COSCO SHIPPING Development Co., Ltd. — Interim / Quarterly Report 2020

Apr 29, 2020

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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中遠海運發展股份有限公司 COSCO SHIPPING Development Co., Ltd.*

(A joint stock limited company incorporated in the People’s Republic of China with limited liability) (Stock Code: 02866)

2020 FIRST QUARTERLY REPORT

In accordance with the applicable rules of the Shanghai Stock Exchange of the People’s Republic of China (the “ PRC ”) (the “ Shanghai Stock Exchange ”) (being the stock exchange on which the A shares of COSCO SHIPPING Development Co., Ltd. (the “ Company ” or “ COSCO SHIPPING Development ”, together with its subsidiaries, the “ Group ”) are listed), the quarterly report (the “ Quarterly Report ”) of the Company for the first quarter of 2020 (the “ Reporting Period ”) will be published on the Shanghai Stock Exchange on 29 April 2020. 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 Inside Information Provisions (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 confirm the truthfulness, accuracy and completeness of this Quarterly Report and that there are no false information, misleading statements, or material omissions contained therein; and severally and jointly accept legal responsibility thereof.

• 1.2 All members of the board of directors of the Company attended the meeting of the board of directors for the review and approval of this Quarterly Report.

• 1.3 Wang Daxiong, the person-in-charge of the Company, Lin Feng, the person-in-charge of accounting affairs, and Zhang Mingming, the head of the accounting department (officer in charge of accounting) have confirmed the truthfulness, accuracy and completeness of the financial statements contained in this Quarterly Report.

• 1.4 The First Quarterly Report of the Company has not been audited.

1

2. COMPANY PROFILE

2.1 Principal financial data

Unit: Yuan Currency: RMB

			Increase/
			decrease at the
			end of the
			Reporting Period
			as compared
	As at the	As at the	with the end
	end of the	end of the	of the previous
	Reporting Period	previous year	year (%)
Total assets	154,435,089,022.71	144,494,117,837.27	6.88
Net assets attributable to equity
holders of the listed company	24,430,069,013.53	24,207,718,480.05	0.92
		From the	Increase/
	From the	beginning of the	decrease as
	beginning of the	previous year	compared with the
	year to the	to the end of the	corresponding
	end of the	reporting period	period of
	Reporting Period	of previous year	last year (%)
Net cash flow from operating
activities	1,060,951,788.02	1,860,238,114.02	-42.97
		From the	Increase/
	From the	beginning of the	decrease as
	beginning of the	previous year	compared with the
	year to the	to the end of the	corresponding
	end of the	reporting period	period of
	Reporting Period	of previous year	last year (%)
Revenue	3,443,612,007.07	3,200,968,180.02	7.58
Net profit attributable to equity
holders of the listed company	341,957,733.55	596,375,913.68	-42.66
Net profit attributable to equity
holders of the listed company,
excluding extraordinary gains
or losses	332,576,408.84	585,596,142.53	-43.21
Weighted average return on net			Decreased by 1.54
assets (%)	1.67	3.21	percentage points
Basic earnings per share
(RMB per share)	0.0249	0.0511	-51.27
Diluted earnings per share
(RMB per share)	0.0249	0.0511	-51.27

2

Items and amounts of extraordinary gains or losses

• √ Applicable □ Not Applicable

Unit: Yuan Currency: RMB

Item Gain/loss from disposal of non-current assets Government grants recognized in the income statement for the period (exclusive of those that are closely related to the normal operation of the Company and continuously 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 Income tax effect Total

Amount for the Reporting Period 6,725,467.06 9,749,405.14 -4,740,405.25 -2,353,142.24 9,381,324.71

3

2.2 Total number of shareholders, shareholding of the top 10 shareholders and the top 10 tradable shareholders (or shareholders who are not subject to selling restrictions) as at the end of the Reporting Period

Unit: Shares

Total number of shareholders (household)

331,764

Shareholding of the top 10 shareholders

			Number of
	Number of		shares subject
	shares held at the	Percentage	to selling	Number of shares		Nature of
Name of shareholders (Full name)	end of the period	(%)	restrictions	pledged or frozen		shareholders
				Status of	Number
				shares
China Shipping Group Company Limited	4,410,624,386	38.00%	0	Nil	0	State-owned
						corporation
HKSCC NOMINEES LIMITED	3,655,665,225	31.49%	0	Unknown	Unknown	Foreign
						corporation
State Development & Investment Corporation	247,909,807	2.14%	0	Nil	0	State-owned
						corporation
China Securities Finance Corporation Limited	210,853,717	1.82%	0	Nil	0	State-owned
						corporation
Guoxin Investment Co., Ltd.	93,717,779	0.81%	0	Nil	0	State-owned
						corporation
A securities account of COSCO Shipping
Development Co., Ltd. designated for						State-owned
repurchase	79,627,003	0.69%	0	Nil	0	corporation
Central Huijin Asset Management Ltd.	65,454,300	0.56%	0	Nil	0	State-owned
						corporation
Hong Kong Securities Clearing Company Ltd.	54,325,661	0.47%	0	Nil	0	Other
Agricultural Bank of China Limited –
CSI 500 Exchange Traded Fund	35,363,472	0.30%	0	Nil	0	Other
Aegon Industrial Fund – Bank of Shanghai –
China Shipping (Group) Company	33,399,288	0.29%	0	Nil	0	Other

4

Shareholding of the top 10 shareholders who are not subject to selling restrictions

		Number of shares	Number of shares
			not subject
			to selling
Name of shareholders		restrictions held		Type and number of shares
				Type	Number
China Shipping Group Company Limited		4,410,624,386		RMB ordinary shares	4,410,624,386
HKSCC NOMINEES LIMITED		3,655,665,225		Overseas listed foreign shares	3,655,665,225
State Development & Investment Corporation			247,909,807	RMB ordinary shares	247,909,807
China Securities Finance Corporation Limited			210,853,717	RMB ordinary shares	210,853,717
Guoxin Investment Co., Ltd.			93,717,779	RMB ordinary shares	93,717,779
A securities account of COSCO Shipping
Development Co., Ltd. designated for
repurchase			79,627,003	RMB ordinary shares	79,627,003
Central Huijin Asset Management Ltd.			65,454,300	RMB ordinary shares	65,454,300
Hong Kong Securities Clearing Company Ltd.			54,325,661	RMB ordinary shares	54,325,661
Agricultural Bank of China Limited –
CSI 500 Exchange Traded Fund			35,363,472	RMB ordinary shares	35,363,472
Aegon Industrial Fund –
Bank of Shanghai –
China Shipping (Group) Company			33,399,288	RMB ordinary shares	33,399,288
Explanation of the connected	(1)	The shares held by		China Shipping Group Company Limited were not,
relationship or acting-in-concert		among	other things,	pledged, frozen or under custody during the Reporting
relationship among the above		Period.
shareholders

  - (2) HKSCC NOMINEES LIMITED is a private company, the principal business of which is holding shares for other companies or individuals.

  - (3) At the end of the Reporting Period, China Shipping Group Company Limited directly held 4,410,624,386 A shares in COSCO SHIPPING Development, representing 38.00% of its entire share capital; 47,570,789 A shares in COSCO SHIPPING Development through collective scheme, representing 0.41% of its entire share capital; thus held an aggregate of 4,458,195,175 A shares in COSCO SHIPPING Development, representing 38.41% of its entire share capital.

  - (4) At the end of the Reporting Period, China Shipping Group Company Limited held 100,944,000 H shares in COSCO SHIPPING Development, representing approximately 0.87% of its entire share capital.

  - (5) The Company was not notified of any connected relationship or acting-inconcert relationship among the above shareholders.

• 2.3 Total number of holders of preference shares, shareholding of the top 10 holders of preference shares and top 10 holders of preference shares who are not subject to selling restrictions as at the end of the Reporting Period

• 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

• The increase in cash by 65.15% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the increase of the financing scale of the Company and the recovery of cash upon the maturity of trust wealth management products during the Reporting Period;

• The decrease in trading financial assets by 94.28% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the redemption of trust wealth management products upon maturity during the Reporting Period;

• The increase in bills receivable by 477.04% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the increase in businesses settled by bills during the Reporting Period;

• The increase in prepayments by 300.89% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to increase of prepayments for purchase of materials during the Reporting Period;

• The increase in reinsurance accounts receivable by 733.14% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the expansion of the insurance agency business during the Reporting Period;

• The decrease in other receivables by 63.37% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the recovery of transfer receivables during the Reporting Period;

• The decrease in other current assets by 53.00% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the decrease in deductible input tax during the Reporting Period;

• The increase in other non-current assets by 41.68% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the changes of variable gains or losses in interest rate swap contracts during the Reporting Period;

• The increase in other current liabilities at the end of the Reporting Period was mainly due to the new issuance of super short-term commercial papers during the Reporting Period;

• The increase in reinsurance accounts payable by 319.44% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the expansion of in the insurance agency business during the Reporting Period;

• The decrease in lease liabilities by 33.04% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the payment of lease payment during the Reporting Period;

6

1. The increase in other non-current liabilities by 133.49% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the changes of variable gains or losses in interest rate swap contracts during the Reporting Period;

2. The increase in special reserve by 68.32% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the special reserve provided as required but not used during the Reporting Period;

3. The increase in handling charges and commission income by 100.46% during the Reporting Period as compared with the corresponding period of last year was mainly due to the expansion of the insurance agency business during the Reporting Period;

4. The increase in other gains by 214.80% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in government grants that are related to the normal operation during the Reporting Period;

5. The decrease in gains from changes in fair value by 137.93% during the Reporting Period as compared with the corresponding period of last year was mainly due to the decrease in gains from changes in fair value of financial assets held during the Reporting Period as compared with the corresponding period of last year;

6. The increase in credit impairment loss by 95.92% during the Reporting Period as compared with the corresponding period of last year was mainly due to the increase in receivables as compared with the beginning of the Reporting Period;

7. The decrease in gains from disposal of assets by 50.62% during the Reporting Period as compared with the corresponding period of last year was mainly due to the decrease in gains from disposal of containers during the Reporting Period as compared with the corresponding period of last year of last year;

8. The decrease in non-operating income by 87.14% during the Reporting Period as compared with the corresponding period of last year was mainly due to the decrease in income from compensation during the Reporting Period as compared with the corresponding period of last year;

9. The decrease in income tax expenses by 49.97% during the Reporting Period as compared with the corresponding period of last year was mainly due to the decrease in the income tax payable during the Reporting Period as compared with the corresponding period of last year;

10. The decrease in net profit by 42.66% during the Reporting Period as compared with the corresponding period of last year was mainly due to the decrease in gains from changes in fair value during the Reporting Period as compared with the corresponding period of last year;

11. The decrease in net cash inflow from operating activities by 42.97% 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 goods and provision of services during the Reporting Period;

12. The increase in net cash inflow from financing activities by 564.80% during the Reporting Period as compared with the corresponding period of last year was mainly due to the decrease in cash paid for repayment of debts during the Reporting Period.

7

• 3.2 Analysis of the development of material events and their impacts and solutions

□ Applicable √ Not Applicable

• 3.3 Undertakings that have not yet been duly fulfilled during the Reporting Period

□ Applicable √ Not Applicable

• 3.4 Profit warning and explanation of expected accumulated net loss from the beginning of the year to the end of the next reporting period or material changes over the corresponding period of the previous year

• Applicable √ Not Applicable

8

4. APPENDIX

4.1 Financial statements

Consolidated Balance Sheet

31 March 2020

Prepared by: COSCO SHIPPING Development Co., Ltd.

Unit: Yuan Currency: RMB Audit type: Unaudited

Item	31 March 2020	31 December 2019
Current assets:
Cash	16,773,580,658.92	10,156,318,265.16
Deposit reservation for balance
Placements with banks and other financial institutions
Trading financial assets	28,102,971.70	490,966,828.33
Derivative financial assets
Bills receivable	96,369,790.01	16,700,690.01
Accounts receivable	1,253,201,322.87	1,086,846,110.75
Receivables financing
Funds paid in advance	920,578,967.04	229,632,984.01
Premiums receivable
Reinsurance accounts receivable	62,095,379.79	7,453,139.84
Deposits receivable from reinsurance contracts
Other receivables	122,779,853.59	335,165,149.03
Including: Interests receivable	2,373,957.13	3,620,822.08
Dividends receivable	1,544,083.12	1,520,350.06
Purchases of resold financial assets
Inventories	1,142,254,408.57	881,129,437.17
Contract assets
Assets held for sale
Non-current assets due within one year	16,630,476,051.14	16,553,534,222.73
Other current assets	19,757,139.78	42,037,894.30
Total current assets	37,049,196,543.41	29,799,784,721.33

9

31 March 2020 31 December 2019

Item

Non-current assets:

n-current assets:
Loans and advances granted
Debt investments
Other debt investments
Long-term receivables	28,772,879,193.61	27,051,677,344.51
Long-term equity investments	26,456,099,993.14	25,854,213,940.22
Other equity instrument investments
Other non-current financial assets	4,415,230,652.98	4,266,307,368.85
Investment property	107,194,831.41	105,547,216.40
Fixed assets	56,963,435,536.23	56,749,893,917.40
Construction in progress	56,218,144.26	52,433,795.02
Biological assets for production
Fuel assets
Right-of-use assets	148,835,967.58	163,824,621.16
Intangible assets	137,669,598.93	137,968,923.80
Development expenditure
Goodwill
Long-term deferred expenses	66,128,784.55	65,850,332.59
Deferred income tax assets	257,999,776.61	243,651,234.65
Other non-current assets	4,200,000.00	2,964,421.34
Total non-current assets	117,385,892,479.30	114,694,333,115.94
Total assets	154,435,089,022.71	144,494,117,837.27

10

31 March 2020 31 December 2019

Item

Current liabilities:
Short-term borrowings	17,496,971,185.79	16,313,598,897.60
Borrowings from central bank
Placements funds
Trading financial liabilities
Derivative financial liabilities
Bills payable	785,000,060.00	926,240,520.00
Accounts payable	2,629,997,842.28	2,531,179,876.31
Funds received in advance	201,732,621.89	169,957,081.65
Contract liabilities	115,282,486.97	150,194,312.37
Funds from disposal of repurchased financial assets
Deposit taking and deposit in inter-bank market
Customer deposits for trading in securities
Customer deposits for securities underwriting
Staff remuneration payable	187,377,359.03	226,579,228.11
Taxes payable	201,338,805.14	209,093,839.61
Other payables	1,164,324,118.37	1,390,270,809.25
Including: Interests payable	407,922,215.97	408,710,217.19
Dividends payable	164,393,333.33	231,443,333.33
Handling charges and commissions payable
Reinsurance accounts payable	94,459,029.78	22,520,027.50
Liabilities classified as held-for-sale
Non-current liabilities due within one year	38,870,871,710.08	32,328,476,114.65
Other current liabilities	5,006,620,218.57
Total current liabilities	66,753,975,437.90	54,268,110,707.05

11

31 March 2020 31 December 2019

Item

Non-current liabilities:

Deposits for insurance contracts Long-term borrowings 51,352,347,155.10 54,853,208,883.56 Bonds payable 8,858,539,582.40 8,271,399,591.01 Including: Preferred shares Perpetual bonds Lease liabilities 99,529,383.45 148,648,326.45 Long-term payables 2,553,335,552.50 2,352,044,869.48 Long-term staff remuneration payable 18,491,589.50 18,491,589.50 Projected liabilities Deferred income 11,096,563.92 11,484,209.25 Deferred income tax liabilities 329,601,833.34 350,975,260.05 Other non-current liabilities 28,102,911.07 12,035,920.87 Total non-current liabilities 63,251,044,571.28 66,018,288,650.17 Total liabilities 130,005,020,009.18 120,286,399,357.22 Owners’ equity (or shareholders’ equity): Paid-up capital (or share capital) 11,608,125,000.00 11,608,125,000.00 Other equity instruments 7,000,000,000.00 7,000,000,000.00 Including: Preferred shares Perpetual bonds 7,000,000,000.00 7,000,000,000.00 Capital reserve 334,410,830.03 332,017,874.77 Less: Treasury shares 233,428,071.84 233,428,071.84 Other comprehensive income -2,746,470,617.71 -2,638,034,334.93 Special reserve 2,703,355.91 1,606,117.35 Surplus reserve 1,552,192,349.37 1,552,192,349.37 General risk provision Retained earnings 6,912,536,167.77 6,585,239,545.33 Total equity attributable to the owner of the parent company (or shareholders’ equity) 24,430,069,013.53 24,207,718,480.05 Minority interests Total owners’ equity (or shareholders’ equity) 24,430,069,013.53 24,207,718,480.05 Total liabilities and owners’ equity (or shareholders’ equity) 154,435,089,022.71 144,494,117,837.27

Owners’ equity (or shareholders’ equity):

Legal Person-in-charge of Head of the accounting representative: accounting affairs: department: Wang Daxiong Lin Feng Zhang Mingming

12

Balance Sheet of the Parent Company 31 March 2020

Prepared by: COSCO SHIPPING Development Co., Ltd.

Unit: Yuan Currency: RMB Audit type: Unaudited

m	31 March 2020	31 December 2019
rrent assets:
Cash and bank balances	7,079,587,931.55	2,855,428,469.26
Trading financial assets
Derivative financial assets
Bills receivable
Accounts receivable	507,522,983.88	460,027,497.98
Receivables financing
Funds paid in advance	2,804,259.95	2,915,268.39
Other receivables	1,394,597,666.14	2,370,070,980.51
Including: Interests receivable	24,346,691.41	25,957,989.38
Dividends receivable	1,080,000,276.32	2,080,000,272.07
Inventories	350,609,468.36	330,259,640.21
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets	2,912,553,000.00	2,909,286,000.00
Total current assets	12,247,675,309.88	8,927,987,856.35

Item

Current assets:

13

31 March 2020 31 December 2019

Item

Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments	38,868,718,550.88	38,804,676,762.28
Other equity instrument investments
Other non-current financial assets	2,836,978,118.87	2,738,058,298.30
Investment property
Fixed assets	11,610,818,863.45	11,805,888,407.67
Construction in progress	1,927,466.04	3,361,428.31
Biological assets for production
Fuel assets
Right-of-use assets	51,630,990.83	55,707,121.67
Intangible assets	3,437,687.55	1,893,845.99
Development expenditure
Goodwill
Long-term deferred expenses	300,086.67	574,767.94
Deferred income tax assets
Other non-current assets	3,125,530,000.00	3,092,860,000.00
Total non-current assets	56,499,341,764.29	56,503,020,632.16
Total assets	68,747,017,074.17	65,431,008,488.51

14

31 March 2020 31 December 2019

Item

Current liabilities:

rrent liabilities:
Short-term borrowings	5,000,000,000.00	4,700,000,000.00
Trading financial liabilities
Derivative financial liabilities
Bills payable
Accounts payable	365,148,504.45	270,473,405.10
Funds received in advance	758,000.00	881,726.00
Contract liabilities
Staff remuneration payable	55,113,229.44	91,238,261.19
Taxes payable	34,182,950.91	16,834,791.45
Other payables	7,162,274,569.72	8,265,816,203.64
Including: Interests payable	85,536,496.14	111,482,931.51
Dividends payable	164,393,333.33	231,443,333.33
Liabilities classified as held-for-sale
Non-current liabilities due within one year	5,576,150,055.91	4,983,905,940.56
Other current liabilities	5,006,620,218.57
Total current liabilities	23,200,247,529.00	18,329,150,327.94
n-current liabilities:
Long-term borrowings	3,566,500,000.00	4,833,600,000.00
Bonds payable	5,000,000,000.00	5,000,000,000.00
Including: Preferred shares
Perpetual bonds
Lease liabilities	27,905,622.29	31,222,681.91
Long-term payables
Long-term staff remuneration payable	17,525,449.50	17,525,449.50
Projected liabilities
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities	8,611,931,071.79	9,882,348,131.41
Total liabilities	31,812,178,600.79	28,211,498,459.35

Non-current liabilities:

15

31 March 2020 31 December 2019

Item

Owners’ equity (or shareholders’ equity): Paid-up capital (or share capital) 11,608,125,000.00 11,608,125,000.00 Other equity instruments 7,000,000,000.00 7,000,000,000.00 Including: Preferred shares Perpetual bonds 7,000,000,000.00 7,000,000,000.00 Capital reserve 16,360,730,879.30 16,360,730,879.30 Less: Treasury shares 233,428,071.84 233,428,071.84 Other comprehensive income 9,969,996.47 3,968,928.16 Special reserve Surplus reserve 1,545,882,206.78 1,545,882,206.78 Retained earnings 643,827,486.08 934,231,086.76 Total owners’ equity (or shareholders’ equity) 36,935,107,496.79 37,219,510,029.16 Total liabilities and owners’ equity (or shareholders’ equity) 68,747,017,074.17 65,431,008,488.51 Legal Person-in-charge of Head of the accounting representative: accounting affairs: department: Wang Daxiong Lin Feng Zhang Mingming

16

Consolidated Income Statement January to March 2020

Prepared by: COSCO SHIPPING Development Co., Ltd.

Unit: Yuan Currency: RMB Audit type: Unaudited

		First quarter of	First quarter of
Item		2020	2019
I.	Total operating revenue	3,455,372,160.49	3,206,834,798.69
	Including: Revenue from operations	3,443,612,007.07	3,200,968,180.02
	Interest income
	Premiums earned
	Handling charges and
	commission income	11,760,153.42	5,866,618.67
II.	Total cost of sales	3,329,331,430.51	3,618,009,343.45
	Including: Operating cost	2,423,874,894.68	2,481,521,357.95
	Interest expenses
	Handling charges and commission
	expenses
	Surrender payment
	Net expenditure for compensation
	payments
	Net provision for insurance liability
	Policyholder dividend expenses
	Reinsurance costs
	Taxes and surcharges	12,095,231.67	14,801,077.34
	Selling expenses	3,021,386.28	2,916,637.61
	Administrative expenses	246,990,580.50	201,777,255.23
	Research and development expenses		17,685.00
	Finance costs	643,349,337.38	916,975,330.32
	Including: Interest expenses	680,881,076.46	888,916,003.89
	Interest income	34,417,404.67	54,106,790.37
	Add: Other gains	9,749,405.14	3,097,030.93
	Investment income
	(loss is represented by “-”)	529,765,831.20	523,264,544.15
	Including: Gains from investment in
	associates and joint ventures	519,009,505.82	523,179,452.93
	Derecognition gains on financial
	assets measured at amortized cost
	Gains from foreign currency exchange
	(loss is represented by “-”)
	Gain from net exposure to hedging
	(loss is represented by “-”)
	Gains from changes in fair value
	(loss is represented by “-”)	-217,042,559.99	572,284,780.02
	Credit impairment loss
	(loss is represented by “-”)	-78,037,364.77	-39,830,808.33
	Asset impairments loss
	(loss is represented by “-”)
	Gains from disposal of assets
	(loss is represented by “-”)	6,725,467.06	13,619,619.18

17

				First quarter of	First quarter of
Item				2020	2019
III.	Profit from operations (loss is represented by “-”)			377,201,508.62	661,260,621.19
	Add:	Non-operating income		269,754.82	2,097,794.70
	Less:	Non-operating expenses		5,010,160.07	6,006,533.40
IV.	Total profit (total loss is represented by “-”)			372,461,103.37	657,351,882.49
	Less:	Income tax expenses		30,503,369.82	60,975,968.81
V.	Net profit (net loss is represented by “-”)			341,957,733.55	596,375,913.68
	(I)	Classified by continuity of operation
		1.	Net profit from continuing operations
			(net loss expressed with “-”)	341,957,733.55	596,375,913.68
		2.	Net profit from discontinued operations
			(net loss expressed with “-”)
	(II)	Classified by ownership of equity
		1.	Net profit attributable to owners
			of the parent company
			(net loss expressed with “-”)	341,957,733.55	596,375,913.68
		2.	Minority interests
			(net loss expressed with “-”)
VI.	Net other		comprehensive income after taxes	-108,436,282.78	300,583,994.34
	(I)	Net other comprehensive income attributable to
		owners of the parent company after taxes		-108,436,282.78	300,583,994.34
		1.	Items that may not be reclassified to
			profit or loss
			(1) Changes from the re-measurement
			of defined benefit plans
			(2) Other comprehensive income that
			may not be reclassified to profit or
			loss under the equity method
			(3) Changes in fair value of
			investments in other equity
			instruments
			(4) Changes in fair value of enterprise’s
			own credit risk
		2.	Items that may be reclassified to profit or
			loss	-108,436,282.78	300,583,994.34
			(1) Other comprehensive income that
			may be reclassified to profit or loss
			under the equity method	77,329,885.86	96,127,410.73
			(2) Changes in fair value of other debt
			investments
			(3) Financial assets reclassified into
			other comprehensive income
			(4) Credit impairment provision for
			other debt investments
			(5) Reserve for cash flow hedging	-17,195,709.29	-3,993,561.58
			(6) Exchange differences from
			translation of financial statements	-168,570,459.35	208,450,145.19
			(7) Others
	(II)	Net other comprehensive income attributable to
		minority interests after taxes

18

First quarter of First quarter of 2020 2019

Item

VII.	Total	comprehensive income	233,521,450.77	896,959,908.02
	(I)	Total comprehensive income attributable to
		owners of the parent company	233,521,450.77	896,959,908.02
	(II)	Total comprehensive income attributable to
		minority shareholders
VIII.	Earnings per share:
	(I)	Basic earnings per share (RMB per share)	0.0249	0.0511
	(II)	Diluted earnings per share (RMB per share)	0.0249	0.0511

For the business combination under common control effected in the Reporting Period, the net profit recognized by the consolidated party before the consolidation was nil, and the net profit recognized by the consolidated party in the previous period was nil.

Legal Person-in-charge of representative: accounting affairs: Wang Daxiong Lin Feng

Head of the accounting department: Zhang Mingming

19

Income Statement of the Parent Company January to March 2020

Prepared by: COSCO SHIPPING Development Co., Ltd.

Unit: Yuan Currency: RMB Audit type: Unaudited

		First quarter of	First quarter of
Item		2020	2019
I.	Revenue from operations	505,063,048.62	535,704,364.70
	Less: Operating cost	420,722,425.61	426,540,094.95
	Taxes and surcharges	4,630,813.38	6,202,152.65
	Selling expenses
	Administrative expenses	29,862,326.90	31,801,509.08
	Research and development expenses
	Finance costs	194,166,200.59	250,409,484.23
	Including: Interest expenses	188,113,594.80	291,825,236.67
	Interest income	20,650,531.83	48,235,591.09
	Add: Other gains
	Investment income
	(loss is represented by “-”)	79,789,559.59	43,719,858.86
	Including: Gains from investment in
	associates and joint ventures	58,309,743.70	43,719,858.86
	Derecognition gains on financial
	assets measured at amortized cost
	Gain from net exposure to hedging
	(loss is represented by “-”)
	Gains from changes in fair value
	(loss is represented by “-”)	-211,213,331.30	642,619,531.23
	Credit impairment loss
	(loss is represented by “-”)
	Asset impairments loss
	(loss is represented by “-”)
	Gains from disposal of assets
	(loss is represented by “-”)

20

			First quarter of	First quarter of
Item			2020	2019
II.	Profit from operations (loss is represented by “-”)		-275,742,489.57	507,090,513.88
	Add: Non-operating income
	Less: Non-operating expenses
III.	Total profit (total loss is represented by “-”)		-275,742,489.57	507,090,513.88
	Less: Income tax expenses
IV.	Net	profit (net loss is represented by “-”)	-275,742,489.57	507,090,513.88
	(I)	Net profit from continuing operations
		(net loss expressed with “-”)	-275,742,489.57	507,090,513.88
	(II)	Net profit from discontinued operations
		(net loss expressed with “-”)
V.	Net	other comprehensive income after taxes	6,001,068.31	1,948,349.58
	(I)	Items that may not be reclassified to profit or
		loss
		1. Changes from the re-measurement of
		defined benefit plans
		2. Other comprehensive income that may
		not be reclassified to profit or loss under
		the equity method
		3. Changes in fair value of investments in
		other equity instruments
		4. Changes in fair value of enterprise’s own
		credit risk
	(II)	Items that may be reclassified to profit or loss	6,001,068.31	1,948,349.58
		1. Other comprehensive income that may
		be reclassified to profit or loss under the
		equity method	6,001,068.31	1,948,349.58
		2. Changes in fair value of other debt
		investments
		3. Financial assets reclassified into other
		comprehensive income
		4. Credit impairment provision for other
		debt investments
		5. Reserve for cash flow hedging
		6. Exchange differences from translation of
		financial statements
		7. Others
VI.	Total comprehensive income		-274,773,991.47	509,038,863.46
VII.	Earnings per share:
	(I)	Basic earnings per share (RMB per share)
	(II)	Diluted earnings per share (RMB per share)
		Legal Person-in-charge of	Head of the accounting
		representative: accounting affairs:	department:
		Wang Daxiong Lin Feng	Zhang Mingming

21

Consolidated Cash Flow Statement January to March 2020

Prepared by: COSCO SHIPPING Development Co., Ltd.

Unit: Yuan Currency: RMB Audit type: Unaudited

		First quarter of	First quarter of
Item		2020	2019
I.	Cash flow from operating activities:
	Cash received from sales of goods and provision
	of services	3,860,135,328.73	4,451,735,040.83
	Net increase in deposits from customers and
	placements from banks and other financial
	institutions
	Net increase in borrowings from central bank
	Net increase in placements from other financial
	institutions
	Cash received from premiums of original
	insurance contracts
	Net cash received from reinsurance business
	Net increase in deposits from policyholders and
	investments
	Cash received from interest, handling charges and
	commissions
	Net increase in capital due to banks and other
	financial institutions
	Net increase in repurchases business fund
	Net cash received from trading in securities
	Receipt of tax rebates	48,137,033.30	101,012,947.74
	Other cash received from activities relating to
	operation	122,075,123.35	111,859,100.23
	Sub-total of cash inflow from
	operating activities	4,030,347,485.38	4,664,607,088.80
	Cash paid for goods purchased and service rendered	2,261,556,376.59	2,070,993,598.14
	Net increase in loans and advances to customers
	Net increase in placements with central bank and
	other financial institutions
	Cash paid for claims on original insurance contracts
	Net increase in placements with banks and other
	financial institutions
	Cash payment for interest, handling charges and
	commission
	Cash payment for policyholder dividend
	Cash paid to and on behalf of employees	475,905,092.80	518,104,491.25
	Taxes paid	116,305,267.07	109,677,822.25
	Other cash paid for activities relating to operating
	activities	115,628,960.90	105,593,063.14
	Sub-total of cash outflow from operating
	activities	2,969,395,697.36	2,804,368,974.78
	Net cash flows from operating activities	1,060,951,788.02	1,860,238,114.02

22

		First quarter of	First quarter of
Item		2020	2019
II.	Cash flow from investment activities:
	Cash received from disposal of investments	4,411,763,561.56	2,626,491,315.18
	Cash received from gains in investments	11,837,351.04	82,630.96
	Net cash received from disposal of fixed assets,
	intangible assets and other long-term assets	9,771,991.80	7,190,201.82
	Net cash received from disposal of subsidiaries
	and other operating entities
	Other cash received relating to investment activities	15,895,980.11
	Sub-total of cash inflow from investment
	activities	4,449,268,884.51	2,633,764,147.96
	Cash paid for purchase of fixed assets, intangible
	assets and other long-term assets	6,271,527,590.65	5,702,435,214.95
	Cash paid for investment	430,000,000.00	28,500,000.00
	Net increase in pledged loans
	Net cash paid for acquiring subsidiaries and other
	operating entities
	Other cash paid relating to investment activities
	Sub-total of cash outflow from investment
	activities	6,701,527,590.65	5,730,935,214.95
	Net cash flow from investment
	activities	-2,252,258,706.14	-3,097,171,066.99
III.	Cash flow from financing activities:
	Proceeds received from investments		1,500,000,000.00
	Including: Proceeds received by subsidiaries from
	minority shareholder’s investment
	Cash received from borrowings	20,909,204,882.79	19,602,449,444.32
	Other cash received relating to financing activities	11,657,508.68
	Sub-total of cash inflow from financing
	activities	20,920,862,391.47	21,102,449,444.32
	Cash paid for repayment of debts	11,816,529,935.87	21,126,699,055.31
	Cash payments for dividend and profit distribution
	or interest repayment	1,143,971,245.00	1,160,641,867.96
	Including: Dividend and profit paid by subsidiary
	to minority shareholders
	Other cash paid relating to financing activities	1,178,003,591.59	274,318,858.84
	Sub-total of cash outflow from financing
	activities	14,138,504,772.46	22,561,659,782.11
	Net cash flow from financing activities	6,782,357,619.01	-1,459,210,337.79
IV.	Effect on cash and cash equivalents due to changes
	in foreign exchange rates	51,322,847.38	-224,272,358.93
V.	Net increase in cash and cash equivalents	5,642,373,548.27	-2,920,415,649.69
	Add: Balance of cash and cash equivalents at the
	beginning of the period	9,635,095,552.61	15,249,193,722.11
VI.	Balance of cash and cash equivalents at the end of
	the period	15,277,469,100.88	12,328,778,072.42
	Legal Person-in-charge of	Head of the accounting
	representative: accounting affairs:	department:
	Wang Daxiong Lin Feng	Zhang Mingming
	23

Cash Flow Statement of the Parent Company January to March 2020

Prepared by: COSCO SHIPPING Development Co., Ltd.

Unit: Yuan Currency: RMB Audit type: Unaudited

		First quarter of	First quarter of
Item		2020	2019
I.	Cash flow from operating activities:
	Cash received from sales of goods and provision
	of services	496,294,801.72	539,368,970.09
	Receipt of tax rebates
	Other cash received from activities relating to
	operation	96,297,554.12	92,818,677.88
	Sub-total of cash inflow from operating
	activities	592,592,355.84	632,187,647.97
	Cash paid for goods purchased and services rendered	46,833,618.79	76,788,047.57
	Cash paid to and on behalf of employees	218,986,059.03	326,688,785.93
	Taxes paid	18,229,117.42	34,094,631.79
	Other cash paid for activities relating to operation	45,174,347.61	37,297,910.44
	Sub-total of cash outflow from operating
	activities	329,223,142.85	474,869,375.73
	Net cash flows from operating activities	263,369,212.99	157,318,272.24
II.	Cash flow from investment activities:
	Cash received from disposal of investments	20,000,000.00	1,070,000,000.00
	Cash received from gains in investments	1,000,000,000.00	2,037,186,340.05
	Net cash received from disposal of fixed assets,
	intangible assets and other long-term assets
	Net cash received from disposal of subsidiaries and
	other operating entities
	Other cash received relating to investment activities
	Sub-total of cash inflow from investment
	activities	1,020,000,000.00	3,107,186,340.05
	Cash paid for purchase of fixed assets, intangible
	assets and other long-term assets	220,000.00	138,679.25
	Cash paid for investment	1,380,000,000.00	1,920,000,000.00
	Net cash paid for acquiring subsidiaries and other
	operating entities
	Other cash paid relating to investment activities
	Sub-total of cash outflow from investment
	activities	1,380,220,000.00	1,920,138,679.25
	Net cash flow from investment activities	-360,220,000.00	1,187,047,660.80

24

		First quarter of	First quarter of
Item		2020	2019
III.	Cash flow from financing activities:
	Cash received from investments		1,500,000,000.00
	Cash received from borrowings	7,780,000,000.00	8,000,000,000.00
	Other cash received relating to financing activities	15,696,669.64
	Sub-total of cash inflow from financing
	activities	7,795,696,669.64	9,500,000,000.00
	Cash paid for repayment of debts	3,155,000,000.00	11,510,400,000.00
	Cash payments for dividend and profit distribution
	or interest repayment	288,667,775.29	283,321,762.25
	Other cash paid relating to financing activities	22,613,114.76	324,382,332.86
	Sub-total of cash outflow from financing
	activities	3,466,280,890.05	12,118,104,095.11
	Net cash flow from financing activities	4,329,415,779.59	-2,618,104,095.11
IV.	Effect on cash and cash equivalents due to changes
	in foreign exchange rates	3,251,978.39	-9,304,504.39
V.	Net increase in cash and cash equivalents	4,235,816,970.97	-1,283,042,666.46
	Add: Balance of cash and cash equivalents at the
	beginning of the period	2,835,921,205.78	4,739,115,326.10
VI.	Balance of cash and cash equivalents at the end of
	the period	7,071,738,176.75	3,456,072,659.64
	Legal Person-in-charge of	Head of the accounting
	representative: accounting affairs:	department:
	Wang Daxiong Lin Feng	Zhang Mingming

• 4.2 Adjusting to the relevant items of financial statements at the beginning of the first adoption year due to the first adoption of new income standards and new leasing standards since 2020

□Applicable √ Not Applicable

• 4.3 Explanation on retrospective adjustment to the comparative figures of the previous period due to the first adoption of new income standards and new leasing standards since 2020

□ Applicable √ Not Applicable

4.4 Audit Report

• Applicable √ Not Applicable

25

CAUTION STATEMENT

The board of directors hereby reminds the 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 should be aware of market risks and should not rely unduly on the extracts from the Quarterly Report above. In addition, investors should exercise caution when dealing in the shares of the Company.

By order of the Board COSCO SHIPPING Development Co., Ltd. Cai Lei Joint Company Secretary

Shanghai, the People’s Republic of China 29 April 2020

As at the date of this announcement, the Board comprises Mr. Wang Daxiong, Mr. Liu Chong and Mr. Xu Hui, being executive directors, Mr. Feng Boming, Mr. Huang Jian and Mr. Liang Yanfeng, being non-executive directors, and Mr. Cai Hongping, Ms. Hai Chi Yuet, Mr. Graeme Jack, Mr. Lu Jianzhong and Ms. Zhang Weihua, 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 “COSCO SHIPPING Development Co., Ltd.”.

26