Dida Inc. — Interim / Quarterly Report 2018

Apr 27, 2018

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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COSCO SHIPPING ENERGY TRANSPORTATION CO., LTD.* 中遠海運能源運輸股份有限公司

(a joint stock limited company incorporated in the People’s Republic of China with limited liability) (Stock Code: 1138)

First Quarterly Report of 2018

SUMMARY

This Report for the three months ended 31 March 2018 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 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 13.10B of The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

§1 IMPORTANT

• 1.1 This first quarterly report (the “ Report ”) for the three months ended 31 March 2018 (the “ Reporting Period ”) of COSCO SHIPPING Energy Transportation Co., Ltd. (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 is published simultaneously in Shanghai of the People’s Republic of China (the “ PRC ”) and the Hong Kong Special Administrative Region. All financial information set out in the 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	Increase/Decrease
Item	31 March 2018	31	December 2017	(%)
Total assets_(RMB)_	59,069,968,720.31	60,384,730,709.68		-2.18
Net assets attributable to
shareholders of the Company
(RMB)	27,538,048,584.45	27,919,639,799.85		-1.37
	For the		For the
	three months ended	three months ended		Increase/Decrease
	31 March 2018		31 March 2017	(%)
Net cash flow from operating
activities_(RMB)_	151,736,905.60		779,242,880.68	-80.53
	For the		For the
	three months ended	three months ended		Increase/Decrease
	31 March 2018		31 March 2017	(%)
Revenue from operation_(RMB)_	2,401,635,061.19	2,664,732,283.50		-9.87
Net profit attributable to
shareholders of the Company
(RMB)	-84,884,067.66		563,114,677.62	-115.07
Net profit attributable to
shareholders of the Company
after exceptional items_(RMB)_	-85,313,354.84		560,444,641.67	-115.22
Rate of returns on net assets_(%)_				Decrease by 2.34
(weighted)	-0.31		2.03	percentage points
Basic earnings per share_(RMB)_	-0.0211		0.1397	-115.10
Diluted earnings per share_(RMB)_	-0.0211		0.1397	-115.10
			For the
			three months
			ended
Items			31 March 2018	Note
			Amount (RMB)
Government grants included in gains	or losses for the current		454,766.91	Mainly comprised
period, excluding those closely related to the Company’s				of education
ordinary business and granted on an on-going basis in fixed				and training
amount or volume according to certain standards and adhering				subsidies for
to certain principles under national policies				employees
				received
Other profits or losses within the definition of extraordinary			117,616.00
profit or loss
Income tax effect			-143,095.73
Total			429,287.18

• 2 -

2.2 Total number of shareholders as at the end of the Reporting Period, the shareholding of the top 10 shareholders and shareholding of the top 10 shareholders without any selling restrictions of the Company

Total number of shareholders					117,971
	Top	10 shareholders
				Number
			Number	of shares
			of shares	subject to
Name of shareholders	Number of	Shareholding	with selling	pledge or	Type of
(Full Name)	shares	(%)	restrictions	lock up	shareholders
China Shipping (Group)	1,536,924,595	38.12	0	Nil	Stated-owned
Company(1)					entity
(中國海運（集團）總公司)
HKSCC NOMINEES LIMITED(2)	1,285,000,996	31.87	0	Unknown	Offshore
					entity
Central Huijin Assets	92,709,700	2.30	0	Nil	Stated-owned
Management Company Ltd					entity
(中央匯金資產管理有限責任
公司)
China Securities Finance Co.,	27,849,641	0.69	0	Nil	Stated-owned
Ltd.					entity
(中國證券金融股份有限公司)
Harvest Fund - Agricultural	24,879,500	0.62	0	Nil	Others
Bank of China - Harvest CSI
Financial Asset Management
Plan
(嘉實基金–農業銀行–嘉實
中證金融資產管理計劃)
GF Fund - Agricultural Bank	24,879,500	0.62	0	Nil	Others
of China - GF CSI Financial
Asset Management Plan
(廣發基金–農業銀行–廣發
中證金融資產 管理計劃)
Zhongou Fund - Agricultural	24,879,500	0.62	0	Nil	Others
Bank of China - Zhongou CSI
Financial Asset Management
Plan
(中歐基金–農業銀行–中歐
中證金融資產管理計劃)
Peng Heqing (彭賀慶)	18,360,874	0.46	0	6,150,000	Domestic
				shares subject	natural
				to pledge	person
Huang Peiling (黃佩玲)	12,831,524	0.32	0	Nil	Domestic
					natural person
Southern Fund - Agricultural	12,596,453	0.31	0	Nil	Others
Bank of China - Southern CSI
Financial Asset Management
Plan (南方基金–農業銀行–
南方中證金融資產管理計劃)

• 3 -

Top ten holders of shares in circulation without any selling restrictions[(3)] Number of shares in circulation without any selling restrictions as at the end of the Name of Shareholders (full name) Reporting Period Type of shares

Name of Shareholders (full name)

China Shipping (Group) Company[(1)] 1,536,924,595 RMB ordinary shares HKSCC NOMINEES LIMITED[(2)] 1,285,000,996 Offshore listed H shares Central Huijin Assets Management 92,709,700 RMB ordinary shares Company Ltd China Securities Finance Co., Ltd. 27,849,641 RMB ordinary shares Harvest Fund - Agricultural Bank of 24,879,500 RMB ordinary shares China - Harvest CSI Financial Asset Management Plan GF Fund - Agricultural Bank of China - 24,879,500 RMB ordinary shares GF CSI Financial Asset Management Plan Zhongou Fund - Agricultural Bank of 24,879,500 RMB ordinary shares China - Zhongou CSI Financial Asset Management Plan Peng Heqing 18,360,874 RMB ordinary shares Huang Peiling 12,831,524 RMB ordinary shares Southern Fund - Agricultural Bank of 12,596,453 RMB ordinary shares China - Southern CSI Financial Asset Management Plan

Notes:

• (1) As at the end of the Reporting Period, China Shipping (Group) Company (China Shipping Group Company Limited, “China Shipping”) and its subsidiaries held 7,000,000 A Shares of the Company through CICC-CCB-Zhongjin Ruihe collective asset management schemes (中金公司 – 建設銀行 – 中金瑞和集合資產管理計劃), held 2,065,494 A Shares of the Company through Guotai Junan securities asset management-Industrial Bank - Guotai Junan Junxiang Xinli No.6 collective asset management schemes (國泰君安證券資管 – 興業銀行 – 國泰君安君享新利六號集合資產管理計劃) and held 8,641,504 A Shares of the Company through AEGON-INDUSTRIAL Fund-Bank of Shanghai-China Shipping (Group) Company (興業全球基金 – 上海銀行 – 中國海運（集團）總公司). Therefore, China Shipping and its subsidiaries aggregately held 1,554,631,593 A Shares of the Company as at the end of the Reporting Period, representing 38.56% of the total number of shares of the Company.

• (2) HKSCC NOMINEES LIMITED (香港中央結算（代理人）有限公司) holds H shares of the Company on behalf of customers of all securities firms in Hong Kong and other CCASS participants.

• 4 -

• (3) The Company has no shareholder of restricted shares, therefore the top 10 shareholders are the same as the top 10 shareholders of unrestricted shares. No connected relationship exists between the 1st shareholder and the 2nd to 10th shareholders, but it is unknown whether connected relationship or concerted action relationship exist among the 2nd to 10th shareholders.

§3 SIGNIFICANT EVENTS

• 3.1 Significant changes in the principal items and highlights in the financial statements of the Company during the Reporting Period and the reasons

Summary of analysis on the Company’s operating activities in Q1 2018

During the Reporting Period, despite that the elimination of obsolete transportation capacity has accelerated and the growth of capacity supply has slowed down significantly and was lower than the growth of capacity demand in the international crude oil shipping market, the freight rates continued to fluctuate at low level, as it took time to digest the substantial additional capacity at the early stage. The average freight rate of the very large crude carrier (“ VLCC ”) Middle East-China (TD3C) shipping route was WS 41.04, representing a decrease of 29.4% over the last corresponding period on the same basis; meanwhile, the international crude oil prices stayed at high level, and the average fuel oil price (Singapore IFO380) amounted to USD377 per tonne, representing a year-on-year increase of 18.2%. Given the double impact of falling freight rates and rising fuel prices, during the Reporting Period, the daily revenues of main types of vessels in the international crude oil shipping market fell to a historical low over the last corresponding period, and the average daily revenue of the VLCC Middle East-China (TD3C) shipping route was only USD8,147 per day, representing a decrease of 73.8% as compared to that of the Middle East-Far East (TD3) shipping route during the last corresponding period. The daily revenues of other types of vessels on major shipping routes decreased by 60%-70% as compared with the previous year.

Since the second half of 2017, the number of old-fashioned oil tankers dismantled around the world has increased dramatically, and the growth of this number has been even more striking since 2018. According to the statistics from CLARKSONS, during the Reporting Period, 58 oil tankers of 10,000 tonnes or above were dismantled with a total of 7.94 million deadweight tonnes, which was the peak of transportation capacity eliminated in one quarter since 1982, of which 17 VLCCs were dismantled, which was the same as the total number of VLCCs dismantled for the three years from 2015 to 2017. Based on the statistical analysis of historical data, the current international crude oil shipping market has seen an increase in the number and a reduction in the age of oil tankers dismantled, and the revenue from spot market is lower than that from short-term charters, and even lower than long-term charters. Revenues of large types of vessels are close to or even lower than those of small ones. These are features at the bottom of business cycle. During the Reporting Period, the price of vessel assets showed an upward trend. Statistics from CLARKSONS showed that the cost of new VLCC was US$84.5 million per vessel in March 2018, representing an increase of 4.3% compared with US$81 million per vessel in December 2017.

• 5 -

During the Reporting Period, with a significant year-on-year increase in the shipping capacity of the Group’s oil tankers and business volume, the Group recorded a transportation volume of 34.9056 million tonnes, representing a year-on-year increase of 27.8%; a transportation turnover of 126.871 billion tonne-nautical miles, representing a year-on-year increase of 34.3%. In the face of the historical trough of the international crude oil shipping market, the Group leveraged on the fleet structure of international and domestic trade collaboration, and the operating level of our oil tanker fleet continued to outperform the market. By acquiring China National Petroleum Corporation’s refined oil fleet by capital increase and shareholding, the Group’s refined oil fleet has emerged as a leader in the domestic refined oil transportation sector. The Group leased five VLCCs from Sinochem Oil on time charters and entered into contracts of affreightment, representing the establishment of a win-win cooperation mechanism during the market downturn. During the Reporting Period, the Group recorded an operating revenue of RMB2.402 billion, representing a year-on-year decrease of 9.9%; an operating cost of RMB2.162 billion, representing a year-on-year increase of 18.2%; a total profit of RMB-39.0279 million, representing a year-on-year decrease of 105.9%; a net profit of RMB-48.7843 million, representing a year-on-year decrease of 108.2%; a net profit attributable to shareholders of the listed company of RMB-84.884 million, representing a year-on-year decrease of 115.1%. During the Reporting Period, the Group achieved EBITDA (earnings before interest, tax, depreciation and amortization) of RMB577 million, representing a year-on-year decrease of 58.5%, which was lower than the decrease in the market return level of the same period.

Unit: RMB

				Reason for
				Significant
Balance Sheet Item	2018.03.31	2017.12.31	Change(%)	Changes
Accounts receivable	1,357,684,237.46	918,346,943.74	47.84	Note(1)
Long-term receivables	987,407,451.55	2,092,688,506.98	-52.82	Note(2)
Financial assets at fair value	86,686,936.51	0	N.A.	Note(3)
through profit or loss
Financial assets available for	0	395,716,579.15	-100	Note(4)
sale
Financial assets at fair value	309,786,068.56	0	N.A.	Note(5)
through other comprehensive
income
Construction in progress	2,989,078,543.24	3,991,850,321.96	-25.12	Note(6)
Accounts payable	1,653,630,641.33	1,046,560,822.48	58.01	Note(7)

• 6 -

Notes:

• (1) Accounts receivable increased by 47.84% as compared with the beginning of the period, mainly due to the fact that the merger with Dalian PetroChina Shipping Limited by an enterprise not under common control with the Company resulted in an increase in the balance of accounts receivable. At the same time, as part of the Company’s transportation services were completed at the end of the Reporting Period, this concentration led to a periodic increase in the balance of accounts receivable. In the later period, the Company will make more efforts to recover the accounts receivable;

• (2) Long-term receivables decreased by 52.82% as compared with the beginning of the period, mainly due to the fact that our subsidiary China Shipping Development (Hong Kong) Marine Co., Limited (中海發展(香港)航運有限公司) recovered borrowings of RMB955 million from associates and joint ventures;

• (3) Financial assets at fair value through profit or loss, which was nil at the end of last year, amounted to RMB86,686,936.51, mainly due to the fact that part of the available-for-sale financial assets originally measured at cost are classified into this item, resulting from the implementation of new standards for financial instruments this year;

• (4) Available-for-sale financial assets, which was RMB395,716,579.15 at the end of last year, amounted to nil, mainly due to the fact that this item is no longer applicable, resulting from the implementation of new standards for financial instruments this year;

• (5) Financial assets at fair value through other comprehensive income, which was nil at the end of last year, amounted to RMB309,786,068.56, mainly due to the fact that part of the availablefor-sale financial assets originally measured at cost and available-for-sale financial assets originally measured at fair value are classified into this item, resulting from the implementation of new standards for financial instruments this year;

• (6) Construction in progress decreased by 25.12% as compared with the beginning of the period, mainly due to the combined effect of the transfer of vessels under construction to fixed assets and changes in exchange rates;

• (7) Accounts payable increased by 58.01% as compared with the beginning of the period, mainly due to the fact that there was an increase in payables for purchase of materials and such payables were not yet due for payment.

Unit: RMB

				Reason for
	January to	January to		Significant
Income Statement Items	March 2018	March 2017	Change(%)	Changes
Operating revenue	2,401,635,061.19	2,664,732,283.50	-9.87	Note(8)
Operating cost	2,161,595,001.03	1,828,938,055.30	18.19	Note(9)
Finance expenses	233,504,160.80	156,893,185.69	48.83	Note(10)
Other comprehensive net
income after tax	-410,489,851.56	-74,590,226.91	-450.33	Note(11)

• 7 -

Notes:

• (8) Operating revenue decreased by 9.87% as compared with the last corresponding period, mainly due to the decrease in transportation revenue amid the sluggish shipping market.

• (9) Operating cost increased by 18.19% as compared with the last corresponding period, mainly due to the surge in fuel price during the current period.

• (10) Financial expenses increased by 48.84% as compared with the last corresponding period, mainly due to the fact that interest expenses are transferred from capital to expense with the delivery of vessels;

• (11) Other comprehensive income decreased by 450.33% as compared with the last corresponding period, mainly due to the changes of exchange rates during the current period.

Unit: RMB

				Reason for
	January to	January to		Significant
Cash Flow Statement Items	March 2018	March 2017	Change(%)	Changes
Net cash flow from Operating	151,736,905.6	779,242,880.68	-80.53	Note(12)
activities
Net cash flow from Investing	914,153,068.81	-958,997,261.06	195.32	Note(13)
activities
Net cash flow from Financing	-1,425,052,631.87	204,218,405.00	-797.81	Note(14)
activities

Notes:

• (12) Net cash flow generated from operating activities decreased by 80.53% as compared with the last corresponding period, mainly due to the fact that there was a decrease in revenue amid the sluggish shipping market, as well as a significant increase in cost arising from the surge in fuel price as compared to the same period of last year;

• (13) Net cash flow generated from investment activities increased by 195.32% as compared with the last corresponding period, mainly due to the recovery of long-term borrowings of RMB955 million from associates and joint ventures by China Shipping Development (Hong Kong) Marine Co., Limited (中海發展(香港)航運有限公司), a subsidiary of the Company, during the current period;

• (14) Net cash flow generated from financing activities decreased by 797.81% as compared with the last corresponding period, mainly due to the repayment of a large amount of borrowings during the current period.

• 8 -

3.2 Progress of significant events and effects thereof and analysis on solutions

1. Non-public issuance of A shares

After consideration and approval by the Company’s tenth and twelfth board meetings in 2017, as well as approval by the Company’s third extraordinary general meeting in 2017, the first A shareholders’ class meeting in 2017 and the first H shareholders’ class meeting in 2017, the Company intends to issue a maximum of 806,406,572 A Shares (inclusive) to no more than 10 specific subscribers (including China COSCO Shipping Corporation Limited (“ COSCO Shipping ”), the controlling shareholder of the Company) by way of non-public issuance (hereinafter referred to as the “ Nonpublic Issuance ”). The issue price shall be not less than 90% of the average trading price of A shares of the Company during the 20 trading days immediately preceding the price benchmark date, and also not less than the latest audited net asset value per share at the time of the issuance of the Company. The gross proceeds shall amount to RMB5.4 billion (the amount finally approved by the China Securities Regulatory Commission shall prevail). Excluding issuance expenses, the net proceeds will be used for following purposes: (1) Construction of 14 additional oil tankers; (2) Completion of acquisition of two Panamax oil tankers previously entered into (72,000-tonne class).

As of the publication date of this report, the Non-public Issuance has been approved by the State-owned Assets Supervision and Administration Commission of the State Council (the “ SASAC ”) and accepted by the China Securities Regulatory Commission, and the Securities and Futures Commission of Hong Kong has granted its consent to whitewash waiver and special deal for the Non-public Issuance. The Company has submitted a reply to the “Notice Regarding the China Securities Regulatory Commission’s First Feedback on the Review of Administrative Permission Items” (No. 172605) (《中國證監會行政許可項目審查一次反饋意見通知書》(172605號)) issued by the China Securities Regulatory Commission.

The Non-public Issuance is still subject to approval by the China Securities Regulatory Commission, and there are uncertainties as to whether the approval will be granted. The Company will, based on the review progress of the China Securities Regulatory Commission, timely fulfill the information disclosure obligation in strict accordance with requirements of applicable laws and regulations. Investors are advised to pay attention to investment risks thereof. For details, please refer to the announcements published by the Company on the website of the Shanghai Stock Exchange (www.sse. com.cn) on 1 November, 2 December, 16 December, 19 December and 28 December 2017 and 7 February and 6 March 2018 respectively.

• 9 -

2. Share option incentive scheme

At the thirteenth board meeting in 2017 convened on 19 December 2017, the Company considered and approved relevant proposals including “Proposal on Share Option Incentive Scheme of COSCO Shipping Energy Transportation Co., Ltd. (Draft) and its abstract”. The board of directors of the Company approved the implementation of the A share option incentive scheme (the “ Share Option Incentive Scheme ”) by the Company, and agreed to submit this proposal to the general meeting of shareholders and the class shareholders’ meeting of the Company for consideration.

In February 2018, COSCO Shipping, received the “Reply of approval for the implementation of First Share Option Incentive Scheme of COSCO Shipping Energy Transportation Co., Ltd.” (Guozi Kaofen No. [2018] 65) (《關於中遠海運能源運輸 股份有限公司實施首期股票期權激勵計劃的批覆》(國資考分[2018]65 號)) from the SASAC. The SASAC has approved in principle the implementation of the Share Option Incentive Scheme by the Company and the performance evaluation targets for the Share Option Incentive Scheme. The Share Option Incentive Scheme in subsequent years shall be filed with the SASAC before its implementation.

The Share Option Incentive Scheme is still subject to approval by the general meeting of shareholders and the class shareholders’ meeting of the Company.

3. Change of scope of the consolidated statements

In accordance with the Capital Injection Agreement and its supplemental agreement entered into by and between the Company, Dalian PetroChina Shipping Limited and PetroChina Company Limited on 6 March 2018 (see the Company’s “Outbound Investment Announcement of COSCO SHIPPING Energy Transportation Co., Ltd. on Controlling Dalian PetroChina Shipping Limited by Capital Injection and Shareholding Expansion” dated 6 March 2018 for details), Dalian PetroChina Shipping Limited was consolidated into the Company from 7 March 2018.

3.3 Overdue and outstanding undertakings during the Reporting Period

Not applicable

• 3.4 Warning on any potential loss in accumulated net profit for the period from the beginning of the year to the end of the next reporting period or any material change from the corresponding period last year and the reason thereof

Not applicable

• 10 -

§4 APPENDIX

Consolidated Balance Sheet

Items	31 March 2018	31 December 2017
	RMB	RMB
Current assets
Cash and cash equivalents	4,553,559,840.70	5,007,754,402.14
Financial assets at fair value through profit or
loss	86,686,936.51
Notes receivable	45,539,360.00	36,021,570.75
Accounts receivable	1,357,684,237.46	918,346,943.74
Prepayments	431,905,366.62	262,688,229.36
Interests receivable	18,885,607.26	17,183,587.92
Dividends receivable
Other receivables	261,997,162.49	204,407,268.78
Inventory	734,695,150.75	656,218,655.52
Non-current assets maturing within one year		27,077,306.35
Other current assets	152,995,580.14	119,790,243.88
Total current assets	7,643,949,241.93	7,249,488,208.44
Non-current assets
Financial assets available for sale		395,716,579.15
Financial assets at fair value through other
comprehensive income	309,786,068.56
Long-term receivables	987,407,451.55	2,092,688,506.98
Long-term equity investment	4,340,451,360.44	4,434,234,900.15
Investment properties	1,136,625,960.00	1,136,625,960.00
Fixed assets	41,451,741,786.20	40,895,855,010.37
Construction in progress	2,989,078,543.24	3,991,850,321.96
Intangible assets	80,494,761.26	79,484,123.11
Goodwill	68,481,316.73	58,168,418.21
Long-term deferred expenses	11,979,877.26	713,102.47
Deferred income tax asset	49,972,353.14	49,905,578.84
Total non-current assets	51,426,019,478.38	53,135,242,501.24
Total assets	59,069,968,720.31	60,384,730,709.68

• 11 -

31 March 2018 31 December 2017 RMB RMB

Items

Current liabilities
Short-term borrowings	2,257,785,533.16	2,730,939,723.97
Accounts payable	1,653,630,641.33	1,046,560,822.48
Receipts in advance	35,985,251.01	13,033,298.73
Staff remuneration payable	113,981,523.36	256,239,550.80
Taxes payable	21,763,226.22	43,896,090.04
Interests payable	173,026,926.82	144,531,027.73
Dividends payable	19,639,394.81	19,639,394.81
Other payables	235,334,158.51	343,988,402.51
Non-current liabilities to be mature within one
year	3,877,934,904.46	4,221,193,124.06
Total current liabilities	8,389,081,559.68	8,820,021,435.13
Non-current liabilities
Long-term borrowings	16,532,220,818.20	17,272,226,504.71
Bonds payable	3,986,721,387.54	3,985,776,859.91
Long-term payables	1,148,039,309.71	1,068,853,384.84
Long-term Staff remuneration payable	145,618,987.83	145,618,987.83
Estimated liabilities	24,719,778.72	54,620,684.64
Deferred income
Deferred income tax liabilities	355,766,699.43	353,149,242.06
Other non-current liabilities	244,892,649.64	422,574,544.78
Total non-current liabilities	22,437,979,631.07	23,302,820,208.77
Total liabilities	30,827,061,190.75	32,122,841,643.90
Shareholders’ equity
Share capital	4,032,032,861.00	4,032,032,861.00
Capital reserve	7,597,512,697.09	7,597,512,697.09
Other comprehensive income	-438,667,879.24	-138,961,364.12
Specific reserve	62,546,260.68	53,768,751.84
Surplus reserve	2,877,436,346.44	2,877,436,346.44
Undistributed profit	13,407,188,298.48	13,497,850,507.60
Total equity attributable to owners of the
parent company	27,538,048,584.45	27,919,639,799.85
Minority interests	704,858,945.11	342,249,265.93
Total shareholders’ equity	28,242,907,529.56	28,261,889,065.78
Total liabilities and shareholders’ equity	59,069,968,720.31	60,384,730,709.68

• 12 -

Balance Sheet of the Company

Items	31 March 2018	31 December 2017
	RMB	RMB
Current assets
Cash and cash equivalents	1,720,979,811.98	2,357,963,561.27
Accounts receivable	2,239,243.72
Prepayments	2,940,184.45	2,053,321.06
Interests receivable	127,680,421.87	74,804,630.48
Other receivables	2,192,578,345.52	2,687,129,422.84
Inventory	4,870,430.65
Other current assets	6,337,173.98	6,337,173.98
Total current assets	4,057,625,612.17	5,128,288,109.63
Non-current assets
Held-to-maturity investments	8,762,881,000.00	8,565,342,000.00
Long-term equity investment	17,218,157,209.76	16,802,635,929.31
Investment properties	1,288,913,180.00	1,288,913,180.00
Fixed assets	281,271,868.74	61,681,882.80
Construction in progress	275,004,489.23	183,657,720.00
Intangible assets	254,716.99	268,867.93
Total non-current assets	27,826,482,464.72	26,902,499,580.04
Total assets	31,884,108,076.89	32,030,787,689.67
Current liabilities
Short-term borrowings	1,339,410,000.00	1,339,410,000.00
Accounts payable	3,606,686.31
Staff remuneration payable	3,218,617.98	58,615,966.02
Taxes payable	-17,943,807.50	2,526,542.25
Interests payable	104,521,570.18	54,577,734.56
Other payables	2,032,138,725.59	2,260,470,818.58
Total current liabilities	3,464,951,792.56	3,715,601,061.41
Non-current liabilities
Bonds payable	3,986,721,387.54	3,985,776,859.91
Deferred income tax liabilities	192,674,228.68	192,674,228.68
Total non-current liabilities	4,179,395,616.22	4,178,451,088.59
Total liabilities	7,644,347,408.78	7,894,052,150.00
Shareholders’ equity
Share capital	4,032,032,861.00	4,032,032,861.00
Capital reserve	7,845,294,225.00	7,845,294,225.00
Other comprehensive income	274,007,011.01	274,007,011.01
Surplus reserve	2,877,436,346.44	2,877,436,346.44
Undistributed profit	9,210,990,224.66	9,107,965,096.22
Total shareholders’ equity	24,239,760,668.11	24,136,735,539.67
Total liabilities and shareholders’ equity	31,884,108,076.89	32,030,787,689.67

• 13 -

Consolidated Income Statement

			January-March	January-March
Items			2018	2017
			RMB	RMB
1.	Total operating revenue		2,401,635,061.19	2,664,732,283.50
	Including: Operating revenue		2,401,635,061.19	2,664,732,283.50
2.	Total cost of sales		2,544,201,808.16	2,105,988,234.56
	Including: Operating cost		2,161,595,001.03	1,828,938,055.30
		Bu siness taxes and other
		surcharges	14,107,311.32	12,914,837.71
		Sales expenses	4,163,065.39	10,842,527.69
		Administrative expenses	130,340,017.08	96,421,782.78
		Financial expenses	233,504,160.80	156,893,185.69
		Loss on impairment of assets	492,252.54	-22,154.61
	Add:	In vestment income (“-” for investment
		loss)	102,966,446.98	95,934,787.80
	Including: in vestment income from
		associates and joint
		ventures	102,966,446.98	95,934,787.80
3.	Operating profit (“-” for operating loss)		-39,600,299.99	654,678,836.74
	Add:	Non-operating revenue	585,862.91	3,669,505.01
	Less:	Non-operating expenditure	13,480.00	101,269.81
4.	Gross profit (“-” for gross loss)		-39,027,917.08	658,247,071.94
	Less:	Income tax	9,756,346.16	63,333,160.08
5.	Net profit (“-” for net loss)		-48,784,263.24	594,913,911.86
	(1)	Classified by operation continuity
		a. Net profit from continuing
		operations (“-” for net loss)	-48,784,263.24	594,913,911.86
		b. Net profit from discontinued
		operation (“-” for net loss)
	(2)	Classified by ownership
		Ne t profit attributable to owners of
		parent company	-84,884,067.66	563,114,677.62
		Ne t profit attributable to minority
		shareholders	36,099,804.42	31,799,234.24

• 14 -

			January-March	January-March
Items			2018	2017
			RMB	RMB
6.	Other comprehensive net income after tax		-410,489,851.56	-74,590,226.91
	Ot her comprehensive net income after tax
	attributable to owners of parent company		-299,706,515.12	-49,627,324.12
	(1)	Other comprehensive income not to be
		re-classified subsequently to profit or
		loss	-3,824.65
		a. Remeasurement of change in net
		liabilities or net assets of defined
		benefit plan
		b. Share of other comprehensive
		income not to be re-classified to
		profit or loss in an investee in
		accordance with equity method	-3,824.65
	(2)	Other comprehensive income to be re-
		classified to profit or loss	-299,702,690.47	-49,627,324.12
		Including:
		a. Share of other comprehensive
		income to be re-classified to
		profit or loss in an investee in
		accordance with equity method	-63,753,702.33	263,671.47
		b. Gain or loss from changes in the
		fair values of available-for-sale
		financial assets	-13,666,975.75	6,065,199.25
		c. effective parts of profit or loss on
		cash flow hedges	66,447,447.99	-7,748,703.41
		d. The difference between the
		translation of foreign currency
		financial statements	-288,729,460.38	-48,207,491.43
	Ot her comprehensive net income after tax
	attributable to minority shareholders		-110,783,336.44	-24,962,902.79
7.	Total comprehensive income		-459,274,114.80	520,323,684.95
	To tal	comprehensive income attributable to
	owners of parent company		-348,490,778.36	513,487,353.50
	To tal	of comprehensive income attributable
	to	minority shareholders	-110,783,336.44	6,836,331.45
8.	Earnings per share
	(1)	Basic earnings per share (RMB per
		share)	-0.0211	0.1397
	(2)	Diluted earnings per share (RMB per
		share)	-0.0211	0.1397

• 15 -

Income Statement of the Company

			January-March	January-March
Items			2018	2017
			RMB	RMB
1.	Total operating revenue		24,952,309.38	8,951,533.69
	Less: operating cost		9,788,859.40
		Business taxes and other surcharges	193,049.06	73,019.81
		Sales expenses	4,163,065.39	10,842,527.69
		Administrative expenses	3,474,930.26	6,796,614.82
		Financial expenses	14,444,580.32	21,733,979.12
	Add: In vestment income (“-” for investment
		loss)	110,064,296.14	91,672,000.60
		Including: in vestment income from
		associates and joint
		ventures	18,895,563.53	14,975,425.25
2.	Operating profit (“-” for operating loss)		102,952,121.09	61,177,392.85
	Add: Non-operating revenue		73,007.35
	Less: Non-operating expenditure
3.	Gross profit (“-” for gross loss)		103,025,128.44	61,177,392.85
4.	Net profit (“-” for net loss)		103,025,128.44	61,177,392.85
	(1)	Net profit from continuing operations
		(“-” for net loss)	103,025,128.44	61,177,392.85
	(2)	Net profit from discontinued operation
		(“-” for net loss)
5.	Total comprehensive income		103,025,128.44	61,177,392.85
6.	Earnings per share
	(1)	Basic earnings per share
		(RMB per share)	0.0256	0.0152
	(2)	Diluted earnings per share
		(RMB per share)	0.0256	0.0152

• 16 -

Consolidated Cash Flow Statement

		January-March	January-March
Items		2018	2017
		RMB	RMB
1.	Cash flows from operating activities
	Cash received from sales of goods and
	provision of services	2,116,942,111.14	2,531,620,160.27
	Cash received from tax rebates	3,521,019.50	39,402,157.51
	Cash received from other related operating
	activities	321,689,325.51	307,973,668.23
	Subtotal of cash inflow from operating
	activities	2,442,152,456.15	2,878,995,986.01
	Cash paid for goods and services	1,545,278,938.29	1,176,957,052.72
	Cash paid to or on behalf of employees	414,828,289.44	282,220,533.24
	Taxes paid	55,379,770.04	132,364,761.02
	Other cash paid relating to operating
	activities	274,928,552.78	508,210,758.35
	Subtotal of cash outflow from operating
	activities	2,290,415,550.55	2,099,753,105.33
	Net cash flows from operating activities	151,736,905.60	779,242,880.68
2.	Cash flows from investing activities
	Cash received from disposal of investments	961,808,327.93	3,789,381.33
	Cash received from gains in investments
	Net cash inflow from disposal of fixed,
	intangible and other long-term assets
	Subtotal of cash inflow from investing
	activities	961,808,327.93	3,789,381.33
	Cash paid for purchase of fixed, intangible
	and other long-term assets	549,313,839.52	574,891,199.88
	Cash paid for investment		235,700,626.51
	Net cash paid for acquisition of subsidiaries
	and other operating entities	-516,038,560.37	152,194,816.00
	Other cash paid relating to investment
	activities	14,379,979.97
	Subtotal of cash outflow from investing
	activities	47,655,259.12	962,786,642.39
	Net cash flows from investing activities	914,153,068.81	-958,997,261.06

• 17 -

		January-March	January-March
Items		2018	2017
		RMB	RMB
3.	Cash flows from financing activities
	Cash received from borrowings	43,002,971.11	1,162,542,306.68
	Cash received relating to other financing
	activities	278,031,565.89	18,823,207.83
	Subtotal of cash inflow from financing
	activities	321,034,537.00	1,181,365,514.51
	Cash paid for payment of debts	861,912,359.40	865,925,341.79
	Cash paid for distribution of dividends or
	profits and for interest expenses	410,782,331.65	59,343,745.52
	Cash paid for other related financing
	activities	473,392,477.82	51,878,022.20
	Subtotal of cash outflow from financing
	activities	1,746,087,168.87	977,147,109.51
	Net cash flows from financing activities	-1,425,052,631.87	204,218,405.00
4.	Effect on cash and cash equivalents from
	change of exchange rates	-95,031,903.98	-14,819,718.28
5.	Net increase in cash and cash equivalents	-454,194,561.44	9,644,306.34
	Add: Ba lance of cash and cash equivalents
	at the beginning of the Reporting
	Period	5,007,754,402.14	6,388,717,618.66
6.	Balance of cash and cash equivalents at the
	end of the Reporting Period	4,553,559,840.70	6,398,361,925.00

• 18 -

Cash Flow Statement of the Company

			January-March
		January-March	2017
Items		2018	(Restated)
		RMB	RMB
1.	Cash flows from operating activities
	Cash received from sales of goods and
	provision of services	14,611,770.98
	Cash received from other related operating
	activities	658,853,612.15	134,620,572.27
	Subtotal of cash inflow from operating
	activities	673,465,383.13	134,620,572.27
	Cash paid for goods and services	3,140,953.11	313,206.26
	Cash paid to or on behalf of employees	58,834,410.95	33,587,623.26
	Taxes paid	2,240,448.23	9,008,380.51
	Other cash paid relating to operating activities	161,005,702.95	123,432,531.12
	Subtotal of cash outflow from operating
	activities	225,221,515.24	166,341,741.15
	Net cash flows from operating activities	448,243,867.89	-31,721,168.88
2.	Cash flows from investing activities
	Cash received from gains in investments	43,467,806.11	28,500,000.00
	Subtotal of cash inflow from investing
	activities	43,467,806.11	28,500,000.00
	Cash paid for purchase of fixed, intangible
	and other long-term assets	519,882,943.36
	Cash paid for investment	200,000,000.00
	Net cash paid for acquisition of subsidiaries
	and other operating entities	396,625,716.92	152,194,816.00
	Subtotal of cash outflow from investing
	activities	1,116,508,660.28	152,194,816.00
	Net cash flows from investing activities	-1,073,040,854.17	-123,694,816.00
3.	Cash flows from financing activities
	Cash paid for distribution of dividends or
	profits and for interest expenses	12,054,690.00
	Subtotal of cash outflow from financing
	activities	12,054,690.00
	Net cash flows from financing activities	-12,054,690.00
4.	Effect on cash and cash equivalents from
	change of exchange rates	-132,073.01	-467,931.92
5.	Net increase in cash and cash equivalents	-636,983,749.29	-155,883,916.80
	Add: Ba lance of cash and cash equivalents
	at the beginning of the Reporting
	Period	2,357,963,561.27	2,648,015,576.70
6.	Balance of cash and cash equivalents at the
	end of the Reporting Period	1,720,979,811.98	2,492,131,659.90

• 19 -

This announcement is made in compliance with Rule 13.10B 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 COSCO SHIPPING Energy Transportation Co., Ltd. Yao Qiaohong Company Secretary

Shanghai, the PRC 27 April 2018

As at the date of this announcement, the Board of Directors of the Company comprises Mr. Huang Xiaowen, Mr. Liu Hanbo and Mr. Lu Junshan as executive Directors, Mr. Feng Boming, Mr. Zhang Wei and Ms. Lin Honghua as non-executive Directors, Mr. Ruan Yongping, Mr. Ip Sing Chi, Mr. Rui Meng and Mr. Teo Siong Seng as independent non-executive Directors.

• For identification purpose only

• 20 -