COSCO SHIPPING Development : Financial Statements-ESG Information - ANNUAL REPORT 2021

ANNUAL REPORT 2021

SHIPPING FINANCIAL

SERVICE PLATFORM

Company Profile

COSCO SHIPPING Development Co., Ltd. (the "Company") is a subsidiary of China COSCO SHIPPING Corporation Limited ("China COSCO SHIPPING") specialized in integrated shipping logistics industry financial services, which is one of core industries under China COSCO SHIPPING. The Company was established in 1997, with head office in Shanghai, the People's Republic of China (the "PRC"), and is listed in both Hong Kong and Shanghai. The registered capital of the Company is RMB13,586 million.

With the focus on integrated logistics industry, the Company is committed to developing shipping leasing, container leasing and container manufacturing business as the core business and shipping logistics industry chain financial services as its auxiliary business, with a view to pursuing industry-finance integrated development underpinned by investment management.

The vessel leasing business of the Company involves the leasing business of various vessels, such as container vessels, dry bulk cargo vessels, special-purpose vessels and LNG vessels. The scale of vessel leasing business is nearly 200 vessels, with assets exceeding RMB50 billion. Diversified services are provided under container leasing business, such as leasing, trading and management of various types of containers and sales of old containers. The Company managed more than 3,700,000 TEU of containers, ranking among the top in the world.

The container manufacturing business of the Company involves the research, development, production and sales of international standard dry cargo containers, reefer containers, special containers and house containers. The Company had a designed annual capacity of more than 1,300,000 TEU, ranking second in the world, with its customers including the world's famous liner companies and major container leasing companies. Meanwhile, relying on the global transportation network of China COSCO Shipping, the Company provides customers with value-added services of delivery at ports worldwide.

As for investment and services segment, the Company gives equal weight to strategic value and financial returns, adheres to the principal business of shipping logistics, aims at integration of industry and finance utilizing investment measures, continuously focuses on investment areas, optimizes investment portfolios, strengthens asset operation and increases investment gains. The Company maintains its investment focus and makes full use of capital to attract and integrate high-quality assets, intellectual property and resources based on the application scenarios of shipping, ports and logistics industries, in an effort to boost industry upgrading.

Guided by the concept of "Excellence", following the mission of "Finance aids industry and development creates value" and with "integrity, efficiency, proactiveness and mutual benefit" as its core values, the Company fully leverages its advantages in shipping industry chain and expands the value of capital flows in the shipping logistics ecosystem to develop into an excellent financial operator in the shipping industry with COSCO SHIPPING's characteristics.

Contents

2	Corporate Information	96	Report of the Supervisory Committee
4	Financial Highlights	102	Independent Auditors' Report
5	Corporate Structure	107	Consolidated Statement of Profit or Loss
6	Chairman's Statement	108	Consolidated Statement of Comprehensive Income
14	Management Discussion and Analysis	109	Consolidated Statement of Financial Position
32	Biographies of Directors, Supervisors and	111	Consolidated Statement of Changes in Equity
Senior Management	113	Consolidated Statement of Cash Flows
39	Report of the Board of Directors	115	Notes to Financial Statements
70	Corporate Governance Report	247	Five Year Financial Summary

Corporate Information

DIRECTORS

EXECUTIVE DIRECTORS

Mr. Wang Daxiong (Chairman)

Mr. Liu Chong

Mr. Xu Hui

NON-EXECUTIVE DIRECTORS

Mr. Huang Jian

Mr. Liang Yanfeng Mr. Ip Sing Chi

INDEPENDENT NON-EXECUTIVE DIRECTORS

Mr. Cai Hongping Mr. Lu Jianzhong Ms. Zhang Weihua Mr. Shao Ruiqing

SUPERVISORS

Mr. Ye Hongjun (Chairman)

Ms. Zhu Mei

Mr. Zhao Xiaobo

RISK CONTROL COMMITTEE

Ms. Zhang Weihua (Chairman)

Mr. Cai Hongping

Mr. Lu Jianzhong

AUDIT COMMITTEE

Mr. Lu Jianzhong (Chairman) Mr. Cai Hongping

Mr. Huang Jian

REMUNERATION COMMITTEE

Mr. Cai Hongping (Chairman)

Ms. Zhang Weihua

Mr. Shao Ruiqing

NOMINATION COMMITTEE

Mr. Shao Ruiqing (Chairman)

Mr. Wang Daxiong

Mr. Cai Hongping

CHIEF ACCOUNTANT

Mr. Lin Feng

EXECUTIVE COMMITTEE

Mr. Wang Daxiong (Chairman)

Mr. Liu Chong

Mr. Xu Hui

INVESTMENT STRATEGY COMMITTEE

Mr. Wang Daxiong (Chairman)

Mr. Liu Chong

Mr. Huang Jian Mr. Liang Yanfeng Mr. Ip Sing Chi Mr. Cai Hongping Mr. Shao Ruiqing

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COSCO SHIPPING DEVELOPMENT CO., LTD.

BOARD SECRETARY

Mr. Cai Lei

JOINT COMPANY SECRETARIES

Mr. Cai Lei

Ms. Ng Sau Mei

AUTHORISED REPRESENTATIVES

Mr. Wang Daxiong

Mr. Cai Lei

LEGAL ADDRESS IN THE PRC

Room A-538, International Trade Center

China (Shanghai) Pilot Free Trade Zone Shanghai

The PRC

Corporate Information

PRINCIPAL PLACE OF BUSINESS IN THE PRC

5299 Binjiang Dadao Pudong New Area Shanghai

The PRC

PRINCIPAL PLACE OF BUSINESS IN HONG KONG

50/F, Cosco Tower

183 Queen's Road Central Hong Kong

TELEPHONE NUMBER

86 (21) 6596 6105

FAX NUMBER

86 (21) 6596 6498

COMPANY WEBSITE

http://development.coscoshipping.com

H SHARE LISTING PLACE

Main Board of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange")

INTERNATIONAL AUDITOR

Ernst & Young

LISTING DATE

16 June 2004

DOMESTIC AUDITOR

ShineWing Certified Public Accountants LLP

NUMBER OF H SHARES IN ISSUE

3,676,000,000 H Shares

LEGAL ADVISERS

Paul Hastings (As to Hong Kong law)

Grandall Law Firm (As to PRC law)

HONG KONG H SHARE REGISTRAR AND TRANSFER OFFICE

Computershare Hong Kong Investor Services Limited 17th Floor, Hopewell Centre

183 Queen's Road East Hong Kong

PRINCIPAL BANKERS

Bank of China

Industrial and Commerce Bank of China China Development Bank

Agricultural Bank of China China Merchants Bank

The Export-Import Bank of China ING Bank N.V.

Bank of Communications

Shanghai Pudong Development Bank China Construction Bank

BOARD LOT (H SHARES)

1,000 Shares

HONG KONG STOCK EXCHANGE STOCK CODE

02866

A SHARE LISTING PLACE

Shanghai Stock Exchange

LISTING DATE

12 December 2007

NUMBER OF A SHARES IN ISSUE

9,910,477,301 A Shares

BOARD LOT (A SHARES)

100 Shares

SHANGHAI STOCK EXCHANGE STOCK CODE

601866

*The Company is a registered non-Hong Kong company as defined in the Companies Ordinance (Chapter 622 of the Laws of Hong Kong) and it is registered under its Chinese name and under the English name "COSCO SHIPPING Development Co., Ltd."

ANNUAL REPORT 2021

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