08:55     CSCL<02866> - Results Announcement (2)                              

                                                                              
    3.      Dividends                                                         
                                            2004            2003              
                                            RMB'000         RMB'000           
    Special dividend (note (i))             480,098         -                 
    Final, proposed of RMB[0.2] (2003: Nil)                                   
     (note (ii))                                                              
    - per domestic share                    722,000         -                 
    - per H share                           484,000         -                 
                                                            -                 
                                            1,206,000                         
                                            1,686,098       -                 
                                                                              
    (i)     Special dividend                                                  
                                                                              
    In accordance with the "Provisional Regulation relating to Corporate      
    Reorganisation of Enterprises and Related Management of State-owned       
    Capital and Financial Treatment", which was issued by the Ministry of     
    Finance and became effective from 27th August 2002, the Company is        
    required to distribute to China Shipping (Group) Company the Company's net
    profit for the period from 1st November 2003 (being the first day after   
    the date of the valuation of the assets of the Company) to 2nd March 2004 
    (being the day immediately prior to the conversion of the Company into a  
    joint stock limited company) (the "Special Period"), determined in        
    accordance with Accounting Standards for Business Enterprises and         
    Accounting Systems for Business Enterprises of the PRC, payable out of the
    Company's internal resources and/or cash generated from  the Company's    
    operating activities (the "Profit Appropriation"). Holders of H Shares are
    not entitled to participate in the distribution arising from the Profit   
    Appropriation.                                                            
                                                                              
    The Company has engaged BDO Zhong Hua Certified Public Accountants to     
    perform a special audit on the Special Period to determine the profit for 
    the Special Period for distribution to China Shipping (Group) Company.    
    According to the audited financial statements, the net profit for the     
    Special Period amounted to RMB480,098,000. As the approval for            
    consolidation tax filing for the Special Period obtained, no income tax   
    for the Special Period was provided.                                      
                                                                              
    (ii)   At a meeting held on 8th March 2005, the directors proposed a final
    dividend of RMB0.2 per ordinary share. This proposed dividend is not      
    reflected as a dividend payable in these accounts, but will be reflected  
    as an appropriation of retained earnings for the year ending 31st December
    2005.                                                                     
                                                                              
    For more details, please refer to the press announcement today.