COSCO SHIPPING Development : OVERSEAS REGULATORY ANNOUNCEMENT - COSCO SHIPPING DEVELOPMENT CO., LTD. PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS AND REVIEW REPORT FOR 2020

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.

中 遠 海 運 發 展 股 份 有 限 公 司

COSCO SHIPPING Development Co., Ltd.*

(A joint stock limited company incorporated in the People's Republic of China with limited liability)

(Stock Code: 02866)

OVERSEAS REGULATORY ANNOUNCEMENT

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.

The "COSCO SHIPPING Development Co., Ltd. Pro Forma Consolidated Financial Statements and Review Report for 2020" as published by COSCO SHIPPING Development Co., Ltd. in Chinese on the website of the Shanghai Stock Exchange (www.sse.com.cn) on 29 April 2021 and its English translation extract is enclosed hereto as overseas regulatory announcement for your reference only. In case of any inconsistencies between the Chinese version and the English translation, the Chinese version shall prevail.

By order of the Board

COSCO SHIPPING Development Co., Ltd.

Cai Lei

Joint Company Secretary

29 April 2021

As at the date of this announcement, the Board comprises Mr. Wang Daxiong, Mr. Liu Chong and Mr. Xu Hui, being executive Directors, Mr. Huang Jian, Mr. Liang Yanfeng and Mr. Ip Sing Chi, being non-executive Directors, and Mr. Cai Hongping, Ms. Hai Chi Yuet, Mr. Graeme Jack, Mr. Lu Jianzhong and Ms. Zhang Weihua, being independent non-executive Directors.

• 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.".

REVIEW REPORT

Ernst & Young Hua Ming (2021) Zhuan Zi No. 61227808_B01

COSCO SHIPPING Development Co., Ltd.

To All Shareholders of COSCO SHIPPING Development Co., Ltd.,

We have reviewed the accompanying pro forma combined financial statements of COSCO SHIPPING Development Co., Ltd. prepared in accordance with the basis of preparation stated in Note 2 to the pro forma combined financial statements, which comprise the pro forma combined balance sheet as at 31 December 2020, the pro forma combined income statements for 2020 and limited notes to the pro forma combined financial statements. It is the responsibility of the management of COSCO SHIPPING Development Co., Ltd. to prepare the pro forma combined financial statements in accordance with the basis of preparation stated in Note 2 to the pro forma combined financial statements. Our responsibility is to issue a review report on the pro forma combined financial statements on the basis of the review work.

We conducted our review work in accordance with the provisions of the "China Certified Public Accountant Review Standard No. 2101 - Review of Financial Statement". This standard requires that we plan and perform review work to obtain limited assurance about whether there are material reporting errors in the pro forma combined financial statements. The review was mainly limited to inquiring the relevant personnel of COSCO SHIPPING Development Co., Ltd. and implementing the analysis procedures for the financial information, which provided less assurance than the audit. We have not carried out the audit and therefore do not express an audit opinion.

Based on our review, we are not aware of any matter that causes us to believe that the above pro forma combined financial statements have not been prepared in all material respects in accordance with the basis of preparation stated in Note 2 to the pro forma combined financial statements.

We remind users of the pro forma combined financial statements to pay attention to the description of preparation basis in Note 2 to the pro forma combined financial statements. This report is only for COSCO SHIPPING Development Co., Ltd. to apply to China Securities Regulatory Commission to acquire assets and raise ancillary funds through issuance of shares, and is not applicable to any other purposes. This paragraph does not affect the review conclusions published.

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REVIEW REPORT (Continued)

Ernst & Young Hua Ming (2021) Zhuan Zi No. 61227808_B01

COSCO SHIPPING Development Co., Ltd.

(No text on this page)

Ernst & Young Hua Ming LLP	Chinese Certified Public
	Accountant: You Fei (尤飞)

Chinese Certified Public

Accountant: Zhu Li (朱莉)

Beijing, the PRC

23 April 2021

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COSCO SHIPPING Development Co., Ltd.
PRO FORMA CONSOLIDATED BALANCE SHEET
As at 31 December 2020					RMB
Assets	Note V		31 December 2020	31 December 2019
Current assets
Cash and bank balances	1	13,379,760,376.91		10,468,319,046.24
Financial assets held for trading	2	654,224,047.94		515,966,828.33
Bills receivables	3	391,903,718.89		16,700,690.01
Accounts receivable	4	4,233,997,406.55		2,101,558,440.72
Reinsurance accounts receivable		6,938,190.88		7,453,139.84
Prepayments	5	1,718,491,888.73		573,363,854.29
Other receivables	6	273,157,801.17		905,139,864.98
Inventories	7	1,964,858,083.79		1,480,850,232.29
Non-current assets due within
one year	8	19,380,569,317.13		16,553,534,222.73
Other current assets	9	380,130,156.28		116,665,693.07
Total current assets		42,384,030,988.27		32,739,552,012.50
Non-current assets
Other debt investments	10	59,820,000.00	-
Long-term receivables	11	27,698,200,826.12	27,051,677,344.51
Long-term equity investments	12	21,022,573,976.71		25,854,213,940.22
Other non-current financial
assets	13	3,932,753,960.40		4,266,307,368.85
Investment properties	14	113,220,569.47	121,167,177.90
Fixed assets	15	56,533,767,074.02		58,415,566,560.34
Construction in progress	16	193,499,047.74	106,782,505.64
Right-of-use assets	17	121,371,604.51		175,811,685.93
Intangible assets	18	607,217,429.04		606,809,898.04
Long-term prepaid expenses	19	58,786,352.81	67,067,622.72
Deferred income tax assets	20	284,669,504.39		243,651,234.65
Other non-current assets	21		222,669,186.50		54,773,101.34
Total non-current assets			110,848,549,531.71		116,963,828,440.14
Total assets			153,232,580,519.98		149,703,380,452.64

The accompanying notes of the pro forma combined financial statements form part of these pro forma combined financial statements

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COSCO SHIPPING Development Co., Ltd.

PRO FORMA CONSOLIDATED BALANCE SHEET（Continued）

As at 31 December 2020				RMB
Liabilities and owners' equity	Note V	31 December 2020	31 December 2019
Current liabilities
Short-term borrowings	22	19,953,169,100.00		17,245,920,397.60
Bills-payable	23	1,463,509,348.22		926,240,520.00
Accounts payable	24	3,945,885,713.10		3,044,893,843.72
Receipts in advance	25	348,748,576.27		169,957,081.65
Contract liabilities	26	175,784,942.16		173,711,329.14
Staff remuneration payable	27	678,495,772.39		436,368,348.40
Taxes payable	28	263,232,003.87		229,473,189.06
Other payables	29	2,011,650,818.06		1,526,971,875.86
Reinsurance accounts payable		25,724,639.84		22,520,027.50
Non-current liabilities due within
one year	30	37,138,160,577.00		32,335,764,543.94
Other current liabilities	31	3,000,000,000.00		-
Total current liabilities		69,004,361,490.91		56,111,821,156.87
Non-current liabilities
Long-term borrowings	32	45,527,948,093.17		54,853,208,883.56
Bonds payable	33	8,287,545,838.06		8,271,399,591.01
Lease liabilities	34	55,338,974.12		151,920,055.56
Long-term payables	35	2,607,811,275.88		2,352,044,869.48
Long-term staff remuneration
payable	36	21,688,199.77		18,491,589.50
Deferred income	37	20,372,489.01		15,780,249.77
Deferred income tax liabilities	20	104,888,101.64		350,975,260.05
Other non-current liabilities	38	196,756,397.98		12,032,890.65
Total non-current liabilities		56,822,349,369.63		66,025,853,389.58
Total liabilities		125,826,710,860.54		122,137,674,546.45

The accompanying notes of the pro forma combined financial statements form part of these pro forma combined financial statements

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COSCO SHIPPING Development Co., Ltd.

PRO FORMA CONSOLIDATED BALANCE SHEET（Continued）

As at 31 December 2020				RMB
Liabilities and owners' equity	Note V	31 December 2020	31 December 2019
Owners' equity		13,027,199,539.00		13,027,199,539.00
Share capital	39
Other equity instruments	40	6,000,000,000.00		7,000,000,000.00
Including: Perpetual bonds		6,000,000,000.00		7,000,000,000.00
Capital reserve	41	1,968,821,870.70		2,414,696,722.10
Less: Treasury shares	42	233,428,071.84		233,428,071.84
Other comprehensive income	43	(2,320,757,973.36)	(2,638,034,334.93)
Special reserve	44	1,360,053.39		2,887,403.67
Surplus reserve	45	1,635,440,480.64		1,552,192,349.37
Retained earnings	46	7,327,233,760.91		6,440,192,298.82
Total equity attributable to
shareholders of the parent		27,405,869,659.44		27,565,705,906.19
company
Minority interests		-		-
Total owners' equity		27,405,869,659.44		27,565,705,906.19
Total liabilities and owners' equity		153,232,580,519.98		149,703,380,452.64

These pro forma combined financial statements have been signed by:

Legal representative:	Person-in-charge of accounting	Head of the accounting
	affairs:	department:

The accompanying notes of the pro forma combined financial statements form part of these pro forma combined financial statements

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COSCO SHIPPING Development Co., Ltd.
PRO FORMA CONSOLIDATED INCOME STATEMENT
2020	RMB

	Note V
Operating revenue	47
Handling charges and commission income	48
Less: Operating cost	47
Taxes and surcharges	49
Selling expenses	50
Administrative expenses	51
Research and development expenses	52
Finance cost	53
Including: Interest expense
Interest income
Add: Other gains	54
Investment gains	55
Including: Gains from investment in associates and
joint ventures
Derecognition gains on financial assets
measured at amortized cost
Losses from change in fair value	56
Credit impairment losses	57
Asset impairment losses	58
Gains from disposal of assets	59
Profit from operations
Add: Non-operating income	60
Less: Non-operating expense	61
Total profit
Less: Income tax expenses	63

Net profit

Classified by continuity of operation

Net profit from continuing operations

Net profit from discontinued operations

Classified by ownership of equity

Net profit attributable to shareholders of the parent company Minority interests

2020

20,181,877,707.96

41,359,181.05

14,927,473,766.37

76,483,592.46

21,971,091.53

1,359,674,144.48

21,576,502.18

2,405,424,826.78

2,232,946,536.45

150,729,536.76

134,702,346.99

2,437,088,739.98

1,980,351,138.33

4,588,747.02

(206,223,798.34)

(625,008,425.05)

(743,803,399.30)

25,722,891.70

2,433,111,321.19

61,926,633.97

17,900,416.45

2,477,137,538.71

335,861,123.99

2,141,276,414.72

1,453,190,376.73

688,086,037.99

2,141,276,414.72

-

The accompanying notes of the pro forma combined financial statements form part of these pro forma combined financial statements

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COSCO SHIPPING Development Co., Ltd.
PRO FORMA CONSOLIDATED INCOME STATEMENT (Continued)
2020	RMB

	Note V
Net other comprehensive income after taxes
Net other comprehensive income attributable to shareholders
of the parent company after taxes	43
Other comprehensive income that may not be transferred
to profit or loss
Other comprehensive income that may not be transferred
to profit or loss under the equity method
Other comprehensive income that may be reclassified
to profit or loss
Other comprehensive income that may be transferred to
profit or loss under the equity method
Reserve for cash flow hedging
Exchange differences from translation of financial statement
Net other comprehensive income attributable to
minority interests after taxes	43
Total comprehensive income
Including:
Total comprehensive income attributable to
shareholders of the parent company
Total comprehensive income attributable to
minority interests
Earnings per share	64
Basic earnings per share (RMB per share)

Diluted earnings per share (RMB per share)

2020

317,276,361.57

317,276,361.57

(13,390,441.41)

(342,364,689.90)

(10,030,039.10)

683,061,531.98

-

2,458,552,776.29

2,458,552,776.29

-

0.1395

0.1395

The accompanying notes of the pro forma combined financial statements form part of these pro forma combined financial statements

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