I. Economic achievement indicators and economic report

According to Clarkson, by April 1, 2006, COSCO Group has been ranked No.1 in the world and No.2 in China in terms of fleet scale, No.1 in China and No.5 in the world in terms of container ship carrying capability, No.1 in China and No.1 in the world in terms of dry bulk cargo capability, and No.3 in China in terms of oil tanker fleet scale. COSCO Group has been on the top in the world regarding fleet scale, and occupied corresponding market share. The group is No.1 in China's ship agency market, accounting for about 50% market share.

At the same time, COSCO Group is the world's No.5 dock operator. By the end of December 2005, COSCO Group has invested and operated 25 dock projects and 94 berths both at home and abroad. In 2005, the invested docks of the group have completed 28.14 million standard tankers of throughput, making its business development reach a new level.

Relying on the group's powerful international ocean transportation power, COSCO has introduced advanced concept of comprehensive logistics in its logistics business and has been stable at the very top of the list of the Top 100 China Logistics Enterprises. In 2005, COSCO Logistics was honorably crowned as the No.1 evaluated by China's logistics industry organization. In the 4th China Freight Industry Award, the company was honored No.1 regarding 4 aspects, namely comprehensive service, procedure management, response capability, network coverage of China's best logistics company, evaluated by 50,000 industry clients. The company was also ranked No.1 on the list of 2nd China Top 100 Logistics Enterprises organized by 8 professional industry associations including China Communications and Transportation Association. It is one of the first 5A-grade enterprises assessed by the Classification and Evaluation Indicators of Logistics Enterprise jointly established by General Administration of Quality Supervision, Inspection and Quarantine, and National Standard Committee, and is on the very top of the list of the first 9 5A-grade logistics enterprises.

Concerning ship repair industry, COSCO Group has several domestically leading and internationally famous large ship repair bases in Dalian, Nantong, Shanghai, Zhoushan, Guangzhou, etc. The group owns 9 docks of various types including 300,000 tons floating dock. The group is a leader in China's ship repair industry from manufacture equipment level to manufacture management level. It is one of the largest ship repair service providers in the world, providing quality ship repair and conversion services for over 500 large ships from over 50 countries every year.

COSCO Shipbuilding Industry Company owns China's leading and world's first-grade ship plant, COSCO KHI Ship Engineering Co., Ltd, the indicators of which in total labor productivity, average profit and tax per person, shipbuilding productivity, electricity consumption per 10,000 dollars output value, have hit China's best records.

By the end of 2005, COSCO Group has owned and commanded a fleet with 35.54 million tons of carrying capability, keeping the position of the world's No.2 shipping enterprise. In 2005, the group has completed 320 million tons of shipping task and 1,583.6 billion tons sea mile of freight turnover, with the Core business revenues over 102 billion yuan.