The board of directors of COSCO SHIPPING Holdings Co., Ltd. wishes to inform the shareholders and potential investors of the company that based on the preliminary estimation made by the finance department of the company, the net profit attributable to the Shareholders for the financial year ended 31 December 2018 is expected to decrease by approximately RMB 1.46 billion as compared to that of RMB 2.662 billion for the financial year ended 31 December 2017, representing a year-on-year decrease of approximately 55%; and the net profit attributable to the Shareholders (after deducting the non-recurring profit and loss) for the financial year ended 31 December 2018 is expected to decrease by approximately RMB 750 million as compared to that of RMB 950 million for the financial year ended 31 December 2017, representing a year-on-year decrease of approximately 79%. During the period, the company had focused on the expansion and development of its principal businesses, continued to deepen its reform, strengthened the quality and efficiency enhancement and the synergies have become increasingly apparent. The volume of the container shipping business, the throughput of the container terminal business and the operating income of the Group increased substantially as compared to those for the financial year ended 31 December 2017. However, due to the surge in the costs of marine fuel which is mainly resulted from the significant increase in the international oil price in 2018, the overall operating profit of the Company during the Reporting Period decreased as compared to that of the financial year ended 31 December 2017. The non-recurring profit attributable to the shareholders for the financial year ended 31 December 2018 is expected to decrease from that for the financial year ended 31 December 2017, which is mainly because a relatively large amount of one-off investment income was generated from the subscription of shares of Qingdao Port International Co., Ltd. in 2017.