COSCO SHIPPING Development : OVERSEAS REGULATORY ANNOUNCEMENT - DONG FANG INTERNATIONAL CONTAINER (QINGDAO) CO., LTD. AUDITED FINANCIAL STATEMENTS FOR 2019 AND 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 "Dong Fang International Container (Qingdao) Co., Ltd. Audited Financial Statements for 2019 and 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.".

AUDITOR'S REPORT

Ernst & Young Hua Ming (2021) Shen Zi No.61227808_B02

Dong Fang International Container (Qingdao) Co., Ltd.

To the Board of Dong Fang International Container (Qingdao) Co., Ltd.,

I. AUDIT OPINION

We have audited the financial statements of Dong Fang International Container (Qingdao) Co., Ltd., which comprise the combined and company's balance sheet as at 31 December 2019 and 31 December 2020, the combined and company's income statements, statements of changes in owners' equity and cash flow statements for 2019 and 2020, and notes to the relevant financial statements.

In our opinion, the financial statements of Dong Fang International Container (Qingdao) Co., Ltd. as attached herewith are prepared in accordance with the provisions of Accounting Standards for Business Enterprises to a material extent, and give a fair view of the company's financial position of Dong Fang International Container (Qingdao) Co., Ltd. as at 31 December 2019 and 31 December 2020, and of its combined and company's operating results and its cash flows for 2019 and 2020.

II. BASIS FOR AUDIT OPINION

We conducted our audit in accordance with the provisions of the Standards on Auditing for Certified Public Accountants in China ("Standards on Auditing"). Our responsibilities under those standards are further described in the section of Certified Public Accountants' Responsibilities for the Audit of the Financial Statements under this audit report. We are independent of Dong Fang International Container (Qingdao) Co., Ltd. in accordance with the Code of Ethics for Certified Public Accountants in China, and we have fulfilled our other ethical responsibilities accordingly. We believe that the audit evidences we have obtained are sufficient and appropriate to provide a basis for our audit opinion.

III. KEY AUDIT MATTERS

Audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements for 2019 and 2020. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Set against this background are our responses to these matters and how they are addressed in our audit.

We have performed our responsibilities described in the section of "Certified Public Accountants' Responsibilities for the Audit of the Financial Statements" under this report, which includes the liabilities related to these key audit matters. Correspondingly, our audit includes audit procedures designed to be executed where there are material misstatement risks for these financial statements. The results deriving from our audit, including the procedures to address the following key audit matters, formed a basis for the audit opinion of the financial statements as a whole.

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		AUDITOR'S REPORT (Continued)
		Ernst & Young Hua Ming (2021) Shen Zi No.61227808_B02
		Dong Fang International Container (Qingdao) Co., Ltd.
	III. KEY AUDIT MATTERS (Continued)
	Key Audit Matter			How Our Audit Addressed the Key
					Audit Matter

Inventory impairment provision

As at 31 December 2020, the carrying amount of inventories on the combined

financial statements was RMB454,497,041.79, representing 17% of the total assets; the carrying amount of inventories on the company's financial statements was RMB453,847,776.33, representing 17% of the total assets; as at 31 December 2019, the carrying amount of inventories on the combined financial statements was RMB255,481,013.83, representing 12% of the total assets; the carrying amount of inventories on the company's financial statements was RMB 254,718,068.28, representing 13% of the total assets.

The impairment provision of inventories was made based on their respective estimated net realizable value. The assessment of the estimated net realizable value of the inventories was calculated based on management's estimates on selling prices of the inventories, estimated costs to be incurred upon completion of production, selling expenses and relevant taxes. With respect to the estimated selling price, the selling price of the inventories will be made reference to their contract price if they are held for particular contracts. For those without being earmarked to a particular contract or held for contracts which were cancelled or modified, the management will base on their realisation method to estimate their respective realisable value.

Inventory impairment losses involve significant judgements and estimates by the management. Therefore, inventory impairment provision was identified as a key audit matter.

For disclosure on the accounting policy for inventory impairment provision, please refer to Note III.8 to the financial statements; for the significant judgements and estimates of inventory impairment provision, please refer to Note III.27; for disclosure on the inventory impairment provision, please refer to Note V.5.

Our audit procedures mainly included:

We obtained an understanding of processes and internal controls of inventory impairment provision; performed testing on the design and execution effectiveness of key internal controls.

We observed the stocktaking process to ascertain whether the damaged, slow-moving and obsolete inventories were identified.

We tested the aging analysis of inventories by checking the original documents.

We evaluated the key assumptions, such as selling prices, costs to be incurred upon completion, selling expenses, the relevant taxes, etc., which were used by the management in calculating net realisable value.

For inventories held for particular contracts, we checked the respective contract price on a sampling basis. For those without being earmarked to a particular contracts or held for contracts which were cancelled or modified, we inspected underlying assumptions used by the management in estimating the recoverable amount and checked whether inventories were sold subsequent to the reporting period on a sampling basis.

2

AUDITOR'S REPORT (Continued)

Ernst & Young Hua Ming (2021) Shen Zi No.61227808_B02

Dong Fang International Container (Qingdao) Co., Ltd.

III. KEY AUDIT MATTERS (Continued)

	Key Audit Matter			How Our Audit Addressed the Key
				Audit Matter
	Revenue recognition

The revenue of the Company mainly comprises income from container manufacturing and sales. In 2020, the recognized revenue of the Company was RMB2,585,263,440.10; in 2019, the recognized revenue of the Company was RMB2,086,017,087.58.

Since revenue is one of the key performance indicators of the Company, and the accurate recognition of revenue has a material impact on the data of financial statements and various financial indicators of the Company. Therefore, revenue recognition was identified as a key audit matter.

For disclosure on the revenue recognition policy, please refer to Note III.20 to the financial statements; for disclosure on the revenue, please refer to Note V.26.

Our audit procedures mainly included:

We obtained an understanding of processes and internal controls of revenue recognition; performed testing on the design and execution effectiveness of key internal controls.

We inspected the sales contract on a sampling basis to identify the sales business contract and each individual performance obligation, and evaluated whether the point of time when the customer obtains control of the service as judged by the management meets the requirements of the Accounting Standards for Business Enterprises;

We performed analytical procedures and detailed tests to review the completeness, authenticity, cut-off of revenue accounting and the accuracy of disclosure.

3

AUDITOR'S REPORT (Continued)

Ernst & Young Hua Ming (2021) Shen Zi No.61227808_B02

Dong Fang International Container (Qingdao) Co., Ltd.

IV. RESPONSIBILITIES OF THE MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FOR THE FINANCIAL STATEMENT

The management of Dong Fang International Container (Qingdao) Co., Ltd. is responsible for the preparation of the financial statements that give a fair view in accordance with the provisions of Accounting Standards for Business Enterprises, and for such internal control to be designed, exercised and maintained as the management determines is necessary to enable the preparation of financial statements that are free from material misstatements, whether due to fraud or error.

In preparing the financial statements, the management is responsible for assessing the ability of Dong Fang International Container (Qingdao) Co., Ltd. to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless under the circumstances of liquidation, cessation of operation or lack of other realistic alternatives.

Those charged with governance are responsible for overseeing the financial reporting process of Dong Fang International Container (Qingdao) Co., Ltd.

V. CERTIFIED PUBLIC ACCOUNTANTS' RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with the Standards on Auditing, we exercise professional judgment and maintain skepticism throughout the audit. We also:

1. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control.
2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal control.
3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.

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AUDITOR'S REPORT (Continued)

Ernst & Young Hua Ming (2021) Shen Zi No.61227808_B02

Dong Fang International Container (Qingdao) Co., Ltd.

V. CERTIFIED PUBLIC ACCOUNTANTS' RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENT (Continued)

As part of an audit in accordance with the Standards of Auditing, we exercise professional judgment and maintain skepticism throughout the audit. We also: (Continued)

1. Conclude on the appropriateness of the management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of Dong Fang International Container (Qingdao) Co., Ltd. to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause Dong Fang International Container (Qingdao) Co., Ltd. to cease to continue as a going concern.
2. Evaluate the overall presentation (including the disclosures), structure and content of the financial statements, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements for 2019 and 2020 and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

5

AUDITOR'S REPORT (Continued)

Ernst & Young Hua Ming (2021) Shen Zi No.61227808_B02

Dong Fang International Container (Qingdao) Co., Ltd.

（No text on this page）

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

Chinese Certified Public Accountant:

Zhu Li (朱莉)

Beijing, the PRC

27 April 2021

6

Dong Fang International Container (Qingdao) Co., Ltd.
COMBINED BALANCE SHEET
As at 31 December 2019 and 31 December 2020	Unit: RMB
Assets	Note V	31 December 2020	31 December 2019
Current assets
Cash and bank balances	1	67,090,375.29		133,967,271.49
Accounts receivable	2	912,772,406.53		559,997,016.84
Prepayments	3	287,919,415.89		170,252,461.95
Other receivables	4	1,259,358.41		56,958,095.92
Inventories	5	454,497,041.79		255,481,013.83
Other current assets	6	142,059,763.32		52,389,047.54
Total current assets		1,865,598,361.23		1,229,044,907.57
Non-current assets
Investment properties	7	15,076,658.50		15,619,961.50
Fixed assets	8	691,524,432.58		685,335,546.73
Construction in progress	9	19,804,570.34		48,022,310.55
Right-of-use assets	10	1,275,875.81		6,254,587.27
Intangible assets	11	105,294,375.79		107,989,189.68
Total non-current assets		832,975,913.02		863,221,595.73
Total assets		2,698,574,274.25		2,092,266,503.30

The accompanying notes of the financial statements form part of these financial statements

7

Dong Fang International Container (Qingdao) Co., Ltd.
COMBINED BALANCE SHEET (Continued)
As at 31 December 2019 and 31 December 2020			Unit: RMB
Liabilities and owners' equity	Note V	31 December 2020	31 December 2019
Current liabilities
Short-term borrowings	12		1,000,000,000.00		280,000,000.00
Bills payable	13		10,224,913.17		-
Accounts payable	14		311,562,978.73		270,447,856.68
Contract liabilities	15		7,992,109.04		13,709,390.41
Staff remuneration payable	16		133,880,881.39		104,050,763.00
Taxes payable	17		4,610,565.62		1,854,382.69
Other payables	18		68,301,144.96		47,305,235.15
Non-current liabilities due within one year	19		1,118,853.79		5,035,317.41
Total current liabilities			1,537,691,446.70		722,402,945.34
Non-current liabilities
Lease liabilities	20		-		1,118,853.79
Deferred income	21		8,798,061.08		2,420,840.52
Total non-current liabilities			8,798,061.08		3,539,694.31
Total liabilities			1,546,489,507.78		725,942,639.65
Owners' equity
Paid-in capital	22		864,398,497.20		864,398,497.20
Special reserve	23		-		608,592.97
Surplus reserve	24		117,507,239.67		100,269,862.80
Retained earnings	25		170,179,029.60		401,046,910.68
Total owners' equity			1,152,084,766.47		1,366,323,863.65
Total liabilities and owners' equity			2,698,574,274.25		2,092,266,503.30

These financial statements have been signed by:

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

The accompanying notes of the financial statements form part of these financial statements

8

Dong Fang International Container (Qingdao) Co., Ltd.
COMBINED INCOME STATEMENT
2019 and 2020				Unit: RMB
	Note V	2020		2019
Operating revenue	26	2,585,263,440.10		2,086,017,087.58
Less: Operating cost	26	2,314,265,447.28		2,048,583,151.67
Taxes and surcharges	27	6,527,401.98		6,504,861.32
Selling expenses	28	10,864,769.11		4,036,997.65
Administrative expenses	29	96,827,379.14		63,736,332.58
Research and development
expenses	30	1,918,750.01		1,434,961.26
Finance cost/(income)	31	63,380,049.93		(294,017.15)
Including: Interest expense		27,852,249.08		4,461,866.17
Interest income		2,503,430.55		612,990.33
Add: Other gains	32	2,760,542.87		770,317.78
Credit impairment losses	33	(3,039,392.98)	(1,976,951.87)
Asset impairment losses	34	(281,792.36)	(15,437,243.55)
Gains from disposal of assets	35	41,674.21		-
Profit/(loss) from operations		90,960,674.39		(54,629,077.39)
Add: Non-operating income	36	38,817,700.36		2,325,915.87
Less: Non-operating expense	37	1,059,996.57		34,943,930.98
Total profit/(loss)		128,718,378.18		(87,247,092.50)
Less: Income tax expenses	39	10,745,724.71		16,664.97
Net profit/(loss)		117,972,653.47		(87,263,757.47)
Total comprehensive income/(loss)		117,972,653.47		(87,263,757.47)

The accompanying notes of the financial statements form part of these financial statements

9

	Dong Fang International Container (Qingdao) Co., Ltd.
	COMBINED STATEMENT OF CHANGES IN OWNER'S EQUITY
	2019 and 2020					Unit: RMB
2020
			Special	Surplus	Retained	Total owners'
		Paid-in capital	reserve	reserve	profits	equity
I. Current year's opening balance	864,398,497.20	608,592.97	100,269,862.80	401,046,910.68	1,366,323,863.65

1. Changes during the year

(I)	Total comprehensive income	-		-		-	117,972,653.47		117,972,653.47
(II)	Profit distribution
1.	Appropriation to surplus reserves	-	-		17,237,376.87	(17,237,376.87 )	-
2.	Distribution to owners	-		-		-	(331,603,157.68 )	(331,603,157.68)
(III)	Special reserve
1.	Accrual	-	3,949,843.32		-	-		3,949,843.32
2.	Usage	-		(4,558,436.29 )	-	-		(4,558,436.29)
III.	Current year's closing balance	864,398,497.20		-		117,507,239.67		170,179,029.60		1,152,084,766.47

The accompanying notes of the financial statements form part of these financial statements

10

	Dong Fang International Container (Qingdao) Co., Ltd.
	COMBINED STATEMENT OF CHANGES IN OWNERS' EQUITY (Continued)
	2019 and 2020											Unit: RMB
2019
						Special			Surplus		Retained	Total owners'
			Paid-in capital	reserve			reserve		profits	equity
I.	Ending balance of previous year	864,398,497.20				-	100,269,862.80	488,514,330.84		1,453,182,690.84
Add： Changes on accounting policies	-				-		-		(203,662.69 )	(203,662.69)
II.	Current year's opening balance	864,398,497.20				-		100,269,862.80		488,310,668.15		1,452,979,028.15

1. Changes during the year

(I)

Total comprehensive loss

-

-

-

(87,263,757.47 )

(87,263,757.47)

1. Special reserve

1.	Accrual	-	1,453,605.75		-	-	1,453,605.75
2.	Usage	-		(845,012.78 )	-	-	(845,012.78)
III.	Current year's closing balance	864,398,497.20		608,592.97		100,269,862.80		401,046,910.68		1,366,323,863.65

The accompanying notes of the financial statements form part of these financial statements

11

Dong Fang International Container (Qingdao) Co., Ltd.
COMBINED STATEMENT OF CASH FLOWS
As at 31 December 2019 and 31 December 2020			Unit: RMB
Note V		2020		2019

I. Cash flow from operating activities:
Cash received from sales of goods
and provision of services
Tax rebates received
Other cash received related	40
to operating activities
Sub-total of cash inflow relating to
operating activities
Cash paid for goods purchased and
service rendered
Cash paid to and on behalf of
employees
Taxes paid
Other cash paid relating to	40
operating activities
Sub-total of cash outflow from
operating activities
Net cash flows from operating activities	41
II. Cash flow from investment activities:
Net cash received from disposal of
fixed assets, intangible assets and
other long-term assets
Other cash received relating to	40
investment activities
Sub-total of cash inflow from
investment activities
Cash paid for purchase of fixed assets,
intangible assets and other long-term
assets
Other cash paid related to investment	40
activities

Sub-total of cash outflow from investment activities

Net cash flow from investment activities

2,308,215,935.40 2,069,231,329.20

197,750,822.32 202,081,727.36

15,320,116.05 4,174,032.86

2,521,286,873.77 2,275,487,089.42

2,596,035,236.86 1,873,370,673.03

278,101,730.77 247,337,159.99

14,995,926.96 7,489,173.30

44,612,545.49 80,111,730.70

2,933,745,440.08 2,208,308,737.02

(412,458,566.31) 67,178,352.40

226,665.08 36,491,587.67

300,771,100.3429,616.06

300,997,765.42 36,521,203.73

48,113,615.09 194,378,753.24

264,472,725.84 55,809,600.00

312,586,340.93 250,188,353.24

(11,588,575.51) (213,667,149.51)

The accompanying notes of the financial statements form part of these financial statements

12

Dong Fang International Container (Qingdao) Co., Ltd.
COMBINED STATEMENT OF CASH FLOWS (Continued)
As at 31 December 2019 and 31 December 2020				Unit: RMB
	Note V	2020			2019
III. Cash flow from financing activities:
Cash received from borrowings			1,660,000,000.00			693,515,038.50
Sub-total of cash inflow from financing			1,660,000,000.00			693,515,038.50
activities
Cash paid for repayment of debts			940,000,000.00			413,515,038.50
Cash payments for dividend and profit
distribution or interest repayment			348,766,960.15			4,461,866.17
Other cash paid related to financing			4,990,973.29			3,835,061.55
activities	40
Sub-total of cash outflow from financing			1,293,757,933.44			421,811,966.22
activities
Net cash flow from financing activities			366,242,066.56			271,703,072.28
IV. Effect on cash and cash equivalents due to			(9,071,820.94)		945,889.11
changes in foreign exchange rates
V. Net (decrease)/ increase in cash and cash
equivalents			(66,876,896.20)		126,160,164.28
Add: Balance of cash and cash			133,967,271.49			7,807,107.21
equivalents at the beginning of the year
VI. Balance of cash and cash equivalents at the			67,090,375.29			133,967,271.49
end of the year	41

The accompanying notes of the financial statements form part of these financial statements

13

Dong Fang International Container (Qingdao) Co., Ltd.
COMPANY'S BALANCE SHEET
As at 31 December 2019 and 31 December 2020		Unit: RMB
Assets	Note XII	31 December 2020		31 December 2019
Current asset
Cash and bank balances	1	65,029,436.74	130,939,789.59
Accounts receivable	2	860,187,613.99	488,020,363.21
Prepayments	3	287,884,482.62	170,026,371.05
Other receivables	4	1,160,602.03	56,877,591.47
Inventories	5	453,847,776.33	254,718,068.28
Other current assets	6	139,916,980.17		48,022,608.36
Total current assets		1,808,026,891.88	1,148,604,791.96
Non-current assets
Long-term equity investments	7	154,000,000.00	154,000,000.00
Investment properties		15,076,658.50	15,619,961.50
Fixed assets		554,262,437.04	588,885,202.59
Construction in progress		6,534,192.38	3,476,580.44
Right-of-use assets		1,032,700.47	2,803,044.12
Intangible assets		105,294,375.79		107,989,189.68
Total non-current assets		836,200,364.18		872,773,978.33
Total assets		2,644,227,256.06		2,021,378,770.29

The accompanying notes of the financial statements form part of these financial statements

14

Dong Fang International Container (Qingdao) Co., Ltd.
COMPANY'S BALANCE SHEET (Continued)
As at 31 December 2019 and 31 December 2020	Unit: RMB
Liabilities and owners' equity	31 December 2020	31 December 2019
Current liabilities
Short term borrowings	1,000,000,000.00		280,000,000.00
Bills payable	10,224,913.17		-
Accounts payable	310,424,773.08		269,800,898.19
Contract liabilities	7,992,109.04		13,709,390.41
Staff remuneration payable	126,787,122.41		100,833,199.47
Taxes payable	1,944,937.16		1,785,426.88
Other payables	60,259,754.87		36,157,330.35
Non-current liabilities due	1,118,853.79		1,862,857.97
within one year
Total current liabilities	1,518,752,463.52		704,149,103.27
Non-current liabilities
Lease liabilities	-		1,118,853.79
Deferred income	8,798,061.08		2,420,840.52
Total non-current liabilities	8,798,061.08		3,539,694.31
Total liabilities	1,527,550,524.60		707,688,797.58
Owners' equity
Paid-in capital	864,398,497.20		864,398,497.20
Special reserve	-		608,592.97
Surplus reserve	105,564,880.23		92,045,029.29
Retained earnings	146,713,354.03		356,637,853.25
Total owners' equity	1,116,676,731.46		1,313,689,972.71
Total liabilities and owners' equity	2,644,227,256.06		2,021,378,770.29

These accompanying financial statements have been signed by:

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

The accompanying notes of the financial statements form part of these financial statements

15

Dong Fang International Container (Qingdao) Co., Ltd.
COMPANY'S INCOME STATEMENT
2019 and 2020				Unit: RMB
	Note XII	2020		2019
Operating revenue	8	2,547,589,323.87		2,049,393,243.86
Less: Operating cost		2,284,320,564.02		2,023,415,929.95
Taxes and surcharges		6,488,740.48		6,064,832.81
Selling expenses		10,864,769.11		4,036,997.65
Administrative expenses		90,376,860.16		56,429,848.46
Research and development
expenses		1,918,750.01		1,434,961.26
Finance cost/(income)	9	63,332,113.32		(401,940.55)
Including: Interest expense		27,777,002.13		4,336,451.41
Interest income		2,473,808.01		587,707.83
Add: Other gains		2,480,485.68		239,159.48
Investment gains	10	54,401,115.18		-
Credit impairment losses		(3,039,482.05)	(1,976,017.07)
Asset impairment losses		(281,792.36)	(15,437,243.55)
Gains from disposal of assets		28,975.09		-
Profit/(loss) from operations		143,876,828.31		(58,761,486.86)
Add: Non-operating income		567,420.36		1,727,134.67
Less: Non-operating expense		1,054,625.47		614,961.11
Total profit/(loss)		143,389,623.20		(57,649,313.30)
Less: Income tax expenses		8,191,113.80		-
Net profit/(loss)		135,198,509.40		(57,649,313.30)
Total comprehensive income/(loss)		135,198,509.40		(57,649,313.30)

The accompanying notes of the financial statements form part of these financial statements

16

	Dong Fang International Container (Qingdao) Co., Ltd.
	COMPANY'S STATEMENT OF CHANGES IN OWNERS' EQUITY
	2019 and 2020					Unit: RMB
2020
			Paid-in	Special	Surplus	Retained	Totalowners'
			capital	reserve	reserve	profits	equity
I.	Current year's opening balance	864,398,497.20	608,592.97	92,045,029.29	356,637,853.25	1,313,689,972.71

1. Changes during the year

(I)	Total comprehensive income	-		-		-	135,198,509.40		135,198,509.40
(II)	Profit distribution					13,519,850.94
1.	Appropriation to surplus reserves	-	-		(13,519,850.94 )	-
2.	Distribution to owners	-		-		-	(331,603,157.68 )	(331,603,157.68
(III)	Special reserve									3,949,843.32
1.	Accrual	-	3,949,843.32		-	-
2.	Usage	-		(4,558,436.29 )	-	-		(4,558,436.29
III.	Current year's closing balance	864,398,497.20		-		105,564,880.23		146,713,354.03		1,116,676,731.46

The accompanying notes of the financial statements form part of these financial statements

17

	Dong Fang International Container (Qingdao) Co., Ltd.
	COMPANY'S STATEMENT OF CHANGES IN OWNERS' EQUITY (Continued)
	2019 and 2020										Unit: RMB
	2019
			Paid-in	Special		Surplus		Retained	Total owners'
			capital	reserve		reserve		profits	equity
I.	Ending balance of previous year	864,398,497.20			-	92,045,029.29	414,490,829.24		1,370,934,355.73
Add:	Changes on accounting policies	-			-		-		(203,662.69 )	(203,662.69
II.	Current year's opening balance	864,398,497.20			-		92,045,029.29		414,287,166.55		1,370,730,693.04

1. Changes during the year

(I)

Total comprehensive loss

-

-

-

(57,649,313.30 )

(57,649,313.30

1. Special reserve

1.	Accrual	-	1,453,605.75		-	-	1,453,605.75
2.	Usage	-		(845,012.78 )	-	-	(845,012.78
III.	Current year's closing balance	864,398,497.20		608,592.97		92,045,029.29		356,637,853.25		1,313,689,972.71

The accompanying notes of the financial statements form part of these financial statements

18

Dong Fang International Container (Qingdao) Co., Ltd.
COMPANY'S STATEMENT OF CASH FLOWS
2019 and 2020				Unit: RMB
	2020			2019
I. Cash flow from operating activities
Cash received from sales of goods and	2,248,874,266.33			2,031,619,693.61
provision of services
Tax rebates received	197,141,600.64			202,081,727.36
Other cash received relating to operating activities	15,292,276.08			3,049,636.45
Sub-total of cash inflow from operating activities	2,461,308,143.05			2,236,751,057.42
Cash paid for goods purchased and service rendered	2,584,983,158.65			1,872,072,347.25
Cash paid to and on behalf of employees	261,835,955.21			233,698,280.49
Taxes paid	14,956,985.46			6,049,881.70
Other cash paid received relating to operating	44,170,940.96			71,682,840.49
activities
Sub-total of cash outflow from operating activities	2,905,947,040.28			2,183,503,349.93
Net cash flows from operating activities	(444,638,897.23)		53,247,707.49
II. Cash flow from investment activities
Net cash received from disposal of fixed assets,	206,665.08			330,048.59
intangible assets and other long-term assets
Cash received from investment income	54,401,115.18			-
Other cash received relating to investment activities	262,521,100.34			29,616.06
Sub-total of cash inflow from investment activities	317,128,880.60			359,664.65
Cash paid for purchase of fixed assets, intangible	34,345,562.39			148,093,043.92
assets and other long-term assets
Other cash paid related to investment activities	264,472,725.84			55,809,600.00
Sub-total of cash outflow from investment activities	298,818,288.23			203,902,643.92
Net cash flow from investment activities	18,310,592.37			(203,542,979.27)

The accompanying notes of the financial statements form part of these financial statements

19

Dong Fang International Container (Qingdao) Co., Ltd.
COMPANY'S STATEMENT OF CASH FLOWS (Continued)
2019 and 2020				Unit: RMB
	2020			2019
III. Cash flow from financing activities
Cash received from borrowings	1,660,000,000.00			693,515,038.50
Sub-total of cash inflow from financing activities	1,660,000,000.00			693,515,038.50
Cash paid for repayment of debts	940,000,000.00			413,515,038.50
Cash payments for dividend and profit distribution or
interest repayment	348,691,713.20			4,336,451.41
Other cash paid related to financing activities	1,818,513.85			1,795,338.71
Sub-total of cash outflow from financing activities	1,290,510,227.05			419,646,828.62
Net cash flow from financing activities	369,489,772.95			273,868,209.88
IV. Effect on cash and cash equivalents due to changes in	(9,071,820.94)		945,889.11
foreign exchange rates
V. Net (decrease)/increase in cash and cash equivalents	(65,910,352.85)		124,518,827.21
Add: Balance of cash and cash equivalents at the	130,939,789.59			6,420,962.38
beginning of the year
VI. Balance of cash and cash equivalents at the end of	65,029,436.74			130,939,789.59
the year

The accompanying notes of the financial statements form part of these financial statements

20