PT Nanyang 2001 Annual Report

Important Notice
The Board of Directors of the company guarantees that the information contained in this report does not have any false records, misleading statements, or major omissions, and is responsible for the authenticity, accuracy, and completeness of its content. Tianjin Wuzhou United Accounting Firm Haikou Qisheng Branch has issued an unqualified audit report with explanatory paragraphs for this company. The Board of Directors and the Supervisory Board have also provided detailed explanations on related matters. Investors are advised to read carefully.

Table of Contents
I. Company Profile 3
II. Summary of Accounting Data and Business Data 4
III. Changes in Share Capital and Major Shareholders' Holdings 5
IV. Directors, Supervisors, Senior Management, and Employees 7
V. Corporate Governance Structure 10
VI. Summary of Shareholders' Meetings 11
VII. Board of Directors' Report 14
VIII. Supervisory Board's Report 22
IX. Important Matters 24
X. Financial Report 31
XI. Directory of Documents for Inspection 56

I. Company Profile
(1) Legal Name of the Company

Chinese Name: 南洋航运集团股份有限公司

English Name: NANYANG SHIPPING GROUP STOCK HOLDING CO., LTD.
(2) Legal Representative: Fan Yunhai
(3) Secretary of the Board: Miao Haiying
Contact Address: Secretary Office of the Board of Directors
Phone: 0898 66775208/68666999
Fax: 0898 66752989
Email: NYSHIP@163.com
(4) Registered Address and Office Address
Registered Address: 7-8th Floor, Dongfang Ocean Building, 288 Binhai Avenue, Haikou City, Postal Code: 570311
Email: NYSHIP@163.com
Office Address: 7th Floor, Haijingwan Building, 8 Jingwan Road, Haikou City
(5) Selected Newspapers for Information Disclosure: Securities Times, China Securities Journal
Website for Annual Report: http://www.cninfo.com.cn
Location for Annual Report: Shenzhen Stock Exchange, Secretary Office of the Company
(6) Stock Listing Location: Shenzhen Stock Exchange
Stock Abbreviation: PT Nanyang
Stock Code: 000556
(7) Other Relevant Information
Date of Initial Registration: December 16, 1992
Location: 2nd Floor, Comprehensive Shipping Building, New Port Area, Binhai Avenue, Haikou City
Business License Registration Number: Qiongqi 4600001003570
Tax Registration Number: Qiong 460100201289277
Accounting Firm Engaged: Tianjin Wuzhou United Accounting Firm Haikou Qisheng Branch
Office Address: No. 2, Yanjiang 1st West Road, Haidian Island, Haikou City

Summary of Accounting Data and Business Data

Key Economic Indicators for the Year
Total Profit: -43,285,379.94
Net Profit: -43,285,379.94
Net Profit after Deducting Non-Recurring Gains and Losses: -22,748,519.11
Main Business Profit: 0.00
Other Business Profit: 0.00
Operating Profit: -22,748,519.11
Investment Income: 0.00
Subsidy Income: 0.00
Net Other Income and Expenditure: -20,536,860.83
Net Cash Flow from Operating Activities: -9,385,915.57
Net Increase in Cash and Cash Equivalents: -319,806.10
Non-Recurring Gains and Losses:
Other Income: 622,818.00
Other Expenditure: 21,159,678.83
Net Other Income and Expenditure: -20,536,860.83

Key Accounting Data and Financial Indicators for the Past Three Years
| Year | Main Business Income | Net Profit | Total Assets | Shareholder Equity | Earnings per Share (Diluted) | Earnings per Share (Weighted) | Net Asset per Share |
|------|----------------------|------------|--------------|-------------------|------------------------------|-------------------------------|---------------------|
| 2001 | 0.00 | -43,285,379.94 | 280,706,658.78 | 183,836,891.07 | -0.174 | -0.174 | 0.74 |
| 2000 | 0.00 | -41,809,860.41 | 129,042,500.99 | -300,355,853.24 | -0.17 | -0.17 | -1.21 |
| 1999 | 54,266,540.61 | -39,892,816.60 | 207,311,520.13 | -221,895,052.04 | -0.16 | -0.16 | -0.89 |

II. Changes in Share Capital and Major Shareholders' Holdings

Changes in Share Capital
| Item | Quantity | Unit | Change |
|------|----------|------|--------|
| Initial Number | 248,718,128 | shares | - |
| Issued Shares | 0 | shares | - |
| Other Changes | 0 | shares | - |
| Total | 248,718,128 | shares | - |