Dida Inc. — Capital/Financing Update 2002

Aug 5, 2002

The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

CHINA SHIPPING DEVELOPMENT COMPANY LIMITED

中海發展股份有限公司

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

Announcement of the 6th Meeting of the 2002 Board of Directors

The Board is pleased to announce that the 6th meeting of the 2002 Board was duly convened on 2 August 2002, during which the resolutions set out below were duly passed.

The board (the “Board”) of directors (the “Directors”) of China Shipping Development Company Limited (the “Company”) is pleased to announce that the 6th meeting (the “Meeting”) of the 2002 Board was held on 2 August 2002 at 9:00 a.m. at 700 Dong Da Ming Road, Shanghai, the People’s Republic of China (“PRC”).

A quorum of Directors was present at the Meeting. Members of the supervisory committee and the senior management staff were also present at the Meeting. The Meeting was chaired by Mr. Li Kelin. The Meeting was duly convened in accordance with the relevant provisions of the PRC Company Law and the articles of association of the Company. The following resolutions were duly passed at the Meeting:

1. the resolution regarding “further investment in Hainan Haixiang Shipping Company Limited (海南海翔航運實業公司) (“Haixiang Shipping”)”. Haixiang Shipping, a subsidiary of the Company, and Huaneng International Electricity Company Limited (華能國際電力開發公司) have jointly invested in Shanghai Times Shipping Company Limited (上海時代航運有限公司) (“Times Shipping”). Times Shipping has achieved good operating results since it first started operation two years ago. In order to improve its shipping capacity, Times Shipping wished to increase its registered capital from the original RMB50,000,000 (approximately HK$46,728,972) to RMB100,000,000 (approximately HK$93,457,944). Haixiang Shipping is required to increase its investment in Times Shipping from the original RMB25,000,000 (approximately HK$23,364,486) to RMB50,000,000 (approximately HK$46,728,972) accordingly. In order for Haixiang Shipping to meet the requirement for its further investment in Times Shipping, Haixiang Shipping is required to increase its own registered capital by RMB50,000,000 (approximately HK$46,728,972). Therefore, the Company proposes to invest a sum of RMB47,500,000 (approximately of HK$44,392,523) in Haixiang Shipping;

2. the resolution regarding “the construction of two 42,000 ton vessels (the “Vessels”) for the transportation of refined and crude oil”, in accordance with the overall strategy of the Company in respect of its oil transportation fleet. On 6 December 2000, the Company and Guangzhou Shipyard International Company Limited (廣州廣船國際股份有限公司), an independent third party, entered into an agreement in respect of the construction of four tankers, with an option to construct two further vessels, namely the Vessels. The Company plans to exercise its option in respect of the construction of the Vessels, in order to take advantage of the current tanker shipping market and shipbuliding market conditions. The construction of the Vessels are expected to be completed in March and July 2004, respectively. The total investment is expected to be USD46,960,000 (approximately HK$366,288,000); and

3. the resolution regarding “an application for a long-term loan facility to be made to the Industrial and Commercial Bank of China (Shanghai branch), which would be secured by pledging the Vessels”. The application for the long-term loan facility shall be made to the Industrial and Commercial Bank of China (Guangzhou branch), and such facility shall be secured by pledging the Vessels. The proposed long-term loan facility shall amount to RMB299,398,200 (approximately HK$279,811,400), representing approximately 77% of the total expected investment for the Vessels.

This announcement is made in compliance with the simultaneous dissemination of information requirement under paragraph 2(2) of the Listing Agreement. The Company’s A shares are listed on the Shanghai Stock Exchange, and it has been requested by the Shanghai Stock Exchange to make an announcement similar to this announcement.

By order of the Board
China Shipping Development Company Limited
Ye YumangCompany Secretary2 August 2002
Shanghai, the PRC

Note: Unless otherwise specified, conversion of HK$ into RMB is based on the exchange rate of HK$1.00=RMB1.07 and conversion of US$ into HK$ is based on the exchange rate of US$1.00=HK$7.80.

Please also refer to the published version of this announcement in The Standard.