flow from financing activities	28,462,914,579.29		-1,596,377,935.16
Iv.	Effect on cash and cash equivalents due to
	changes in foreign exchange rates		-103,129,530.77	16,973,064.29
v.	Net increase in cash and cash equivalents	-1,942,344,202.94		-2,272,603,338.31
	Add: Balance of cash and cash equivalents at the
	beginning of the period	15,338,783,901.87		13,303,650,867.00
vI.	Balance of cash and cash equivalents at the end
	of the period	13,396,439,698.93		11,031,047,528.69
	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 January to March 2016

Prepared by: China Shipping Container Lines Company Limited

Unit: Yuan Currency: RMB Audit type: Unaudited

			Amount
			for the same
		Amount for the	period last
Item		Reporting Period	year (restated)
I.	Cash flow from operating activities:
	Cash received from sales of goods and
	provision of services	1,900,780,182.92	2,054,180,036.40
	Tax rebates	16,609,683.32
	Other cash received from activities related
	to operation	187,392,802.86	285,099,396.06
	Sub-total of cash inflow from
	operating activities	2,104,782,669.10	2,339,279,432.46
	Cash paid for goods purchased and
	service rendered	4,061,173,479.89	1,362,535,766.99
	Cash paid to and on behalf of employees	208,283,046.03	180,734,166.91
	Taxes paid	65,961,744.85	29,770,022.49
	Other cash paid for activities related to
	operation	155,560,026.60	85,692,155.22
	Sub-total of cash outflow from
	operating activities	4,490,978,297.37	1,658,732,111.61
	Net cash flow from operating activities	-2,386,195,628.27	680,547,320.85
II.	Cash flow from investment activities:
	Cash received from disposal of investments	3,850,493,313.45
	Cash received from gains in investments	239,366,215.53	45,565,148.31
	Net cash received from disposal of fixed assets,
	intangible assets and other long-term assets	143,521.37	-10,886.99
	Net cash received from disposal of
	subsidiaries and other operating entities	664,759,799.94
	Other cash received relating to investment activities
	Sub-total of cash inflow from
	investment activities	4,754,762,850.29	45,554,261.32
	Cash paid for purchase of fixed assets, intangible
	assets and other long-term assets	1,112,132.50	13,025,980.58
	Cash paid for investment	1,965,480,000.00
	Net cash paid for acquiring subsidiaries
	and other operating entities	7,757,686,403.92
	Other cash paid relating to investment activities
	Sub-total of cash outflow from
	investment activities	9,724,278,536.42	13,025,980.58
	Net cash flow from investment activities	-4,969,515,686.13	32,528,280.74

32

				Amount
				for the same
			Amount for the	period last
Item		Reporting Period		year (restated)
III.	Cash flow from financing activities:
	Proceeds received from investments
	Cash received from borrowings		5,060,100,000.00
	Cash received relating to other financing activities
	Sub-total of cash inflow from
	financing activities		5,060,100,000.00
	Cash paid for repayment of debts			387,292,500.00
	Cash payments for dividend and profit
	distribution or interest repayment		4,764,837.42	5,789,191.34
	Other cash paid relating to financing activities		18,253,561.28	9,682,331.62
	Sub-total of cash outflow from
	financing activities		23,018,398.70	402,764,022.96
	Net cash flow from financing activities		5,037,081,601.30	-402,764,022.96
Iv.	Effect on cash and cash equivalents due to
	changes in foreign exchange rates		-63,293,273.83	9,157,665.46
v.	Net increase in cash and cash equivalents	-2,381,922,986.93		319,469,244.09
	Add: Balance of cash and cash equivalents
	at the beginning of the Reporting Period		5,611,005,082.75	5,394,887,115.75
vI.	Balance of cash and cash equivalents
	at the end of the Reporting Period		3,229,082,095.82	5,714,356,359.84
	Person-in-charge of		Head of the accounting
	Legal representative: accounting affairs:		department:
	Zhang Guofa Zhang Mingwen			Li Rong
4.2	AUDIT REPORTS

□ Applicable √ Not Applicable

33

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 Chairman Zhang Guofa

Shanghai, the PRC 28 April 2016

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. Ding Nong, Mr. Yu Zenggang, Mr. Yang Jigui, Mr. Han Jun and Mr. Chen Jihong, being non-executive Directors, and Ms. Zhang Nan, Mr. Guan Yimin, Mr. Shi Xin, 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”.

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