Dida Inc. — Capital/Financing Update 2007

Jun 26, 2007

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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)

(Stock code: 1138)

PROPOSAL FOR THE ISSUE OF BONDS CONVERTIBLE INTO NEW A SHARES OF THE COMPANY

Reference is made to the Company’s announcement dated 1 November 2006 (the “ Announcement ”). Unless otherwise defined, terms used herein has the same meanings as those defined in the Announcement.

The Board is pleased to announce that the Bond Issue has been approved by the CSRC.

The Convertible Bonds will be issued in the principal amount of RMB2 billion with face value in integral principal amounts of RMB100 each with 10 Convertible Bonds forming one board lot. The minimum subscription for the Bond Issue is one board lot.

Priority will be given to holders of A shares of the Company for the subscription of the Convertible Bonds, and the amount of Convertible Bonds holders of A shares may take priority to subscribe is in the ratio of RMB0.9 of the Convertible Bonds per share for the number of A shares of the Company recorded on the register of members at the closing of the record date, being 29 June 2007, and shall be converted to such number of board lots at RMB1,000 per board lot. As at the date of this announcement, the Company has a total of 3,326,000,000 shares in issue, of which 2,030,000,000 shares are A shares and, according to the subscription ratio of the issue, 1,827,000 board lots may be subscribed by holders of A shares, which accounted for approximately 91.35% of the total issued amount of the Convertible Bonds.

Holders of A shares who are not subject to sale restrictions may effect the subscription with the system of the Shanghai Securities Exchange.

Holders of A shares who are subject to sale restrictions may effect the subscription with the sponsor, being China International Capital Corporation Limited.

An application will be made to the Shanghai Stock Exchange for the listing of the Convertible Bonds on the Shanghai Stock Exchange as soon as practicable.

Trading of the A shares will be suspended for one hour on the date of publishing of the prospectus in relation to the Convertible Bonds, being 27 June 2007, from 9:30 am to 10:30 am. Trading will also be suspended in the event of force majeure and be extended to the next trading day.

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For details of the Bond Issue, investors may refer to the prospectus of the Company dated 27 June 2007 published in the China Securities Daily and Shanghai Securities Daily. Investors may also access the following webites for the full text of the prospectus and related information for this issue: http://www.sse.com.cn, http://www.cnshippingdev.com and http://www.cicc.com.cn. Further information on the Bond Issue will also be set out in the Company’s announcement published at the request of the Shanghai Stock Exchange which can be found in its website (www.cnshippingdev.com) for information purposes only.

This announcement has been made pursuant to the requirements for the simultaneous release of information under Rule 13.09(2) of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited. The Company’s A Shares are listed on the Shanghai Stock Exchange which has requested the Company to issue an announcement similar to this announcement.

By order of the Board China Shipping Development Company Limited Yao Qiaohong Company Secretary

Shanghai, the PRC 26 June 2007

As at the date of this announcement, the Board of Directors of the Company is comprised of Mr. Li Shaode, Mr. Ma Zehua, Mr. Lin Jianqing, Mr. Wang Daxiong, Mr. Zhang Guofa, Mr. Mao Shijia and Mr. Wang Kunhe as executive directors, Mr. Ma Xun, Mr. Xie Rong, Mr. Hu Honggao and Mr. Zhou Zhanqun as independent non-executive directors.

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