09:54     CSCL<02866> - Announcement (3)                                      

    2.      GENERAL                                                           
    The Group is principally engaged in the operation and                     
    management of international and domestic container                        
    marine transportation.                                                    
                                                                              
    (a)     CSDC                                                              
    CSDC is a limited liability company incorporated in                       
    the PRC. CSDC is principally engaged in the business                      
    of costal, ocean and Yangtze River cargo                                  
    transportation, oil transportation, international                         
    passenger transportation, chartering, cargo agency                        
    and cargo transportation agency.                                          
                                                                              
    (b)     CSI                                                               
    CSI is a limited liability company incorporated in                        
    the PRC. CSI is principally engaged in the business                       
    of ship repair, ship construction, purchase of second                     
    hand ships, ship dismantling and ship leasing.                            
                                                                              
    (c)     CSGIT                                                             
    CSGIT is a limited liability company incorporated in                      
    the PRC. CSGIT is principally engaged in the business                     
    of import, export, trading of goods and technologies                      
    and provision of agency services.                                         
                                                                              
    (d)     Connected transactions                                            
    China Shipping, being the controlling shareholder of                      
    the Company, is a connected person of the Company.                        
    CSI and CSGIT, both being members of the China                            
    Shipping Group, are therefore also connected persons                      
    of the Company.                                                           
                                                                              
    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                      
    requirements applicable to connected transactions                         
    under the Listing Rules, but is still subject to the                      
    relevant disclosure requirements.                                         
                                                                              
    The directors of the Company (including the                               
    independent non-executive directors) are of the view                      
    that the transaction contemplated under the Sale and                      
    Purchase Agreement is on normal commercial terms, has                     
    been entered into in the ordinary and usual course                        
    of the Group's business and is fair and reasonable                        
    and in the interests of the Company and its                               
    shareholders as a whole.                                                  
                                                                              
    3.      UNUSUAL VOLUME MOVEMENT                                           
    This statement is made at the request of The Stock                        
    Exchange of Hong Kong Limited.                                            
                                                                              
    The directors of the Company have noted the recent                        
    increase in the trading volume of the shares of the                       
    Company. Save as disclosed above, the directors of                        
    the Company wish to state that they are not aware of                      
    any reasons for such increase.                                            
                                                                              
    The directors of the Company also confirm that, save                      
    as disclosed above, there are no negotiations or                          
    agreements relating to intended acquisitions or                           
    realisations which are discloseable under rule 13.23,                     
    neither is the board of directors aware of any matter                     
    discloseable under the general obligation imposed by                      
    rule 13.09, which is or may be of a price-sensitive                       
    nature.                                                                   
                                                                              
    Made by the order of the board of directors of the