Dida Inc. — Interim / Quarterly Report 2011

Oct 27, 2011

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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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) (Stock Code: 1138)

Third Quarterly Report of 2011

Summary

This Report for the three months ended 30 September 2011 of the Group has been prepared in accordance with the regulations on Disclosure of Information in Quarterly Reports for Listed Companies issued by the China Securities Regulatory Commission. This Report is published simultaneously in Shanghai, the PRC and Hong Kong. All financial information set out in this Report is unaudited and prepared in accordance with the PRC GAAP.

This announcement is made pursuant to Rule 13.09(2) of The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

1. IMPORTANT

This third quarterly report (the “Report”) for the three months ended 30 September 2011 (the “Reporting Period”) of China Shipping Development Company Limited (the “Company”, together with its subsidiaries, the “Group”) has been prepared in accordance with the regulations on Disclosure of Information in Quarterly Reports for Listed Companies issued by the China Securities Regulatory Commission. The Report set out below is published simultaneously in Shanghai of the People’s Republic of China (the “PRC”) and Hong Kong. All financial information set out in this third quarterly report is unaudited and prepared in accordance with the accounting principles generally accepted in the PRC (the “PRC GAAP”).

— 1 —

2. PARTICULARS OF THE COMPANY

2.1 Principal financial data and statistics highlights

		As at	**As **	at
	30 September		31 December		Increase/
		2011	2010		Decrease
					(%)
Total assets (RMB)	52,003,764,301.84		40,710,176,243.62		27.74
Shareholders’ Equity (excluding
minority interests) (RMB)	23,491,475,813.32		22,578,545,669.88		4.04
Net assets per share attributable to
shareholders of the Company
(RMB)		6.9000	6.6319		4.04
					Increase/
					Decrease as
				compared with
			January -		the same
			September 2011	period of 2010
Net cash flow from operating activities (RMB)			1,494,136,652.28		-22.27
Net cash flow from operating activities per share (RMB)			0.4389		-22.27

— 2 —

			Increase/
			Decrease during
			the Reporting
			Period as
			compared with
	July-	January -	the same period
	September 2011	September 2011	of 2010
Net profit attributable to
shareholders of the Company
(RMB)	130,833,852.89	815,239,818.35	-72.65
Basic earnings per share (RMB)	0.0385	0.2395	-72.63
Basic earnings per share after
exceptional items (RMB)	0.0396	0.2094	-70.30
Diluted earnings per share
(RMB)	0.0316	0.2326	-77.53
Rate of returns on net assets	0.57	3.54	Down 1.59
(%) (weighted)			percentage points
Rate of returns on net assets	0.59	3.10	Down 1.46
after exceptional items (%)			percentage points
(weighted)

Exceptional items and amount

	Amount (RMB)
	For the nine months
	ended 30 September
Items	2011
Profit and loss on disposal of non-current assets	115,286,165.20
Government subsidies credited to current profit or loss
(other than those closely related to the normal business
operations of the Company in accordance with the
requirements of the State’s policy and pursuant to a
standardized and fixed amount or quantity enjoyed on a
continuous basis)	33,232,200.00
Other net non-operating income except for the aforesaid
items	-20,531,507.18
Income tax effect	-25,621,117.92
Minority interests effect (after tax)	-78,526.67
Total	102,287,213.43

— 3 —

• 2.2 Total number of shareholders as at the end of the Reporting Period and the shareholding of the top 10 shareholders of unrestricted shares of the Company

As at the end of the Reporting Period, the Company had a total of 115,694 shareholders, of which 115,294 and 400 were holders of A shares and H shares respectively.

Shareholding details of the top 10 shareholders of unrestricted shares of the Company

	Number of
	shares held
	as at the end
	of the
	Reporting	Type of
Name of shareholders (Full Name)	Period	shares
	(unit: share)
China Shipping (Group) Company	1,578,500,000	A shares
HKSCC NOMINEES LIMITED	1,288,384,896	H shares
China Construction Bank - the Great Wall Brand
Preferred Equity Securities Investment Fund	9,233,660	A shares
Industrial and Commercial Bank of China -Lion Equity
Value Growth Securities Investment Fund	3,982,960	A shares
Ashmore Investment Management Limited — Ashmore
Great China Fund	3,742,719	A shares
Bank of China — Harvest SHSE-SZSE 300 Index
Securities Investment Fund	3,434,751	A shares
China Pacific Life Insurance Company Limited
—Dividend Payout—Individual Dividend Payout	3,300,226	A shares
Galaxy Securities — China Merchants Bank — Galaxy
Gold Star No.1 Asset Management Plan	3,124,002	A shares
Industrial and Commercial Bank of China -Bao Yin
China Coastal Area Growth Securities Investment
Fund	3,085,327	A shares
Industrial and Commercial Bank of China Limited-Hua
Xia SHSE-SZSE 300 Index Securities Investment
Fund	2,890,000	A shares

— 4 —

3. SIGNIFICANT EVENTS

3.1 Material changes in the principal items and highlights in the financial statements of the Company and the reasons

		As at	As at	Increase /	Reasons for such
	Items (Balance Sheet)	30 September 2011	31 December 2010	Decrease	material changes
		RMB	RMB	%
1	Cash	5,380,867,800.84	1,061,734,716.74	406.80	As a result of the
					increase in the cash
					flow from financing
					activities
2	Notes receivables	148,849,789.83	109,962,901.23	35.36	The proportion of
					acceptance bills in the
					received accounts
					increased
3	Accounts receivables	1,281,259,710.75	781,100,552.66	64.03	The revenue from
					operations increased
					and turnover days of
					the accounts
					receivables increased
4	Prepayments	295,456,684.15	157,614,095.59	87.46	The prepayments to
					shipping agencies
					increased
5	Other receivables	263,694,808.43	186,005,054.59	41.77	Receivables and
					advance payments
					increased
6	Inventories	598,405,438.38	449,284,608.15	33.19	Inventory bunkers for
					the newly added
					vessels increased
7	Non-current assets to be	569,157.84	1,707,473.52	-66.67	Long-term deferred
	mature in less than one				expense to be matured
	year				in less than one year
					decreased

— 5 —

		As at	As at	Increase /	Reasons for such
	Items (Balance Sheet)	30 September 2011	31 December 2010	Decrease	material changes
		RMB	RMB	%
8	Long-term equity	3,495,943,662.79	2,578,517,456.78	35.58	Profits gained by the
	investment				investee under the
					equity method of
					accounting and capital
					increase of the investee
					by capital injection
9	Notes payable	1,231,830,738.84	272,850,000.00	351.47	Financing from notes
					increased as a result of
					the increase in the
					construction of new
					vessels
10	Accounts payable	1,038,795,136.67	640,870,701.44	62.09	As a result of the
					expansion of the
					operating scale and the
					increase in the
					inventories as at the
					end of the Reporting
					Period
11	Advance receipts	399,944,913.04	59,019,786.78	577.65	The advance receipts of
					freight rates increased
12	Salaries and wages	24,894,425.54	123,119,739.92	-79.78	As a result of the
	payable				payment of the salaries
					and wages payable to
					the employees
13	Taxes payable	58,478,125.97	112,455,915.77	-48.00	As a result of the
					decrease in both the
					income taxes payable
					by the Company and
					the personnel income
					tax payable of the
					employee
14	Interests payable	116,066,798.98	72,111,706.41	60.95	Bank loans increased

— 6 —

		As at	As at	Increase /	Reasons for such
	Items (Balance Sheet)	30 September 2011	31 December 2010	Decrease	material changes
		RMB	RMB	%
15	Long-term loans	12,788,241,912.44	7,132,346,943.13	79.30	As a result of financing
					for construction of
					vessels in 2011
16	Bonds payable	8,034,327,490.48	4,989,872,473.87	61.01	As a result of issue of
					the convertible bonds
					of RMB3.95 billion in
					2011
17	Anticipated liabilities	4,500,000.00	85,500,000.00	-94.74	Legal proceedings
					regarding vessel
					accident fees having
					been concluded and
					such fees having been
					carried forward as
					estimated liabilities
18	Other non-current	18,455,618.72	13,218,329.36	39.62	Change in fair value of
	liabilities				the interest rate swap
					agreement entered into
					by the Company
19	Minority interests	692,661,934.02	512,915,985.26	35.04	The non-wholly owned
					subsidiaries achieved
					profits
	Items (Income	January-September	January-September	Increase /	Reasons for such
	Statement)	2011	2010	Decrease	material changes
		RMB	RMB	%
1	Financial costs	351,135,122.96	139,329,215.43	152.02	With the delivery of
					new vessels, the
					increase of interest
					expenses from related
					bank borrowings has
					been conducted as cost
2	Assets depreciation loss	-1,168,335.00	-206,552.54	-465.64	Reversal of provision
					for bad debts

— 7 —

	Items (Income	January-September	January-September	Increase /	Reasons for such
	Statement)	2011	2010	Decrease	material changes
		RMB	RMB	%
3	Investment income	265,155,802.89	172,678,865.54	53.55	The net profit of
					Shenhua Zhonghai
					Marine Co., Limited, a
					joint venture company
					with China Shenhua
					Energy Co., Limited
					increased
4	Non-operating	21,380,047.81	7,884,798.31	171.16	The Company ’s public
	expenditure				welfare donation
					expenditure increased
5	Income tax	120,120,113.06	405,703,472.26	-70.39	The profit from
					operations decreased
6	Net profit attributable to	815,239,818.35	1,457,081,742.22	-44.05	The profit from
	owners of parent				operations decreased
	company
7	Net profit attributable to	21,028,165.43	6,356,138.03	230.83	The net profit arising
	minority shareholders				from the non-wholly
					owned subsidiaries
					increased
	Items (Cash Flow	January-	January-	Increase /	Reasons for such
	Statement)	September 2011	September 2010	Decrease	material changes
		RMB	RMB	%
1	Net cash flow from	8,861,783,764.28	2,690,852,835.88	229.33	Cash received from the
	financing activities				issue of the convertible
					bonds of RMB3.95
					billion and the
					borrowing of entrusted
					loan of RMB3.4 billion

— 8 —

• 3.2 Analysis and discussion on the progress of significant events and their impact and resolutions

A-Share convertible bonds

Approved by the China Securities Regulatory Commission (Zheng Jian Xu Ke 2011 No. 1152), the Company issued the RMB3.95 billion A-Share convertible bonds (the “A-Share convertible bonds”) with a face value of RMB100 each and a term of 6 years on 1 August 2011. Permitted by Shanghai Stock Exchange Limited, the A-Share convertible bonds with bond code “110017” have been listed on Shanghai Stock Exchange since 12 August 2011. The A-Share convertible bonds’ conversion period will be from 2 February 2012 to 1 August 2017, and the initial conversion price of the A-Share convertible bonds is RMB8.70 per share.

In terms of the details of the issue and listing of the A-Share convertible bonds, please refer to the series of announcements published in China Securities Journal, Shanghai Securities News and the website of Shanghai Stock Exchange Limited, i.e. www.sse.com.cn, published between 28 July 2011 and 10 August 2011.

The potential dilution impact on the share capital arising from the issue of the A-Share convertible bonds has been reflected in the diluted earnings per share in paragragh 2.1 in the Report.

• 3.3 Status of performance of undertaking given by the Company, shareholders and the controller

Not applicable

• 3.4 Warning in respect of forecast of possible accumulated net loss for the period from the beginning of the financial year of 2011 to the end of 2011 or warning in respect of forecast of possible significant changes in accumulated net profit as compared with that of the 2010 and reasons therefore

Not applicable

• 3.5 Implementation of the profit distribution plan during the Reporting Period

The 2010 profit distribution plan of the Company has been finalized in June 2011.

— 9 —

4. Appendix

4.1 Consolidated Balance Sheet

Items	**30 September 2011 **	31 December 2010
	RMB	RMB
Current assets
Cash	5,380,867,800.84	1,061,734,716.74
Notes receivables	148,849,789.83	109,962,901.23
Accounts receivables	1,281,259,710.75	781,100,552.66
Prepayments	295,456,684.15	157,614,095.59
Interests receivables	85,886.11
Other receivables	263,694,808.43	186,005,054.59
Inventories	598,405,438.38	449,284,608.15
Non-current assets to be mature in less
than one year	569,157.84	1,707,473.52
Total current assets	7,969,189,276.33	2,747,409,402.48
Non-current assets
Held-to-maturity investment	49,000,000.00
Long-term equity investment	3,495,943,662.79	2,578,517,456.78
Investment properties	188,424,564.01
Fixed assets	31,632,388,046.60	27,144,264,765.07
Construction in progress	8,577,307,427.39	8,136,826,353.36
Intangible assets	23,993,712.32	29,417,273.66
Long-term deferred expenses	67,517,612.40	73,740,992.27
Total non-current assets	44,034,575,025.51	37,962,766,841.14
Total assets	52,003,764,301.84	40,710,176,243.62

— 10 —

Consolidated Balance Sheet (Continued)

Items	**30 September 2011 **	31 December 2010
	RMB	RMB
Current liabilities
Short-term loans	1,509,201,720.03	1,662,809,871.00
Notes payable	1,231,830,738.84	272,850,000.00
Accounts payable	1,038,795,136.67	640,870,701.44
Advance receipts	399,944,913.04	59,019,786.78
Salaries and wages payable	24,894,425.54	123,119,739.92
Taxes payable	58,478,125.97	112,455,915.77
Interests payable	116,066,798.98	72,111,706.41
Other payables	959,353,883.86	858,104,689.51
Non-current liabilities to be mature in
less than one year	780,401,107.21	761,040,283.21
Total current liabilities	6,118,966,850.14	4,562,382,694.04
Non-current liabilities
Long-term loans	12,788,241,912.44	7,132,346,943.13
Bonds payable	8,034,327,490.48	4,989,872,473.87
Long-term payables	512,412,995.49	429,934,028.43
Anticipated liabilities	4,500,000.00	85,500,000.00
Deferred tax liabilities	342,721,687.23	405,460,119.65
Other non-current liabilities	18,455,618.72	13,218,329.36
Total non-current liabilities	21,700,659,704.36	13,056,331,894.44
Total liabilities	27,819,626,554.50	17,618,714,588.48
Shareholders’ equity
Share capital	3,404,552,270.00	3,404,552,270.00
Capital reserve	4,981,817,170.88	4,114,669,115.46
Surplus reserve	2,755,909,941.97	2,755,909,941.97
Undistributed profit	13,184,106,632.88	12,947,640,700.43
Exchange difference on translation of
foreign currency	-834,910,202.41	-644,226,357.98
Total equity attributable to owners of the
parent company	23,491,475,813.32	22,578,545,669.88
Minority interests	692,661,934.02	512,915,985.26
Total shareholders’ equity	24,184,137,747.34	23,091,461,655.14
Total liabilities and shareholders’ equity	52,003,764,301.84	40,710,176,243.62

— 11 —

Balance Sheet of Parent Company

Items

30 September 2011 31 December 2010 RMB RMB

Current assets Cash Notes receivables Accounts receivables Prepayments Other receivables Inventories Non-current assets to be mature in less than one year Total current assets Non-current assets Long-term accounts receivables Long-term equity investment Investment properties Fixed assets Construction in progress Intangible assets Long-term deferred expenses Total non-current assets Total assets	3,504,029,642.08 121,599,789.83 1,048,541,396.93 153,440,487.27 4,073,120,757.54 443,074,722.93 569,157.84 9,344,375,954.42 427,811,868.00 4,906,619,726.53 188,424,564.01 21,621,331,723.87 3,235,729,452.46 22,934,797.97 63,885,196.47 30,466,737,329.31 39,811,113,283.73	402,136,982.66 73,342,901.23 599,197,179.39 91,608,959.03 3,993,690,767.38 331,541,258.93 1,707,473.52
		5,493,225,522.14
		445,840,164.00 3,150,905,670.52 18,478,544,372.54 4,506,714,801.44 28,121,893.85 67,943,490.29
		26,678,070,392.64
		32,171,295,914.78

— 12 —

Balance Sheet of Parent Company (Continued)

Items	**30 September 2011 **	31 December 2010
	RMB	RMB
Current liabilities
Short-term loans	601,000,000.00	1,231,794,500.00
Notes payable	1,231,830,738.84	272,850,000.00
Accounts payable	844,111,803.40	434,807,268.75
Advance receipts	220,405,297.24	35,085,334.18
Salaries and wages payable	23,454,020.88	117,495,575.18
Taxes payable	56,173,200.74	106,317,717.17
Interests payable	99,561,066.40	62,122,222.08
Other payables	286,535,480.24	371,105,000.72
Non-current liabilities to be mature in
less than one year	235,538,759.60	235,538,759.60
Total current liabilities	3,598,610,367.34	2,867,116,377.68
Non-current liabilities
Long-term loans	5,661,400,166.20	2,861,400,166.20
Bonds payable	8,034,327,490.48	4,989,872,473.87
Anticipated liabilities	4,500,000.00	85,500,000.00
Total non-current liabilities	13,700,227,656.68	7,936,772,640.07
Total liabilities	17,298,838,024.02	10,803,889,017.75
Shareholders’ equity
Share capital	3,404,552,270.00	3,404,552,270.00
Capital reserve	5,000,418,690.78	4,127,376,435.19
Surplus reserve	2,755,909,941.97	2,755,909,941.97
Undistributed profit	11,351,394,356.96	11,079,568,249.87
Total shareholders’ equity	22,512,275,259.71	21,367,406,897.03
Total liabilities and shareholders’ equity	39,811,113,283.73	32,171,295,914.78

— 13 —

4.2 Consolidated Income Statement

	July-September	July-September	January-September	January-September
Items	2011	2010	2011	2010
	RMB	RMB	RMB	RMB
1. Gross revenue from
operations	3,099,755,790.65	2,886,772,435.23	9,305,254,149.78	8,480,334,353.79
Including: revenue from
operation	3,099,755,790.65	2,886,772,435.23	9,305,254,149.78	8,480,334,353.79
2. Gross cost from
operations	3,070,266,746.22	2,414,919,870.26	8,742,008,713.85	6,976,197,572.53
Including: cost from
operation	2,774,684,616.15	2,253,633,960.36	8,037,115,957.32	6,505,929,262.88
Business taxes and other
surcharges	31,785,682.55	29,077,897.84	92,208,303.16	93,367,168.12
Sales expenses	15,670,962.12	12,552,210.54	38,853,590.65	32,825,857.03
Administrative expenses	88,901,921.59	79,591,472.39	223,864,074.76	204,952,621.61
Financial expenses	160,691,898.81	40,064,329.13	351,135,122.96	139,329,215.43
Assets depreciation loss	-1,468,335.00		-1,168,335.00	-206,552.54
Add: Income from fair value
change
Investment income	100,931,929.86	63,057,391.86	265,155,802.89	172,678,865.54
Including: investment
income from associates
and joint ventures	98,672,596.28	61,714,020.73	262,896,469.31	171,335,494.41
Gains form exchanges
3. Operating profit	130,420,974.29	534,909,956.83	828,401,238.82	1,676,815,646.80
Add: Non-operating revenue	8,262,545.63	35,469,570.25	149,366,905.83	200,210,504.02
Less: Non-operating
expenditure	12,979,957.21	4,252,247.45	21,380,047.81	7,884,798.31
Including: Loss arising from
disposal of non-current
assets	81,846.58	11,210.38	218,571.71	55,774.76
4. Gross profit	125,703,562.71	566,127,279.63	956,388,096.84	1,869,141,352.51
Less: Income tax	-9,362,408.71	74,759,912.77	120,120,113.06	405,703,472.26
5. Net profit	135,065,971.42	491,367,366.86	836,267,983.78	1,463,437,880.25
Net profit attributable to
owners of parent company	130,833,852.89	478,315,094.82	815,239,818.35	1,457,081,742.22
Net profit attributable to
minority shareholders	4,232,118.53	13,052,272.04	21,028,165.43	6,356,138.03
6. Earnings per share
(1) Basic	0.0385	0.1405	0.2395	0.4280
(2) Diluted	0.0316	0.1405	0.2326	0.4280
7. Other comprehensive
income	-57,845,919.10	-79,940,370.00	-197,855,261.27	-134,645,123.14

— 14 —

Consolidated Income Statement (Continued)

	July-September	July-September	January-September	January-September
Items	2011	2010	2011	2010
	RMB	RMB	RMB	RMB
8. Total comprehensive
income	77,220,052.32	411,426,996.86	638,412,722.51	1,328,792,757.11
Total comprehensive income
attributable to owners of
parent company	73,788,702.43	402,733,536.15	618,661,773.75	1,326,866,857.48
Total comprehensive income
attributable to minority
shareholders	3,431,349.89	8,693,460.71	19,750,948.76	1,925,899.63

— 15 —

Income Statement of Parent Company

	July-September	July-September	January- September	January- September
	2011	2010	2011	2010
Items	RMB	RMB	RMB	RMB
1. Revenue from operations	2,355,629,220.41	2,296,742,205.18	7,230,337,784.97	6,811,664,670.63
Less: cost from operation	1,955,523,864.57	1,690,862,551.63	5,871,287,600.03	5,015,992,034.63
Business taxes and other
surcharges	29,573,478.36	26,518,044.67	85,907,720.53	88,350,933.80
Sales expenses	15,512,388.88	12,231,199.93	38,479,157.47	32,504,846.42
Administrative expenses	73,327,538.56	64,058,187.61	181,187,186.91	172,178,110.36
Financial expenses	173,258,700.31	87,902,289.27	414,205,711.89	150,006,144.68
Assets depreciation loss
Add: Income from fair value
change
Investment income	100,184,720.69	63,057,391.86	264,408,593.72	172,678,865.54
Including: investment
income from associates
and joint ventures	98,672,596.28	61,714,020.73	262,896,469.31	171,335,494.41
2. Operating profit	208,617,970.42	478,227,323.93	903,679,001.86	1,525,311,466.28
Add: Non-operating revenue	8,221,545.63	-243,069.30	149,112,227.83	254,638,601.51
Less: Non-operating
expenditure	14,633,058.45	4,248,115.29	21,375,365.86	7,878,086.15
Including: Loss arising from
disposal of non-current
assets	81,846.58	9,179.20	218,571.71	52,163.58
3. Gross profit	202,206,457.60	473,736,139.34	1,031,415,863.83	1,772,071,981.64
Less: Income tax	35,199,438.94	46,644,698.87	180,815,870.84	308,162,067.91
4. Net profit	167,007,018.66	427,091,440.47	850,599,992.99	1,463,909,913.73
5. Earnings per share
(1) Basic	0.0490	0.1254	0.2498	0.4300
(2) Diluted	0.0419	0.1254	0.2427	0.4300
6. Other comprehensive
income
7. Total comprehensive
income	167,007,018.66	427,091,440.47	850,599,992.99	1,463,909,913.73

— 16 —

4.3 Consolidated Cash Flow Statement

	January -	January -
Items	September 2011	September 2010
	RMB	RMB
1. Cash flows from operating activities
Cash received from sales of goods and
provision of services	9,215,673,612.14	8,486,532,657.53
Refunds of taxes	571,600.00
Cash received from other related
operating activities	447,451,357.33	388,021,497.13
Subtotal of cash inflow from operating
activities	9,663,124,969.47	8,875,125,754.66
Cash paid for goods and services	6,299,384,662.06	5,191,805,018.29
Cash paid to or on behalf of employees	1,277,507,550.66	1,112,829,360.41
Taxes paid	331,880,051.76	441,099,593.31
Other cash paid relating to operating
activities	260,216,052.71	207,111,960.87
Subtotal of cash outflow from operating
activities	8,168,988,317.19	6,952,845,932.88
Net cash flows from operating activities	1,494,136,652.28	1,922,279,821.78
2. Cash flows from investing activities
Cash inflow from return on investment
Cash inflow from investment	9,982,387.71	1,343,371.13
Net cash inflow from disposal of fixed,
intangible and other long-term assets	145,403,360.39	271,750,146.68
Net cash inflow from disposal of
subsidiaries and other operating entities	238,785.53
Other cash received relating to investing
activities
Subtotal of cash inflow from investing
activities	155,385,748.10	273,332,303.34
Cash paid for purchase of fixed,
intangible and other long-term assets	5,503,746,666.37	5,152,970,940.91
Cash paid for investment	414,864,254.80
Net cash paid for acquisition of
subsidiaries and other operating entities	663,000,000.00	327,903,200.00
Other cash paid relating to investing
activities

— 17 —

Consolidated Cash Flow Statement (Continued)

	January -	January -
Items	September 2011	September 2010
	RMB	RMB
Subtotal of cash outflow from investing
activities	6,166,746,666.37	5,895,738,395.71
Net cash flows from investing activities	-6,011,360,918.27	-5,622,406,092.37
3. Cash flows from financing activities
Cash inflow from raising capital	159,995,000.00	117,600,000.00
Including: cash inflow from investment by
minority shareholders for subsidiaries	159,995,000.00	117,600,000.00
Cash received from borrowings	10,440,819,223.05	4,604,712,269.96
Cash received from bond issue	3,916,000,000.00
Other cash received relating to financing
activities
Subtotal of cash inflow from financing
activities	14,516,814,223.05	4,722,312,269.96
Cash paid for payment of debts	4,655,570,853.29	1,489,614,525.26
Cash paid for distribution of dividends or
profits and for interest expenses	982,651,255.23	524,277,238.27
Including: Dividends and profits paid to
minority shareholders by subsidiaries
Other cash paid relating to financing
activities	16,808,350.25	17,567,670.55
Subtotal of cash outflow from financing
activities	5,655,030,458.77	2,031,459,434.08
Net cash flows from financing activities	8,861,783,764.28	2,690,852,835.88
4. Effect on cash flow from change of
exchange rates	-25,426,414.19	-50,753,072.75
5. Net increase in cash and cash
equivalents	4,319,133,084.10	-1,060,026,507.46
Add: Balance of cash and cash
equivalents at the beginning of the
Reporting Period	1,061,734,716.74	2,222,147,128.18
6. Balance of cash and cash equivalents
at the end of the Reporting Period	5,380,867,800.84	1,162,120,620.72

— 18 —

Cash Flow Statement of Parent Company

	January -	January -
Items	September 2011	September 2010
	RMB	RMB
1. Cash flows from operating activities
Cash received from sales of goods and
provision of services	5,976,478,988.12	5,492,191,616.57
Tax refund received
Cash received from other related
operating activities	176,046,290.49	315,390,293.89
Subtotal of cash inflow from operating
activities	6,152,525,278.61	5,807,581,910.46
Cash paid for goods and services	3,261,544,035.50	2,943,553,116.66
Cash paid to or on behalf of employees	1,098,472,073.13	990,652,431.38
Taxes paid	318,785,077.10	435,767,339.45
Other cash paid relating to operating
activities	183,526,344.76	194,717,330.80
Subtotal of cash outflow from operating
activities	4,862,327,530.49	4,564,690,218.29
Net cash flows from operating activities	1,290,197,748.12	1,242,891,692.17
2. Cash flows from investing activities
Cash inflow from return on investment
Cash inflow from investment	9,982,387.71	1,343,371.13
Net cash inflow from disposal of fixed,
intangible and other long-term assets	143,492,722.22	189,408,138.90
Net cash inflow from disposal of
subsidiaries and other operating entities
Other cash received relating to investing
activities
Subtotal of cash inflow from investing
activities	153,475,109.93	190,751,510.03
Cash paid for purchase of fixed,
intangible and other long-term assets	1,996,470,881.88	3,427,724,580.68
Cash paid for investment	550,814,254.80
Net cash paid for acquisition of
subsidiaries and other operating entities	1,501,287,850.00	377,323,560.00
Other cash paid relating to investing
activities

— 19 —

Cash Flow Statement of Parent Company (Continued)

	January -	January -
Items	September 2011	September 2010
	RMB	RMB
Subtotal of cash outflow from investing
activities	3,497,758,731.88	4,355,862,395.48
Net cash flows from investing activities	-3,344,283,621.95	-4,165,110,885.45
3. Cash flows from financing activities
Cash inflow from raising capital
Cash received from borrowings	5,701,000,000.00	3,109,693,290.40
Cash received from bond issue	3,916,000,000.00
Other cash received relating to financing
activities
Subtotal of cash inflow from financing
activities	9,617,000,000.00	3,109,693,290.40
Cash paid for payment of debts	3,530,132,000.00	741,449,000.00
Cash paid for distribution of dividends or
profits and for interest expenses	926,153,683.15	487,263,974.82
Other cash paid relating to financing
activities	909,000.00	13,605,850.00
Subtotal of cash outflow from financing
activities	4,457,194,683.15	1,242,318,824.82
Net cash flows from financing activities	5,159,805,316.85	1,867,374,465.58
4. Effect on cash flow from change of
exchange rates	-3,826,783.60	-2,532,382.02
5. Net increase in cash and cash
equivalents	3,101,892,659.42	-1,057,377,109.72
Add: Balance of cash and cash
equivalents at the beginning of the
Reporting Period	402,136,982.66	1,534,421,090.44
6. Balance of cash and cash equivalents
at the end of the Reporting Period	3,504,029,642.08	477,043,980.72

— 20 —

This announcement is made in compliance with 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, and the Shanghai Stock Exchange has required the Company to make an announcement similar to this announcement in Shanghai.

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

Shanghai, the PRC 27 October 2011

As at the date of this announcement, the board of directors of the Company comprises Mr. Li Shaode, Mr. Lin Jianqing, Mr. Wang Daxiong, Mr. Zhang Guofa, Mr. Yan Zhichong and Mr. Qiu Guoxuan as executive directors, Mr. Zhu Yongguang, Mr. Zhang Jun and Mr. Lu Wenbin as independent non-executive directors.

— 21 —