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

Apr 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 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 2021 (the “ Reporting Period ”) will be published on the Shanghai Stock Exchange on 29 April 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).

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 Absent directors

Name of the	Position of the	Reason for the absence	Name of
absent director	absent director	of the director	the proxy
Liang Yanfeng	Director	Other business	Xu Hui
		engagement

1

• 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.

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 end	As at the end	with the end of
	of the	of the	the previous year
	Reporting Period	previous year	(%)
Total assets	149,800,438,180.82	146,038,794,875.34	2.58
Net assets attributable to
shareholders and other equity
holders of the listed company	25,010,356,578.83	24,370,007,060.10	2.63
	From the	From the	Increase/decrease
	beginning	beginning of	as compared
	of the year	the previous year	with the
	to the end	to the end of the	corresponding
	of the	reporting period	period of last year
	Reporting Period	of previous year	(%)
Net cash flow from operating activities	1,281,474,448.07	1,060,951,788.02	20.79
	From the	From the	Increase/decrease
	beginning	beginning of	as compared
	of the year	the previous year	with the
	to the end	to the end of the	corresponding
	of the	reporting period	period of last year
	Reporting Period	of previous year	(%)
Revenue	5,267,071,876.84	3,443,612,007.07	52.95
Net profit attributable to
shareholders and other equity
holders of the listed company	827,503,592.29	341,957,733.55	141.99
Net profit attributable to shareholders
and other equity holders of the listed
company, excluding extraordinary
gains or losses	846,519,549.23	332,576,408.84	154.53
			Increased by 2.48
Weighted average return on net assets (%)	4.15	1.67	percentage points
Basic earnings per share (RMB per share)	0.0668	0.0249	168.27
Diluted earnings per share (RMB per share)	0.0668	0.0249	168.27

2

Items and amounts of extraordinary gains or losses

√ Applicable □ Not Applicable

Unit: Yuan	Currency: RMB
	Amount for the
Item	current period
Gain/loss from disposal of non-current assets	2,469,652.25
Government grants recognized in the gains or losses 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)	1,986,226.52
Other non-operating income/expenses excluding the items above	-29,823,032.12
Income tax effect	6,351,196.41
Total	-19,015,956.94

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)

327,715

Shareholding of the top 10 shareholders

	Number of		Number of
	shares held		shares subject	Number of shares
	at the end	Percentage	to selling	pledged or frozen		Nature of
Name of shareholders (Full name)	of the period	(%)	restrictions	Status of shares	Number	shareholders
China Shipping Group Company Limited	4,410,624,386	38.00%	4,410,624,386	Nil	0	State-owned
						corporation
HKSCC NOMINEES LIMITED	3,656,809,075	31.5%	3,656,809,075	Unknown	Unknown	Foreign
						corporation
State Development & Investment Co., Ltd	183,331,807	1.58%	183,331,807	Nil	0	State-owned
						corporation
A securities account of COSCO SHIPPING	79,627,003	0.69%	79,627,003	Nil	0	State-owned
Development Co., Ltd. designated						corporation
for repurchase
Hong Kong Securities Clearing Company Ltd.	50,109,971	0.43%	50,109,971	Nil	0	Other
Henan Yiluo Investment Management	49,301,464	0.42%	49,301,464	Nil	0	Other
Co., Ltd. – Letian No. 1 Yiluo private
equity investment fund
China COSCO SHIPPING Corporation Limited	47,570,789	0.41%	47,570,789	Nil	0	State-owned
						corporation
Henan Yiluo Investment Management	32,399,365	0.28%	32,399,365	Nil	0	Other
Co., Ltd. – Yiluo No. 9 private equity
investment fund
Central Huijin Asset Management Ltd.	25,373,300	0.22%	25,373,300	Nil	0	State-owned
						corporation
Chen Xiaomao	25,200,000	0.22%	25,200,000	Nil	0	Domestic natural
						person

4

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

	Number of tradable	Number of tradable
		shares not subject
		to selling	Type and number of shares
Name of shareholders		restrictions held	Type		Number
China Shipping Group Company Limited		4,410,624,386	RMB ordinary shares	4,410,624,386
HKSCC NOMINEES LIMITED		3,656,809,075	Overseas listed foreign shares	3,656,809,075
State Development & Investment Co., Ltd		183,331,807	RMB ordinary shares		183,331,807
A securities account of COSCO SHIPPING Development
Co., Ltd. designated for repurchase		79,627,003	RMB ordinary shares		79,627,003
Hong Kong Securities Clearing Company Ltd.		50,109,971	RMB ordinary shares		50,109,971
Henan Yiluo Investment Management Co., Ltd. – Letian
No. 1 Yiluo private equity investment fund		49,301,464	RMB ordinary shares		49,301,464
China COSCO SHIPPING Corporation Limited		47,570,789	RMB ordinary shares		47,570,789
Henan Yiluo Investment Management Co., Ltd. – Yiluo
No. 9 private equity investment fund		32,399,365	RMB ordinary shares		32,399,365
Central Huijin Asset Management Ltd.		25,373,300	RMB ordinary shares		25,373,300
Chen Xiaomao		25,200,000	RMB ordinary shares		25,200,000
Explanation of the connected relationship or	(1)	The shares held	by China Shipping Group Company Limited were
acting-in-concert relationship among the		not, among other things, pledged, frozen or under custody during the
above shareholders		Reporting Period.

• (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) 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) 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 actingin concert relationship among the above shareholders.

Explanation on shareholders of preference shares with restored voting rights and the number of shares held

Not Applicable

5

• 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

3. SIGNIFICANT EVENTS

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

√ Applicable □ Not Applicable

1. The decrease in the trading financial assets by 96.14% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the redemption of products under asset management plan upon maturity during the Reporting Period;

2. The increase in accounts receivable by 30.52% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the increase in the undue sales receivables of containers;

3. The increase in reinsurance accounts receivable by 372.63% 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;

4. The increase in other receivables by 387.91% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to certain new receivables from disposal of equity during the Reporting Period;

5. The increase in other current assets by 47.67% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the increase in deductible input tax during the Reporting Period;

6. The increase in long-term receivables by 90.49% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the reclassification of self-owned vessels from operating lease to finance lease;

7. The decrease in fixed assets by 41.04% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the conversion and adjustment of self-owned vessels lease into finance lease during the Reporting Period;

8. The decrease in receipt in advance by 55.90% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the recognition of receipt in advance at the beginning of the Reporting Period as revenue during the Reporting Period;

6

1. The increase in reinsurance accounts payable by 215.11% 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;

2. The decrease in other current liabilities by 33.33% at the end of the Reporting Period as compared with the beginning of the Reporting Period was mainly due to the repayment of super short-term commercial papers during the Reporting Period;

3. The year-on-year increase in revenue by 52.95% for the Reporting Period was mainly due to the year-on-year increase in revenue from the container manufacturing segment during the Reporting Period;

4. The year-on-year increase in operating cost by 67.04% for the Reporting Period was mainly due to the year-on-year increase in sales of the container manufacturing segment during the Reporting Period;

5. The year-on-year decrease in other gains by 79.63% for the Reporting Period was mainly due to the year-on-year decrease in receipt of tax rebates during the Reporting Period;

6. The year-on-year increase in gains from changes in fair value by 91.59% for the Reporting Period was mainly due to the year-on-year increase in gains from changes in fair value of financial assets held during the Reporting Period;

7. The year-on-year increase in credit impairment loss by 57.15% for the Reporting Period was mainly due to the increase in receivables as compared with the beginning of the Reporting Period during the Reporting Period;

8. The year-on-year decrease in gains from disposal of assets by 63.28% for the Reporting Period was mainly due to the decrease in disposal of containers during the Reporting Period;

9. The year-on-year increase in non-operating expenses by 499.59% for the Reporting Period was mainly due to the year-on-year increase in donations during the Reporting Period;

10. The year-on-year increase in income tax expenses by 241.81% for the Reporting Period was mainly due to the year-on-year increase in the income tax payable for the Reporting Period;

11. The year-on-year decrease in net cash inflow from financing activities by 124.70% for the Reporting Period was mainly due to the increase 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

On 27 January 2021, COSCO SHIPPING Development Co., Ltd. convened the Board meeting to review and approve a proposal regarding the issuance of shares by COSCO SHIPPING Development Co., Ltd. to purchase assets and raise ancillary funds as well as connected transaction and other relevant resolutions. On 29 April, the Company convened the Board meeting to review and approve a report on the issuance of shares by COSCO SHIPPING Development Co., Ltd. to purchase assets and raise ancillary funds as well as connected transaction (draft) and other relevant resolutions. Pursuant to the disclosures on the draft of such transaction, the Company proposed to acquire the 100% of the equity interest in DFIC Qidong, 100% of the equity interest in DFIC Qingdao, 100% of the equity interest in DFIC Ningbo and 100% of the equity interest in Universal Technology held by COSCO SHIPPING Investment through the issuance of shares, and proposed a non-public issuance of shares to not more than 35 (inclusive) qualified specific target subscribers, including an immediate controlling shareholder of the Company, China Shipping Group (“China Shipping”), to raise ancillary funds. The total amount of ancillary funds raised is not more than RMB1.464 billion, of which RMB600,000,000 will be subscribed by China Shipping. Such transaction shall be subsequently submitted to the shareholder meeting of the Company for review and consideration and subject to the approval from the regulatory authority.

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 2021

Prepared by: COSCO SHIPPING Development Co., Ltd.

Unit: Yuan	Currency: RMB Audit type: Unaudited	Currency: RMB Audit type: Unaudited
Item	31 March 2021	31 December 2020
Current assets:
Cash	10,798,671,788.21	12,636,947,404.87
Deposit reservation for balance
Placements with banks and other financial institutions
Trading financial assets	25,240,617.07	654,224,047.94
Derivative financial assets
Bills receivable	414,726,944.39	387,926,400.00
Accounts receivable	2,676,902,409.48	2,050,899,602.67
Receivables financing
Funds paid in advance	690,122,333.16	732,415,544.19
Premiums receivable
Reinsurance accounts receivable	32,792,153.75	6,938,190.88
Deposits receivable from reinsurance contracts
Other receivables	881,173,016.16	180,599,865.49
Including: Interests receivable
Dividends receivable
Purchases of resold financial assets
Inventories	1,212,718,006.87	962,410,481.56
Contract assets
Assets held for sale
Non-current assets due within one year	21,287,591,233.24	19,380,569,317.13
Other current assets	208,990,036.26	141,525,718.05
Total current assets	38,228,928,538.59	37,134,456,572.78

9

31 March 2021 31 December 2020

Item

Non-current assets:

Loans and advances granted Debt investments Other debt investments 59,820,000.00 59,820,000.00 Long-term receivables 52,762,566,712.18 27,698,200,826.12 Long-term equity investments 21,497,108,385.34 21,022,573,976.71 Other equity instrument investments Other non-current financial assets 3,717,351,609.57 3,932,753,960.40 Investment property 88,161,865.72 98,143,910.97 Fixed assets 32,531,841,626.19 55,180,427,306.59 Construction in progress 144,577,256.95 131,679,264.71 Biological assets for production Fuel assets Right-of-use assets 99,972,194.00 115,199,245.22 Intangible assets 143,803,346.87 146,464,033.78 Development expenditure Goodwill Long-term deferred expenses 46,493,652.41 56,902,687.17 Deferred income tax assets 303,992,993.00 284,669,504.39 Other non-current assets 175,820,000.00 177,503,586.50 Total non-current assets 111,571,509,642.23 108,904,338,302.56 Total assets 149,800,438,180.82 146,038,794,875.34

10

31 March 2021 31 December 2020

Item

Current liabilities:

Short-term borrowings Borrowings from central bank Placements funds Trading financial liabilities Derivative financial liabilities Bills payable Accounts payable Funds received in advance Contract liabilities 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 Taxes payable Other payables Including: Interests payable Dividends payable Handling charges and commissions payable Reinsurance accounts payable Liabilities classified as held-for-sale Non-current liabilities due within one year Other current liabilities Total current liabilities

23,093,107,880.50 17,253,169,100.00

1,517,607,460.40	1,399,717,718.49
3,874,896,381.08	3,075,170,599.64
153,802,933.42	348,730,076.27
132,108,100.84	162,353,982.75
275,168,163.31	330,594,835.66
289,101,142.99	233,791,831.21
1,864,983,345.22	1,894,079,770.14
435,091,990.21	415,174,055.66
159,310,000.00	226,360,000.00
81,060,339.70	25,724,639.84
31,989,263,063.48	37,135,491,553.85
2,000,000,000.00	3,000,000,000.00
65,271,098,810.94	64,858,824,107.85

11

31 March 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

47,489,410,525.56 45,527,948,093.17 6,855,969,262.35 8,287,545,838.06

46,726,922.80 53,857,626.25 2,858,609,942.46 2,607,811,275.88 17,416,708.46 21,220,473.82 9,545,982.60 9,933,627.93 110,454,038.37 104,888,101.64 192,436,977.73 196,758,670.64 57,580,570,360.33 56,809,963,707.39 122,851,669,171.27 121,668,787,815.24

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

Paid-up capital (or share capital) 11,608,125,000.00 11,608,125,000.00 Other equity instruments 6,000,000,000.00 6,000,000,000.00 Including: Preferred shares Perpetual bonds 6,000,000,000.00 6,000,000,000.00 Capital reserve -165,629,531.15 -113,856,976.63 Less: Treasury shares 233,428,071.84 233,428,071.84 Other comprehensive income -2,368,889,910.76 -2,320,757,973.36 Special reserve 1,459,088.63 1,360,053.39 Surplus reserve 1,526,247,276.22 1,613,592,540.60 General risk provision Retained earnings 8,642,472,727.73 7,814,972,487.94 Total equity attributable to the owner of the parent company (or shareholders’ equity) 25,010,356,578.83 24,370,007,060.10 Minority interests 1,938,412,430.72 Total owners’ equity (or shareholders’ equity) 26,948,769,009.55 24,370,007,060.10 Total liabilities and owners’ equity (or shareholders’ equity) 149,800,438,180.82 146,038,794,875.34

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

12

Balance Sheet of the Parent Company 31 March 2021

Prepared by: COSCO SHIPPING Development Co., Ltd.

Unit: Yuan Currency: RMB Audit type: Unaudited

Item	31 March 2021	31 December 2020
Current assets:
Cash	3,176,409,049.54	2,775,615,526.66
Trading financial assets
Derivative financial assets
Bills receivable
Accounts receivable	730,693,584.14	427,621,708.43
Receivables financing
Funds paid in advance	28,133.95	66,184.00
Other receivables	13,499,077,663.23	3,552,081,595.59
Including: Interests receivable	14,069,297.76	21,324,935.25
Dividends receivable	4,477,000,256.28	2,877,000,254.47
Inventories	41,445.67	380,282,461.82
Contract assets
Assets held for sale
Non-current assets due within one year	2,471,390,000.00	500,000,000.00
Other current assets
Total current assets	19,877,639,876.53	7,635,667,476.50

13

31 March 2021 31 December 2020

Item

Non-current assets:

Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments	40,519,461,645.84	41,779,056,731.09
Other equity instrument investments
Other non-current financial assets	1,599,031,344.81	1,842,626,670.86
Investment property
Fixed assets	6,286,398.73	10,561,993,940.57
Construction in progress	33,018.87	33,018.87
Biological assets for production
Fuel assets
Right-of-use assets	35,326,467.47	39,402,598.31
Intangible assets	5,161,219.67	5,492,038.34
Development expenditure
Goodwill
Long-term deferred expenses	201,361.59	226,042.86
Deferred income tax assets
Other non-current assets	3,341,421,500.00	5,296,339,500.00
Total non-current assets	45,506,922,956.98	59,525,170,540.90
Total assets	65,384,562,833.51	67,160,838,017.40

14

31 March 2021 31 December 2020

Item

Current liabilities:

Short-term borrowings 8,700,000,000.00 6,700,000,000.00 Trading financial liabilities Derivative financial liabilities Bills payable Accounts payable 398,085,460.08 443,236,011.76 Funds received in advance 27,257,049.95 150,316,183.96 Contract liabilities Staff remuneration payable 65,753,727.37 110,303,574.59 Taxes payable 2,892,060.78 7,134,578.10 Other payables 5,834,933,739.20 9,092,119,802.08 Including: Interests payable 125,479,493.78 136,960,287.21 Dividends payable 159,310,000.00 226,360,000.00 Liabilities classified as held-for-sale Non-current liabilities due within one year 4,918,642,871.36 3,993,592,178.39 Other current liabilities 2,000,000,000.00 3,000,000,000.00 Total current liabilities 21,947,564,908.74 23,496,702,328.88 Non-current liabilities: Long-term borrowings 2,651,500,000.00 3,132,000,000.00 Bonds payable 3,800,000,000.00 4,500,000,000.00 Including: Preferred shares Perpetual bonds Lease liabilities 14,262,750.16 17,730,503.84 Long-term payables Long-term staff remuneration payable 17,416,708.46 18,104,978.46 Projected liabilities Deferred income Deferred income tax liabilities Other non-current liabilities Total non-current liabilities 6,483,179,458.62 7,667,835,482.30 Total liabilities 28,430,744,367.36 31,164,537,811.18

15

31 March 2021 31 December 2020

Item

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 Retained earnings

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 16,368,242,753.02 16,366,399,969.28 233,428,071.84 233,428,071.84 845,943.90 471,766.62 1,607,282,398.01 1,607,282,398.01 1,602,750,443.06 647,449,144.15 36,953,818,466.15 35,996,300,206.22 65,384,562,833.51 67,160,838,017.40

Person-in-charge Person-in-charge of the Company: of accounting affairs: Wang Daxiong Lin Feng

Head of the accounting department: Zhang Mingming

16

Consolidated Income Statement January to March 2021

Prepared by: COSCO SHIPPING Development Co., Ltd.

Unit: Yuan Currency: RMB Audit type: Unaudited

		First quarter	First quarter
Item		of 2021	of 2020
I.	Total operating revenue	5,278,855,022.04	3,455,372,160.49
	Including: Revenue from operations	5,267,071,876.84	3,443,612,007.07
	Interest income
	Premiums earned
	Handling charges and commission income	11,783,145.20	11,760,153.42
II.	Total cost of sales	4,732,966,323.42	3,329,331,430.51
	Including: Operating cost	4,048,740,165.65	2,423,874,894.68
	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	32,317,100.71	12,095,231.67
	Selling expenses	1,391,738.70	3,021,386.28
	Administrative expenses	309,229,825.05	246,990,580.50
	Research and development expenses	2,359.07
	Finance costs	341,285,134.24	643,349,337.38
	Including: Interest expenses	368,085,721.36	680,881,076.46
	Interest income	17,451,489.52	34,417,404.67
	Add: Other gains	1,986,226.52	9,749,405.14
	Investment income (loss is represented by “-”)	552,125,297.97	529,765,831.20
	Including: Gains from investment in associates
	and joint ventures	493,232,927.18	519,009,505.82
	Derecognition gains on financial assets
	measured at amortized cost
	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 “-”)	-18,245,655.12	-217,042,559.99
	Credit impairment loss (loss is represented by “-”)	-122,634,927.05	-78,037,364.77
	Asset impairments loss (loss is represented by “-”)
	Gains from disposal of assets
	(loss is represented by “-”)	2,469,652.25	6,725,467.06

17

				First quarter	First quarter
Item				of 2021	of 2020
III.	Profit from operations (loss is represented by “-”)			961,589,293.19	377,201,508.62
	Add:	Non-operating income		217,183.06	269,754.82
	Less:	Non-operating expenses		30,040,215.18	5,010,160.07
IV.	Total	profit (total loss is represented by “-”)		931,766,261.07	372,461,103.37
	Less:	Income tax expenses		104,262,668.78	30,503,369.82
V.	Net profit (net loss is represented by “-”)			827,503,592.29	341,957,733.55
	(I)	Classified by continuity of operation
		1.	Net profit from continuing operations
			(net loss expressed with “-”)	827,503,592.29	341,957,733.55
		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 “-”)	827,503,592.29	341,957,733.55
		2.	Gains or losses of minority interests
			(net loss expressed with “-”)
VI.	Net other		comprehensive income after taxes	-48,131,937.40	-108,436,282.78
	(I)	Net	other comprehensive income attributable
		to owners of the parent company after taxes		-48,131,937.40	-108,436,282.78
		1.	Items that may not be reclassified to
			profit or loss	-2,721,279.90
			(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	-2,721,279.90
			(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	-45,410,657.50	-108,436,282.78
			(1) Other comprehensive income that may
			be reclassified to profit or loss under the
			equity method	-43,642,741.96	77,329,885.86
			(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	16,012,773.34	-17,195,709.29
			(6) Exchange differences from
			translation of financial statements	-17,780,688.88	-168,570,459.35
			(7) Others
	(II)	Net	other comprehensive income attributable
		to minority interests after taxes

18

			First quarter	First quarter
Item			of 2021	of 2020
VII.	Total	comprehensive income	779,371,654.89	233,521,450.77
	(I)	Total comprehensive income attributable
		to owners of the parent company	779,371,654.89	233,521,450.77
	(II)	Total comprehensive income attributable
		to minority shareholders
VIII.	Earnings per share:
	(I)	Basic earnings per share (RMB per share)	0.06680	0.02490
	(II)	Diluted earnings per share (RMB per share)	0.06680	0.02490

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.

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

19

Income Statement of the Parent Company January to March 2021

Prepared by: COSCO SHIPPING Development Co., Ltd.

Unit: Yuan Currency: RMB Audit type: Unaudited

		First quarter	First quarter
Item		of 2021	of 2020
I.	Revenue from operations	83,695,768.27	505,063,048.62
	Less: Operating cost	11,032,885.25	420,722,425.61
	Taxes and surcharges	17,735,452.49	4,630,813.38
	Selling expenses
	Administrative expenses	30,431,233.93	29,862,326.90
	Research and development expenses
	Finance costs	176,022,200.92	194,166,200.59
	Including: Interest expenses	173,082,855.72	188,113,594.80
	Interest income	5,117,326.04	20,650,531.83
	Add: Other gains	506,392.32
	Investment income (loss is represented by “-”)	2,191,851,271.23	79,789,559.59
	Including: Gains from investment in associates
	and joint ventures	9,212,225.18	58,309,743.70
	Derecognition gains on financial assets
	measured at amortized cost
	Gains from net exposure to hedging
	(loss is represented by “-”)
	Gains from changes in fair value
	(loss is represented by “-”)	-41,455,712.95	-211,213,331.30
	Credit impairment loss (loss is represented by “-”)	-30,212,390.96
	Asset impairments loss (loss is represented by “-”)
	Gains from disposal of assets
	(loss is represented by “-”)	-1,013,858,903.91

20

			First quarter	First quarter
Item			of 2021	of 2020
II.	Profit from operations (loss is represented by “-”)		955,304,651.41	-275,742,489.57
	Add: Non-operating income
	Less: Non-operating expenses
III.	Total profit (total loss is represented by “-”)		955,304,651.41	-275,742,489.57
	Less: Income tax expenses
IV.	Net	profit (net loss is represented by “-”)	955,304,651.41	-275,742,489.57
	(I)	Net profit from continuing operations (net loss
		expressed with “-”)	955,304,651.41	-275,742,489.57
	(II)	Net profit from discontinued operations (net loss
		expressed with “-”)
V.	Net	other comprehensive income after taxes	374,177.28	6,001,068.31
	(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	374,177.28	6,001,068.31
		1. Other comprehensive income that may be
		reclassified to profit or loss under the equity
		method	374,177.28	6,001,068.31
		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		955,678,828.69	-269,741,421.26
VII.	Earnings per share:
	(I)	Basic earnings per share (RMB per share)
	(II)	Diluted earnings per share (RMB per share)
	Person-in-charge Person-in-charge		Head of the
	of the Company: of accounting affairs:		accounting department:
		Wang Daxiong Lin Feng	Zhang Mingming

21

Consolidated Cash Flow Statement January to March 2021

Prepared by: COSCO SHIPPING Development Co., Ltd.

Unit: Yuan Currency: RMB Audit type: Unaudited

		First quarter	First quarter
Item		of 2021	of 2020
I.	Cash flow from operating activities:
	Cash received from sales of goods and
	provision of services	5,091,722,555.80	3,860,135,328.73
	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	172,764,098.94	48,137,033.30
	Other cash received from activities relating to operation	143,174,247.54	122,075,123.35
	Sub-total of cash inflow from operating activities	5,407,660,902.28	4,030,347,485.38
	Cash paid for goods purchased and services rendered	3,270,881,728.30	2,261,556,376.59
	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	543,746,391.99	475,905,092.80
	Taxes paid	174,907,047.70	116,305,267.07
	Other cash paid for activities relating to operating activities	136,651,286.22	115,628,960.90
	Sub-total of cash outflow from operating activities	4,126,186,454.21	2,969,395,697.36
	Net cash flows from operating activities	1,281,474,448.07	1,060,951,788.02

22

		First quarter	First quarter
Item		of 2021	of 2020
II.	Cash flow from investment activities:
	Cash received from disposal of investments	7,275,262,559.31	4,411,763,561.56
	Cash received from gains in investments	15,929,082.64	11,837,351.04
	Net cash received from disposal of fixed assets,
	intangible assets and other long-term assets	20,523,346.09	9,771,991.80
	Net cash received from disposal of subsidiaries
	and other operating entities
	Other cash received relating to investment activities	56,507,367.89	15,895,980.11
	Sub-total of cash inflow from investment activities	7,368,222,355.93	4,449,268,884.51
	Cash paid for purchase of fixed assets,
	intangible assets and other long-term assets	9,503,194,798.83	6,271,527,590.65
	Cash paid for investment	37,822,750.00	430,000,000.00
	Net increase in pledged loans
	Net cash paid for acquiring subsidiaries
	and other operating entities
	Other cash paid relating to investment activities	39,842,613.00
	Sub-total of cash outflow from investment activities	9,580,860,161.83	6,701,527,590.65
	Net cash flow from investment activities	-2,212,637,805.90	-2,252,258,706.14
III.	Cash flow from financing activities:
	Proceeds received from investments
	Including: Proceeds received by subsidiaries
	from minority shareholder’s investment
	Cash received from borrowings	19,182,813,770.00	20,909,204,882.79
	Other cash received relating to financing activities	240,473.95	11,657,508.68
	Sub-total of cash inflow from financing activities	19,183,054,243.95	20,920,862,391.47
	Cash paid for repayment of debts	19,176,563,351.37	11,816,529,935.87
	Cash payments for dividend and
	profit distribution or interest repayment	806,974,104.29	1,143,971,245.00
	Including: Dividend and profit paid by subsidiary to
	minority shareholders
	Other cash paid relating to financing activities	874,724,897.95	1,178,003,591.59
	Sub-total of cash outflow from financing activities	20,858,262,353.61	14,138,504,772.46
	Net cash flow from financing activities	-1,675,208,109.66	6,782,357,619.01
IV.	Effect on cash and cash equivalents due to changes in
	foreign exchange rates	-19,264,237.92	51,322,847.38
V.	Net increase in cash and cash equivalents	-2,625,635,705.41	5,642,373,548.27
	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	9,421,165,341.65	15,277,469,100.88
	Person-in-charge Person-in-charge	Head of the
	of the Company: of accounting affairs:	accounting department:
	Wang Daxiong Lin Feng	Zhang Mingming

23

Cash Flow Statement of the Parent Company January to March 2021

Prepared by: COSCO SHIPPING Development Co., Ltd.

Unit: Yuan Currency: RMB Audit type: Unaudited

		First quarter	First quarter
Item		of 2021	of 2020
I.	Cash flow from operating activities:
	Cash received from sales of goods and provision of services	67,874,843.20	496,294,801.72
	Receipt of tax rebates
	Other cash received from activities relating to operation	2,580,340,923.16	96,297,554.12
	Sub-total of cash inflow from operating activities	2,648,215,766.36	592,592,355.84
	Cash paid for goods purchased and services rendered	77,894,928.30	46,833,618.79
	Cash paid to and on behalf of employees	60,129,075.56	218,986,059.03
	Taxes paid	42,135,863.63	18,229,117.42
	Other cash paid for activities relating to operation	4,218,847,773.56	45,174,347.61
	Sub-total of cash outflow from operating activities	4,399,007,641.05	329,223,142.85
	Net cash flows from operating activities	-1,750,791,874.69	263,369,212.99
II.	Cash flow from investment activities:
	Cash received from disposal of investments	1,578,726,120.48	20,000,000.00
	Cash received from gains in investments	449,717.85	1,000,000,000.00
	Net cash received from disposal of fixed assets,
	intangible assets and other long-term assets	2,100,000,000.00
	Net cash received from disposal of subsidiaries
	and other operating entities
	Other cash received relating to investment activities	19,787.00
	Sub-total of cash inflow from investment activities	3,679,195,625.33	1,020,000,000.00
	Cash paid for purchase of fixed assets,
	intangible assets and other long-term assets	23,628.32	220,000.00
	Cash paid for investment	2,000,000,000.00	1,380,000,000.00
	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	2,000,023,628.32	1,380,220,000.00
	Net cash flow from investment activities	1,679,171,997.01	-360,220,000.00

24

		First quarter	First quarter
Item		of 2021	of 2020
III.	Cash flow from financing activities:
	Cash received from investments
	Cash received from borrowings	4,800,000,000.00	7,780,000,000.00
	Other cash received relating to financing activities	240,473.95	15,696,669.64
	Sub-total of cash inflow from financing activities	4,800,240,473.95	7,795,696,669.64
	Cash paid for repayment of debts	4,055,600,000.00	3,155,000,000.00
	Cash payments for dividend and
	profit distribution or interest repayment	251,277,970.00	288,667,775.29
	Other cash paid relating to financing activities	17,670,727.86	22,613,114.76
	Sub-total of cash outflow from financing activities	4,324,548,697.86	3,466,280,890.05
	Net cash flow from financing activities	475,691,776.09	4,329,415,779.59
IV.	Effect on cash and cash equivalents due to changes in
	foreign exchange rates	-3,018,114.58	3,251,978.39
V.	Net increase in cash and cash equivalents	401,053,783.83	4,235,816,970.97
	Add: Balance of cash and cash equivalents
	at the beginning of the period	2,774,605,426.57	2,835,921,205.78
VI.	Balance of cash and cash equivalents at the end of the
	period	3,175,659,210.40	7,071,738,176.75
	Person-in-charge Person-in-charge	Head of the
	of the Company: of accounting affairs:	accounting 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 leasing standards since 2021

□Applicable √ Not Applicable

• 4.3 Explanation on retrospective adjustment to the comparative figures of the previous period due to the first adoption of new leasing standards since 2021

□ 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 PRC 29 April 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, 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