Dida Inc. — Capital/Financing Update 2003

Feb 14, 2003

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.

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CHINA SHIPPING DEVELOPMENT COMPANY LIMITED

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

Announcement

The profit of the Company for 2002, as a result of the Transfer, is expected to increase by over 50 per cent., as compared with that for 2001.

China Shipping Development Company Limited (the “Company”) entered into a transfer of interests agreement with China Shipping (Group) Company (the “Group Company”), its controlling shareholder (as defined in the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited) on 9 September 2002. Pursuant to such agreement, the Company has agreed to transfer all of its 25 per cent. equity interests in China Shipping Container Lines Co., Ltd. (“CS Container Lines”) to the Group Company (the “Transfer”). Details regarding the Transfer were set out in the announcement of the Company dated 10 September 2002.

As previously disclosed in the Interim Report 2002, in respect of the Company’s investment in CS Container Lines, the Company has incurred a loss of approximately RMB129,194,220.2 (approximately HK$121,881,340) prepared in accordance with PRC accounting standards for the relevant period of 2002, as compared with a loss of approximately RMB274,602,726.87 (approximately HK$259,059,176) prepared in accordance with PRC accounting standards for 2001. As a result of the completion of the Transfer on 9 September 2002, the profit of the Company prepared in accordance with PRC accounting standards for 2002 is expected to increase by over 50 per cent., as compared with that for 2001. The actual consolidated results of the Company for the year ended 31 December 2002 have yet to be audited, and will be disclosed in the Annual Report 2002 of the Company.

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 China Securities Regulatory Commission and the Shanghai Stock Exchange to issue an announcement similar to this announcement.

Shanghai, the PRC 14 February 2003

By order of the Board China Shipping Development Company Limited Ye Yumang Company Secretary

Note: Unless otherwise specified, conversion of HK$ into RMB is based on the exchange rate of HK$1.00 = RMB1.06.

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

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