09:53     CSCL<02866> - Announcement (2)                                      

    any condition precedents.                                                 
                                                                              
    Consideration                                                             
    Under the Sale and Purchase Agreement, the                                
    consideration payable for the Vessel shall be paid                        
    in cash by the Company in the following manner:                           
                                                                              
    (i)     RMB30,180,600 (equivalent to approximately                        
    HK$28,472,264) to CSI within 5 banking days after                         
    signing the Sale and Purchase Agreement;                                  
                                                                              
    (ii)    RMB33,534,000 (equivalent to approximately                        
    HK$31,635,849) to CSI within 15 banking days after                        
    signing the Sale and Purchase Agreement;                                  
                                                                              
    (iii)   RMB4,968,000 (equivalent to approximately                         
    HK$4,686,792) to CSI within 30 banking days after                         
    signing the Sale and Purchase Agreement; and                              
                                                                              
    (iv)    RMB2,318,400 (equivalent to approximately                         
    HK$2,187,170) to CSI and RMB104,275 (equivalent to                        
    approximately HK$98,373) to CSGIT within 5 banking                        
    days after delivery of the Vessel to the Company.                         
                                                                              
    The Vessel was originally purchased by CSI on 23                          
    January 2005 from CSDC, a subsidiary of China Shipping.                   
    The total cost paid by CSI for the Vessel was                             
    RMB71,045,839 (equivalent to approximately                                
    HK$67,024,376).                                                           
                                                                              
    The consideration of RMB71,001,000 (equivalent to                         
    approximately HK$66,982,075) payable by the Company                       
    for the purchase of the Vessel was determined based                       
    on the appraised value of the Vessel as at 28 February                    
    2005, which amounted to RMB70,431,100 (equivalent to                      
    approximately HK$66,444,434) as set out in an asset                       
    valuation report based on the replacement cost of the                     
    Vessel prepared by an independent and duly qualified                      
    PRC valuer appointed by CSI. Such consideration will                      
    be funded from the Company's internal resources.                          
                                                                              
    Delivery                                                                  
    The Vessel is expected to be delivered on or before                       
    11 April 2005.                                                            
                                                                              
    Reason for the acquisition                                                
    As there is increase in the demand for container                          
    spaces in the Company's domestic trade lanes, the                         
    Company intends to deploy the Vessel in such trade                        
    lanes in order to further strengthen its shipping                         
    capacity and to satisfy such increasing demand. The                       
    directors of the Company believe that the Vessel will                     
    further strengthen the domestic container marine                          
    transportation services capabilities of the Group.                        
    Although the Company currently has no plan to purchase                    
    additional vessels from the China Shipping Group, it                      
    will, from time to time, assess the market operating                      
    environment to determine whether additional vessel(s)                     
    will be acquired from the China Shipping Group. The                       
    Company considers that negotiations with members of                       
    the China Shipping Group (e.g. CSI and CSGIT) to be                       
    generally more convenient and the purchase price                          
    offered by CSI is generally cheaper than that offered                     
    by independent third parties for vessels of similar                       
    age, type and capacity available in the market.                           
                                                                              
    In light of the above, the directors of the Company                       
    (including the independent non-executive directors)                       
    believe that the terms of the Sale and Purchase                           
    Agreement are fair and reasonable, in the interest                        
    of the shareholders of the Company as a whole and no                      
    less favourable to the Company than terms available                       
    from independent third parties.