China Shipping Container Lines Full Subsidiary Buy 100% Equity of Universal Shipping Lines

On August 27, 2006, China Shipping Container Lines daughter subsidiary-China Shipping Container Lines (Hong Kong) Company [China Shipping Container Lines (Hong Kong)] and China Shipping Logistics Oversea Company, Rich Forwarding Company and China Shipping (Hong Kong) Forwarding Company established a equity buy agreement to buy the full outstanding Universal Shipping Lines equity via cash value 79,766,300 Hong Kong dollars jointly held by China Shipping Logistics Oversea Company, Rich Forwarding Company and China Shipping (Hong Kong) Forwarding Company, and thus Universal Shipping Lines shall be one of full-controlled subsidiary after the agreement execution.
Universal Shipping Lines is but a shipping liner basically focused on feeder shipping line service across Zhujiang River Delta and South China coastal region, Beibu Guly Rim. The buy itself will intensify the tally work and feeder line service aggregation and coordination, and thus further improve the comprehensive economical benefit of the Company.
The buy was entered into via fair value principle and general commercial provision, and the total value was defined via value settlement report as of Dec. 31, 2005 by independent and certified public Chinese value assessor, while the cash payment shall be executed with internal source of China Shipping Container Lines (Hong Kong) Company. The total net asset non-audited of Universal Shipping Lines as of July 31, 2006 is 45,809,006 Hong Kong dollars.
The two financial years respectively as of Dec. 31, 2004 and Dec. 31, 2005, the net profit non-audited exclusive of tax and non-recurring item are respectively 5,312,202 dollars and 17,163,566 dollars, while the net profit audited inclusive of tax and non-recurring item are respectively 4,515,899 dollars and 14,164,142 dollars.