COSCO SHIPPING Development : Announcements and Notices - ANNUAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2021

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COSCO SHIPPING Development Co., Ltd.*

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

(Stock Codej02866)

ANNUAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2021

FINANCIAL HIGHLIGHTS (UNDER HKFRSs)

• • Revenue amounted to RMB34,914,585,000

• • Profit before tax from continuing operations amounted to RMB7,830,582,000

• • Profit attributable to owners of the parent of the Company for the year amounted to RMB6,089,321,000

• • Basic earnings per share attributable to ordinary equity holders of the parent of the Company amounted to RMB0.4978

• • The Board proposed the payment of a final dividend of RMB0.226 per share (inclusive of applicable tax)

The board of directors (the "Board") of COSCO SHIPPING Development Co., Ltd. (the "Company" or "COSCO SHIPPING Development") is pleased to announce the consolidated financial information of the Company and its subsidiaries (the "Group") for the year ended 31 December 2021 (or the "Period") prepared under Hong Kong Financial Reporting Standards ("HKFRSs"), together with the comparative figures for the year ended 31 December 2020.

CHAIRMAN'S STATEMENT

In 2021, the world witnessed repeated outbreaks of the COVID-19 pandemic and the acceleration of COVID-19 variations. However, the research and development and widespread vaccination of COVID-19 vaccines as well as the implementation of economic stimulus policies in various economies boosted the recovery of global economy and the strong rebound of global trade, leading to sustained strong shipping demand. The congestion in major ports of the world, insufficient container capacity, shortage of containers and other factors posed pressure on the smooth flow of the global supply chain.

Faced with the pressure from the delayed and stagnated global supply chain, the Company took various measures to improve quality and efficiency, and achieved new breakthroughs in economic benefits.

In 2021, the Company recorded a revenue of RMB34.915 billion, an increase of 172% from 2020, and a net profit attributable to owners of the parent of RMB6.089 billion, a significant increase of 185% from 2020. The basic earnings per share amounted to RMB0.4978.

The Board proposed a final dividend of RMB0.226 per share.

REVIEW OF OPERATIONS

In 2021, the Company made an overall plan on principal shipping and logistics business to continuously improve service capabilities, expand business sectors, accelerate the construction of a new development dynamic, and integrate core competitive advantages, with a view to achieve a good start for the high-quality development during the "14th Five-Year Plan" period.

I. THE SHIPPING LEASING SEGMENT DEEPENED IN-HOUSE SYNERGY TO MAKE FULL USE OF INDUSTRIAL CHAIN ADVANTAGES

1. Vessel Leasing Business Actively Implemented Industrial Chain Coordination, Steadily Expanded Business Areas

Focusing on the strategic core of the integration of industry and finance, the Company actively promoted the development of its principal shipping business and made breakthroughs in the extension of shipping industrial chain services. In 2021, on the basis of continuously launching 10 pulp vessels of COSCO SHIPPING Specialized Carriers and 16 bulk carriers of COSCO SHIPPING Bulk, we actively sought cooperation opportunities, promoted leasing projects of LNG vessels and roll-on/roll-off vessels, and replenished new forces for the Company's leasing fleet to facilitate the development of its principal shipping business. At the same time, the Company paid attention to both internal and external virtues, steadily expanded its business to external market, and achieved historical breakthroughs in external vessel leasing and major transportation leasing business.

2. Container Leasing Business Exerted In-house Synergy, Effectively Improved the Efficiency of Assets

The Company gave full play to its advantages in the synergy of leasing and manufacturing, adhered to the key customer strategy, carried out the whole process of customer relationship management to improve customer satisfaction and enhance customer stickiness, and achieved a substantial increase in the number of contracted containers throughout the year. At the same time, the Company continued to expand its business in the field of reefer containers and achieved a significant breakthrough in reefer leasing business. While steadily advancing the container leasing business, the Company effectively grasped the business opportunities of new and old container trade, and expanded the container trade business worldwide to effectively enhance the asset efficiency and realize the improvement of quality and efficiency.

II. CONTAINER MANUFACTURING SEGMENT IMPROVED CORE COMPETITIVENESS TO MEET MARKET DEMAND

In 2021, the Company completed the issuance of shares to purchase related container manufacturing assets, making it to become the world's second largest container manufacturer. At the same time, the Company successfully raised RMB1.464 billion by issuing additional shares at the price of RMB2.76 per share. The implementation of the project further integrated the Group's container manufacturing assets, optimized the layout of production capacity, improved the content of science and technology, and promoted the linkage of leasing and manufacturing. In addition, the effective decrease in gearing ratio laid a foundation for high-quality development.

In 2021, the container market experienced a structural shortage of containers. The Company closely followed market dynamics and made active use of industrial chain synergies to overcome the raw material supply tension and shortage of labors on the premise of the implementation of pandemic prevention and control measures. The Company improved the production efficiency through various proactive measures, provided strong support for the smooth operation of supply chains and significantly improved its own benefits. At the same time, the Company established a sound whole-process quality management system to create excellent quality with originality, constantly promoted technological innovation and the implementation of "oil to water" technology, spread the concept of green environmental protection to the industry and led the healthy and sustainable development of the industry.

III. INTEGRATION OF INDUSTRY AND FINANCE IN INVESTMENT MANAGEMENT SEGMENT TO OPTIMIZE THE LAYOUT AND BOOST INDUSTRIAL UPGRADING

The Company maintained its investment focus and made full use of capital to attract and integrate high-quality resources based on the application scenarios of shipping, port and logistics industries to optimize the investment portfolio. At the same time, it actively implemented the dual-carbon strategy, explored zero-carbon green and intelligent technologies, and promoted the development of new shipping technologies, new industries and green shipping.

IV. PROMOTING AN ACTIVE DIVIDEND DISTRIBUTION POLICY TO SAFEGUARD THE INTERESTS OF INVESTORS

The Company is dedicated to safeguarding the interests of the majority of investors and promoting its long-term and sustainable development. It has paid cash dividends for three consecutive years and the proportion of dividends has increased year by year, aiming to share the development achievements of the Company with shareholders. In 2021, the Company completed the dividend distribution to A share and H share investors for 2020 by distributing a total cash dividend of approximately RMB646 million to all shareholders, positively rewarding investors.

V. STRENGTHENING THE RISK MANAGEMENT SYSTEM UNDER THE COVID-19 PANDEMIC TO IMPROVE INTERNAL CONTROL CAPABILITIES

The Company closely followed the industry attributes and the risk pressure of its business sector under the COVID-19 pandemic, adopted more prudent risk management policies, continuously promoted the construction of the rule of law, deepened and strengthened risk management, optimized the risk quota index system, improved the level of compliance management, and completed the second phase of the construction of a comprehensive risk management system. In 2021, all business segments of the Company were operating soundly with controllable risks.

• VI. PROMOTING DIGITAL TRANSFORMATION TO IMPROVE QUALITY AND EFFIENCICY

  The Company actively carried out digital transformation and built a digital platform in the container leasing business sector. The Company achieved a number of key technological breakthroughs in the container manufacturing business sector and also upgraded its financial management system to promote quality and efficiency in multiple aspects.

• VII. PRACTICING SOCIAL RESPONSIBILITY AND PROMOTING SUSTAINABLE DEVELOPMENT

  In 2021, the Company made full use of the scale advantage, the synergistic effect of the shipping industrial chain and the innovative idea of industry and technology to strengthen the integration of industry and finance and ensure the smooth operation of supply chains. It continued to improve the corporate governance level of its own and affiliated units and strengthened clean management and risk prevention and control to contribute to building a socially responsible shipping industrial chain. It actively embraced the era of big data, used technological, financial and digital means to serve upstream and downstream enterprises along the shipping industrial chain. It integrated the concept of green development into all aspects of the Company's production and operation and explored the layout in green industries such as new energy. It adhered to the responsibility to boost regional economic and social development and support targeted assistance projects. By firmly believing that the concept of sustainable development is the compass of global development, the Company integrated the concept of sustainable development into its core strategy, management mode, corporate culture and business operations, and was committed to making positive contributions to the common prosperity of the industry, ecological friendliness and social harmony.

OUTLOOK

In 2022, the global economic development will face the challenges of uncertainties, such as COVID-19 pandemic, monetary policy adjustment in various economies, inflation and geopolitical events, and its overall growth is expected to slow down as compared to the previous period. In the coming period, the shipping market will potentially maintain better prosperity while the turnover efficiency of the supply chain will be affected during a period of time. With the active investment and upgrade of various aspects of the shipping industrial chain, the shipping market will gradually return to rationality, and digitalization, green low carbonization and intelligence will create a new pattern of the shipping industrial chain and boost a new development of the shipping industrial chain.

The Company will continue to make active layout toward the new development direction of its principal shipping and logistics business. The Company will be well prepared and maintain its strategic focus, improve its ability to go through ups and downs of the market, make plans to develop into a first-class enterprise, take the road of sustainable development and strive to promote the high-quality development of the Company.

For the shipping leasing segment, the Company will further make innovation in business model, and explore asset-light solutions and environment-friendly ship projects. The Company will adhere to technology empowerment, strengthen digital construction, pay attention to both internal and external virtues and seek innovative development. The Company will also further strengthen the synergy of vessel leasing and manufacturing, enhance the market influence of container leasing and trade of containers, and continuously improve its ability to create value.

For the container manufacturing segment, the Company will continue to focus on responsibility, give play to the advantages of container manufacturing resource integration, and strive to specialize on efficiency and improve the ability to create efficiency, and vigorously expand the business fields of high value-added products such as reefer containers and special containers. In the meantime, the Company will actively promote the innovative integration of digital and information technology in the fields of energy saving and clean energy, and explore the application of the environmental protection and energy saving technology in the field of the container manufacturing.

For investment and management segment, the Company will closely follow the guidance of national policy and the "14th Five-Year Plan", further strengthen the post-investment management, take accurate control of risks, and take measures in risk alert and prevention to increase investment returns and boost industrial upgrading.

In addition, the Company will continuously improve the construction of the risk management system and boost the optimization of the risk management system constantly. In the meantime, the Company will further improve the construction of the safety production system, and strengthen pandemic prevention and control measures, thereby creating a good and safe environment for its production and operation.

2021 is the beginning of the new voyage of the "14th Five-Year Plan". We got off to a good start. In 2022, we will carry forward the cause and forge ahead into the future, strictly judge the situation, create opportunity, keep steady progress, break the waves along the high-quality development direction and move forward bravely towards the goal of development and value creation, and strive to develop into an outstanding financial service provider in the shipping industry with COSCO SHIPPING characteristics.