COSCO SHIPPING Development Co., Ltd. — Interim / Quarterly Report 2021

Oct 29, 2021

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)

2021 THIRD QUARTERLY REPORT

In accordance with the applicable rules of the Shanghai Stock Exchange of the People’s Republic of China (the “ PRC ”) (being the stock exchange on which the A shares of 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 third quarter of 2021 (the “ Reporting Period ”) will be published on the Shanghai Stock Exchange on 29 October 2021. 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).

IMPORTANT NOTICE:

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.

The person-in-charge of the Company, the person-in-charge of accounting affairs, and the head of the accounting department (officer in charge of accounting) have confirmed the truthfulness, accuracy and completeness of the information of financial statements contained in this Quarterly Report.

Whether the financial statements for the third quarter are audited

□ Yes √ No

1

I. PRINCIPAL FINANCIAL DATA

(I) Principal accounting data and financial indicators

Unit: Yuan Currency: RMB

				Change from
				the beginning
				of the year to
				the end of the
		Change as		Reporting Period
		compared with	From the	as compared with
		the corresponding	beginning	the corresponding
		period of the	of the year to	period of the
	Reporting	previous year	the end of the	previous year
Item	Period	(%)	Reporting Period	(%)
Revenue	10,623,303,600.46	117.20	24,980,386,957.66	96.58
Net profit attributable to
shareholders and other equity holders of
the listed company	1,567,175,114.46	91.42	3,988,316,109.77	138.53
Net profit attributable to
shareholders and other equity holders of
the listed company, excluding
extraordinary gains or losses	1,552,463,241.56	94.52	4,206,229,621.40	160.49
Net cash flow generated from
operating activities	N/A	N/A	7,239,265,766.18	27.83
Basic earnings per share (RMB per share)	0.1300	104.72	0.3281	167.18
Diluted earnings per share (RMB per share)	0.1297	104.25	0.3277	166.86
		Increased by 3.10		Increased by 10.84
Weighted average return on net assets (%)	7.16	percentage points	18.87	percentage points
				Change at the
				end of the
				Reporting Period
				as compared
		As at the end	As at the end	with the end of
		of the	of the	the previous year
		Reporting Period	previous year	(%)
Total assets		121,586,942,627.10	146,038,794,875.34	-16.74
Owners’ equity attributable to shareholders and
other equity holders of the listed company		27,515,599,094.65	24,370,007,060.10	12.91

Note: “Reporting Period” refers to the three-month period from the beginning of the current quarter to the end of the current quarter, the same below.

2

(II) Items and amounts of non-recurring gain or loss

Unit: Yuan Currency: RMB

Item Gain or loss on disposal of non-current assets (including the write-off of the asset impairment provision) Government subsidies (except for government subsidies which are closely related to the ordinary business scope of the Company and entitled in standard amounts or quantities in conformity with the provisions of policies of the State) attributable to gain or loss for the period Reversal of impairment provisions for receivables subject to individual impairment test Other non-operating income and expenses apart from the above items Less: Effect of income tax Effect of minority interests (after tax) Total	Amount for the Reporting Period 2,830,659.54 11,348,049.86 1,395,307.39 703,283.31 1,565,427.20 – 14,711,872.90	Amount for the beginning of the year to the end of the Reporting Period -218,197,271.06 16,721,112.10 10,981,490.54 -28,872,716.49 -1,453,873.28 – -217,913,511.63

Explanation on extraordinary gain or loss items defined as recurring gain or loss items as illustrated in the Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to the Public No. 1 – Extraordinary Gain or Loss

□ Applicable √ Not applicable

3

(III) Changes for the major accounting data and financial indicators and the reasons thereof

√ Applicable □ Not applicable

Item name

Revenue during the Reporting Period

• Revenue from the beginning of the year to the end of the Reporting Period

• Net profit attributable to shareholders and other equity holders of the listed company from the beginning of the year to the end of the Reporting Period

Percentage change (%) Main reason(s)

• 117.20 Mainly due to the year-on-year increase in revenue with better market sentiments of the container manufacturing segment

• 96.58 Mainly due to the year-on-year increase in revenue with better market sentiments of the container manufacturing segment

• 138.53 Mainly due to the year-on-year increase in net profit from the container manufacturing segment and the investment service segment

• Net profit attributable to shareholders and other equity holders of the listed company during the Reporting Period

• Net profit attributable to shareholders and other equity holders of the listed company during the Reporting Period, excluding extraordinary gains or losses

• 91.42 Mainly due to the year-on-year increase in net profit from the container manufacturing segment and the investment service segment

• 94.52 Mainly due to the year-on-year increase in net profit from the container manufacturing segment and the investment service segment

• Net profit attributable to shareholders and other equity holders of the listed company from the beginning of the year to the end of the Reporting Period, excluding extraordinary gains or losses

• 160.49 Mainly due to the year-on-year increase in net profit from the container manufacturing segment and the investment service segment

• Basic earnings per share during the Reporting Period (RMB per share)

• Basic earnings per share from the beginning of the year to the end of the Reporting Period (RMB per share)

• Diluted earnings per share during the Reporting Period (RMB per share)

• Diluted earnings per share from the beginning of the year to the end of the Reporting Period (RMB per share)

• 104.72 Mainly due to the year-on-year increase in net profit from shareholders attributable to the parent company

• 167.18 Mainly due to the year-on-year increase in net profit from shareholders attributable to the parent company

• 104.25 Mainly due to the year-on-year increase in net profit from shareholders attributable to the parent company

• 166.86 Mainly due to the year-on-year increase in net profit from shareholders attributable to the parent company

4

II. SHAREHOLDER INFORMATION

• (I) Total number of shareholders of ordinary shares and shareholders of preference shares with restored voting rights and shareholdings of the top ten shareholders

Unit: Shares

Total number of shareholders of 309,901 Total number of shareholders N/A ordinary shares as at the end of of preference shares with the Reporting Period restored voting rights as at the end of the Reporting Period (if any)

Shareholding of the top 10 shareholders

				Number of	Pledged,	Pledged,
			Shareholding	shares subject	marked or frozen
	Nature of	Number of	percentage	to selling	Status of
Name of shareholder	shareholder	shares held	(%)	restrictions	shares		Number
China Shipping Group	State-owned	4,410,624,386	38.00%	0	Nil		0
Company Limited	corporation
HKSCC NOMINEES LIMITED	Foreign	3,657,185,248	31.51%	0	Unknown	Unknown
	corporation
Hong Kong Securities	Foreign	110,566,347	0.95%	0	Nil		0
Clearing Company Limited	corporation
A securities account of COSCO SHIPPING	State-owned	79,627,003	0.69%	0	Nil		0
Development Co., Ltd. designated	corporation
for repurchase
Henan Yiluo Investment	Other	49,301,464	0.42%	0	Nil		0
Management Co., Ltd. – Letian No. 1
Yiluo private equity investment fund
China COSCO SHIPPING	State-owned	47,570,789	0.41%	0	Nil		0
Corporation Limited	corporation
Henan Yiluo Investment	Other	38,451,223	0.33%	0	Nil		0
Management Co., Ltd. – Junan No. 12
Yiluo private equity investment fund
Henan Yiluo Investment	Other	34,875,100	0.30%	0	Nil		0
Management Co., Ltd. – Yiluo No. 9
private equity investment fund
Henan Yiluo Investment	Other	27,014,286	0.23%	0	Nil		0
Management Co., Ltd. – Huazhong No. 3
Yiluo private equity investment fund
Henan Yiluo Investment	Other	25,018,800	0.22%	0	Nil		0
Management Co., Ltd. – Junan No. 6
Yiluo private equity investment fund

5

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

	Number of tradable
	shares held not subject	Type and number of shares
Name of shareholder	to selling restrictions	Type of shares	Number
China Shipping Group Company Limited	4,410,624,386	RMB ordinary shares	4,410,624,386
HKSCC NOMINEES LIMITED	3,657,185,248	Overseas listed foreign	3,657,185,248
		shares
Hong Kong Securities Clearing Company Limited	110,566,347	RMB ordinary shares	110,566,347
A securities account of COSCO SHIPPING Development Co., Ltd.	79,627,003	RMB ordinary shares	79,627,003
designated for repurchase
Henan Yiluo Investment Management Co., Ltd. – Letian No. 1	49,301,464	RMB ordinary shares	49,301,464
Yiluo private equity investment fund
China COSCO SHIPPING Corporation Limited	47,570,789	RMB ordinary shares	47,570,789
Henan Yiluo Investment Management Co., Ltd. – Junan No. 12	38,451,223	RMB ordinary shares	38,451,223
Yiluo private equity investment fund
Henan Yiluo Investment Management Co., Ltd. – Yiluo No. 9	34,875,100	RMB ordinary shares	34,875,100
private equity investment fund
Henan Yiluo Investment Management Co., Ltd. – Huazhong No. 3	27,014,286	RMB ordinary shares	27,014,286
Yiluo private equity investment fund
Henan Yiluo Investment Management Co., Ltd. – Junan No. 6	25,018,800	RMB ordinary shares	25,018,800
Yiluo private equity investment fund

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

• (1) The shares held by China Shipping Group Company Limited were not, among other things, pledged, frozen or under custody during the Reporting Period.

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

• (3) As 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; China COSCO SHIPPING Corporation Limited held 47,570,789 A shares in COSCO SHIPPING Development, 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) As 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) Among the above shareholders, Henan Yiluo Investment Management Co., Ltd. - Letian No. 1 Yiluo private equity investment fund, Henan Yiluo Investment Management Co., Ltd. - Junan No. 12 Yiluo private equity investment fund, Henan Yiluo Investment Management Co., Ltd. - Yiluo No. 9 private equity investment fund, Henan Yiluo Investment Management Co., Ltd. - Huazhong No. 3 Yiluo private equity investment fund, Henan Yiluo Investment Management Co., Ltd. - Junan No. 6 Yiluo private equity investment fund are fund products managed by Henan Yiluo Investment Management Co., Ltd. and are parties acting-in-concert.

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

6

Explanation of the participation of the top 10 shareholders and top 10 shareholders who are not subject to selling restrictions in margin trading and refinancing business (if any)

Henan Yiluo Investment Management Co., Ltd. – Letian No. 1 Yiluo private equity investment fund holds 49,301,464 shares through credit guarantee account. Henan Yiluo Investment Management Co., Ltd. – Junan No. 12 Yiluo private equity investment fund holds 37,430,323 shares through credit guarantee account. Henan Yiluo Investment Management Co., Ltd. – Huazhong No. 3 Yiluo private equity investment fund holds 26,644,286 shares through credit guarantee account. Henan Yiluo Investment Management Co., Ltd. – Junan No. 6 Yiluo private equity investment fund holds 23,953,400 shares through credit guarantee account.

III. OTHER REMINDERS

Other important information about the Company’s operation in the Reporting Period that investors should be reminded of

√ Applicable □ Not applicable

On 24 September 2021, the Listed Company Merger and Reorganization Examination Committee (the “ Merger and Reorganization Committee ”) of the China Securities Regulatory Commission (the “ CSRC ”) held the 24th working meeting of the Merger and Reorganization Committee this year to review the issuance of shares by COSCO SHIPPING Development Co., Ltc. (hereinafter referred to as the “ Company ”) to purchase assets and raise ancillary funds as well as connected transaction (hereinafter referred to as the “ Transaction ”). According to the announcement of the CSRC, the Transaction of the Company was approved unconditionally. On 20 October 2021, the Company received the Reply on the Application for the Issuance of Shares by COSCO SHIPPING Development Co., Ltd. to Purchase Assets and Raise Ancillary Funds to China Shipping Group Company Limited (Zheng Jian Xu Ke [2021] No.3283) from the CSRC. The board of directors of the Company will, in accordance with the requirements of the approval documents and the authorization of the general meeting of the Company, handle the issuance of shares to purchase assets and raise ancillary funds as well as connected transaction as soon as possible, and fulfill the obligation of information disclosure in a timely manner.

For further details, please refer to the A shares interim announcements of the Company dated 24 September and 20 October 2021.

IV. QUARTERLY FINANCIAL STATEMENTS

(I) Audit opinion type

□ Applicable √ Not applicable

7

(II) Financial statements

Consolidated Balance Sheet

30 September 2021

Prepared by: COSCO SHIPPING Development Co., Ltd.

	Unit: Yuan Currency: RMB Audit type: Unaudited	Unit: Yuan Currency: RMB Audit type: Unaudited
Item	30 September 2021	31 December 2020
Current assets:
Cash	8,123,499,580.13	12,636,947,404.87
Deposit reservation for balance
Placements with banks and other financial	institutions
Trading financial assets	226,091,228.24	654,224,047.94
Derivative financial assets
Bills receivable	746,264.00	387,926,400.00
Accounts receivable	4,615,044,313.19	2,050,899,602.67
Receivables financing
Funds paid in advance	1,373,724,269.69	732,415,544.19
Premiums receivable
Reinsurance accounts receivable	29,493,863.20	6,938,190.88
Deposits receivable from reinsurance contracts
Other receivables	161,451,392.16	180,599,865.49
Including: Interests receivable
Dividends receivable
Purchases of resold financial assets
Inventories	1,666,405,056.71	962,410,481.56
Contract assets
Assets held for sale
Non-current assets due within one year	4,646,673,239.42	19,380,569,317.13
Other current assets	250,507,681.12	141,525,718.05
Total current assets	21,093,636,887.86	37,134,456,572.78

8

30 September 2021 31 December 2020

Item

Non-current assets:

Loans and advances granted Debt investments Other debt investments 59,820,000.00 Long-term receivables 32,830,575,283.32 27,698,200,826.12 Long-term equity investments 25,603,326,158.92 21,022,573,976.71 Other equity instrument investments Other non-current financial assets 3,762,778,787.40 3,932,753,960.40 Investment property 87,009,414.27 98,143,910.97 Fixed assets 37,785,011,469.14 55,180,427,306.59 Construction in progress 198,099,199.03 131,679,264.71 Biological assets for production Fuel assets Right-of-use assets 70,786,791.92 115,199,245.22 Intangible assets 121,742,602.77 146,464,033.78 Development expenditure Goodwill Long-term deferred expenses 3,653,444.81 56,902,687.17 Deferred income tax assets 28,279,472.78 284,669,504.39 Other non-current assets 2,043,114.88 177,503,586.50 Total non-current assets 100,493,305,739.24 108,904,338,302.56 Total assets 121,586,942,627.10 146,038,794,875.34

9

30 September 2021 31 December 2020

Item

Current liabilities:
Short-term borrowings	19,323,400,007.23	17,253,169,100.00
Borrowings from central bank
Placements funds
Trading financial liabilities
Derivative financial liabilities
Bills payable	33,334,400.48	1,399,717,718.49
Accounts payable	5,110,330,819.67	3,075,170,599.64
Funds received in advance	87,017,831.89	348,730,076.27
Contract liabilities	1,101,832,003.92	162,353,982.75
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	360,633,282.11	330,594,835.66
Taxes payable	332,839,982.17	233,791,831.21
Other payables	1,639,544,886.88	1,894,079,770.14
Including: Interests payable	255,881,215.23	415,174,055.66
Dividends payable	273,171,318.00	226,360,000.00
Handling charges and commissions payable
Reinsurance accounts payable	37,475,933.20	25,724,639.84
Liabilities held for sale
Non-current liabilities due within one year	16,933,545,868.61	37,135,491,553.85
Other current liabilities		3,000,000,000.00
Total current liabilities	44,959,955,016.16	64,858,824,107.85

10

30 September 2021 31 December 2020

Item

Non-current liabilities:

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

44,130,592,876.41 45,527,948,093.17 4,300,000,000.00 8,287,545,838.06

33,397,557.57 53,857,626.25 494,127,971.66 2,607,811,275.88 16,956,827.06 21,220,473.82

8,770,691.94 9,933,627.93 112,243,047.08 104,888,101.64 14,517,230.27 196,758,670.64 49,110,606,201.99 56,809,963,707.39 94,070,561,218.15 121,668,787,815.24

Owners’ equity (or shareholders’ equity):

Paid-up capital (or 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 owners of the parent company (or shareholders’ equity) Minority interests Total owners’ equity (or shareholders’ equity) Total liabilities and owners’ equity (or shareholders’ equity)

11,608,125,000.00 11,608,125,000.00 6,000,000,000.00 6,000,000,000.00

• 6,000,000,000.00 6,000,000,000.00 -124,455,994.88 -113,856,976.63 233,428,071.84 233,428,071.84

• -2,233,861,829.28 -2,320,757,973.36 1,170,120.25 1,360,053.39

• 1,613,592,540.60 1,613,592,540.60

10,884,457,329.80

10,884,457,329.80 7,814,972,487.94 27,515,599,094.65 24,370,007,060.10 782,314.30 27,516,381,408.95 24,370,007,060.10 121,586,942,627.10 146,038,794,875.34

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

11

Consolidated Income Statement January to September 2021

Prepared by: COSCO SHIPPING Development Co., Ltd.

Unit: Yuan Currency: RMB Audit type: Unaudited

		First three quarters	First three quarters
		of 2021	of 2020
Item		(January to September)	(January to September)
I.	Total operating revenue	25,023,711,336.76	12,746,602,135.73
	Including: Revenue from operations	24,980,386,957.66	12,707,801,728.00
	Interest income
	Premiums earned
	Handling charges and commission income	43,324,379.10	38,800,407.73
II.	Total cost of sales	21,887,599,484.53	11,966,325,813.22
	Including: Operating cost	19,756,118,516.82	9,649,345,752.92
	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	59,700,102.17	42,084,416.86
	Selling expenses	4,910,026.75	5,669,813.22
	Administrative expenses	792,233,858.24	637,196,534.19
	Research and development expenses	17,997,408.24	2,441.81
	Finance costs	1,256,639,572.31	1,632,026,854.22
	Including: Interest expenses	1,176,649,306.40	1,637,034,915.98
	Interest income	55,098,064.37	120,297,229.14

12

			First three quarters	First three quarters
			of 2021	of 2020
Item			(January to September)	(January to September)
	Add: Other gains		16,721,112.10	61,884,755.27
		Investment income (loss is represented by “-”)	2,002,835,771.49	1,578,878,821.00
		Including: Gains from investment in associates and
		joint ventures	1,776,828,124.30	1,362,645,596.49
		Derecognition gains on financial assets
		measured at amortized cost	51,293,827.38	12,007,344.55
		Gains from foreign currency exchange
		(loss is represented by “-”)
		Gains from net exposure to hedging
		(loss is represented by “-”)
		Gains from changes in fair value
		(loss is represented by “-”)	25,990,295.79	-220,820,848.86
		Credit impairment loss (loss is represented by “-”)	-320,146,835.63	-333,581,122.78
		Asset impairments loss (loss is represented by “-”)		11,419,393.99
		Gains from disposal of assets
		(loss is represented by “-”)	6,657,596.50	22,576,256.70
III.	Profit from operations (loss is represented by “-”)		4,868,169,792.48	1,900,633,577.83
	Add: Non-operating income		1,549,020.82	2,066,948.92
	Less: Non-operating expenses		30,421,737.31	10,133,766.44
IV.	Total profit (total loss is represented by “-”)		4,839,297,075.99	1,892,566,760.31
	Less: Income tax expenses		850,980,902.20	220,530,443.20
V.	Net profit (net loss is represented by “-”)		3,988,316,173.79	1,672,036,317.11
	(I)	Classified by continuity of operation
		1. Net profit from continuing operations
		(net loss expressed with “-”)	3,972,160,533.33	795,577,853.79
		2. Net profit from discontinued operations
		(net loss expressed with “-”)	16,155,640.46	876,458,463.32
	(II)	Classified by ownership of equity
		1. Net profit attributable to shareholders of the parent
		company (net loss expressed with “-”)	3,988,316,109.77	1,672,036,317.11
		2. Gains or losses of minority interests
		(net loss expressed with “-”)	64.02

13

				First three quarters	First three quarters
				of 2021	of 2020
Item				(January to September)	(January to September)
VI.	Net	other comprehensive income after taxes		86,896,144.08	237,680,204.59
	(I)	Net	other comprehensive income attributable to owners of
		the parent company after taxes		86,896,144.08	237,680,204.59
		1.	Items that may not be reclassified to profit or loss	12,980.44	-9,536,593.16
			(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	12,980.44	-9,536,593.16
			(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	86,883,163.64	247,216,797.75
			(1) Other comprehensive income that may be
			reclassified to profit or loss under the equity
			method	11,163,093.47	-26,275,813.61
			(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	14,330,008.23	-15,807,957.36
			(6) Exchange differences from translation of
			financial statements	61,390,061.94	289,300,568.72
			(7) Others
	(II)	Net	other comprehensive income attributable to minority
		interests after taxes
VII.	Total comprehensive income			4,075,212,317.87	1,909,716,521.70
	(I)	Total comprehensive income attributable to owners of the
		parent company		4,075,212,253.85	1,909,716,521.70
	(II)	Total comprehensive income attributable to minority
		interests		64.02
VIII.	Earnings per share:
	(I)	Basic earnings per share (RMB per share)		0.3281	0.1228
	(II)	Diluted earnings per share (RMB per share)		0.3277	0.1228

For the business combination under common control effected in the current 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.

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

14

Consolidated Cash Flow Statement January to September 2021

Prepared by: COSCO SHIPPING Development Co., Ltd.

Unit: Yuan Currency: RMB Audit type: Unaudited

		First three quarters	First three quarters
		of 2021	of 2020
Item		(January to September)	(January to September)
I.	Cash flow from operating activities:
	Cash received from sales of goods and provision of services	26,275,136,247.09	12,886,205,410.30
	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	668,497,731.79	179,233,023.85
	Other cash received from activities relating to operation	304,146,710.63	337,663,235.97
	Sub-total of cash inflow from operating activities	27,247,780,689.51	13,403,101,670.12
	Cash paid for goods purchased and services rendered	17,440,591,048.78	5,445,861,678.93
	Net increase in loans and advances to customers
	Net increase in placements with central bank and other
	financial institutions
	Cash paid for claims on original insurance contracts
	Net increase in placements with banks and other financial
	institutions
	Cash payment for interest, handling charges and
	commissions
	Cash payment for policyholder dividend
	Cash paid to and on behalf of staff	1,220,392,347.01	1,229,546,116.37
	Taxes paid	848,739,241.41	436,368,678.40
	Other cash paid for activities relating to operating activities	498,792,286.13	628,125,341.91
	Sub-total of cash outflow from operating activities	20,008,514,923.33	7,739,901,815.61
	Net cash flows generated from operating activities	7,239,265,766.18	5,663,199,854.51

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First three quarters First three quarters of 2021 of 2020 (January to September) (January to September)

Item

II.	Cash flow generated from investment activities:
	Cash received from disposal of investments	15,678,946,835.47	16,032,241,290.69
	Cash received from gains in investments	562,901,979.81	416,608,874.26
	Net cash received from disposal of fixed assets, intangible
	assets and other long-term assets	50,504,461.54	159,319,895.32
	Net cash received from disposal of subsidiaries and other
	operating entities	1,052,929,237.58
	Other cash received relating to investment activities	386,229,027.53	247,668,691.03
	Sub-total of cash inflow from investment activities	17,731,511,541.93	16,855,838,751.30
	Cash paid for purchase of fixed assets, intangible assets and
	other long-term assets	29,973,122,234.98	20,153,572,489.82
	Cash paid for investment	450,362,925.00	2,068,288,000.00
	Net increase in pledged loans
	Net cash paid for acquiring subsidiaries and other operating
	entities
	Other cash paid relating to investment activities	385,609,188.93
	Sub-total of cash outflow from investment activities	30,809,094,348.91	22,221,860,489.82
	Net cash flow generated from investment activities	-13,077,582,806.98	-5,366,021,738.52
III.	Cash flow from financing activities:
	Proceeds received from investments	1,000,000,000.00
	Including: Proceeds received by subsidiaries from
	minority interests’ investment	1,000,000,000.00
	Cash received from borrowings	54,001,843,718.49	51,808,998,478.12
	Other cash received relating to financing activities		57,146,333.56
	Sub-total of cash inflow from financing activities	55,001,843,718.49	51,866,144,811.68
	Cash paid for repayment of debts	50,089,132,791.67	49,484,236,615.95
	Cash payments for dividend and profit distribution or interest
	repayment	2,783,960,429.13	3,588,219,194.23
	Including: Dividend and profit paid by subsidiaries to
	minority interests
	Other cash paid relating to financing activities	328,051,203.95	395,505,844.33
	Sub-total of cash outflow from financing activities	53,201,144,424.75	53,467,961,654.51
	Net cash flow generated from financing activities	1,800,699,293.74	-1,601,816,842.83
IV.	Effect on cash and cash equivalents due to changes in
	foreign exchange rates	10,202,116.90	-20,157,435.87
V.	Net increase in cash and cash equivalents	-4,027,415,630.16	-1,324,796,162.71
	Add: Balance of cash and cash equivalents at the beginning
	of the period	12,046,801,047.06	9,635,095,552.61
VI.	Balance of cash and cash equivalents at the end of the
	period	8,019,385,416.90	8,310,299,389.90
	Person-in-charge Person-in-charge	Head of the
	of the Company: of accounting affairs:	accounting department:
	Wang Daxiong Lin Feng	Zhang Mingming

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(III) Adjusting to the relevant items of financial statements at the beginning of the first adoption year due to the first adoption of new leasing standards since 2021

• Applicable √ Not applicable

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 PRC 29 October 2021

As at the date of this announcement, the Board comprises Mr. Wang Daxiong, Mr. Liu Chong and Mr. Xu Hui, being executive directors, Mr. Huang Jian, Mr. Liang Yanfeng and Mr. Ip Sing Chi, being non-executive directors, and Mr. Cai Hongping, Mr. Lu Jianzhong, Ms. Zhang Weihua and Mr. Shao Ruiqing, 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.”.

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