COSCO SHIPPING Development : Financial Statements-ESG Information - ANNUAL REPORT 2022

ANNUAL REPORT 2022

SHIPPING INDUSTRY AND FINANCE OPERATOR

Company Profile

COSCO SHIPPING Development Co., Ltd. (the "Company" or "COSCO SHIPPING Development", together with its subsidiaries and/or its associates, the "Group") is a subsidiary of China COSCO SHIPPING Corporation Limited ("China COSCO SHIPPING") specialized in integrated shipping logistics industry-finance 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 RMB13,573 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-finance services as its auxiliary business, with a view to pursuing industry-finance-investment 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 assets are nearly RMB40 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 3,800,000 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 1,400,000 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 management 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, strengthens asset operation and increases investment gains. The Company maintains its investment focus and makes full use of capital to provide intellectual and capital guidance services for the development of "digitalization, networking and intelligence" in the shipping logistics industry, in an effort to boost industry upgrading.

Guided by the concept of "Excellence", 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 industry-financeoperator in the shipping industry with COSCO SHIPPING's characteristics.

Contents

2	Corporate Information	111	Report of the Supervisory Committee
4	Financial Highlights	115	Independent Auditors' Report
5	Corporate Structure	120	Consolidated Statement of Profit or Loss
6	Chairman's Statement	121	Consolidated Statement of Comprehensive Income
14	Management Discussion and Analysis	122	Consolidated Statement of Financial Position
38	Biographies of Directors, Supervisors and Senior	124	Consolidated Statement of Changes in Equity
Management
44	Report of the Board of Directors	126	Consolidated Statement of Cash Flows
80	Corporate Governance Report	128	Notes to the Consolidated Financial Statements
		260	Five Year Financial Summary

Corporate Information

DIRECTORS	RISK CONTROL COMMITTEE
EXECUTIVE DIRECTORS	Ms. Zhang Weihua (Chairman)
Mr. Liu Chong (Chairman)	Mr. Lu Jianzhong
Mr. Zhang Mingwen	Mr. Chan Kwok Leung

NON-EXECUTIVE DIRECTORS	AUDIT COMMITTEE
Mr. Huang Jian	Mr. Lu Jianzhong (Chairman)
Mr. Liang Yanfeng	Mr. Chan Kwok Leung
Mr. Ip Sing Chi	Mr. Huang Jian

INDEPENDENT NON-EXECUTIVE	REMUNERATION COMMITTEE
DIRECTORS	Mr. Shao Ruiqing (Chairman)
Mr. Lu Jianzhong	Ms. Zhang Weihua
Ms. Zhang Weihua	Mr. Chan Kwok Leung
Mr. Shao Ruiqing	NOMINATION COMMITTEE
Mr. Chan Kwok Leung
SUPERVISORS	Mr. Chan Kwok Leung (Chairman)
Mr. Liu Chong
Mr. Ye Hongjun (Chairman)	Mr. Shao Ruiqing
Ms. Zhu Mei	CHIEF ACCOUNTANT
Mr. Zhao Xiaobo
EXECUTIVE COMMITTEE	Mr. Lin Feng
BOARD SECRETARY
Mr. Liu Chong (Chairman)
Mr. Zhang Mingwen	Mr. Cai Lei
INVESTMENT STRATEGY	JOINT COMPANY SECRETARIES
COMMITTEE	Mr. Cai Lei
Mr. Liu Chong (Chairman)	Ms. Ng Sau Mei
Mr. Zhang Mingwen	AUTHORISED REPRESENTATIVES
Mr. Huang Jian
Mr. Liang Yanfeng	Mr. Liu Chong
Mr. Ip Sing Chi	Mr. Cai Lei
Mr. Shao Ruiqing	LEGAL ADDRESS IN THE PRC
Mr. Chan Kwok Leung
	Room A-538, International Trade Center
	China (Shanghai) Pilot Free Trade Zone
	Shanghai
	The PRC

2 COSCO SHIPPING DEVELOPMENT CO., LTD.

Corporate Information

PRINCIPAL PLACE OF BUSINESS	TELEPHONE NUMBER
IN THE PRC	86 (21) 6596 6105
5299 Binjiang Dadao	FAX NUMBER
Pudong New Area
Shanghai	86 (21) 6596 6498
The PRC	COMPANY WEBSITE
PRINCIPAL PLACE OF BUSINESS
http://development.coscoshipping.com
IN HONG KONG	H SHARE LISTING PLACE
51/F, Cosco Tower
183 Queen's Road Central	Main Board of The Stock Exchange of Hong Kong
Hong Kong	Limited (the "Hong Kong Stock Exchange")
INTERNATIONAL AUDITOR	LISTING DATE
SHINEWING (HK) CPA Limited	16 June 2004
DOMESTIC AUDITOR	NUMBER OF H SHARES IN ISSUE
ShineWing Certified Public Accountants LLP	3,676,000,000 H Shares
LEGAL ADVISERS	BOARD LOT (H SHARES)
Paul Hastings (As to Hong Kong law)	1,000 Shares
Grandall Law Firm (As to PRC law)	HONG KONG STOCK EXCHANGE
HONG KONG H SHARE	STOCK CODE
REGISTRAR AND TRANSFER	02866
OFFICE	A SHARE LISTING PLACE
Computershare Hong Kong Investor Services Limited
17th Floor, Hopewell Centre	Shanghai Stock Exchange
183 Queen's Road East	LISTING DATE
Hong Kong
PRINCIPAL BANKERS	12 December 2007
NUMBER OF A SHARES IN ISSUE
Bank of China
Industrial and Commerce Bank of China	9,897,299,906 A Shares
China Construction Bank	BOARD LOT (A SHARES)
Agricultural Bank of China
The Export-Import Bank of China	100 Shares
China Development Bank	SHANGHAI STOCK EXCHANGE
Shanghai Pudong Development Bank
Bank of Communications	STOCK CODE
ING Bank N.V.	601866
Standard Chartered Bank

• 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."
• On 31 January 2023, the Company announced the cancellation of 13,177,395 repurchased Shares. Upon completion of the cancellation, the total share capital of the Company changed from 13,586,477,301 Shares to 13,573,299,906 Shares.

ANNUAL REPORT 2022

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