Financial Statements ESG Information INTERIM REPORT2024

2024

INTERIM REPORT

SHIPPING INDUSTRY AND FINANCE OPERATOR

2 COSCO SHIPPING DEVELOPMENT CO., LTD.

Corporate Information

• 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."

Note: Pursuant to the Administrative Measures for Independent Directors of Listed Companies 《( 上市公司獨立董事管理辦法》) which stipulates the consecutive term of an independent director serving in the same listed company shall not exceed six years, on 16 July 2024, Mr. Lu Jianzhong resigned as an independent non-executive Director, the chairman of the audit committee and a member of the risk and compliance management committee of the Company.

Financial Highlights (Under HKFRSs)

For the six months ended 30 June 2024 (the "Period")

• Revenue amounted to RMB11,659,244,000
• Profit before tax from continuing operations amounted to RMB799,549,000
• Profit attributable to owners of the Company for the Period amounted to RMB895,488,000
• Basic earnings per share attributable to ordinary equity holders of the Company amounted to RMB0.0661
• Payment of an interim dividend of RMB0.019 per share

4 COSCO SHIPPING DEVELOPMENT CO., LTD.

Management Discussion and Analysis

OPERATING ENVIRONMENT

In the first half of 2024, the moderate recovery of the global economy has driven trade growth, and the shipping market's transportation demand steadily increased. Meanwhile, affected by factors including the geopolitical situation and congestion in some ports, the supply and demand pattern of the shipping industry further improved. Under the combined influence of multiple factors, the container transportation market has generally shown a stable and positive trend.

In terms of the container leasing and manufacturing market, the overall demand has gradually recovered and increased steadily due to the combined effects of multiple factors. The stable recovery of foreign trade, the growth of new capacity in the container transportation industry, and the demand for the replacement of old containers have provided resilient support to the market. On the other hand, the impact of the Red Sea situation on container turnover efficiency has further catalyzed the increase in market demand. In terms of the ship leasing market, with the continued growth of global trade and the steadily increased demand for shipping, demand for the fleet in shipping market increased, and the market size of the ship leasing industry continued to expand. Meanwhile, the green and low-carbon transformation process of the shipping industry has been accelerating, thus the demand for updating and upgrading of vessels has increased significantly.

DEVELOPMENT STRATEGY OF THE GROUP

With a focus on shipping and logistics industry, the Company will concentrate on the integrated development with container manufacturing, container leasing and shipping leasing business as the core business and underpinned by investment management. The Company focuses on COSCO Shipping Group's vision of "accelerating the building of a world-class shipping technology enterprise" based on "integrating industry and finance and facilitating industry development with finance for synergy". The Company takes the scientific and technological innovation as an important starting point, focuses on the two major tracks of digital intelligence and green and low-carbon, comprehensively improves service quality and efficiency, strengthens risk prevention and control, and deepens management innovation, continuously enhances the core functions of "industry-finance-investment" and improves the core competitiveness of the integration of industry and finance, so as to strive to grow into a world-classindustry-finance operator in the shipping industry with COSCO SHIPPING's characteristics.

THE OPERATIONS OF THE GROUP

1. PRINCIPAL BUSINESSES

In the first half of 2024, the Company continued to facilitate the implementation of a number of key measures for high-quality development, focusing on deepening reform and innovation, cultivating and developing new quality productive forces, and striving to build core competitive advantages in industry-finance synergy.

1. Container manufacturing business
   COSCO SHIPPING Development is engaged in the research, development, production and sales of international standard dry cargo containers, refrigerated containers and special containers through its wholly-owned subsidiary Shanghai Universal Logistics Equipment Co., Ltd. The Company is the second largest container manufacturer in the world, and its customers include world-renowned liner companies and major container leasing companies. Meanwhile, the Company has deepened the synergy of container leasing and manufacturing, enhanced the core competitiveness by technological innovation, green and low-carbon transformation to build a world-class logistics equipment technology enterprise.
   In the first half of 2024, the Company seized the opportunity in the container market and achieved a significant year-on-year increase in container production and sales. With a focus on leveraging the synergy advantages of the industrial chain, the Company strengthened joint marketing of container leasing and manufacturing to achieve a new situation in market development. Meanwhile, the Company deeply explored the needs of end users and the development of container+ business to expand the coverage of business areas, further enhancing value creation capabilities.

Management Discussion and Analysis

1. Container leasing business
   COSCO SHIPPING Development is engaged in container leasing, management and sales through its wholly-owned subsidiary Florens International Limited, with business all over the world. The Company continued to strengthen its ability to operate assets in full-life cycle services for containers and accelerated its digital transformation. The Company has unique leasing and manufacturing synergy and influence in the container field, and its business scale ranked among the tops in the industry.
   In the first half of 2024, the Company gave full play to its unique advantages of container leasing and manufacturing synergy and achieved new breakthroughs in major customer cooperation. Meanwhile, the Company actively expanded diversified product leasing services and improved service efficiency, further enhancing brand competitiveness. In addition, relying on the complete global network layout and sales channels, as well as the promotion and application of digital platforms, the Company achieved effective improvement in service capabilities and operational efficiency.
2. Shipping leasing business
   COSCO SHIPPING Development is mainly focused on operating lease and financing lease of various vessels such as container vessels and dry bulk cargo vessels, and ranks among the tops in the domestic market in terms of industrial vessel leasing. The Company grasped the opportunity of green and low-carbon transformation of the shipping industry, optimized the allocation of internal and external resources, effectively leveraged on the synergistic effect of industry and finance, and focused on the service needs of various full-life cycle shipping assets in all aspects, so as to provide high-quality solutions for the development of fleet in the shipping industry.
   In the first half of the year, the Company focused on enhancing its capacity of industry and finance services, and actively innovated the business model of industry and finance synergy and provided customised capacity development solutions on the basis of strict risk control. In order to further promote the Company's strategic development plan as an shipping industry and finance operator, deepen the "integration of industry and finance and facilitate industry development with finance for synergy", and enhance value creation capabilities, the Company actively expanded high-quality projects and focused on the construction and leasing of ships to achieve win-win cooperation in the upstream and downstream of the industrial chain, so as to further consolidate the cornerstone of the development of ship leasing business, and jointly explore to build a scenario for the application of RMB in the industrial chain of "manufacturing, leasing and transportation".
3. Investment management business
   Focusing on its principal business of shipping and logistics, COSCO SHIPPING Development strengthened the integration of industry and finance, continuously optimized its investment portfolio. Meanwhile, we grasped the development opportunities of the shipping industry, explored investment opportunities in digital intelligence and green development and strived to achieve the synergistic development of capital and industry. In the first half of 2024, the Company monitored closely the capital market environment, strictly controlled investment risks and further optimized its investment portfolio.

6 COSCO SHIPPING DEVELOPMENT CO., LTD.

Management Discussion and Analysis

2. IMPORTANT BUSINESS MEASURES OF THE COMPANY

1. Strengthening technological innovation to drive new quality productive forces
   The Company continued to promote the research and development of new special containers and enriched its product system. The energy storage container project has been consolidated and expanded, continuously deepening strategic cooperation with leading energy storage container companies. The Company's DFIC Qidong won the "2024 Jiangsu Province Renewable Energy Industry Technological Innovation Award" and "2024 China Energy Storage Industry Best Innovative Enterprise Award". Meanwhile, the Company continued to promote the research and development of new special containers including car containers, housing containers, and agricultural containers to create a stronger product matrix.
   The Company continued to increase its efforts in the transformation and application of digital intelligence equipment to accelerate the deep integration of digital intelligence technology with traditional industries. Several container factories of the Company won the first and second prizes in the management and technology categories of the "Sixth National Equipment Management and Technological Innovation Achievements". The cold processing workshop of the Company's DFIC Qidong was awarded the "Excellent Intelligent Manufacturing Scene of the Ministry of Industry and Information Technology in 2023". DFIC Jinzhou was awarded the "2023 Liaoning Province Smart Factory". The Company stepped up efforts in the construction of iFlorens digital operation platform to achieve efficient operation of digital empowerment business.
   The Company actively practiced the concept of green and low-carbon production and implemented energy-saving technological reforms. Four of the Company's container factories were awarded the title of "National Green Factory". The Company continued to develop "green business" to expand the high-end special container business of container batteries and green energy supporting industries. In addition, the Company issued the first financial loan for the transformation of the water transportation industry in China and launched the world's first financial project for the transformation of the entire container industry chain, continuously improving its green financing service industry chain capabilities.

Management Discussion and Analysis

1. Improving corporate governance and the quality of listed companies
   The Company enhanced the quality of listed companies in multiple dimensions, continued to standardize corporate governance, and further improved the institutional foundation of corporate governance, effectively boosting corporate governance efficiency. Adhering to high standards of information disclosure, the Company further optimized the communication and transmission mechanism with the market to promote the realization of ESG value and enhance value recognition. The Company was successfully selected into the first batch of "Ocean Economy" index constituent stocks, listed in the "2024 GoldenBee CSR China Honor Roll", remained in S&P Global's "Sustainability Yearbook (China Edition) 2024", and was included in CCTV's "Yangtze River Delta ESG • Top 50 Pioneer" list.
2. Focusing on investor returns and working together to promote value realization
   The Company further optimized investor communication channels, actively explored and researched implementation paths and plans to further enhance investor returns, and strived to uphold the responsibilities of listed companies. In 2024, the Company will pay an interim dividend of RMB0.19 per 10 shares for the first time to further enhance investor returns and promote value achievement.

3. FUTURE PROSPECTS

Looking ahead to the second half of 2024, the world economic and trade environment will remain complex and severe, and the development of the shipping industry will face many uncertainties. In the face of new opportunities and challenges, the Company will insist on promoting deepening reforms and actively respond to the uncertainties in the external environment, push forward its high-quality development steadily. The Company will also proactively grasp the development opportunities brought about by the optimization and adjustment of the shipping industry's capacity to further capitalize on the synergistic advantages of the industry chain, so as to expand our product portfolio through technological innovation, and enhance our endogenous power through the development of new-quality productive forces. At the same time, we will create greater value for our shareholders while accumulating momentum for the Company's long-term steady growth.

8 COSCO SHIPPING DEVELOPMENT CO., LTD.