09:53     CSCL<02866> - Announcement (1)                                      

    The Stock Exchange of Hong Kong Limited takes no                          
    responsibility for the contents of this announcement,                     
    makes no representation as to its accuracy or                             
    completeness and expressly disclaims any liability                        
    whatsoever for any loss howsoever arising from or in                      
    reliance upon the whole or any part of the contents                       
    of this announcement.                                                     
                                                                              
    China Shipping Container Lines Company Limited*                           
    (a joint stock limited company incorporated in the                        
    People's Republic of China with limited liability)                        
    (Stock Code: 2866)                                                        
                                                                              
    Connected Transaction: Purchase of a Vessel                               
    and                                                                       
    Unusual Volume Movement                                                   
                                                                              
    On 7 April 2005, the Company entered into the Sale                        
    and Purchase Agreement with CSI and CSGIT, under which                    
    the Company has agreed to acquire the Vessel from CSI                     
    at a cash consideration of RMB71,001,000 (equivalent                      
    to approximately HK$66,982,075). An agency fee of                         
    RMB104,275 (equivalent to approximately HK$98,373)                        
    is to be paid in cash by the Company to CSGIT.                            
                                                                              
    The Sale and Purchase Agreement constitutes a                             
    connected transaction of the Company under the                            
    Listing Rules. However, the consideration payable                         
    (including the agency fee) for the purchase of the                        
    Vessel does not exceed 2.5% of any of the applicable                      
    percentage ratios. Under Rule 14A.32 of the Listing                       
    Rules, the Sale and Purchase Agreement is therefore                       
    exempted from the independent shareholders' approval                      
    requirement applicable to connected transactions                          
    under the Listing Rules, but is still subject to the                      
    relevant disclosure requirements.                                         
                                                                              
    The directors of the Company have noted the recent                        
    increase in the trading volume of the shares of the                       
    Company. Save as disclosed below, the directors of                        
    the Company wish to state that they are not aware of                      
    any reasons for such increase.                                            
                                                                              
    1.      THE SALE AND PURCHASE AGREEMENT                                   
    (a)     Date:   7 April 2005                                              
                                                                              
    (b)     Parties:        The Company, as purchaser                         
    CSI, as vendor                                                            
    CSGIT, as the handling agent of the transaction                           
                                                                              
    (c)     The Vessel:     The oil tanker manufactured in March              
    1976, which was modified by CSI in December 2004 into                     
    a container vessel M/C Xiang Teng (#) with a                              
    container capacity of 1270 TEU. Under the relevant                        
    PRC notice, after March 2010, the Company will not                        
    be permitted to operate the Vessel in the PRC, but                        
    can still use it in other countries or sell it to a                       
    third party                                                               
                                                                              
    Asset to be transferred                                                   
    Under the Sale and Purchase Agreement, the Company                        
    has agreed to purchase the Vessel from CSI at a cash                      
    consideration of RMB71,001,000 (equivalent to                             
    approximately HK$66,982,075). CSGIT, as the handling                      
    agent of the transaction, will be responsible for the                     
    preparation and filing of the necessary registration                      
    documents to effect the transfer of the Vessel to the                     
    Company. An agency fee of RMB104,275 (equivalent to                       
    approximately HK$98,373) is to be paid in cash by the                     
    Company to CSGIT.                                                         
                                                                              
    The Sale and Purchase Agreement does not contain