Report 2007 2020.Gr Concrete Expansion Table of Contents

Annual Report 2007 2020.gr Concrete Expansion Table of Contents

a. Our Vision...... 4 b. Chairman’s Statement...... 5 c. Chief Executive Officer Statement...... 6 d. Our Company...... 7 e. Our Philosophy...... 9 f. Our Strengths...... 9 g. Our Markets...... 10 h. Our Board ...... 20 i. Our Management...... 21 j. Our Fleet...... 22 k. Our Fleet expansion since IPO...... 24 l. Our Charterers...... 25 Goldenport 2007 Profile m. Our Fleet employment...... 26 n. Our Fleet Manager ...... 28 o. Quality and Safety...... 30 p. Our Fleet Manager Key Personnel...... 34 q. Report of Directors...... 36 r. Corporate Governance Statement...... 40 s. Directors’ Remuneration Report...... 48 t. Statement of Directors’ Responsibilities...... 53 u. Independent Auditors’ Report...... 54 v. Financial Statements...... 55 w. Financial Calendar & Analyst Coverage...... 91 x. Registered Office and Advisers...... 92

Goldenport 2007 Profile

Revenue (US$m) EBITDA (US$m)

+ 37.7 % + 40.3 % + 8.4 % 124.9 + 2.0 % 77.0

90.7 54.9 83.6 53.8

2005 2006 2007 2005 2006 2007

Number of vessels - incl. vessels Net income (US$m) under construction

+ 29.0 % 33 20 + 4.5 % 58.3 17 18 10 45.2 8 43.3 15 9 10 2005 2006 2007 2005 2006 2007

Containers Bulk Carriers

a Goldenport Holdings Inc.

“To achieve sustainable growth in a volatile industry, gradually becoming one of the leaders OurVision in marine transportation especially in the containers and bulk carriers segments”

Annual Report 2007 b

Chairman’s Statement

Net Income for the year was $58.3 million, up 37.7% on prior year based on strong underlying fundamentals in both container and dry bulk markets. Our Board recommends a final dividend of 15.0 pence per share, which will result in a total of 22.0 pence declared for the 2007 year.

The Goldenport fleet has a balance of container and dry-bulk vessels and our strategy is to fix our vessels on medium to long term charters, depending on the market cycle, with blue-chip customers. Our business model avoids the cyclical extremes of the industry and results in a high level of earnings predictability and visibility, with strong cash flows. This allows us to have the twin objectives of paying an attractive dividend and using retained earnings to drive growth.

Our strategy to maintain presence in both the container and dry bulk markets enables us to take advantage of the opportunities in each segment as they develop and translates into diversity and stability for our company. In this context, in 2007, we were able to further expand and diversify our investments in both segments acquiring vessels reasonably priced compared to the market conditions.

During 2007 the fleet expanded with the delivery of six operational second-hand container vessels, which contributed partially to the profitability for the year, and contracts for of eight new build vessels with scheduled deliveries between 2008 and 2011.

At the balance sheet date, the fleet has increased from 17 vessels at the IPO to 33 vessels; all the acquisitions were funded through cash reserves and debt financing.

As in the past, our ongoing focus for acquisitions will continue to be on container and dry bulk vessels. Typically, our methodology is that we seek to reduce the economic risk of the purchase by having a medium to long term charter in place for the vessel as it enters our fleet. As a consequence, we search concurrently for both contracts and vessels.

We expect the growth of the fleet to continue and for its average age to decline. Shareholders should be aware that this growth will only occur if and when sensible opportunities arise.

I thank Captain Dragnis and his team for their successes during the year; for their safe and efficient operation of the fleet; and for their search for new opportunities.

Chris Walton Chairman

c Goldenport Holdings Inc.

Chief Executive Officer Statement

The deployment of the majority of our container fleet under long term charters translated into stable and predictable cash flows enabling us to expand our container fleet with the acquisition of four sub-panamax and two handy operational container vessels that contributed partially in 2007 profitability but will contribute in full in 2008. Furthermore, the recovery in the dry-bulk market in 2007, combined with our long-standing and extensive relationships with top tier charter counterparties and our well positioned and enlarged fleet, enabled us to conclude bulk-carrier charters at rates significantly higher than those prevailing during the same period of 2006 thereby significantly enhancing our revenue and profitability.

Since April 2006, when we became a public company, we have implemented in full the first phase of our growth strategy. Our fleet has grown to 24 operational vessels and 9 vessels for which we expect delivery between 2008 and 2011, yet maintaining low leverage. The container vessel acquisitions more than tripled our TEU capacity compared to the IPO fleet, whereas the bulk carrier additions increased our capacity in terms of DWT by 63%, providing a modern and versatile fleet.

All the vessels’ acquisitions reinforce our position in our strategic sub-segments of the container and dry-bulk shipping markets, enhance the earning potential of our company for the longer term and are in line with our prudent expansion strategy. For each operational vessel that entered the fleet we secured medium to long-term employment, thus minimising shareholders’ risk.

Our defensive chartering strategy of employing our vessels on time charters has not only strengthened our 2007 results compared to previous years, but also allows us to create a platform of growth until the majority of the new build vessels become operational.

Most of our container fleet has already been fixed for 2008 with 93% of our total container fleet available days in 2008 secured under period employment. The two container vessels opening for re-chartering within 2008 and the vessel Fortune which is expected to be chartered by the summer provide upside potential. Out of our dry-bulk fleet, only one vessel is opening for re-chartering in mid-2008, with 94% of our total dry-bulk fleet available days in 2008 already secured under period employment.

We remain confident on the demand outlook of the container and dry-bulk markets for 2008 and we continue to evaluate and consider a number of sensible opportunities to enhance our growth potential.

Captain Paris Dragnis Chief Executive Officer

long-term After to committed policies. corporate environmentally being while sound service in its Company comprising of has built astrategy following: the to order this, achieve In Goldenport in clients vessels ] consolidate March Goldenport FORMATION its Goldenport Our Company Annual Report 2007 a Goldenport acquisition the of with tonnage. younger fleet its renews Paris the From value. par shares, without authorised of 500 vessels Company Under tes Our imary all charterers satisfy vessels’ 24 e crew, such as safety. environmental, andvessel aspects not jeopardizing in any case Official rs. a our 30 Dragnis being hours well 2005 both the to and Special pr March business serve t amended and employment he List charterers diversified Company’s in is has dry-bulk the in a Holdings as and a business in ability day, fulfil of attention 2006, the goal customer niche a built ownership a the transactions provides Holding fleet 365 container only its is to London strong, carriers, conditional ensuring trades. fleet to for Inc opportunity Articles grow Amended days the of is always oriented almost always Company innovative and was seventeen interests highest Stock a reliable Most its and with and that year. of has have fleet on formed three given Incorporation. global Exchange, to dry-bulk and importantly, cost share in been admission We of relationships an in ensure of solutions steadily, the container decades, expectations, Restated o and to provide efficient Captain provider rder active on capital market. having fleet time that the 21 to to and for as in reliable it and the factors sectors. of The with the has acquiring a cargo ensure shipping commitment quality well-maintained in ability Company been a by the owning Dragnis. t The U.S.$0.01 share. per shares shares no with (all authorised Articles order and ion, are number movements Its that the Contributed in our of Company effective additional to always seventeen performance services to registered of service founder respond every primary of emphasizes a provide of common to share vessel-owning Incorporation, taken first its new requirements. that solutions f is value.topar reorganisa the Prior leet has tonnage holding companies), goal to clients always and the class capital form) into brings addition every comprising standards cancelled both stock to current best charterers primary Goldenport of in maintain companies, consisting as situation of added flexibility co-operation the service the company with well is 100,000,000 The were CEO highest have accompanied of the Company consideration as value Company a professionalism vessels and to wholly-owned that Captain reconfiguring and 100,000,000 par existing given continuously each our (altogether worldwide standards. services may reliability with value that charter has in to shares oper arise Paris by turn 500 but will our the an to of a - - -

Our Company d d Goldenport Holdings Inc.

RE-ORGANISATION OFFICIAL LISTING

The reorganisation that took place on 30 March Goldenport Holdings Inc was admitted to the 2006, involved the following steps: Official List and admitted to trading on the main market of the London Stock Exchange on 5 April ] Captain Paris Dragnis contributed all of the 2006 with ticker GPRT. The offer was for £60 shares held by him in the seventeen inter- million excluding the Over-Allotment option. On mediate holding companies to Goldenport, 11th April 2006 the Over Allotment option was in exchange for shares of common stock in exercised providing the Company with a total of Goldenport, fulfilling his obligation for the £ 66 million (or $115.5 million at the time), which

Our Company Our Company’s share capital, in accordance with were raised in order to partially repay debt and the share for share agreement exchange dat- for fleet expansion. ed 30 March 2006; and Upon admission the Company owned and ope- ] Captain Paris Dragnis transferred all of the rated 17 vessels consisting of nine dry bulk car- shares of common stock in Goldenport to riers that had cargo-carrying capacities ranging Starla Shipholding Corporation (Starla), a from 52,266 to 136,638 DWT and eight contain- company wholly owned by Captain Paris er vessels ranging from 485 to 2,258 TEU. Dragnis; as a result Starla was, prior to admission to the Official List of the London Effective 19th of June 2006 the stock was in- Stock Exchange, the sole shareholder of the cluded in the FTSE Small Cap and FTSE All-Share Company; Indices of the London Stock Exchange.

] Following completion of the reorganisation, the Contributed Companies were wholly- owned subsidiaries of Goldenport Holdings Inc.

STOCK PERFORMANCE SINCE LISTING

Goldenport share price vs. FTSE Small Cap / All Share

Share price performance from IPO to 31 December 2007

550 500 450 400 350 300 250 200 Mar 06 Jun 06 Sep 06 Dec 06 Mar 07 May 07 Aug 07 Nov 07

Goldenport FTSE Small Cap FTSE All Share

Source: Thomson Financial, January 2008 Note: The FTSE Small Cap and FTSE All Share indices have been rebased to the Goldenport share price

‘The only pure shipping Company listed in the global Capital of Shipping Services’ Annual Report 2007 d

Goldenport share price vs. FTSE 350

Share price performance from IPO to 31 December 2007

550 500 450 400 350 300

250 Company Our 200 Mar 06 Jun 06 Sep 06 Dec 06 Mar 07 May 07 Aug 07 Nov 07 Goldenport FTSE 350

Source: Thomson Financial, January 2008 Note: The FTSE 350 index has been rebased to the Goldenport share price Our Philosophy e Our primary objective is to manage our fleet in a manner that allows us to maintain profitability across the shipping cycle and thus to maximise returns for our shareholders. To accomplish this objective, we have identified the following strategies, which build upon our existing strengths:

] employment of our vessels in a manner that provides us with stable cash flows; ] effective management of the size and nature of our fleet with a view to expansion of the Group; ] maintenance of exposure to both the dry bulk and container sectors; ] attraction and retention of blue-chip customers; ] execution of a specific and effective vessel acquisition strategy; ] maintenance of efficient operations and a high fleet utilisation; ] capitalisation on our established reputation; and ] maintenance of a strong balance sheet with low leverage, although future acquisitions may be financed partially through debt. Our Strengths f We believe that we possess a number of strengths that provide us with a competitive advantage in the shipping industry:

] we have experienced management team with a proven track record; ] we have a high proportion of our charter coverage is medium - to - long - term; ] we have long-term, high-quality customer relationships; ] we are an efficient operator of vessels of all ages; ] we operate vessels in two major sectors of the shipping industry; ] we operate a number of sister ships; and ] we have a strong balance sheet

‘Maintain profitability across the shipping cycle’ g Goldenport Holdings Inc.

Our Markets The shipping industry is a vital link in international trade with ocean-going vessels representing the most efficient and often the only means of transporting large volumes of basic commodities and finished products.

Seaborne cargo is categorized as either tanker or dry cargo. Dry cargo includes dry bulk cargo, container cargo, non-container cargo and other cargo, while tanker cargo includes oil, refined oil products, gases and chemicals. Ïur Ìarkets Ïur The Dry market is the most diversified one dominating the world’s sea-borne trade. This market is split into: The Containers Market and the Dry bulk Market We operate a well diversified fleet of both containers and dry-bulk carriers

A. The Containers Market: Overview and developments

Containerization was introduced in the late 1960s as an efficient means of transporting general cargo, i.e., cargo other than dry bulk commodities and oil products. Container shipping is the fastest growing sector of the shipping market accounting for more than 70% of the international seaborne trade by value. Demand, as measured by port handling movements, has increased at a compound annual growth rate of 10% since 1999. In 2007 there was an estimated 200 Million TEU of full container port handling movements (including transhipments).

The container market is still developing. Growth in demand is driven not only by increasing world trade, but also by continuing penetration of the general cargo market by containers and an increasing incidence of transhipment to deliver containers to their ultimate destination.

Container shipping is dominated by approximately 25 liner companies, which together control about 85% of container capacity. The continuing concentration process of recent years is resulting in an increased carrying capacity being deployed by the top liner companies. The liner companies operate round-the- world arterial services using the biggest container vessels available, serving a limited number of hub ports and provide a door-to-door service for shippers and consignees, who pay a fee per box shipped. Broadly speaking the actual control of the world fleet is divided between the liner companies (dominating the +4,000 TEU sector) and the independent Owners (owning the majority of the sub 4,000 TEU vessels).

The liner companies charter-in feeder container vessels from owners to provide regional distribution of containers to and from the hub ports. Charter rates for feeder container vessels are affected by global economic factors to a lesser extent than dry bulk carriers because demand is also affected by changes in the demand of liner companies for feeder services. As a result the container market is less volatile than the dry.

i) The Supply

As of December 2007 the containership fleet is comprised of around 4,851 ships of about 11.2 million TEU capacity. It must be stressed that subject figures refer not only to the fully cellular containerships but any other vessel that are predominantly deployed as containerships. Year-on-year (2006-2007) the growth in

10 (record years level). 3-4 withinnext the fordelivery fleet) The 31, of as December container fleet ofage current the worldwide around 2007 11 was years. has reas t Containership ii) The Demand million and capacity Annual Report 2007 t vessels over Over over time. vessel by offered each available the carrying decrease or and increase Australia). –grain ex America South -pig iron ex to Asia sing the parameter volume. transhipment as measures Over of cargo. ionship ainerships well. 1000000 1200000 1400000 200000 400000 600000 800000 changed largest supply the (Japan, other the t the he TEU. removed 0 At fleet Another for was last course last imposed modes is of the is volume Western As the 0320 0520 0720 0921 2011 2010 2009 2008 2007 2006 2005 2004 2003 year the equivalent performance forever the container few will demand same of finished due of “conversion important process is early generate of years by 2007 attributed (so transport, to the time, Europe governments January demolition is called vessels to though products. “geography another related of in 6% growth an driver outsourcing and terms procedure” ‘dominant to in ever-greater is which 2008 the mainly vessel North to the 492 though or of of Further Containership Newbuildings the may most conversion the loss. of speed transhipment irrespective containerships terms America) world affected manufacturing” change order-book leg’ of of important However behind rise to production are minor and of the economy in the of each by the to 12% the of demand above break-bulk, bulk port the two countries is the stood trading parameter were number route). another on net capacity cargoes itself key productivity World a creating the is significant at ordered result factors pattern the Sanctions, with and basis 6.4 of key general GDP affecting (exports from slots growth of million a its factor a of which marine of the lower growth organic of (efficiency slot proportion required traditional a and the new tariffs combined TEU in of since capacity positively determine cost reefer increase demand scrap, industry increase deliveries growth. (around an to and base, of high of move cargoes increasing soya the deployed. capacity the / in i the and n the mainly the or 57% Another operating c less the the ost and the demand other demand voyage impact container traditionally the of ton–mile direction production corn same China. of incidence The the protection number important about duration systems) demand from for average existing growth volume China cargo with rela con 3.2 US u- of of a- - - 11

Ïur Ìarkets g g Goldenport Holdings Inc.

Dramatic increases were boosted by the super charged performance in the dry cargo sector and the relevant sky rocketed rates in the sector. Trade patterns have been affected substantially. Whereas till 2006 the cost per DWT ton of chartering a containership exceeded the cost per ton of an equivalent bulk carrier (3,500 TEU vessel opposed to a 45,000 DWT bulk-carrier) by around 25 cents, over the last year this relationship has been reversed and by the end of the year it was up to 70 cents per ton more expensive to move goods in a bulk-carrier.

Cost per tones of container and dry cargo ships

1,60 Ïur Ìarkets Ïur 1,40

1,20 Cost Per Tonne Dry 1,00 45000/52000

0,80

0,60 Cost Per Tonne 0,40 Containership 3500 teu 0,20

0,00 5-Sep-01 5-Sep-02 5-Sep-03 5-Sep-04 5-Sep-05 5-Sep-06 5-Sep-07

iii) The Charter Market

One of the main characteristics of subject market as opposed to the Dry Bulk is the absence of a “Spot Market”. The Containership market is less volatile if compared to other traditional shipping markets such as dry bulk or tanker. The average period of charter for a containership (regardless size) has been around 10 months for the last 10 years. Such extended period cover provides protection from short term imbal- ances and provides secured income for the relevant parties. This is customarily reduced in weak markets respectively increased in healthy markets. Nowadays the typical period cover is 10 months (300 days) (as opposed to 7.8 months this time last year). Over the course of 2007, the average fixing period was up to 400 days before slipping back towards 300 however such reduction was mainly driven by owners’ reluc- tance to lock into lower rates rather than Charterers’ insistence on fixing short in a downward cycle.

Since spring of year 2002, charter rates after recovering from the lowest level experienced in the second half of year 2001 have broken any previous record within June 2005. Between July 2005 and December 2006 market turned south losing 50% of its strength. In 2007 market out-performed expectations managing to rise by more than 33% throughout the year

As a reflection of the actual underlying market in 2007, Howe Robinson’s containership charter index “HRCI” (following the movement of the 12 Month Time Charter rates for vessels between 250-4,300 TEU) started at 1,011 and rose steadily till end of September when it reached this year’s high (1,406). Thereafter index started slipping for the next 3 months to 1,342 points by the end of the year. The average of the index for 2007 was 1,265 points (approximately the same level as in 2006).

12 to movement enjoying about at season and slippage p follows: as vessels) were rates (for –modern indicative the 1year charter 2008 February on As

k In iv) Market Outlook onwards: 2000 years for averageindex note HRCI’s please purposes comparison For Annual Report 2007

by expected New trend the outpace 10% et orts, short 1,370 - 1,100 geared: TEU - 3,500 TEU gearless: TEU - 3,500 - 2001: - 2000: - 2002: come. no trend, year. decreasing (based Year means (second growth 480-500 1000 1500 2000 2500 leaving 500 term, effect), demand points. a At That to 0 14 77

throughout is short 7 8 5 in bring on present, rather Feb. -93 one the sentiment, in been quarter a Aug.-93 a utilization vessels an Market’s sense recovery demand growth asset should by Feb. -94 supply/demand supportive increase

Aug.-94 Howe RobinsonContainershipIndex1993topresent said, around - 2004: - 2003: - 2005: market spring. of 13,750/day Feb. -95 values rally) of 32,500/day

consider forecast optimism Aug.-95 a with experienced the outlook factor about rather 940 1,844 of 1,53 Feb. -96 3%. may $ $ seems Regarding throughout spectre

with Aug.-96 about the (due

However, Feb. -97 1.5 container in well for unquantifiable though longest to

owners Aug.-97 balance to to 13%. World prevail of to

since Feb. -98 be - 2006: - 2007: have 1.6 second fleet higher Aug.-98 the repeated will ton/mile On as

market Feb. -99 holding the million and GDP enough for year. growth

,265 Aug.-99

,244 it depend the 1 1 average hand beginning was the the Feb. -00 of but other In as Aug.-00 teu effect, 3%). with out annual next - 1,700 geared: TEU - 4,300 TEU gearless: TEU - 4,300 momentum the 2007, nonetheless values

static. Feb. -01 in on due b for

hand, Aug.-01 2008 In case months charter ox the of

high Feb. -02 other average the higher to i There weight t

this Aug.-02 actual for is gives demand enter average

fuel Feb. -03 unlikely words market to to year. 2007, significant

will Aug.-03 rates. index (conversion come. cause power costs, supply/demand

the Feb. -04 be As is

cost Aug.-04 European once that market As firming

18,250/day estimated around peaks

on Feb. -05 for A congestion

36,750/day through a of pattern parameter

there Aug.-05 early more concern. result, buying $ $ Feb. -06 of and in 1,250 up

demand Aug.-06 dry February will supply 2008 to the balance troughs Feb. -07 similar right market in went bulk increase be Aug.-07 points. Overall influencing Chinese European (after any is after for cargoes)) to HRCI up expected in throughout is HRCI significant last Asian However, t the presently by by allowing here Chinese holiday stands about about year’s ports years mar- im are are to - 1 3

Ïur Ìarkets g g Goldenport Holdings Inc.

60000 Containership Charter Rate from 2000 to present

50000

40000

30000

20000 Ïur Ìarkets Ïur

10000

0 5-Jan-00 5-Jan-01 5-Jan-02 5-Jan-03 5-Jan-04 5-Jan-05 5-Jan-06 5-Jan-07 5-Jan-08 1,100teu Gless /700@14t/ 19kn(5%) 1,100teu Grd /750@14t/ 19kn(5%) 1,700teu Grd /1,120@14t /19.5kn(15%)

2050teu Gless /1650@14t /20kn(5%) 2500teu Grd /1850@14t /22 kn(10%) 4300teu Gless /2900@14t /24 kn(3%)

42% reaching record levels of mid 2005. This is already translated into reduced returns on capital and since owners have anyway to deal with increased operating costs and the weakening USD, it does seem that there is no room left for substantial uplifts in vessels’ values.

From a macro perspective with supply pretty much set for the next three years the determining call is demand. In inference, market is unlikely to crash (unless there is a major external shock) on the other hand upside potential is rather limited. Still, if an average market of 1,250 for 2008 does not sound that brilliant, one should always keep in mind that if it materializes, it will bring market 25% above the ten year long average of the container market.

B. The Dry Bulk Market: Overview and developments

The dry bulk industry is fragmented with many owners and operators of ships, including proprietary owners, shippers of dry bulk commodities, state controlled shipping companies and independent shipping companies. Dry bulk cargoes consist of major bulk commodities (iron ore, coal and grain) and minor bulk cargoes such as steel products, forest products, agricultural products, bauxite, alumina, petcoke, cement, sugar, salt, minerals, scrap metal, pig iron etc. In 2007 more than 2.7billion tons of bulk cargoes were transported via sea.

Historically, charter rates for dry bulk carriers have been influenced by the supply of, and demand for vessel tonnage.

Demand for dry bulk carriers is dependent on a number of factors including: u World and regional economic and political conditions u Developments in international trade u Changes in seaborne and other transportation patterns u Weather patterns, crop yields u Armed conflicts u Port congestion, canal closures and other diversions of trade

On the other hand, supply is primarily driven by changes in the size of the global dry bulk carrier fleet due to new building vessel deliveries and vessel scrapping.

14 Newbuilding amountingwithin an unprecedented 2007 +6.73% increase to was about capacity. The m The vessels In in 2006. one largest in 2007 its following ever expansion largest second its recorded bulk fleet dry The c u u u u u u As i. The Supply Annual Report 2007 million (including As (according time.) delivery andfinal now between (N.B and2014. 2008 between The handies. and2,388 handymaxes fewyears last The loss or throughremoved either demolition eeding ately 15 DWT). (by years total of in all unprecedented sizes volume ofThe orders new sales of level low demolition extraordinary The on Handysize: c Supramax/Handymax: Panamax: Capesize: limited infrastructure tothem supply average world ally The December December DWT (0.7 324 15,000 dispersed current 136 to dry of million Panama the canal. cross new which age haul long on focusing iron routes. ore andcoal trade DWT over 100,000 vessels tonnage Lloyds

vessels vessels bulk minor cargoes exclusively carrying DWT 15-40,000 vessels bulk Post DWT 2007 of ships Order-book 31st by: characterized have been global DWT) constitutes fleet the Fairplay) Panamaxes, between is each) on (according were 2007 manly current subdivides order were trades vessels was delivered there the figures, affected 60-83,000 a either as pproximately comprised worldwide between mainly world to of are between into Lloyds December lost taken aggregating 598 by fleet with 4 DWT the or 60-105k Capes, of main dry Fairplay), 40-60,000 at sold comprised 52% built 6,158 net bulk the defined 31, vessel for 565 result of on about DWT vessels end 2007 carrier the the demolition. board panamaxes, size DWT as of of of world’s worldwide with was 25.15 those representing the 2007, fleet approximately categories cranes operating approximately beams new million with as existing The are 731 of deliveries enabling dry fluid, maximum net greater December that DWT. Handymaxes in approximately bulk fleet result a 791 and are large 2,463 On them carrier less than by capes, based can for beam the DWT. 31, number the 32.2m) vessels to the expand ordered fleet 2007 other number on 1,524 32.2m call 384 More world cargo of of in of was million side, 1,455 or panamaxes for vessels geographi- ports specifically permitting about bulk of contract approxi carrying delivery only vessels supra/ DWT. fleet with 219 (ex- 21 - 1 5

Ïur Ìarkets g g Goldenport Holdings Inc.

Dry Bulk Newbuildings

Deliveries Orderbook forecast 1000

834

750 668

500 414 438 Ïur Ìarkets Ïur

No. of Vessels 340 307 324 254 250 217 160

0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: Lloyds Fairplay

ii. The Demand

Dry bulk shipping demand is a “derived” demand (measured in tons x miles) depending upon the distance over which cargo is transported and determined by the underlying demand for commodities transported (mainly raw materials). Overall in 2007 about 2.7 billion tons of dry bulk cargoes have been shipped around the world an approximate increase of 8% basis 2006. It is worth to note that over the last couple of years it is the global steel industry that accounts for around half of all dry bulk demand (iron ore - coking coal - limestone - finished products).

Iron ore The iron ore seaborne trade reached a new high of about 773 million tons within 2007 (some +8% year- on-year basis). It goes without saying that the driving force behind this tremendous growth in subject trade remained China. Chinese iron ore imports soared for another year reaching the level of close to 384 million tons.

Coal Coals i an abundant commodity divided into steam coal (used for power generation) and coking coal (to produce coke for feeding blast furnaces in the production of steel). In 2007 total coal seaborne trade (Steam + Coking) reached the level of approximately 780 million tons a 6% increase compared to 2006.

Steel trades (finished products) Over the last few years China, despite their government’s wishes, boosted by the huge growth of its steel production (average annual growth of about 25%) became a net exporter of steel products. Provisional estimates for Chinese steel exports in 2007 suggest they have risen by some +31% reaching the level of about 57.8 million tons whereas at the same time steel imports have fallen by some 2 million tons to about 16m million tons only.

Grain Grains’ trade including wheat, coarse grains and oil seeds, has contributed as well to the overall volume of growth in 2006. The overall increase was about 9 million tons (+3%).

16 April “10,000 30th 7,061 yearaverage forthe was (+122% average). 2006 the Since (May 1986) to ahigh of 2,3531995). (January which across above long $47,500. supramaxes and forthe follows: as stand 8years last the for averages BDI’s purposes comparison For (!!!) In broking in Shipping iii. Market The Charter Annual Report 2007 t ore

I to 1985-1999 note foryears thatt is worth BDI 1,282 only averaged points. ion 2007 the 1,608 - 2000: 1,217 - 2001: 1,137 - 2002: and on industries. term 2007 2007 mid-2003, global was the various N the coal, market, milestone” ovember industry average 10,000 it introduced BDI average has which dry sectors The broke mainly publishes the bulk participants the level of BDI are daily on dry 2,617 - 2003: 4,510 - 2004: 3,371- 2005: the previous 13th! carrier of in (incl. Steel,Bauxite, commodities, October reached fluctuated for bulk earnings 1985. the 7 Cement etc.) the Other previous 31% 3.5 (more dry markets. c refer arrier BDI record weeks From a the bulk for record than over daily. to Grain 10% years 10th markets 1985 modern used (6,231) the shipping and The 3,180 - 2006: - 2007: and 150% Dry BulkΤrade2007 The level (10,218 (2000-2006 Baltic in through Baltic closed above Major Cargoes the BDI have capesize for of higher 7,061 market. Coking Coal Dry 6,231 booming Exchange the is points) the the soared, a 2002, 7% Index, than first composite previous year average: vessels in The only early time the the or primarily global at Limited, BDI “BDI”, were to 9,392 BDI/BFI commencement December high ever 2,520 replaced reach average steel $115,900, driven of and as an points points)). has 2,353 the production a international, Iron Ore Thermal Coal general continuing of 2004. the 27% fluctuated unprecedented by (113% indexes 20% (January for Baltic a Thereafter of surge From measure the the and above Freight soaring of panamaxes between self-regulated year December 1995). in electricity daily demand end index of level – Index, breaking 340% charter freight On 2006). a of remained April $56,800 2004 low genera for 11,039 or above ship- rates rates 554 iron The BFI, the the till - 1 7

Ïur Ìarkets g g Goldenport Holdings Inc.

Baltic Exchange Dry Index

12,000

8,000 Index Value Index

Ïur Ìarkets Ïur 4,000

0 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07

Source: Baltic Exchange

Baltic Exchange Dry Index 12,000

Daily Rate Annual Average

8,000 Index Value Index

4,000

0 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07

Source: Baltic Exchange

Baltic Exchange Timecharter Earnings

200,000

150,000

100,000 TC US$/day

50,000

0 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07

Capesize Panamax Supramax - 52k dwt TC Avg BHMI

Source: Baltic Exchange

18 threat coupled Still market outlook created momentum. arather negative For for 2007 (Capes $115,900, $47,500). Supramaxes $56,800, panamaxes imposed (lower negotiations I.E. to follows: market as averagespot the day, rates stand opposed per as 2008) sector per From remains it aforementioned to seen. ship orders, be fornew yards brought A prevailing e When higher. average ratesthe around have 90% been e o t fundamentals) Within iv) Market Outlook Annual Report 2007 t well. as pessimistic but is anything In i.e. at record levels. ready suspension This 11th. the market reaching 6,520 February on rebounded points Be in iron ore flows. patterns; especially trade in accordance seasonal normal with compared to first the of However, ives’ ions Supramax Panamax Capesize rs ry ut s any new on in that and (over comparison 2008 fall of market another all February to comes case, of than January contracts iron operators with has sectors as the by hedge 3 US and whether market years of it the what ore expected index mainly ended to recession was the iron may, despite perspective, the losing 2008, 2008, purposes, Chinese their between the for already bearish consensus (as on 7 February 2008) 7February (as on implying sounds quite ore down Spot Market (per day) (per Market Spot 7th that much freight forward is been first position it 35% exports pessimistic. but anything worries BDI Australian the and looks positive will government class to placed sentiment the more prompted earlier), it experienced Forward a $103,364 considering of rates the $40,457 $46,028 5,615 be is about rates mild Chinese like about from and worth shipyards its enough plausible concern that (more there wheat in softening the are strength. points ‘Global Market, Global presence’ Global Market, ‘Global support fleet market Brazil prevailing 2008 by over to in the 15-25% and extremely are than a steel that note various to in and about crop, is average sharp (more on investment the s S. justify shall average 2008 everal their for Market 1,700 the 29/1 trade exports, that Korea above “Big among force-majeure stock correction 2007(about Strong increases than short remain adverse optimism derivatives’ to market further levels thisalthough (as on 07 February 2008) 07February (as on the vessels developments, three” rates and be is the 5 in markets decline term lowest market million presently volatile for ships Japan) well spot for weather players investments ( only (motivated Vale that 2008 disruptions 15% t $119,000 $49,000 $58,250 he market above level market and in declaration tones), players in FFA in with and – balance last time average coal (mainly in experiencing US, lower Rio will encountered 2007), yards, market’s since c the argo the their stockpiles view Tinto and the Europe be due rather i n to including record traders of middle second BDI there above the the ongoing year will demand slightly in to the long-term (FFA’s the – outlook BHP) Queensland), shall waiting by external sector and (early spot year are a in level in operators those of sentiment half market) above sharp Indonesia but S. Far (whereas be contract several June (February market), (as on 07 February 2007) 07February (as on February) considering Africa. prices for of period above historical East factors witnessed not FFA Market for 2008 for FFA Market continue the correction the the 2007. is and investors, limited quoted have additional than price Those last year average and linked year 7,000 before in – such Charterers) the $47,000 $21,000 $23,750 Thereafter December real averages. year through Australia together market’s the negotia stronger to in factors to: deriva by to points as which terms 2007. come deliv trad rates such level the the the the tax - - - - - 1 9

Ïur Ìarkets g h Goldenport Holdings Inc.

Our Board

Mr. Chris Walton, which has served as our fleet manager. Over the Age - 50, Non-Executive Chairman years, Captain Dragnis has been involved in the acquisition and management of more than 200 Our Board Our Chris has served as our Non- vessels. Captain Dragnis is the founder of the executive Chairman since Company. admission. Prior to joining Chris was Finance Director & CFO of EasyJet Plc from Mr. Christos Varsos, 1999 to 2005, where he suc- Age - 36, Chief Financial Officer cessfully directed its IPO in 2000. Prior to that, he held Christos has served as our senior posts at Qantas Airways, Air New Zealand, Chief Financial Officer and Australia Post and Australian Airlines. He has also Company Secretary since worked for BP Australia, the Australian Senate, 1 November 2005. On 1 RTZ Hamersley Iron and the Western Australian November 2007 he stepped Government. He was a member of the Bank of down from the Company England’s Regional Economic Advisory Panel Secretary role he was also (South East England & Anglia) from 2002 to holding. Prior to joining the 2005. Chris is currently a Non-executive director Company Christos held finance positions on a and Audit Committee Chairman of Rockhopper regional and local level with Coca-Cola HBC, Exploration Plc. He is a Special Advisor to Otus in Greece. He also worked as a Manager and & Co, a firm which offers strategic advice and Senior auditor at Arthur Andersen and Deloitte corporate finance for the hospitality, travel and and Touche in Athens, where he gained four transport industries. Also, Chris undertakes con- years shipping audit experience and Baker Tilly sulting related to venture capital investments in London. He holds a degree in Banking and and has undertaken projects in central Europe, Financial Management from the University Middle East and India. of Piraeus, Greece and is a member of the Association of Chartered Certified Accountants.

Captain Paris Dragnis, Age - 63, Founder-Chief Executive Officer Mr. Konstantinos Kabanaros, Age - 54, Chief Accounting Officer Captain Paris Dragnis has served as our Chief Executive Konstantinos has served as Officer since inception. our Chief Accounting Officer Captain Dragnis has over since 1 November 2005. 30 years experience in ship- Prior to that, Mr Kabanaros ping. He started his career as served 22 years within the an officer and a Master on Dragnis Group, being em- ocean-going vessels and he ployed most recently as the holds a master mariner degree from the Greek Chief Accounting Officer of Merchant Marine Academy and a degree from Goldenport Shipmanagement Ltd. In total he the Maritime College in London. Since 1978, has over 26 years of shipping expertise, focused he has been involved in shipowning activities on ship financing and accounting. Mr Kabanaros through companies that he owned, and in 1992 holds a degree in economics from the University he established Goldenport Shipmanagement Ltd, of Piraeus, Greece.

20 sector. maritime the in Business employed i banking, Consultants and last (City London. University), School t Age - 30, Commercial Director -30, Age Mr. Dragnis, John Our Management Team Director Independent Senior Director, -52,Age Non-Executive Crawley,Mr. Robert Annual Report 2007 since head ng ing Shipping experience, five up chartering 2000. of ‘Well balanced Board and Management with over 150 years total shipping experience’ with over total 150 shipping years Management and Board balanced ‘Well and European years the Administration by Trade In

Ltd. managing them last total he both business. 20 Prior and has shipping for he three has Manager his maritime Shipmanagement m of the v 2002, on a John Bob banks commenced Affairs s Eleftheria Secretary Company -28, Age Savvidaki, Eleftheria Mrs. from Eleftheria years iding commercial Mr. supporting has she been Christosion in his Varsos Company duties. Secretarial ission. Finance also a has to Admission. Non-executive the a company, total has been and Commercial yachting the He that of and years over was Bob been advisory for from Prior Company which been of University holds from a holds companies assumed JP he 30 sector the of five Masters has and involved her and appointed Cardiff Morgan years served to Since appointed management IOW City have years. a Commercial Goldenport career services a investment been that has degree Ltd. BSc of Business of through Director Director on the been August University, Marine degree in as Chase in In Plymouth, bank been in John pro (Honors) set the the ad co- responsibilities for the to as as in in - - - - Maritime UK. UK, degree family m and first t experience Age - 74, Non-Executive Director -74,Age Non-Executive Logothetis, Epameinondas Captain Age -31,Age Manager Project Mr. Leounakis, Chris an Shipping, a School. Business from as ivities. Upon ains Chairman. the major and a Officer Industry in Deck engaged of Warsash in owned an 1974 Captain successfully Company Greek Maritime LLM Trade Officer and including in he shipping degree 2002. in Master Maritime founded and tanker Logothetis ship-owning and Business Secretary c Chris has has 2007. Project London shipping a of Logothetis November executive been Captain m completing Finance ial

Since 3 ent in focus in holds shipping disciplines. company 10 years company. worked Legal Karlog ocean-going College, was appointed and years the Prior started Manager offices, a from with in companies service on Aspects Company’s Masters appointed has Director activities Logothetis ship-owning experience, Shipping with of vessel her 2007. in

to 1st City Southampton, Maritime He Mr. total over which his studies, in at as that two November. vessels. graduated Leounakis in University of degree career manage commer sea 50 shipping in Captain in on a Co., Marine admis as March he Greek 1969 years Non- Chris their with with Law she has the 1st re ac He his as in - - - - - 2 1 i Our Board h j Goldenport Holdings Inc.

Our Operational Fleet

Vessel Year Vessel Type Built Capacity Characteristics Acquired (1) (2) (3) Our Fleet Fleet Our Containers TEU

1 Bosporus Bridge Sub Panamax 1993 2007 3,720

2 MSC Finland Sub Panamax 1986 2007 3,032

3 MSC Scotland Sub Panamax 1992 2006 3,007

4 Anafi Sub Panamax 1994 2007 2,420 G

5 MSC Socotra Sub Panamax 1980 2002 2,258

6 Howrah Bridge Sub Panamax 1985 2003 2,257

7 MSC Himalaya Sub Panamax 1978 1999 2,108

8 MSC Accra Sub Panamax 1985 2007 1,889 G

9 Gitte Handy 1992 2007 976 C, G

10 MOL Brilliant Handy 1992 2007 976 C, G

11 Achim Handy 1978 2001 930 A

12 MSC Mekong Handy 1978 2001 962 A

13 MSC Emirates Handy 1979 2001 934 A

14 Glory D Handy 1978 1997 946 A

15 Tuas Express Feeder 1978 1998 485

Dry Bulk DWT

16 Vasos Capesize 1990 2006 152,065

17 Samos Capesize 1982 2002 136,638

18 Ios Panamax 1981 2002 69,737

19 Gianni D Panamax 1998 2002 69,100 IC

20 Athos Panamax 1977 2002 67,515 G

21 Alex D Handymax 1989 1999 52,315 B, IC, G

22 Limnos Handymax 1992 2004 52,266 B, IC, G

23 Lindos Handymax 1990 2003 52,266 B, IC, G

24 Tilos Handymax 1991 2004 52,266 B, IC, G

22 ‘Diversified & Self-sustained Fleet’ Our Fleet under Construction Annual Report 2007 30 28 26 29 25 32 33 27 31 JES JES (4) (3) (2) (1) YangzijiangJiangsu YangzijiangJiangsu (5) Fortune COSCO Zhoushan Supramax 2009 2007 57,000 E, G E, G E, G E, 57,000 G E, 57,000 2007 57,000 2007 57,000 2009 2007 2009 2007 Supramax 2009 JES Supramax 2009 COSCO Zhoushan Supramax COSCO Zhoushan Supramax COSCO Zhoushan COSCO Zhoushan B, C, D, (A, E, F). letter same has that vessel to ship the asister is letter same the with vessel Each reconstruction. under is vessel a1996 built Fortune, Vessel vessel. Ice-Class an is IC, letters the with vessel Each vessel. ageared is G, letter the with vessel Each AG. Venture Glencore aJoint with through ownership 50% (5) (5) yard name yard Containers Vessel or or Vessel ‘A continuous fleet expansion program in order to provide a versatile fleet’ aversatile to provide order in program expansion ‘A fleet continuous Dry Bulk Dry otPnmx20 06551Note 5,551 2006 2008 Panamax Post Sub Panamax Sub Panamax urmx20 075,0 F, G F, G 53,800 53,800 2007 2007 2008 2008 Supramax Supramax Type Scheduled Scheduled Delivery 2010 2011 Acquired Year 2007 2007 Capacity 2,500 2,500 DWT TEU Characteristics Vessel Vessel (1) (3) (2) D, G D, G (4) 23

Our Fleet j k Goldenport Holdings Inc.

Our Fleet expansion since IPO

Since the Initial Public Offering in April 2006, Goldenport expanded the fleet from 17 vessels to 33 vessels after selling the bulk-carrier vessel ‘Vana”.

Out of the acquisitions, two containers and one bulk carrier were delivered in 2006 and six container vessels were delivered in 2007.

During 2007 also, the Company entered into eight new-building contracts for the construction of six supramax bulk carriers with attractive scheduled delivery dates in 2008 and 2009 and two geared container vessels with expected delivery dates in 2010 and 2011.

Including the new-building contracts the fleet has evolved from IPO as follows:

u Container Vessels: + 344% in terms of TEU reaching 38,000 TEU of capacity

u Bulk carriers: + 63% in terms of DWT reaching 1 million DWT under control

Our Fleet expansion since IPO IPO since expansion Fleet Our In addition to the increase in capacity the vessels and contracts acquired extend further the revenue capacity and the economic life of the fleet, as it can be seen in the graphical illustration below:

Achim Tuas Express Glory D Container fleet MSC Mekong at flotation MSC Himalaya MSC Emirates April 2006 MSC Socotra Howrah Bridge

MSC Accra Current fleet MSC Finland MSC Scotland MOL Brilliant Gitte Bosporus Bridge Anafi Fortune Newbuild 2 Newbuild 1 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041

End of economic life

24 ‘Sustainable growth’ Notably, Over Our Charterers Annual Report 2007 p Charterers: class first following for the worldwide opportunities. loyment the Newbuild Cosco 1 Newbuild Cosco 2 Newbuild Cosco 3 Newbuild Cosco 4 Newbuild Cosco Newbuild JV 2 Newbuild JV 1 Newbuild JV Goldenport decades clients Gianni D Limnos Samos Lindos Alex D Vasos Athos Vana Tilos always the Ios End ofeconomiclife has Captain performed ensuring 2007 2008 2009 Paris

Container Fleet Dry-bulk Fleet Dry-bulk Fleet Container 2010 T AOENESSAR PANOCEAN STX ‘Investing in strong relationships’ strong in ‘Investing A A IE GLENCORE LINES WAN HAI that

AA LY BOCIMAR HAPAG LLOYD 2011 Dragnis transportation

..MLE ALCAN A.P. MOLLER 2012 ISIOKENERGY OSK MITSUI

any 2013 ZIM LINES KOREA LINE KOREA LINES ZIM 2014 -IECARGILL K-LINE new and .. DANZAS M.S.C 2015 2016 addition his 2017

contracts 2018 team SK SHIPPING SK SHIPPING CHINA NORTH 2019 2020 in have 2021

the 2022 within 2006 April a Container fleet invested 2023 fleet 2024 t flotation 2025 the is 2026 accompanied in

past 2027

long 2028

five 2029 2030 term

years, 2031

2032 Current fleet by relationships 2033 among long-term 2034 2035 2036

others, 2037

with 2038 em 2039 - 25 l Our Fleet expansion since IPO k m Goldenport Holdings Inc. Our Fleet Employment & Forward Coverage OPERATIONAL FLEET FORWARD COVERAGE The percentage of available days of the fleet already fixed under contracts (assuming latest charter expiration and exercise of all additional hire periods under charter) is as follows, as of 25th Februry:

2008(1) (2) 2009(1) (2) 2010(1) (2) Total Fleet 93% (90%) 61% (56%) 33% (27%) Containers 93% (88%) 70% (61%) 43% (33%) Bulk Carriers 94% (94%) 50% (50%) 21% (21%)

(1) Percentage of available days of the fleet fixed under contract as reported on 17 January 2008 is given in brackets (2) The percentages above include only the currently operational fleet of 24 vessels and exclude the nine vessels for which we expect delivery in the future.

ESTIMATED REVENUE COVERAGE FROM OPERATIONAL FLEET The estimated total revenue for the years 2008, 2009 and 2010 deriving from contracts already fixed as of 25th February 2008, for the operational part of the fleet is US$ 285 million, assuming latest charter expiration and exercise of all additional hire periods under charter. The calculation excludes the nine vessels for which we expect delivery in the future.

OPERATIONAL FLEET EMPLOYMENT PROFILE

Operational fleet

Rate (US$) Charter Expiration Vessel Type Capacity per day Earliest Latest (1) Containers TEU Our Fleet Employment & Forward Coverage Coverage & Forward Employment Fleet Our 1 Bosporus Bridge Sub Panamax 3,720 14,750 Feb-12 Aug-12 2 MSC Finland (2) Sub Panamax 3,032 16,500 Feb-10 Apr-10 3 MSC Scotland Sub Panamax 3,007 20,770 Sep-09 Nov-09 4 Anafi Sub Panamax 2,420 19,000 Apr-08 Apr-08 5 MSC Socotra (2) Sub Panamax 2,258 14,350 Mar-13 May-13 6 Howrah Bridge Sub Panamax 2,257 14,180 Jul-09 Sep-09 7 MSC Himalaya Sub Panamax 2,108 12,700 Dec-08 Jan-09 8 MSC Accra Sub Panamax 1,889 14,200 Jun-12 Aug-12 9 Gitte (3) Handy 976 11,385 Apr-08 Apr-08 Euro 9,300 Aug-09 Dec-10 10 MOL Brilliant Handy 976 10,280 Jun-08 Aug-08 11 MSC Mekong (2) Handy 962 6,150 Feb-09 Apr-09 12 MSC Emirates Handy 934 7,000 Jan-09 Feb-09 13 Glory D Handy 946 9,600 Feb-09 Apr-09

26 (6) (5) (4) (3) (2) (1) Annual Report 2007 2. quarter within dry-docking undergo Dwill Gianni vessel the 1and quarter within charter. under periods hire additional of all exercise assuming vessel the may redeliver charter the which on day last Represents dry-docking. on currently is Athos dry-docking undergo will Mekong MSC and Ios Finland, MSC Socotra, MSC vessels The Euros. in received be will and stated is Gitte of vessel the charter new The reconstruction. under is Fortune vessel The 30 24 28 22 20 32 29 23 26 25 33 27 31 18 16 21 19 14 15 17 AG. Glencore venture with joint a50:50 under owned vessels Both JES JES COSCO COSCO COSCO Ios Ios COSCO Tuas Express JES JES Samos Samos Vasos Yangzijiang Jiangsu Yangzijiang Jiangsu Achim Fortune Fortune Alex D Alex Gianni D Limnos Limnos Athos Lindos Lindos Tilos Yard name Containers (2) (6) (6) Dry Bulk Dry Dry Bulk Dry Vessel / Vessel Vessel (4) (5) (2) ‘Forward Coverage is a key element of our acquisitions strategy’ strategy’ acquisitions of akey our is Coverage element ‘Forward otPnmx5512008 5,551 Panamax Post u aaa ,0 2011 2010 2,500 Sub Panamax 2,500 Sub Panamax urmx5,0 2009 57,000 Supramax urmx5,0 2009 2009 57,000 57,000 Supramax Supramax urmx5,0 2009 57,000 Supramax urmx5,0 2008 2008 53,800 53,800 Supramax Supramax admx5,1 700My0 Jun-09 May-09 57,000 52,315 Handymax admx5,6 000Jn0 Apr-09 Jan-09 50,000 52,266 Handymax admx5,6 450Jl0 Nov-09 Jul-09 14,500 52,266 Handymax admx5,6 500My0 Jul-08 May-08 45,000 52,266 Handymax aaa 7551,0 u-0Oct-10 Apr-09 Jun-10 Jun-09 Dec-08 Apr-09 19,300 51,500 67,515 26,000 69,100 69,737 Panamax Panamax Panamax aeie16683,0 c-8Dec-08 Aug-12 Oct-08 Feb-11 32,000 23,950 136,638 152,065 Capesize Capesize yeCapacity Type edr45890Ar0 Dec-08 Apr-08 8,900 485 Feeder ad 3 ,0 a-8May-08 May-08 7,600 930 Handy yeCapacity Type Vessels under construction under Vessels Operational fleet Operational DWT TEU DWT Scheduled Scheduled Delivery Rate (US$) (US$) Rate per day per ,0 c-8Dec-08 Oct-08 8,000 managed by Glencore AG by Glencore managed 17,700+50% share profit at BSI +5%at BSI over 18,200 Rate (US$) per day per (US$) Rate 17,650+50% profit Charter Expiration Expiration Charter Earliest Latest Latest Earliest share at BSI +5% atshare BSI Commercially Commercially 18,000 - - (1) 27 Our Fleet Employment & Forward Coverage m n Goldenport Holdings Inc.

Our Fleet Manager

The technical and day-to-day commercial man- The contribution of this effort has been signifi- agement of our fleet is currently the responsibil- cant in raising the quality of our seafarers and ity Goldenport Shipmanagement Ltd (‘GSL’). GSL maintaining a significant workforce pool readily has BIMCO standard ship management agree- available throughout the year. ments in place with each of the vessel-owning companies. Under the various ship management In order to satisfy regulatory requirements of agreements GSL provides the following to our ISM/ISPS, GSL has established safety and qual- fleet: ity management system that includes extensive instructions, guidelines and training programs u commercial management of day-to-day ves- in accordance with international requirements

Our Fleet Manager Fleet Our sel operations; and standards. GSL’s in house Quality Assurance u performance of general vessel maintenance; Department, comprised of experienced person- u ensuring regulatory and classification society nel, and has developed a proactive role begin- compliance; ning with its affiliated crew recruitment centers u sourcing and training of our qualified officers in the Ukraine and Greece. and crew; u arrangement and supervision of special sur- Each Goldenport vessel is attended periodically veys, dry-dockings, vessel reconditioning and throughout the year by GSL’s Safety Officer, repair work; who in coordination with Masters and Officers u arrangement of insurance for vessels; completes full audits to ensure compliance with u purchasing of stores, supplies, spares and planned arrangements and standards. new equipment for vessels; u appointment of supervisors and technical GSL has ISM accreditation, which ensures compli- consultants; ance with national and international regulations u providing chartering services in accordance in order to provide safe practices to the marine with our instructions (including assistance industry and environment. All personnel ashore with seeking and negotiating employment and onboard are committed to support this ef- for our fleet and managing certain relation- fort on a continuous basis. ships with charterers); u freight collection; Over the years GSL has built and strengthened u providing voyaging estimates and calculation long-standing business relationships based on of hire, freights, demurrages; first class transportation services. The company u appointment of stevedores; emphasises both flexibility and reliability in its service while being committed to environmen- Goldenport Shipmanagement Ltd. has main- tally sound corporate policies. tained high vessel deployment standards with an average of 97% fleet utilisation. Fleet utilisation Goldenport Shipmanagement Ltd. is owned by has been a critical benchmark of both charterers Captain Paris Dragnis and under the agreements and cargo owners on the Company’s technical that it holds with the vessel owning companies, and operational performance. charges US$ 15,750 per vessel per month for technical management services and 2% on the With employment in excess of 1,300 qualified of- total daily hire for the provision of brokerage ficers and ratings, a recruitment office in Odessa, management services. For 2007 GSL waived the Ukraine was established by GSL in 1997 for sourc- right to a 5% increase for the technical services ing, training and handling of personal affairs of provided and the monthly fee will remain at US$ all sea-going personnel. 15,750 per month per vessel.

28 and the Mr. Also this transfer. to month in order per reflect Group In cost. additional management fee management reduced monthly brought and and and It remain to U.S.$13,750. transferred the Services party also similar to 89/1967. registered Board. which p GSL i On o Goldenport T termination. t Under Annual Report 2007 m ng ween he ut any ent services. the terms is for 1 and head relationship terms Robert incurring the agreed technical regularly to 2009 on our January meantime under 100% third during to 2008 GSL the the legal rental under by to management 5 which offices. waive A of in current January U.S.$2,000 the the Crawley to party Goldenport to

and Holdings these monthly after Greece common owned department agreements further fee report 2007 2008 fee. management represent Goldenport be Goldenport would owner the between rest the the The providers being and paid arrangements intention Therefore, right Senior 2008 all was under is on of vessel total can by costs rental fee be control) of charged therefore, the to from adjusted Marine day-to-day c.12.5% the dormant to the negotiated the Goldenport U.S.$13,750 were payable terminate GSL Independent cost Marine the of activities currently Marine a with owning of Goldenport relationship of that Company such 5% building the provisions for agreed our of transferred with Services Euro are of for respect ’24 Hours-a-Day 365 Days-a-Year’ Days-a-Year’ 365 Hours-a-Day ’24 increase the to these Services but ship management the within fleet Services the comparable the of them commercial companies, with monitoring GSL respective held 14,500 per (a Holdings, has with manage rental account Director, and monthly services services a Marine related will of will to to other, in vessel with 2008 at com been from Law GSL will be- the the the the

no be be of is - - - - 29

Our Fleet Manager n o Goldenport Holdings Inc.

Quality & Safety

Goldenport Shipmanagement (‘GSL’) has identi- constantly monitoring all facets of their working fied safety and the environment as two key areas environment to ensure Safety and Health condi- in its sphere of operations that are of paramount tions prevail. importance and need to be effectively controlled to prevent unnecessary injuries, loss of life, dam- An incident is indicative of a failure in the op- age to health, property and degradation of the erating system and the company is committed environment. to fully investigating all accidents or near miss incidents. The results of such investigations and

Quality & Safety Quality To meet this requirement GSL has embraced the any necessary corrective action will be brought IMO’s International Safety Management Code. to the attention of all concerned in order to avoid The Safety Management System is designed to re-occurrence. ensure the Company’s activities are sufficiently controlled to protect personnel, property and GSL is certified, by Bureau Veritas, according the environment from all risks and hazards that to the provisions of the International Safety can be reasonably expected. Compliance with Management System and has obtained a full all National and International rules is the corner term Document of Compliance (DOC) and Safety stone of the success and the effectiveness of our Management Certificate (SMC) for each of its system. Managed Ship.

The management is committed to making all per- GSL is committed to manage and mitigate the sonnel ashore and onboard more safety conscious identifiable environmental impacts and to com- through continuous training and encourages all ply with all National and International rules and to become actively involved in identifying possi- regulations associated with company’s activities. ble hazards, implementing corrective action and

GOLDENPORT ENVIRONMENTAL POLICY OBJECTIVES

As managers of a world wide trading fleet, we Objectives consider that it is a matter of great importance to focus our attention to the preservation of the We will focus on the safety of navigation and global environment. cargo operations procedures as indicated in the Company’s Safety Management System, in order We recognize that emissions and wastes created to prevent the spillage of fuel oil and/or any other by consumption of power sources can result an hazardous substances from ships during opera- increased damage to the environment and to tion or at the time of any marine accident. minimize the amount of resources of both our earthly and marine environment. We also recog- u We will properly manage exhaust and wasted nize the importance of prevention of marine pol- residuals from ship’s operations by follow- lution caused by marine accidents. ing proper maintenance schemes and will wherever is possible to the recycling of such In order to contribute to society all Goldenport items. personnel, is committed that will take all necessary measures and observe all related environ- u Through an upgrade in ship operation and ment National and International Regulations, work performance, we will encourage maxi- in order to minimize or eliminate all relevant to mum conservation of energy and resources. Company’s activities environmental impacts.

30 u principles: by It ofprocedures review these constantly t processes i An • affairs. • environmental studying/education/ on • emphasis u u u u u identifiable GSL POLICY ENVIRONMENTAL u u Annual Report 2007 • from with ng ives Company’s with lations associated activities. is containing substances activities. forthese and proceduresset waste, t of entire the member each Goldenport. of To t Minimizing j Continuously State, rules To We safe training navigation about and Company grater with We We related to environmental the protection. developed safeguarding set. ectives Environmental Company’s ions, ions

is all tohazardous marinelife andalso and all comply minimize committed will will National will and and prevailing garbage Port

and targets by using elevate environmental refrain activities regulations, following implement with in ensure the State, commitment

air any and improve order environment set, awareness risk to disposal, all Management pollution Environmental

from ozone-depleting International in achievement manage National such from to trough all all and such using identify impacts restructuring applicable operational as: all engine to by and commit as and the bunkering and shipboard operate following ship following understanding MARPOL, System all and rules issues of monitor International mitigate

room operational substances. regulations hull to our to activities and its the of comply among opera opera- paints is objec main- liquid these ships reg Flag and ob- our be the - - - - which personnel. shore andseagoing the under In services o systems. u u u e G requirements. The POLICY QUALITY u u leading st us SL July institutions. facilities order. working equipment in good applicable. and To To minimize Provide a Old t To m assign pollution. adequate t regulations. as and tear. and Plan management active enance ronic policy improvement ls/paper is iliar minimize provide the provide all totally deals electronics 2007 on Ship which aboard operation with methods responsibilities participation, National ISO of board appropriate instructions or Management recourses to leakages GSL with committed the a consistently 14001/2004 all to continuous paper the be system standards personnel, is be described and Company and of of environmental given to and ships, donated consumption reporting

a supply and and office innovation. maintenance endeavor and and Garbage for International to to Company for meet training and personnel with residues

the instructions, procedures, in achieving recycling has to equipment/materi- its the for order aims and provide implementation their customers Bureau and been further prevention Management management by This both filing by to to in from ideas to needs using the reception rule remain continu order keep certified involves all keep Veritas, as and ashore where use high wear of with elec- time well and and fa all all to to of in a - - - 3 1

Quality & Safety o o Goldenport Holdings Inc.

These high standards of work and safety achieved binding upon all shore and sea personnel. Quality by operating a Quality System which meet the is the responsibility of everyone working for and requirements of the International Standard ISO on behalf of GSL. 9001, 2000. GSL is certified as per ISO 9001/2000 by Bureau Compliance with this policy, the quality proce- Veritas and has obtained Certification for its ac- dures and shipboard instructions is essential and tivities, since February of 2005. Quality & Safety Quality CLASSIFICATION SOCIETIES

Our operational fleet is classified under the following societies: u 21% of the fleet is classified with DET NORSKE VERITAS; u 21% of the fleet is classified with NIPPON KAIJI KYOKAI (NKK); u 17% of the fleet is classified with LLOYDS REGISTER OF SHIPPING; u 13% of the fleet is classified with CHINESE CLASSIFICATION SOCIETY; u 8% of the fleet is classified with AMERICAN BUREAU OF SHIPPING; u 8% of the fleet is classified with GERMANISHER LLOYD; u 8% of the fleet is classified with KOREAN REGISTER OF SHIPPING; and u 4% of the fleet is classified with BUREAU VERITAS.

CREWING Odessa was one of the very few major manning offices in the area. That allowed the company to We understand that continuing crew supply is get a strong foothold in the currently very com- a major factor in ensuring long-term sustain- petitive manning market of the area. ability. As the group seeks to accelerate growth and profitability we are committed to growing In time, this opportunity was identified by the our crewing output and developing capabilities majority of all international shipping and man- to service expansion in the Goldenport managed ning companies that were quick to set up offices fleet. in the area. Currently, Odessa hosts more than 150 such major offices. This fact has established Goldenport Odessa Ltd was established as Odessa as one of the major centers for sourcing a wholly owned subsidiary of Goldenport quality crew members for commercial vessels. Shipmanagement Ltd. in 1997 for the purposes Goldenport Odessa with its early and continu- of recruiting, evaluating and training new and ex- ous presence in that market holds a competitive isting crew for its vessels in the Ukraine. advantage against other competitors. In 2007 Goldenport Odessa Ltd, established also a branch Ukraine was identified by Goldenport as one of in Mariapole, Ukraine in order to expand further the major hubs for manning purposes for com- the recruitment base for crew. mercial vessels. Odessa is the main south port for all ex-Eastern Block (ex USSR) countries and Specific developments are being made to target hence provided many opportunities to source and improve retention (currently at 85%), such good quality crew for our vessels at competitive as a programme of crew seminars, career man- salaries. At the time of establishment, Goldenport agement initiatives, the refinement of terms and conditions of employment contracts, the intro-

32 ’Environment first’ inevitable small minor conditions. of core competencies. important most train shortage the development this of technical e Technical Fleet. Holdings’ in Goldenport to all vessels the t Goldenport the The t b A MANAGEMENT TECHNICAL duction Annual Report 2007 is positions from officers family inuous ails nced career.oard major well our preventive industry managed approach and Goldenport and problem the multi-functional engine welfare services placed part of maintenance to loss team of ensures vast retain expertise lead minimum It take

qualified fleet continues of of is and fleet. maintenance. pays to or to experience philosophy programmes. the better to through revenue. the become steel up meet career allows that expensive crew Goldenport great The is best employment crew, shore-based to program provided to teams both parts the progression size improved spend This management us dividend a face seafarers is gained major our growth the to It Goldenport and repairs, Encouraging falls than consisting an Shipmanegement is a that provide ability rigorous through little diversity our one, ever under during ’Quality and safety key priorities’ key safety and priorities’ ’Quality standards ship to to management is demands for GSL missed one the to belief wait increasing to which

technical crew. network the training, of improve practise benefit recruit, a applies experi quality of of senior quali for ship con that and will our de the As of a - - - - - part the up M i s u u u u s Ships n file f required to maintain our ships. our improved budgeting with in The through Technical the are: fleet Department function capability shipyard representative a months the ngs in this yard. ied ons entative ical oreover, very the Goldenport company. increased comprehensive fleet key attending behind of condition the MaintenancePlanned System planningBudget &control Class Regulations -Flag- Drydock-Conversions-Repairs are area. close the by due personnel categories office significant of inspected development decision controls Goldenport technical China, During fleet the to follow-up The volume office of Shanghai, the technical for decision continuous in our constitutes for and making new-building the reports 2007 that at ship within Far superintendents of fleet the regular technical and support Shipmanagent of vessels Eastern cover

of repairing which GSL superintendents technical the shipboard in processes regarding setting constantly presence the order also intervals the Cosco under acts staff. ports, orders department two needs and has up expenditure to as Zhoushan to the regarding dry-dock The main activities. of an facilitate set updated of building but a coupled has a ensure of repre office three tech large main up then rea also our set of a - - - - 33

Quality & Safety o p Goldenport Holdings Inc. Our Fleet Manager Key Personnel

Captain George Karavas, Captain Anthony Vikos, Age - 49, Managing Director Age - 60, Operations Manager

Captain George Karavas is Captain Anthony Vikos is the Managing Director of the Operations Manager of Goldenport Shipmanagement Goldenport Shipmanagement since September 1999. He since July 2003. He graduated graduated from Greek Public from Hydra Merchant Marine Merchant Marine Academy Academy on 1966, and started on 1978 and started his ca- his career as Cadet and officer reer as Cadet and Officer on on oceangoing general cargo Oceangoing Passengers and RoRo vessels and and bulk carrier vessels and thereafter as Master latter as Officer and Master on Oceangoing on oceangoing bulk carrier vessels. He is holder Bulkcariers with 10 years sea service. He holds of a Master Mariner’s license of “A” degree since a Master Mariner degree from Greek Public January 1976, and as Master he has served on Merchant Marine Academy and has attended large bulk carriers and panamax vessels with two various seminars and courses on Shipping Law, major Shipping companies for 14 years. Captain Chartering, ISM and ISO. Captain Karavas since Vikos started his career ashore on June 1989, April 1991 has started his career ashore as Port and ever since and prior joining the company Captain, Operator, Operations Manager and in he held positions of Operator, Port Captain and Administration in various shipping companies. Operations Manager with four shipping compa- He joined Goldenport Shipmanagement on May nies in Greece. He has a total experience of about 1996 as Manager in Operations Department and 35 years in Shipping Business (at sea and ashore) since Sept 1999 he became Managing Director and has attended various seminars and courses of the company and holding the position of Head on Shipping Matters, while he is a member of of Operations Department as well. He has a total HELMEPA. Our Fleet Manager Key Personnel Personnel Key Manager Fleet Our experience of 29 years–on board and ashore-in Shipping Business. Captain Alexandros Dragnis, Age - 57, Manager Supply Department George Andriopoulos, Age - 60, Technical Manager Captain Alexandros Dragnis is the Supply Department George is the Technical Manager since 1995. He Manager of Goldenport Ship- graduated from the Greek management since October Merchant Marine Academy in 2001. He graduated from 1973 and started his career as Merchant Marine Academy Cadet and Officer on oceango- on 1969. He served in various ing vessels, with 8 years of sea rank capacities onboard world service. Captain Alexandros Dragnis holds a Chief wide trading tankers, chemi- Officer Degree from Greek Marine Academy and cal tankers and cargo vessels. He holds a Chief he started successfully his career ashore in 1981, Engineer degree. George has held administrative as Managing Director in “Renewal Shipping tech positions ashore as member of Technical Agency” and continued as Technical Director in a Departments of various shipping companies company providing technical equipment for ships. in Greece and abroad since 1990. He joined He joined Goldenport Shipmanagement in 1995 Goldenport Shipmanagement on March, 2000, and until now he holds the position of Manager as Superintendent Engineer and since 2001 he is Supply Department. He has a total experience of in charge of Technical Department as Technical 34 years-on board and ashore-in shipping busi- Manager. He has a total technical experience of ness. 35 years.

34 r Navy. in Greek the an NCO/Engineer as Shipyard Age -53,Age Crew Manager Mr. Lerios, Stathis -37,Age Chartering Manager Mr. Yannis Kioleoglou, Annual Report 2007 in crewing. experience Charterers Shipmanagement Architecture base. in shipping National Business eer Shipping as He Assistant Greece School. Technical companies holds and Trade & marketing 2 and Marine Mr. & Shiprepair Ltd. as is activities Chartering Shipmanagement also i started Manager Stathis i Yannis then he Agencies Manager ng ng Master ‘Key personnel with over 200 years total shipping experience’ total shipping years with over 200 ‘Key personnel University Finance served before responsible Kioleoglou well existing stayed in He responsible he Engineering has 1968 to has has degrees; his in as and since for of from joining expand Manager worked joined

of until three relationships Manager, vocational over served the the two in Crewing, Athens started for City July for Cotzias major 1974. fleet. (1) 35 years in post-fixture Goldenport Goldenport its chartering University from maintain 1995. as 1997. in as in clientele years and his Yannis where at Greek Elefsis He Naval train Crew Crew Since with Ship the sea ca He As (2) of is - - - non-contentious in Goldenport range and house t l matters Greece. i Age - 38, Quality &Safety Manager Quality -38, Age Papagiannopoulos, Mr. Alexander Age - 36, Legal Manager Legal -36, Age (Ms) Kousi Theoni holds of Manchester. University the from an LL.M in from dealing at He ated ng ion. Law Athens, a also on purchase, Thereafter ship Merchant corporate a lawyer of from Master a with ranging worked shipping managing number where in the ship of April C to Marine transactions. she University a from class as shipping she tanker newbuilding dispute litigation where Society i January and since Designated Alexander charter Piraeus 1992 Theoni in held repairs ng of matters 2006, acted Port company cargo obtained diploma ship non-contentious Academy the July Deck Safety in she management Captain member Theoni for of and matters. started of resolution finance shipping 2005. company ships one and 1997 team, Athens, became She four Maritime

Officer’s and based class has projects an Person Manager of of shipping has holds for and years for Prior of her experience he Aspropyrgos, and dealing Since the surveys. the Greece been served law two part in graduated in two Alexander as career company a Lawyers, ship as shipping position to Hellenic Greece, and leading a Quality Ashore degree joining of work years. an litiga firms, years since wide with join sale and the re He inas in in - - - -

Our Fleet Manager Key Personnel p q Goldenport Holdings Inc. Report of Directors

The Directors present their report and the Group financial statements of Goldenport Holdings Inc., for the financial year ended 31 December 2007.

Principal group activities

Goldenport is an international shipping company that owns and operates a fleet of container and dry bulk vessels that transport cargo worldwide. The fleet consists of eighteen container vessels and fifteen dry bulk carriers (including two new build contracts for container vessels with scheduled delivery dates in 2010 and 2011 and six new build bulk carriers with scheduled delivery dates in 2008 and 2009). Goldenport is listed on the London Stock Exchange under the ticker GPRT.

Report of Directors Report Operational & Financial review Summary of Selected Financial and Operating Data:

Year ended Income Statement Data 31 December 31 December

(in US$ million except per share data): 2007 2006 Revenue 124.9 90.7 EBITDA 77.0 54.9 EBIT 59.4 41.7 Net Income 58.3 45.2 Earnings per share (basic and diluted) 0.83 0.72 Weighted average number of shares 69.9 62.5 FLEET DATA: Average number of vessels 20 18 Number of vessels at end of period 33 20 - Operating 24 19 - Under reconstruction 1 1 - New Buildings under construction 8 0 Number of vessels in operation at end of period 24 19 Ownership days (2) 7,434 6,558 (1) Available days (2) 6,945 6,355 (1) Operating days (2) 6,666 6,249 (1) Fleet utilisation 96% 98% AVERAGE DAILY RESULTS (in US$) Time Charter Equivalent (TCE) rate (2) 16,578 13,243 (2) Average daily vessel operating expenses (2) 4,225 3,791 (1)

(1) Ownership days and average daily vessel operating expenses exclude the vessel ‘Fortune’ which was not operating within the period and the vessel ‘MSC Finland’ which was delivered to the Company in March 2007. (2) Ownership days and average daily vessel operating expenses exclude the vessel Fortune and the 8 vessels that will be delivered in a future date.

36 2007; were 2007 124.9 mid-2007; effective crew vessels and bunkering. year became the meaning charter expenses-related p mainly the million) Voyage expenses: the (v) p Vessel operating expenses: party: expenses-related Voyage of t p vessel figure increased s Revenues: VoyageCharter and Time Annual Report 2007 l i in increase 2007 US$ account will commissionswere applied. these which ‘Gitte’ and 4.2 the by attributable strengthening existing fleet, acquired existing ion ng ion ons year. last period ared to same the enses enses

the US$ the the expenses year main million) year vessel contribute or 31.4 of and August for wages but fully (2006: (2006: (ii) to million ‘Samos’ fleet increase due and the 37.7% vessels increased underwent 3.0 increased and due vessels. this vessels the that in operational that the which ended an million were in reasons also by (iii) ‘MSC vessels operational million insurance to ‘MOL and mainly mid sale not additional increase of to to and and all Company

US$ US$ the the US$ the for to to in ‘MSC of in the in in commission to contributed the the On 31 for due on of the 2006, the US$ by Finland’ party port increase by being: Company the movement the the Brilliant’ a ‘Anafi’ repairs 34.2 or full T 24.9 be 90.7 scheduled the due Ukrainian he a December the a 11.5% larger increased US$ increase change market 71.1% to were: after Scotland’ premiums per 2.5 time fixed summer and year vessels in voyage increase increased vessel in covered year but million higher to: million). (i) million). 6.5 and 2008 and day million in in 2007, canal size to 30th in (i) a charter ended to (i) at had partially

the rates was ended of rates V March, million stepped of ‘Vana’ US$ the ‘MSC crew, the basis in expenses dry-docking essel spare ‘Bosporus US$ increased higher revenue 2007 vessel was mix compared or after and in related cost oil due to fees; the June the This in by (2006: 2006 applied; The last which crew 4,225 37.7% 31 prices; 7.2

cover as operating 31 as operating Accra’ that full on costs US$ ‘Vasos’ of T or to in in the (2006: addition size taking and he prices; rates increase increase the previously, quarter December December 2006

million main lubricants May; 2007, increased Revenues 26.3% additions additions a port figure wages effect US$ per revenue became allowed bunker 0.7 acquisi Bridge’, to voyage voyage (iv) (iii) vessels due of to (ii) in in com that (ii) fees day, US$ US$ rea into mil and and July but the the the the the ten 1.8 ex- ex for to to to of of in in in is a ------

compared US$ 1.6 million. Brilliant’ in different dates throughout year. the vessels due December 5.3%or to US$ 5.9 31 million year forthe ended expenses October scrap ‘MSC in of payment and the dividends. preparation relating second p Depreciation: Depreciation: period. iacn css Frin currency: Foreign & costs Financing vessel disposal: vessel from Gain income statement. 2008 will impact the cash n c deposits US$ Depreciation of dry-docking costs: increased 31 1.3 i s t and s 2007 US$ expense a of General and administrative expenses: administrative and General dry-docking. were undergoing vessels scheduled from the year million) increased ng ion itions els reased lised ancial ared mid-2006 dry-docking December deliveries million as translation ‘MSC 5.7 that to 0.9 in administrative ended value (2006: Accra’, operations. ‘Vana’. profit to of in Sterling statements half in the due by to million increased 2007; million at 31 was only the borrowings that by maintenance 2007 Scotland’, to to 2007 the

88.7% and of higher dry-docking 31 December) and of but to: US$ 105.1% ‘Bosporus of The US$ year. five 2007, approved three the of costs were and T after professional the US$ for December the he to (i) underwent had (2006: British filing 4.0 vessel by vessels 2.8 to Foreign year as the rates Interest net the US$ (ii) vessels vessels’ expenses reflecting the 3.7 quarters increased paid ‘Vasos’ to full US$ US$ relating of million), million incremental carrying year (three Bridge’, depreciation that of so by US$ acquisition December million Sterling 4.0 was US$ on impact of 1.7 0.5 in in ‘MSC 2007 their shareholders the currency

income fees ended depreciation ten took million the 15.4 2006. dry-docking

fully that full million to 5.6 for in were million T increased mainly (i) by he ‘Gitte’

amount Class from full the to the charged vessels Finland’, in cash (2006: US$ for the US$ place million) depreciated million were listing Company 31 31, 2007; US of on D Most increased depreciation vessel due or comparable gains of 2007 year epreciation due the due 0.4 the 0.3 1 generated December and Dollar 2006 dry-dock while 42.4%

acquired

in the in on US$ G transac to by I nterest ‘Anafi’, for for related and charge sale vessels million million mainly to of in ended to acqui eneral the ‘MOL 2007 com from 24th time US$ was ves less de the the the the the ten 7.5 re- (ii) by fi to to of ------37

Report of Directors q q Goldenport Holdings Inc.

Dividends

Goldenport has adopted an annual dividend payment ratio of at least of 50% of net income. A higher payout ratio may occasionally be appropriate in times of cyclical lower earnings so as to better provide investors with a regular income on their investment. The Board of Directors has proposed on 25th February 2008 a final dividend of 15.0 pence per share, (making a final payout of £ 10.48 million). In total, including the interim dividend already paid in October 2007, the total dividend for 2007 comes to 22.0 pence (or £ 15.37 million), representing about 52% of the Company’s net income for the year. The dividend payment is expected to be approved by the shareholders in the AGM to be held on 30 April 2008 and subsequently will be payable on 2nd May, 2008 to shareholders of record as of 4 April 2008. Please look at section ‘Financial Calendar’ for the full dates.

Directors and interests in shares

Report of Directors Report The current members of the Board are listed in section ‘Our Board’.

Marshall Islands legislation does not require the directors to retire and offer themselves at the Annual General Meeting. However, the Company has voluntary undertaken to comply with the UK corporate governance standards and as a result all the directors will retire and offer themselves for re-election in the second Annual General Meeting to be held on 30 April 2008.

The Interests of the Directors, the Senior Management and their respective immediate families in the share capital of the Company (all of which are beneficial unless otherwise stated), were as at 31 December 2007 as follows:

Number of Percentage Number of Percentage of Name shares at of shares at shares as at shares as at admission admission 31 Dec 2007 31 Dec 2007 Captain Paris Dragnis (1) 41,800,000 59.81 % 41,800,000 59.81 % John Dragnis - - 125,000 0.18 % Chris Walton 2,128 0.003 % 2,128 0.003 % (1) Through Starla

There have been no changes in directors’ interests from 1 January 2008 to 26th February 2008, other than those reported above.

During the financial year the Company has maintained cover for its Directors under Directors’ liability insurance policy.

Related party transactions

Transactions with related parties consisted of the following for the years ended 31 December:

2007 U.S.$’000 2006 U.S.$’000 Voyage expenses – related party Goldenport Shipmanagement Ltd 2,497 1,813 Management fees – related party Goldenport Shipmanagement Ltd 3,906 3,393 Total 6,403 5,206

38 financial s t No l at as 31 following: the comprise relatedBalances from due December parties Annual Report 2007 G months managerial at 31 2007 at or any existed other December during time 2007.rest charged maintenance, transferred Transfer of foramanagement fee exchange U.S.$15.75 for2006). month (same per vessel per Waiver U.S.$13.75 this transfer. to month in order per reflect vessel per and offices. Services Goldenport of Group interest Reconstruction U.S.$13.75. willbe Services Marine to transferred Goldenport services forthe adjusted being after 2008 plan For Fortune. of M/V reconstruction for the GSL of course business. in normal the by surplus GSL, handled cash The provisions89/1967. the of under Greece Law U.S.$1,813) ed agreement. toion this supervision els Total LtdShipmanagement Goldenport parties related from Due oldenport China other by the JES041 amounts and therefore, approval, to Captain of The of year from to of by Sentinel statements (‘JES’). contract waive increase 50%, GSL the and GSL and from and Holdings. total Shipmanagement ended r engagement steel eceivable the the owner of administrative activities: Paris As amounted JES042, the appointed was cost Holdings: G in M/V in part SL respective attendance cutting right 31 relation management have included Dragnis, A of to of Fortune: of December monthly from in these the the to On a the to exchange GSL, and The (unless management a to building 1 new GSL, U.S$ monthly services, 5% Ltd. to in supervision services and the January provision joint 2007 U.S.$’000 2006 U.S.$’000 2006 U.S.$’000 2007 as In rental Voyage provide, increase fee: subsidiary a shown addition 276 (“GSL”): 2007 delivery Group’s supervision consultant venture for 3,289 3,289 (a On management such of and in 2008 related ‘Strong performance’ ‘Strong a of commission expenses-related total, Euro in 5 plan agreement in agreement in

All is the business GSL crew, January as the company the Goldenport all the earlier). vessel-operating 14,500 commercial approval for half rental party of charged the table normal management financial the the of 2008 activities in fee under charged between with represent For above, is Sentinel which new-buildings which construction fee also payable the course Goldenport Marine the and operations, party. GSL, 811 811 common and Group, agreed relates represent the of year by Holdings accounting the fee. companies 12.5% accounting a site of to Directors GSL Services GSL Liberian two ended business, Therefore, GSL to and to U.S.$430, supervision project control) Shipmanagement has chartering, amounted of the be the companies, Inc., will trials the paid 31 a a services of portion included corporation vessel-operating and company branch at be in the a monthly December for of for the from Jiangsu which wide reduced fee, legal Company the the technical to of order By Board the the management and Eleftheria Savvidaki Eleftheria of GSL C in Goldenport office f U.S.$2,497 rental range or new-building ompany Secretary the department the services 26 February 2008 26 February management 100% the Eastern cash directly agreed the undertakes 2007 by Group Group registered consolidated support had of of U.S.$2.0 first companies’ handling owned the rendered such Shipyard shipping with control an Marine in fee twelve (2006: has head were inte- rela ves and the the fee fee for an by to in in - - - 39

Report of Directors q r Goldenport Holdings Inc.

Corporate Governance Statement Goldenport Holdings Inc. is a Marshall Islands shipping company which has voluntarily undertaken to comply with UK corporate governance standards, in order to assure the investment community that it operates in the same way as a UK company listed on the main market of the London Stock Exchange:

Amendments to Board structure with the appointment of Chris Walton as UK based Non-executive Chairman and Robert Crawley and Andreas Karaindros as Non-executive Directors. On 1st November 2007, Captain Epameinondas Logothetis was appointed as Non-executive Director. In December 2007 Mr. Andreas Karaindros stepped down from the Board;

u On 1st November 2007, upon appointment of Captain Logothetis the constitution of all board committees has been altered;

u On 1st November 2007, Christos Varsos our CFO who has been our Company Secretary since admission stepped down from the role and Mrs. Savvidaki assumed the role and responsibility of Company Secretary;

u Although outside of the Takeover Code, commensurate investor protection measures have been en- shrined in the Company’s Articles;

u Pre-emption rights were also included within the Company’s Articles

The Company is committed to high standards of corporate governance. The Board is accountable to the Company’s shareholders for good governance. This statement describes how the principles of corporate governance are applied to the Company. Corporate Governance Statement Governance Corporate

Combined Code and has put in place the procedures required to comply with the internal control aspects of the The Combined Code provides that the board Combined Code in accordance with the Turnbull of directors of a United Kingdom public com- Report. The Company’s Board comprises of three pany should include a balance of executive and Executive Directors (including the chief execu- non-executive directors (and, in particular, inde- tive officer) and, three Non-executive Directors pendent non-executive directors), with smaller (including the chairman). The Company regards companies having at least two independent Chris Walton, Robert Crawley and Captain non-executive directors. The Combined Code Epameinondas Logothetis as independent Non- states that the board should determine whether executive Directors, within the meaning of ‘‘inde- a director is independent in character and judg- pendent’’ as defined in the Combined Code. ment and whether there are any relationships or circumstances which are likely to affect, or could Apart from the relationship between Captain appear to affect, the director’s judgment. Paris Dragnis and Goldenport Shipmanagement Ltd., none of the Directors or members of Senior The Combined Code does not apply to Management have any potential conflict of inter- Goldenport and the Marshall Islands do not have est between the duties they owe to the Company a formal corporate governance regime; however, and their private interests or duties owed to the Directors support high standards of corpo- third parties. The insurance broker for certain of rate governance. Since Admission, and save as the Company’s policies is a company related to described below, the Company complies with the Andreas Karaindros. Andreas Karaindros was a principal requirements of the Combined Code, member of the Board since admission but stepped

40 policies, monitoring reserved detailing board group operational q i is i Combined Nomination The Crawley (SID). isSID. the director Robert any p e on r The Board of Directors Epameinondas down Annual Report 2007 Committee of for given the reporting should The any or Board Committee to due reasons. health Karaindros Board The directors. non-executive Nomination of board. the members executive into. Financial comply approval above. described appointments ng ty um cutive uisitions, ortunities accountable for further the 1st Chief adequate Combined Company group Board board for Other by has and leading during strategy appoint November directors with the Audit reviewing Officer, on the for key Executive to adopted formulating fleet has acquisitions Code the and operational did is and group each Company. Committee performance. and it Board. shareholders. these aspects the financing, the does, and Code established to different not Logothetis negotiating to and a Committee acquisitions one with requires majority to loan shareholders principal year. Disclosure decide controlling strategy, 2007. Officer, a trading attend other requirements monitors Agreeing recommends of be formal the of agreement decisions It policy or its He the should examining committees has the During than Board of that disposals including

Audit, independent The who but the them performance, was decision is Developing

schedule senior the and setting overall delegated on Company’s Committees. the performance. suitable as final all for meetings board be members are replaced having was is key Remuneration, 2007 that set Remuneration Company to following the financial delegated independent independent potential needs approval given setting making commercial responsibil by be out issues of appointed the members financing approves the Andreas key to Captain non-ex matters entered below, of in affairs ensur to of Board to Chief final and and and and The The op the the the the the fo- for ac be to - - - - - or receive meet principal advance l The casting e comprises the members. t occur Committees t m all s at financial a c l i with the e Executive The and independence Board balance t evaluation in efficiently and the on appointment the Officer On clear Executive The Director ngs ow ows: present. being directors ive icipate aken ure ial te nt cutive ation least March directors legislation 1st 1st and size diversity Chief Board non-executive open Board roles meetings that to performance Non-Executive division the at using the annually. November. November the Director regular six with vote. The and in business in was least of and the activities. 2007 Directors Financial Chairman, discussion. of Officer view and times for three discussing evaluation comprises, process full the a receive two

papers of Non-Executive appointed board and of that risk of common once health of Board is update and its of board stepped responsibilities. per The reports executive a the functions board other considered are management however the the evaluation affect business. The directors Officer, in new is appropriate and The per subsequently being calendar Chairman the The board reasons. able for strategy, current distinct process December since scale meetings individual on methodology and framework year non-executive down then non-executive covering Non-executive Chief discussion. their board to issued changes the and a of one are admission, Chairman The with

discharge without new year. to of and Board reported In the capacity for in Executive performance Chief All met structured of and three expects existing be including board December total the to 2007 the directors undertook none effectively Non-executive In Company the separate the directors of of an the timely All order Accounting has was Company’s individually Board, the questions, independ regulation the

and its first Company directors. appropri considers the after as directors directors having his board Non-ex Director to Officer, duties, execu under as finan to board board to infor Chief meet Non- is from find with time par and and and fol the the the en al to in a ------4 1

Corporate Governance Statement r r Goldenport Holdings Inc.

that each director demonstrates a range of expe- and ensuring that an effective system of inter- rience and is of high calibre, which is vital to the nal financial control is maintained. The ultimate success of the Group. responsibility for reviewing and approving the annual report and accounts and the half-yearly The board considers that non-executive directors reports remains with the Board. combine broad business and commercial experience to bring independent and objective judge- The terms of reference of the Audit Committee ment to bear on issues of strategy, performance, covers such issues as membership and the fre- resource and standards of conduct. The balance quency of meetings, as mentioned above, to- between the executive and non-executive direc- gether with the role of the secretary and the re- tors maintains the highest standards of integrity quirements of notice of and quorum for and the across the Company’s business activities. The right to attend meetings. The terms of reference names and biographies of the Board members of the Audit Committee are: internal controls and are set in the section ‘Our Board’. risk management systems, internal audit, external auditors, financial statements and reporting The board considers that all non-executive di- responsibilities. The terms of reference also set rectors are independent for the purposes of the out the authority of the Committee to carry out code. its duties.

Mr. Robert Crawley is the Senior Independent The Smith Guidance on Audit Committee com- Non-Executive Director. position states that the Chairman should not be a member of the Audit Committee. Our chairman, Chris Walton, was a member of the Audit Committee until 1st November, because it was Audit Committee believed that the benefit of having three Non- executive Directors on the Audit Committee to- In accordance with the requirements of the gether with the benefit of his financial experience Combined Code the Audit Committee is made and expertise, out-weighted any disadvantage of Corporate Governance Statement Governance Corporate up of at least three members who are all inde- our chairman being on this Committee. Since 1st pendent Non-executive Directors and includes November however, the Chairman is no longer a one member with recent and relevant finan- member of the Audit Committee. cial experience. The Audit Committee since the Initial Public Offering in April 2006 was chaired The terms of reference of the Audit Committee by Robert Crawley and its other members were are available for inspection on the website of the Chris Walton and Andreas Karaindros. On 1st company and at the Athens Head-Office. November 2007, Robert Crawley remained chairman of the Audit Committee and Andrea Karaindros and Chris Walton stepped down from the committee and were replaced by Captain Remuneration Committee Epameinondas Logothetis. Both members of the Audit Committee are independent and are con- The Remuneration Committee was chaired until sidered qualified as they have recent and relevant 1st November by Andreas Karaindros and its oth- experience (please refer also to ‘Our Board’ sec- er members were Chris Walton and Captain Paris tion for their full resumes). The Audit Committee Dragnis. During the year, Andreas Karaindros was normally meets at least three times a year. The unavailable due to illness. After 1st November Committee has responsibility for, amongst other 2007, the Remuneration Committee was re- things, the planning and review of the Group’s constituted so it is now chaired by Captain annual report and accounts and half-yearly re- Epameinondas Logothetis and its other member ports and the involvement of the Group’s audi- is Mr. Robert Crawley. tors in that process. It focuses, in particular, on compliance with legal requirements, accounting The Remuneration Committee has responsibility standards and the rules of the FSA and the UKLA for the determination of specific remuneration

42 and Committee the Director Head-Office. q together executive b s reporting from termination, i The Annualthe Incentive Plan. the t t since In Nomination Committee p management, packages Annual Report 2007 Committee reporting arrangements, of executive nomination Combined website The with. complied been the Dragnis, solely Remuneration The duties. its out Committee to carry the down of Remuneration ng oring ion ultants. uirements ers ensation

remuneration, reference accordance implementation and right frequency Remuneration Remuneration to terms terms of the on of Combined the his admission the will monitoring of The an Non-executive 1st with to responsibilities and Directors. chief for own Directors. payments, Code, level of of are Remuneration of take cover the Committee attend November. Executive relate performance-related terms each disclosure, including of Committee the Committee remuneration. reference reference authorising notice executive with available and the contracts meetings, company any role such Committee, was Committee of to of of meetings. Code The policy The majority structure part recommending the reference share of the the Director, of pension As Directors. and nomination are issues and chaired terms for of of in officer and secretary requirements covered should of Committee of following: on directors as and claims option states any the independent the the today remuneration employment, of This inspection mentioned The of and quorum provide but rights, as members also of decision authority at was and remuneration, Remuneration Remuneration restriction be Captain pay, duties for by schemes in all reference setting membership the and he Committee set and that and comprised sitting the chairman, determin the any are expenses Andreas stepped that for pension out the on Athens of in above, of senior of of mem moni terms com Non- Non- early Paris rela con level and and has the the the the the the the re no on of ------

of Company.and employees the the less Board members and The s identified Rules Head-Office. i Company’s the andoperating fordeal lists code sp Head-Office. t p Committee The m Model Code m The chaired The Disclosure Committee t Walton Karaindros code website The Committee.Nomination executive Epameinondas Karaindros. Non-executive appoint on Committee Walton website ng in securities. ion ion idered ointments ation ents onsibility 24th Listing exacting Committeedisclosure other and Company Committee of disclosure terms terms and on, policies required securities by and and October by Captain balance. of of in are Director amongst securities the Rules. Disclosure for Captain and Captain and are are a From Captain the the of than, of Chris timely Board. with compiling Director Logothetis has

to Committee available available makes reference its leads 2007 dealings The Epameinondas company company reference The 1st and be the other a Walton since which other Paris Paris manner Paris The view code Committee and disclosed

with November the Model the recommendations due

and things, Dragnis Committee in Admission, for for Dragnis was and establishes to Dragnis. Transparency is applies members process third the of and relation and and to and based of since ensuring maintaining inspection inspection Code appointed illness presence the under Christos Logothetis board the member at at is and held 2007 to and properly of on, admission The to published the the Nomination all also were of adopted decided the the board that a Disclosure and composi its directors nomina meeting Andreas Captain Rules of Varsos. on on Athens Athens a has insider Listing Shares imple of to other infor Non- Chris Chris is con as ap the the the the re no

to in is is a a ------43

Corporate Governance Statement r r Goldenport Holdings Inc.

Takeover regulation termine that some or all of the Shares acquired in breach of the articles of incorporation and by- Because it is incorporated in the Marshall Islands, laws of the Company will not carry any right to the Company is not subject to the City Code. As any dividends or other distributions from a par- a result, a takeover of the Company, stake-build- ticular time for a definite or indefinite period. ing and certain other shareholder activity, would not be regulated by the United Kingdom’s Panel In addition to the protections included in the on Takeovers and Mergers. articles of incorporation and by-laws of the Company, it is also the current intention of the The Company has therefore incorporated certain Directors to use reasonable endeavours (in so far provisions in its articles of incorporation and by- as they are able, and subject to applicable law laws which will be administered by the Board and their fiduciary duties at the relevant time) to to regulate certain acquisitions of Shares in the ensure that: Company. The relevant provisions of the articles of incorporation and by-laws are summarised be- (a) Shareholders are treated equally in respect of low. Broadly, the provisions provide that a person any takeover offer for Shares in the Company must not without making an offer to all share- which is recommended by the Board to holders on matching terms: Shareholders (an offer);

(a) acting by himself or with persons determined (b) during the course of an offer, or when an of- by the Board to be acting in concert with him, fer is in contemplation, the Company does seek to acquire Shares which, taken together not furnish information to some Shareholders with Shares held or acquired by persons deter- which is not made available to all Shareholders mined by the Board to be acting in concert with other than information furnished by the him, carry 30% or more of the voting rights at- Company in confidence to a bona fide poten- tributable to the Shares; or (b) acting by himself tial offeror or vice versa; or with persons determined by the Board to be (c) Shareholders are given sufficient information Corporate Governance Statement Governance Corporate acting in concert with him, and holding not less than 30% but not more than 50% of the voting and advice to enable them to reach a proper- rights attributable to the Shares, seek to acquire, ly informed decision with respect to an offer by himself or with persons determined by the and are given sufficient time to do so; Board to be acting in concert with him, additional Shares which, taken together with the Shares (d) the Directors do not, without the prior ap- held by the persons determined by the Board to proval of the Shareholders in general meeting, be acting in concert with him, increase his voting take any action actively to frustrate a bona rights, except as a result of a ‘‘permitted acquisi- fide takeover offer at any time after such of- tion’’ (meaning an acquisition either consented fer has been communicated to the Directors to by the Board, or made in compliance with cer- or the Directors have reason to believe that tain provisions which broadly replicate Rule 9 of such an offer may be imminent; and the City Code, or arising from the repayment of a stock borrowing arrangement). Furthermore, (e) the Directors, in advising the Shareholders on where the Board has reason to believe that any an offer, act only in their capacity as directors of the circumstances described above has taken and do not have regard to their personal or place, the Board may, amongst other things, de- family Shareholdings or to their personal relationships with the Company.

44 Epameinondas In Directors Transparency Rules. The which l references m u u consider that Company the in 2007, directors code the with has complied The below: exceptdetailed as Statement of compliance with code the hairperson since 1st of 2007: structure our iscommittee asummary November Below Composition of Committees Annual Report 2007 etion Mr. Varsos Christos Dragnis Paris Captain Directors Executive Mr. Chris Walton Logothetis Epameinondas Captain CrawleyMr.Robert Directors Executive Non ittees. order C of Audit the a member Committee. any the 1st on The The executive Committee only. Directors of Non-executive participation the 2007 with Notice of the conflict November, Audit disadvantage Smith Combined to Audit forthe Committee. applied same andthe As the Audit to comply of of Committee provisions Directors. provisions AGM guidance with 31st Logothetis until Committee. because Code in contains December 1st and of full on Captain our in November of states have with together on the the the it chairman Resolutions Committee Our was 1st the been by-laws Companies 2007, Combined that Audit Audit Paris November chairman, believed code, with

Member 2007. superseded the the being Dragnis, relating the the Remuneration proposing The Remuneration Code Act that benefit on Company Chris 2007 Remuneration 1985 an this to the recommends Committee by Disclosure Disclosure Walton, Executive the and of Committee. minor the benefit which his

has disclosure changed Committee relevant Committee financial changes appointed was are of Committee Director, that having a no Since

the provisions member of experience longer a to Nomination Nomination should Committee interests company’s comprised constitution as the 1st was three Non-executive meeting November Company’s in of sitting be of Non-executive force. the in and comprised the chairman solely shares Audit was on of expertise, This FSA’s Chris the Remuneration Remuneration the By-laws held of Director Committee Committee in includes Disclosure different Non-executive solely Remuneration should the Walton in Directors out-weighs December to Company of Captain the update not is com Non- until and not de on sit - - 45

Corporate Governance Statement r r Goldenport Holdings Inc.

Meetings

The number of the meetings of the Board, the Audit, Remuneration and Nomination Committees and individual attendance by members is shown below:

Circular Audit Remuneration Nomination Board Board Committee Committee (1) Committee(2) Total number 5 1 4 1 1 of meetings Non Executive Directors Mr. Chris Walton 5 1 3 - 1 Mr.Robert Crawley 5 1 4 1 - Mr.Andreas Karaindros -(3) -(3) -(3) - - Captain Epameinondas 2(4) - 1 1 - Logothetis Executive Directors Captain Paris Dragnis 5 1 - - 1 Mr. Christos Varsos 5 1 4(5) - - Mr. Konstantinos 5 1 - - - Kabanaros (1) The Remuneration Committee met in 18th December 2007 after the changes in committees have taken place; (2) The Nomination Committee met in 24th October, in order to Nominate Captain Epameinondas

Corporate Governance Statement Governance Corporate Logothetis as a Non-Executive Director; (3) Mr. Karaindros did not attend the meetings, due to illness. Mr. Karaindros as of December of 2007 has stepped down from the Board and since 1st November he has not been the chairman or member of any committee; (4) Captain Epameinondas Logothetis attended the 24th October Board Meeting by invitation from the Chairman of the Board of Directors as observer, for familiarization purposes. (5) Mr. Varsos attended all the Audit Committee meetings by invitation from the Chairman of the Audit Committee as observer;

Relations with shareholders The Company communicates with shareholders ers about the Company, the Chairman and the through the annual report, interim report, quar- Senior Independent Director was also have been terly trading updates, fleet expansion announce- present during the interim results presentations ments, other major transactions announcements to the analysts. The Chairman and the Senior and the Company web site. The Board takes the Independent Director have been present during opportunity at the Annual General Meeting to the results presentations to analysts and dis- meet and communicate with private and insti- cussed with them their views on the Company’s tutional shareholders and welcomes their in- performance and strategy. All the Non-execu- volvement. Furthermore, communication with tive Directors have expressed a willingness to the Company’s largest institutional shareholders be available if shareholders request a meeting. is undertaken as part of the Company’s invest- Directors receive copies of investment analyst re- ment relations program. In order to ensure that search reports and of press clippings concerning the Non-Executive Directors, develop an under- the Company. standing of the views of the major sharehold-

46 included operated ensure for risks. determine management of Internal T 2007. in December and also n thorough T transactions. implemented and i m i u a c which The is made. before major projects on any decision t The Internal control Annual Report 2007 is the c even in investment, function. to Group’s accordingly.act need for The assurance. andnot absolute reasonable ngs ng ernal ision, ilitate nce he he al lations. ent not any provide the and controls. the size seeking board, board effective where Company board board the issues. A for of controls. system effectiveness necessary. are the thus effective full compliance system Audit identification, and significant an However, as most The review since them quality

required a has there risk has at an of financial, Internal Controls ensuring and the control A board control which and of function least effective does of Upon agenda established directors assessment review admission. adopted with and of internal complexity is internal The obtaining of ‘Goldenport has taken voluntary all necessary steps to comply to comply steps necessary all taken voluntary has ‘Goldenport internal there an risks the with has to of annually, Audit internal not include strategy efficient reasonable admission, and over organizational opportunity that board

the was evaluation be effectiveness item and reviewed facing system applicable control are have a is control procedures function brought appropriate Group’s control is an it Risk schedule conducted believes responsible and approval of defined in inherent will made with UK corporate governance standards’ governance corporate with UK conducts maintains for operations an on-going the the the can the management assurance and external that the reconsider the Internal and to Group, issues laws system annually business to to board provide board and of that need accordingly procedures discuss of is have limitations significant for the it strategic, the in designed manage a and matters the for process compli for report and and due review March which meet board for major had Audit to of inter been only reg and this risk de the the full fa in an to to to is a ------ethical audit Ernst vessels. new-build retire itself 2008. April 30 second express whistle-blowing compromised. of t the review Young Non-audit g and T Committee. n Meeting s n Ernst AuditExternal Marshall of directors Re-election The policy Whistle-blowing sp s n Committee and auditors, directors UK has Annual ion ult all the elves he al ancial ated officer. uard theirobjectivity. ective the corporate auditors EGM there voluntarily to engagement report Board that and & team & for Class of guidelines (Hellas) General control the Annual their Young

Young Islands on held contribute held to the Ernst re-election are offer directors services to Board. before 1 has to is retire certain concerns working governance adequate transaction on on ensure considered during & systems undertaken (Hellas), both themselves Meeting. General legislation policy (Hellas) approved Young an 24th 17 and and The they

work have retired a and aspects May in the their capital 2007 further in October whereby Committee independence controls the offer arising the (Hellas) recommend Meeting continually also However, carried confidence for standards Board annually 2007. for does and independence first to Company’s was the of report themselves follow independent re-election comply from are for in and implemented Annual employees our not They acquisition out and relating to place the by independent the has and required review them offer be their require to their internal by their the will the Company of

with approval satisfied a external held General to Ernst as at to desig in exter is work, Audit Audit again selec safe a their own may of per not the the the the the for re on fi & 6 a ------47

Corporate Governance Statement r s Goldenport Holdings Inc.

Directors’ Remuneration

The directors’ remuneration report covers all directors, both executive and non-executive.

The report has been approved by the Board and signed on its behalf by the Chairman of the Remuneration Committee. A resolution to approve this report will be proposed to the Company’s Annual General Meeting to be held on 30 April 2008.

Executive Directors’ remuneration policy

We have a long-standing policy of rewarding achievement, experience and hard work. We also seek to provide incentives for delivering high growth and high returns for shareholders. The Remuneration Committee believes that a significant proportion of total remuneration should be performance-related. Directors’ Remuneration Directors’ In addition, performance-related rewards should where possible be delivered largely in shares to more closely align the interests of shareholders and all Executive Directors. In determining the balance between the fixed and variable elements of the Executive Directors’ remuneration packages, the Remuneration Committee has regard to policy and also market practice. Our policy is for performance related elements to form a major part of the total remuneration opportunity for all Executive Directors.

Elements of remuneration

The executive directors’ total remuneration currently consists of base salary and the Annual Incentive Plan, which was proposed to the shareholders and approved in the first Annual General Meeting held on 17 May 2007. The two initial incentive plans adopted upon admission to London Stock Exchange were not activated in 2006 and 2007.

Base salary

Base salaries are a fixed annual sum payable monthly or quarterly (upon executive’s discretion) in cash.

Annual Incentive Plan

The Remuneration Committee believes that a significant proportion of total remuneration should be performance-related. In addition, performance-related rewards should be deliverable largely in shares to more closely align the interests of shareholders and all Executive Directors and Management.

In order to achieve this, the Board has terminated the existing in 2006 Annual Cash Bonus arrangements and replaced them with a new plan called the Annual Incentive Plan (‘AIP’), which will be administrated by the Remuneration Committee. Under the terms of the AIP the eligible employees (i.e. Executive Directors and Management) can ‘exchange’ their annual cash bonus for shares in the Company.

48 paid value amount made AIP, the Under Award hisof may in one Base apply three ways: aparticipant (“Baseof AIP Award”). the but during The to time from time. allotted ex-dividend are: criteria AIP forthe o The the will the It acquisitions. vessel otherwise T f Committee At u u u u u The Annual Report 2007 the that HCHS) Shares employee’s in eligible arethe date the registered from that name. AIP the the orm participants. here forthe are other no choices us is the objectives. andpersonal achievements individual on of50% is based bonus the andannual strategic the from plan; derived and targets financial on of50% is based bonus the Award in paid shares. and willbe ofAward in form given the willbe shares. Half Full Award.of Base the Full Remuneration case free respective it propose expansion, participant intended Remuneration financial EBITDA to the of will the Board and a Cash the Shares under the Cash-Half cash of of restricted relevant not next dispose the participant shares termination notify will date Company’s meeting is Award to flow targets that in year. 90% the the Award working EBITDA shall the determine any for the to of person. Committee of proper the AIP period, Shares Committee Board The (‘FCA’): rule have event the be or where the are Board (‘FSA’): on maximum in is of encumber Shares day. granted AIP will relevant business. measured any the considered the indicator employment. the Award At exceed a the the If Shares of apply participant In next ten the right that If may percentage on Base

reviews his financial the the (the

financial limit year participant the (‘HCHS’): any 75% working Especially choice and point, select, to case to will with Award participant to “AIP receive date measure of period for will and of be It be statements may of the the the in is to annual each of year. Shares”) allotted of day. the the be for sets proposed If writing. during adjust AIP not selects base growth dividends the may participant the paid each main HCHS, the In The participant selects bonus Shares. sell, announcement base the not salary participant and Company’s the cash will of the maximum the participant In driver of assign, case that the 50% exceed salary. the maximum, and targets be growth then the EBITDA. FCA, The and applicable will respective

the of calculated of case will of the FSA,

restricted registered exchange, on FSA select In free then 5% selects the restricted number performance and be phase right and, each of the The to then and of in base cash 40% the the to the eligibility the year other years the to after year Remuneration by for the of each period the FCA, AIP of flow in award market vote transfer, of type period are reference the Company’s the shares the the HCHS, with 50% the will annual under participant approved, as the in Company generation, share annually. of is participant’s Remuneration multiplied Board pay respect this of exceptional will fixed the award payment which pledge, then the the base to part cash drives be 110% Committee issued and ratification, the full AIP the one with The of may on (i.e. for of salary. but hypothecate fuelling by year closing applies AIP predominantly in the Remuneration 110% rule

50% calendar the name performance performance share FCA, the be only 90% cash Committee Shares HCHS, results will However, purposes issued continu believes of of at even further market will FSA on capital will will apply 90% Base Base year but the the for in be be or or or in - - 49

Directors’ Remuneration s s Goldenport Holdings Inc.

Under the AIP, awards will be made annually. However, the Board (after a proposal by the Remuneration Committee) reserves the right to Award shares in other circumstances which could include, without being limited to, subsequent offers of shares (primary or secondary).

In case of cessation of employment, the AIP Shares that have not been registered in the participant’s name will lapse. The AIP Shares that have been registered in the participant’s name will remain bound by the restrictions mentioned above.

If there is a capitalization issue, rights issue or open offer, subdivision or consolidation of shares or reduction of capital or any other variation, of share capital after the allotment of shares but before being registered to the participants’ name, then the Board will adjust the number of shares to be allotted on a fair and reasonable basis.

If a participant leaves during the year as a “good leaver” (i.e. death, injury, sale of a subsidiary or business to a third party, retirement or any other reason that the Remuneration Committee decides) he will still be eligible (unless the Board determines otherwise) to receive an award in respect of that year. The award will, however, be pro-rated in accordance with the length of service, in complete months, during the performance period. If a participant leaves other than as a good leaver he will cease to be eligible to participate in the AIP unless the Committee determines otherwise.

Under the AIP no Award may be granted after 10 years from adoption of the AIP. Directors’ Remuneration Directors’

The Board has the authority to amend the rules of the AIP, provided that no amendment to the advantage of participants may be made to provisions relating to:

u who can be a participant; u the limits of the maximum base award and the number of Shares which can be issued under the AIP; u the basis for determining a participant’s maximum entitlement and the basis on which any entitlement to cash and Shares and the terms on which they can be acquired; and u any adjustment of such entitlement in the event of a variation in the Company’s share capital

without the prior approval of Shareholders in general meeting unless the amendment is minor and made to benefit the administration of the plan, to take account of a change in legislation or to obtain or maintain favorable tax, exchange control or regulatory treatment.

The benefits under the AIP are not pensionable.

Annual Incentive Plan in 2007

The Remuneration Committee based on the outstanding performance of the Company in the year where not only EBITDA was much higher than the 2007 budget, but also the Company acquired eight new- building contracts that will be enhancing the revenue capacity for the longer term, decided to set the Base Award up to 45% of the base salary.

The Remuneration Committee on its meeting on 18 December 2007 proposed to the Board of Directors under the terms of AIP the base award for each participant. The Board of Directors on 18 December 2007 approved the Remuneration Committee proposal, subject to finalisation of the financial statements for 2007, and announced the base award to each participant. Out of the four participants one elected the Full Cash Award and the other three elected the Full Shares Award.

As per the terms of AIP the FCA is 90% of the base award, whereas FSA is 110% of the base award. The FCA amounted to U.S.$30,000 and the FSA to U.S.$350,000 approximately.

50 T no of Marshall Directors. forNon-Executive compensation of Company. the directorship T shares. sell, The 2008. 3rd on April names to Therefore registered sharesparticipants’ the willbe 2008. 2 April ofnumber granted shares to participant: has been each General The t m incentive It Agreements Service Non-Executive remuneration Directors’ Non-Executive policy a The Annual Report 2007 but By marketclosing valueof Company’s the shares date the on of announcement of for2007. full year results has governance salary. base a the months forsix ofion service. Total Mr. Dragnis John Mr. Varsos Christos Captain Paris Dragnis Paris Captain nce he he ent is letter 17 reference more other a Company’s maximum participants AIP during Board assign, service of 3-year with May the shares setting Meeting. than Islands plan. Executive of 2007. the a exchange, agreements shares standards term to Directors restricted 6 level will Company. Directors They policy the months out have legislation Under whereas However, be relating of closing Directors. the are the allotted that bonus and transfer, on period these notice. have terms also receive right Therefore, 25 Chief Executive Chief Executive Executive as the Chief Financial to market does Commercial Commercial the under a initial Position Price per share per Price Position February entitled the Non-Executive and provisions Director other to of Officer Officer of result Executive pledge, only Company not receive their Full one then value the fixed upon Directors Non-Executive require all base Share to calendar AIP 2008 appointment. hypothecate registered the the of dividends Directors reimbursement term termination that has salary the Award directors AIP Directors approved the are of was voluntary Company’s year shares directors 3 employed and in are for under Directors years earned 3.52 3.52 3.52 the or from h Based 2008 also are do each ave the otherwise would participants of f undertaken not the or not registration retired to bound financial shares by Executive and on expenses on the have have retire provisions two have entitled contracts this the Chief dispose and under on a Di a and to statements 2-year letter, right names rectors service of shares 26th Director to Number Number incurred offered be the 30,444 Executive 52,239 to 13,412 8,383 a of offer comply (service to of 6-month calculated bonus February the term. participant AIP, after agreement for vote or themselves themselves would Non-Executive encumber in as 2007 and with There the in agreements) Officer or connection approved respect non-compete 2008, authorised participation by ex-dividend was receive the is is amount in £ in amount but reference and not no 45% for any at 183,881 107,163 UK the 29,508 47,210 Total of instead in termination the compensa re-election allowed 2 AIP of with subject corporate Chairman following the of years the the Annual date annual agree shares in to AGM have their issu- any AIP the for to to of - - 5 1

Directors’ Remuneration s s Goldenport Holdings Inc.

in the first Annual General Meeting after admission held on 17 May 2007. Accordingly they will also retire and offer themselves for re-election in the second Annual General Meeting after admission to be held on 30 April 2008.

Details of the service agreements for the Executive Board and unexpired terms for Non-Executive Board are set below as of December 31, 2007:

Agreement Date Unexpired term(1) Executive Directors Captain Paris Dragnis 5 April 2006 16 months Mr. Christos Varsos 5 April 2006 4 months Mr. Konstantinos Kabanaros 5 April 2006 4 months Non-Executive Directors Mr. Chris Walton 5 April 2006 16 months Mr. Robert Crawley 5 April 2006 4 months Mr. Andreas Karaindros 5 April 2006 - (2) Captain Epameinondas Logothetis 1 November 2007 22 months (1) Assuming re-election occurs in the Annual General Meeting, the service agreements will be extended Directors’ Remuneration Directors’ for two years for Mr. Christos Varsos, Mr. Konstantinos Kabanaros and Mr. Robert Crawley; (2) Mr. Andreas Karaindros has stepped down from the Board of Directors for health reasons in December of 2007.

The table below shows the current balance of fixed and performance related elements for each executive director in 2007 and the fixed remuneration of each Non-Executive Director, in 2007:

Fixed service Performance Performance Amounts expressed in US$ agreement related(1)(2) as a % of Total Executive Directors Captain Paris Dragnis 397,650 211,529 34.7% Mr. Christos Varsos 172,015 93,188 35.1% Mr. Konstantinos Kabanaros 154,695 29,500 16.0% 724,360 334,217 31.6% Non-Executive Directors Mr. Chris Walton 142,436 - Mr. Robert Crawley 47,794 - Mr. Andreas Karaindros 44,118 - Captain Epameinondas 6,667 - Logothetis 241,015 - Total Emoluments 965,375 334,217

(1) Performance related for Captain Paris Dragnis and Mr. Christos Varsos relate to the value of the shares granted under the Full Shares Award of the Annual Incentive Plan; Mr. Konstantinos Kabanaros has elected the Full Cash Award. (2) The performance related part of remuneration for Captain Paris Dragnis and Mr. Christos Varsos is based on the sterling value of the shares granted to them on 26th February 2008 translated using the exchange rate of the date (1.9739).

52 ‘Clear remuneration structure to attract and retain talent’ a statements to: financial Company u u u u u The Statement Directors’ of Responsibilities Annual Report 2007 of true the policies, consistently; them apply reliable, that group the willcontinue in business and statements; financial the t c prepare f present a state s make select ormation; and Directors erial andprudent; onable ern rds and Group basis, have statements, departures whether judgments and suitable fair financial for comparable in information, been are unless for the a view each manner that responsible Group, accounting applicable followed, it of statements and financial disclosed the is period. the

inappropriate and and estimates that Directors including state to understandable subject of accounting In period provides policies and prepare the on preparing of affairs a that explained are profit to going-con- to accounting which and relevant, presume financial required any are stand- or of those then give ma rea- loss the in in - - T irregularities. g regulation. the of n with The Authority. Services required the accounting a The the Group ble he Annual andthe Report. ancial statements uarding the prevention Directors financial Directors Directors Annual accuracy the Company and above by the hence records They the Report statements are at assets confirm are and requirements and any Listing are responsible for responsible detection which enable taking time of also includes that the Rules comply disclose the responsible reasonable they them Company in for of for financial the of preparing fraud keeping have with to ensuring

the with information ensure and complied for steps the Financial and position reason proper the other safe IFRS that that the for fi - - - 53

Statement of Directors’ Responsibilities t u Goldenport Holdings Inc.

Independent Auditors’ Report

To the Shareholders ments, whether due to fraud or error. In making of Goldenport Holdings Inc. those risk assessments, the auditor considers internal control relevant to the entity’s preparation We have audited the accompanying financial and fair presentation of the financial statements statements of Goldenport Holdings Inc. and its in order to design audit procedures that are ap- subsidiaries (“the Group”), which comprise the propriate for the circumstances, but not for the consolidated balance sheet as at 31 December purpose of expressing an opinion on the effec- 2007 and the consolidated income statement, tiveness of the entity’s internal control. An audit consolidated statement of changes in equity and also includes evaluating the appropriateness of consolidated cash flow statement for the year accounting policies used and the reasonableness then ended, and a summary of significant ac- of accounting estimates made by management, counting policies and other explanatory notes. as well as evaluating the overall presentation of the financial statements.

Management’s Responsibility for We believe that the audit evidence we have ob- the Financial Statements tained is sufficient and appropriate to provide a basis for our audit opinion. Management is responsible for the preparation We read other information contained in the Annual and fair presentation of these financial state- Report and consider whether it is consistent with ments in accordance with International Financial Independent Auditors’ Report Auditors’ Independent the audited financial statements. The other infor- Reporting Standards. This responsibility includes: mation consists only the Chairman’s Statement, designing, implementing and maintaining inter- the Chief Executive Officer Statement, the nal control relevant to the preparation and fair Report of Directors, the Corporate Governance presentation of financial statements that are free Statement, the Directors’ Remuneration, the from material misstatement, whether due to Statement of Directors’ Responsibilities and the fraud or error; selecting and applying appropriate Company, Board, Management Team, Fleet, accounting policies; and making accounting esti- Charterers and Fleet Manager information pages. mates that are reasonable in the circumstances. We consider the implications for our report if we become aware of any apparent misstatements or Auditors’ Responsibility material inconsistencies with the financial statements. Our responsibilities do not extend to any other information. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require Opinion that we comply with ethical requirements and In our opinion, the consolidated financial state- plan and perform the audit to obtain reasonable ments give a true and fair view of the financial assurance whether the financial statements are position of the Group as of 31 December 2007, free from material misstatement. and of its financial performance and its cash flows for the year then ended in accordance with An audit involves performing procedures to International Financial Reporting Standards. obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judg- Ernst & Young (Hellas) ment, including the assessment of the risks of Certified Auditors – Accountants S.A. material misstatement of the financial state- 25 February 2008.

54 accompanyingThe notes 1to 24 statements. of consolidated financial are anthese integral part Financial Statements Annual Report 2007 W General and administrative expenses administrative and General costs of dry-docking Depreciation Depreciation W j Finance income Finance expense Finance profit Operating disposal vessel from Gain Management fees – related party –related fees Management expenses Vessel operating party – related Voyage expenses Voyage expenses Expenses Revenue Goldenport Holdings Inc. shareholders Inc. Holdings Goldenport to year attributable the for Profit gain,net currency Foreign year forthe EPS - Basic (U.S.$): share per Earnings - of dilution effect forthe usted year forthe Diluted EPS eighted of averagenumber shares EPS forbasic eighted of averagenumber shares ad All amounts in the financial statements and the accompanying notes the accompanying statements and the financial in amounts All are expressed in thousands unless otherwise stated. otherwise unless thousands in expressed are For the year ended 31 December 2007 31 December ended year the For CONSOLIDATED INCOME STATEMENT INCOME CONSOLIDATED - Notes ,1(2,497) 3,21 1(3,906) 21 (2,778) (5,932) (15,361) 4 7 7 (5,695) 5 7 (31,411) 3 (7,224) 3 6 9867762,533,312 69,886,747 9851662,533,312 69,885,106 U.S.$’000 124,861 (69,109) 59,444 58,281 3,692 4,031 2007 2007 0.83 0.83 501 U.S.$’000 (48,904) (24,860) (3,393) (7,488) (5,653) (4,221) 90,651 (1,476) (4,145) (1,813) 45,188 41,747 4,428 2006 2006 3,158 0.72 - - 55

Financial Statements v v Goldenport Holdings Inc.

CONSOLIDATED BALANCE SHEET As at 31 December 2007 2007 2006 Notes U.S.$’000 U.S.$’000 ASSETS Non-current assets Vessels 7 244,694 131,720 Vessel under reconstruction 8 38,880 23,068 Advances for vessel acquisition 9 - 1,700 Advances for vessel construction 10 62,238 - Other non-current assets 11 50 185 345,862 156,673 Current assets Inventories 154 - Financial Statements Financial Trade receivables 596 1,275 Insurance claims 12 3,268 1,305 Due from related parties 21 3,289 811 Prepaid expenses and other assets 1,332 887 Restricted cash 13 - 1,166 Cash and cash equivalents 14 19,947 81,372 28,586 86,816 TOTAL ASSETS 374,448 243,489 EQUITY AND LIABILITIES Equity attributable to shareholders of Goldenport Holdings Inc. Issued share capital 15 699 699 Share premium 15 106,991 106,991 Retained earnings 73,757 41,838 Total equity 181,447 149,528 Non-current liabilities Long-term debt 16 130,765 60,727 Deferred revenue 17 8,273 - Other non-current liabilities 11 194 - 139,232 60,727 Current liabilities Trade payables 8,512 6,941 Current portion of long-term debt 16 30,755 19,900 Accrued liabilities and other payables 18 8,966 3,754 Deferred revenue current portion 17 5,536 2,639 53,769 33,234 Total Liabilities 193,001 93,961 TOTAL EQUITY AND LIABILITIES 374,448 243,489 The accompanying notes 1 to 24 are an integral part of these consolidated financial statements.

56 accompanyingThe notes 1to 24 statements. of consolidated financial are anthese integral part Annual Report 2007 interest interest adjustment declared, approved approved declared, declared, approved approved declared, and paid to equity to paid and equity and paid to equity to paid and equity t1Jnay20 18000 .1 48 ,9 4,910 4,492 - 418 0.01 41,800,000 2006 At 1January rftfrteya - year the for Profit rftfrteya - - - year the for Profit At 31 December At 31 December public offering, offering, public offering, gross gross offering, costs on initial on costs Proceeds from from Proceeds (see note 15)(see (see note 15)(see shareholders shareholders shareholders shareholders initial public Transaction Pooling of Pooling Dividends Dividends Dividends Dividends 2006 2007 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY EQUITY IN CHANGES STATEMENTOF CONSOLIDATED 8051600 8 1,8 115,465 - 115,184 281 0.01 28,085,106 9851600 9 0,9 188149,528 41,838 106,991 699 0.01 69,885,106 9851600 9 0,9 377181,447 73,757 106,991 699 0.01 69,885,106 of shares Number Number ------For the year ended 31 December 2007 31 December ended year the For Par value value Par U.S.$ - - - - U.S.$’000 capital capital Issued Issued share share - 813 (8,193) - - (8,193) - - U.S.$’000 premium premium Share Share 48 (418) (418) - 51845,188 45,188 - 82158,281 58,281 - 2,6)(26,362) (26,362) - 744 (7,424) (7,424) - U.S.$’000 Retained Retained earnings earnings U.S.$’000 equity equity Total 57

Financial Statements v v Goldenport Holdings Inc.

CONSOLIDATED CASH FLOW STATEMENT For the year ended 31 December 2007 Notes 2007 U.S.$’000 2006 U.S.$’000 Operating activities Profit for the year 58,281 45,188 Adjustments to reconcile profit for the year to net cash inflow from operating activities: Depreciation 7 15,361 7,488 Depreciation of dry-docking costs 7 5,932 5,653 Gain from vessel disposal 7 (3,692) - Finance expense 5 5,695 4,145 Finance income (4,031) (3,158) Annual Incentive Plan Shares 21 350 - Foreign currency gain, net (501) (4,428) Financial Statements Financial 77,395 54,888 (Increase) / Decrease in inventories (154) 324 (Increase) / Decrease in trade receivables, 176 (1,274) prepaid expenses and other assets Increase in insurance claims 12 (1,963) (1,046) Increase in trade payables, accrued 5,506 3,221 liabilities and other payables Increase / (Decrease) in deferred revenue 11,170 (536) Net cash flows from operating activities before movement in 92,130 55,577 amounts due from related parties Due from related parties 21 (2,477) 9,049 Net cash flows from operating activities 89,653 64,626 Investing activities Acquisition/improvement of vessels 7 (121,671) (56,475) Proceeds from disposal 7 5,280 - of vessel, net of commission Dry-docking costs 7 (12,484) (3,965) Advances for vessel under reconstruction 8 (14,432) (22,975) Advances for vessel acquisition - (1,700) Advances for vessel under construction (62,238) - Interest received 4,089 3,036 Net cash flows used in investing activities (201,456) (82,079) Financing activities Proceeds from issue of long - term debt 103,499 54,707 Repayment of long-term debt (22,780) (49,925) Proceeds from initial public offering - 115,465 Issuance costs - (8,193)

58 T April The expansion. fleet andtodebt further fund (“LSE”) started Road, Company 115.5 Holdings Company MH Inc., Goldenport 166-71 Vouliagmeni, Greece. an the built will Company Ltd., di is i c on Marshall ‘Company’) Goldenport 1. FORMATION, BASIS OF PRESENTATION INFORMATION AND GENERAL Annual Report 2007 company, each companies, NOTES TO CONSOLIDATEDSTATEMENTS THE FINANCIAL ng ised Interest paid Interest cash Restricted activities Financing Dividends paid Dividends ahadcs qiaet t3 eebr1 19,947 14 at 31 December equivalents cash and Cash at 1January equivalents cash and Cash difference exchange foreign Net equivalents cash and cash in increase Net activities in)(used financing by/ provided flows cash Net accompanyinghe notes 1to 24 statements. ofconsolidated financial are anthese integral part ate also amount 21 Company be Company, 96960. Jubilant address Seaward holding 2006 bulk at million) March the Ajeltake the at trading a Inc. Islands, as and holding is is a price vessel-owning carriers of the The as was listed price Holdings Status FOR THE YEAR ENDED 31 DECEMBER 2007 31 ENDED DECEMBER YEAR THE FOR Marine Trust was for 2005. companies, with GBP of Clochard received of Shipping over Island, address of at twenty incorporated in 31 admitted as the in of Company the 66 Company GBP ordered the turn On Center, the December Company, a allotment GBP million intention Inc. registered limited from Majuro, 5 Maritime London five table 2.35 of owning Co., owning April companies 2.35 the in (‘Goldenport’ intermediate 41 at of its (equivalent the per below. Complex, Chanelle under head liability 2006 six Alacrity option per 2007 Cosco Athinas listing to Marshall Stock a Abyss Official Limited., share. more office vessel-owning partially share. office of Goldenport Goldenport the is in

Zhoushan was company, Exchange the four Maritime Maritime Shipping interme Ajeltake Avenue, In to List holding the laws of Islands or On which of repay total, hold U.S.$ exer new and LSE the the the 11 of - - -

Notes 2007 U.S.$’000 2006 U.S.$’000 2006 U.S.$’000 2007 Notes 2008. April 30 on to held be shareholders, the consulting, be Directors in entity is Jiangsu financial as 2007, vessels. Shipyard c (a) Company comprising p Risa fee, in The t v but a affiliates Goldenport dormant. has become referreder to ‘Group’. the as ounting isions ry 481,372 14 9(26,362) 19 31,166 13 any the accordance technical the approved below) has named per Maritime annual of holding Goldenport (see future of Also, Yangzijiang been the vessel and a on Law services, statements and wide and (b) Goldenport disposed chartering, support and 25 the as two consolidated by registered (62,102) will Company (5,822) 89/1967. 49,701 with its (see Co. below) of February 677 the the range its new wholly 31 financial provide Marine in Ltd, note Shipyard a subsidiaries and Annual proportionally December vessel exchange resolution built of were of As the in

of legal, 24). 2008 Marine owned maintenance, shipping the Greece Services the of a containers financial “Vana” statements vessel-owning authorised General fully upon As 31 and jointly financial Company 2007

for will of subsidiaries December of Services, owned under (13,924) delivery 94,889 81,372 77,436 (3,471) is services, 31 was 3,936 the consolidated a (see 230 be expected Goldenport Meeting statements - daily ordered December controlled insurance hereinaf Board dormant for the and note subsidi of and which of 2007 com fixed issue such pro (see the the ac 7), its to of of at - - - - - 59

Financial Statements v v Goldenport Holdings Inc.

a) The wholly owned subsidiaries of the Company are:

Country of Name of Vessel- Incorporation Year of Intermediate Vessel Type of owning of vessel- acquisition holding company owned by Vessel company owning of vessel Subsidiary company

Superb Marta Trading Co. Panama Glory D 1997 Container Maritime S.A. Daphne Marine Dancing Waves Malta Tuas Express 1998 Container Corp. Co. Ltd. Borealis Portia Navigation MSC Shipping Malta 1999 Container Co. Himalaya Co. Ltd. Karana Ocean

Financial Statements Financial Aloe Navigation Inc. Shipping Malta Alex D 1999 Bulk Carrier Co. Ltd. Dumont Black Rose Malta Beauty 2001 Container International Inc. Shipping Ltd. Royal Bay Opal Maritime Malta Achim 2001 Container Marine Ltd Limited Audrey Marine Wild Orchid MSC Malta 2001 Container Corp. Shipping Ltd. Emirates Sicuro Hampton Shipmanagement Liberia MSC Socotra 2002 Container Trading S.A. SA Platinum Coral Sky Malta Gianni D 2002 Bulk Carrier Shipholding SA Marine Ltd. Nemesis Samos Malta Samos 2002 Bulk Carrier Maritime Inc. Maritime Ltd. Meredith Trading Guilford Panama Ios 2002 Bulk Carrier Corporation Marine S.A. Fairland Rawlins Trading Ltd Panama Athos 2002 Bulk Carrier Trading S.A. Blaze Navigation Nilwood Howrah Panama 2003 Container Corp. Comp. Inc. Bridge Black Diamond Carrier Maritime Co. Malta Lindos 2003 Bulk Carrier Shipping Ltd. Carina Maritime Medina Trading Co. Malta Tilos 2004 Bulk Carrier Co. Ltd. Savannah Serena Malta Limnos 2004 Bulk Carrier Marine Inc. Navigation Ltd. MSC Alvey Marine Scotland Sirene Maritime Co. Liberia 2006 Container Inc. (ex.Bengal Sea) Fortune Kosmo Kariba Shipping SA Marshall Islands (ex.Hyundai 2006 Container Services Inc. Fortune) 60 (8) (7) (6) (5) (4) (3) (2) (1) Annual Report 2007 note 2May on 2007 7) (see 2009. andDecember Holdings Inc Holdings Sentinel Inc. Holdings Sentinel 10b) note (see Venture Joint consolidated b) Proportionally S.A. Maritime Knight Co. Maritime Muriel Marine Services Marine Goldenport Oates Trading Corp. Limited Maritime Clochard Ltd. Maritime Abyss Corp. Tuscan Navigation Ltd. Navigation Jaxon Corp. Marine Genuine Inc. Marine Foyer Company Jubilant Marine Company Chanelle Shipping Co.Shipping Seaward Inc. Maritime Alacrity Shipping Inc. Shipping Baydream 20 on 2007. delivered July was Vessel Anafi 12 on delivered was Vessel Gitte 2007. November of Vana, disposed was which Ltd. Maritime Risa ship the owning was company of M/V 17 on delivered Accra Vessel MSC was 2007. August 2007. 23 on October delivered was Bridge Vessel Bosporus Brilliant 21 on delivered Vessel MOL was 2007. November September note 10a) dates (see between building bulk carriers New delivery with 2010 note 10a) dates (see in building October container vessels New delivery with andMarch 2011. Navigation S.A. Navigation Citrus Shipping Shipping Citrus Shila Maritime Shila Maritime Ginger Marine Marine Ginger Giga Shipping Shipping Giga Maritime S.A. Maritime Risa Maritime Maritime Risa Mona Marine Marine Mona Shipping S.A. Shipping Shipping Ltd.Shipping Maritime S.A Maritime Maritime Co.Maritime Maritime Co.Maritime Incorporated Moonglade Moonglade Navigation Navigation Cheyenne Hampson Hampson Company Company Longfield Longfield Maritime Maritime Breaport Breaport Ipanema Ipanema Co. Ltd. Valaam Barcita Barcita Cierzo Cierzo Loden Loden Corp. Corp. Corp. S.A. Ltd. Marshall Marshall Islands Marshall Marshall Islands asalIlnsYJ862011 Marshall Islands YZJ-816 Marshall Islands asalIlnsZ0082009 ZS07038 Marshall Islands asalIlnsZ0092009 ZS07039 Marshall Islands Marshall Marshall Islands asalIlnsYJ852010 YZJ-815 Marshall Islands Marshall Marshall Marshall Panama Islands Islands iei it 2007 Gitte Liberia iei S73 2009 ZS07037 Liberia Liberia Liberia iei S73 2009 ZS07036 Liberia Malta MOL Brilliant MOL MSC Finland Finland MSC Company(8) Gate Bridge MSC Accra Accra MSC (ex.Nautic) (ex.Ajama) (ex.Orient Company Bosporus Bosporus E0220 Bulk Carrier 2008 JES042 E0120 Bulk Carrier 2008 JES041 (ex.Lone) Dormant Dormant Dormant (ex.West Alliance) Bridge Vasos Anafi Anafi 2007 2007 2007 2007 06BulkCarrier 2006 07Container 2007 (7) (7) (5) (3) (2) (4) (1) (6) (6) (6) (6) Bulk Carrier Bulk Carrier Bulk Carrier Bulk Carrier Container Container Container Container Container Container Container 6 1

Financial Statements v v Goldenport Holdings Inc.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of preparation: (e) Transactions between companies under common control: The Group’s financial statements have been prepared on a historical cost basis, except for any Transactions between companies under common derivative financial instruments that are meas- control are excluded from the scope of IFRS 3. ured at fair value. The consolidated financial Therefore such transactions are accounted for by statements are presented in US dollars and all the Group in a manner akin to a pooling of in- financial values are rounded to the nearest thou- terests. Accordingly, as described in note 15, the sand ($000), except the per share information. financial statements of the Group following the reorganization have been presented using historical carrying costs of the Contributed Companies. (b) Statement of compliance: The consolidated financial statements have also been prepared on the basis that Goldenport The consolidated financial statements as at existed for all years prior to the reorganization

Financial Statements Financial 31 December 2007 have been prepared in ac- and was the parent company of the Contributed cordance with International Financial Reporting Companies in all such years. Standards (IFRS) as adopted by the European Union. (f) Use of Estimates:

(c) Basis of Consolidation: The preparation of consolidated financial statements requires management to make esti- The consolidated financial statements comprise mates and assumptions that affect the reported the financial statements of the Company and amounts of assets and liabilities and disclosure its subsidiaries listed in note 1. The financial of contingent assets and liabilities at the date of statements of the subsidiaries are prepared for the consolidated financial statements and the the same reporting date as the Company, using reported amounts of revenues and expenses consistent accounting policies. All material inter- during the year. Actual results could differ from company balances and transactions have been those estimates. eliminated upon consolidation. Subsidiaries are consolidated from the date on which control is The estimates and assumptions that have the transferred to the Group and cease to be con- most significant effect on the amounts recog- solidated from the date on which control is trans- nised in the consolidated financial statements, are ferred out of the Group. estimates in relation to useful lives of vessels (vessels have a carrying amount of U.S.$244,694 and U.S.$131,720 as at 31 December 2007 and 2006, (d) Accounting for joint ventures: respectively), provision for doubtful trade receivables (trade receivables have a carrying amount of A joint venture is an entity whose economic ac- U.S.$596 and U.S.$1,275 as at 31 December 2007 tivities are jointly controlled by the Group and and 2006, respectively) and estimates about the one or more other ventures in terms of a con- result of insurance claims (insurance claims have a tractual arrangement. The Group’s interest in carrying amount of U.S.$3,268 and U.S.$1,305 as jointly controlled entities is accounted for by the at 31 December 2007 and 2006, respectively). proportional consolidation method of accounting. The Group combines its share of the joint ventures’ individual income and expenses, assets (g) Revenues and Related Expenses: and liabilities and cash flows on a line-by-line basis with similar items in the Group’s financial The Group generates its revenues from charter- statements. ers for the charter hire of its vessels. Vessels are

62 to statement agreements defers the and basis. the Furthermore, to port, revenue a contract charter a U.S. v revenue T Translation: Currency (h) Foreign accrual basis. the s n the e to Deferred p charter. t U.S. s Vessel o a Transactions t for contract t chartered Annual Report 2007 of the at of time the trans the ratesexchange in effect the erer er ion ion ented in deferred revenue. ance. te nue ctions. he ancial us ofletion of discharge current the cargo. vessel

the the a the rate; a duration in completion year Group cargo amount charterer dollar of functional canal dollar on particular specific canal earned under Operating international extent Group the Therefore, balance voyage bunker year for hire A At is income related if are is is revenue which voyage and a recognised costs over using made is related the under and a entered that converted charter of and of rate; time the

period specific after involving revenue voyage because as balance is

charter the expenses the expenses currency of sheet bunker revenue to are paid was in is deemed either expenses currency per charges is voyage represents as discharge revenue or also the charter the such period related shipping agreement deemed into of accounted paid voyage of industry expenses voyage by date as has into spot the specific sheet time the are expenses other time the date. it relating of for the primarily under charter to of by been used them voyage is presentation is Group’s are paid which U.S. arrangements market the and of balance each markets, for end the dates, to the reasonably earned, cash Group. charters, charters, On currencies practice the agreement accounted exists commence for include for dollars recognised. Company a for a charterer voyage that use to upon to voyage arrangements. specified relates time-charters, charter specified received vessel’s for consisting monetary on transactions. vessels by the the sheet evenly The of are and

where the an using the the pays where where currency commis assured, a next income charter or unique to during period Group collec actual is on use in or vessel is previ oper upon com date, char char prior daily time over Port pre rev the the the the ad as an by fi of of a a ------bunkers on determined retention agreements and portion The billings, the ( such I Inventories: (k) amount t e into from U.S.$154 d as currency balance The (l) uptoremain date board the on of redelivery. by bunkers T (i) statement. Certain q g s r with exchange equivalents. to cash be nventories encies ention ets j) ign he uire er oing Trade Receivables: Receivables: Trade Equivalents: Cash and Cash Restricted Cash: Cash: Restricted inventory the the the lower amount and amount it currency the Group an as charterers the scheduled is Company other loan. same account of of time original sheet of remaining deposited liabilities, net used functional account. gain as Group rate. of the the vessel consist by considers of required unless is shown cost deposits of As time than transactions or d for next Group’s not Gains the 31 ate in maturity for dry-docking, an to of loss Alex and repaying or which the charter. December the freely of first-in includes is on capital deposit the 31 currency hire, allowance as net or in equivalent deposit bunkers name and agreed D., highly vessels, U.S. December loan trade the vessel losses are realisable of available freight which are first-out Inventories and certificates interest funds dollar, consolidated three estimated of agreements denominated

using receivables 2007 are liquid included with resulting is of the and interest which for were to and to also funds months into 2007, borrower. to are

value. method. are and charterers and continue the doubtful the investments the demurrage recognised are amount purchased of translated recoveries a in payment. stated from year-end relate principal into monthly loan no may at deposit income foreign Group, Cost under or in each loan Any cur The for less un the re re ac to to to at is ------63

Financial Statements v v Goldenport Holdings Inc.

counts. Trade receivables are recognised and car- at the time the vessel is acquired. The amount ried at the lower of their original invoiced value recorded as an asset or liability at the date of ves- and recoverable amount. The carrying amount sel delivery is the lowest of: a) the difference be- of receivables is reduced through an allowance tween the market value of the vessel on a charter account. Impaired debts are derecognized when free basis and the vessel’s acquisition cost and b) they are assessed as uncollectible. the present value of the difference between the future cash flows of the assumed charter and the future cash flows at the current market rate. If an (m) Insurance Claims: intangible asset is identified it is recorded as prepaid charter revenue. If an intangible liability is The Group recognises insurance claim recoveries identified it is recorded as deferred revenue. Such for insured losses incurred on damages to vessels. assets and liabilities, respectively, are amortized Insurance claim recoveries are recorded net of as a reduction of, or an increase in, revenue over any deductible amounts, at the time the Group’s the period of the time charter assumed. vessels suffer insured damages. They include the recoveries from the insurance companies for the The cost of each of the Group’s vessels is de- claims, provided the amounts are virtually certain preciated beginning when the vessel is ready

Financial Statements Financial to be received. Claims are submitted to the insur- for its intended use, on a straight-line basis over ance company, which may increase or decrease the vessels’ remaining economic useful life, af- the claim amount. Such adjustments are record- ter considering the estimated residual value. ed in the year they become known and have not Management estimates the useful life of new been material to the Group’s financial position or vessels at 25 years, which is consistent with in- results of operation in 2007 and 2006. dustry practice. Acquired second-hand vessels are depreciated from the date of their acquisition over their remaining estimated useful life. (n) Vessels: The remaining useful life of the Group’s vessels, other than those fully depreciated, is between 1 The vessels are stated at cost, net of accumu- and 16 years (excluding new building vessels not lated depreciation and any accumulated impair- yet delivered). A vessel is derecognised upon dis- ment. Vessel cost consists of the contract price posal or when no future economic benefits are for the vessel and any material expenses incurred expected from its use. Any gain or loss arising on upon acquisition of the vessel (initial repairs, derecognition of the vessel (calculated as the dif- improvements, delivery expenses and other ex- ference between the net disposal proceeds and penditures) to prepare the vessel for its initial the carrying amount of the vessel including any voyage. Subsequent expenditures for major im- unamortised portion of dry-docking) is included provements are also capitalised when it is prob- in the income statement in the year the vessel is able that future economic benefits associated derecognised. with the improvement will flow to the entity and the cost of the improvement can be measured From time to time the Group’s vessels are required reliably. to be dry-docked for inspection and re-licensing at which time major repairs and maintenance For vessels acquired in the second-hand market that cannot be performed while the vessels are and where the Company identifies any intangible in operation are generally performed. The Group assets or liabilities associated with the acquisition capitalises the costs associated with dry-docking of a vessel, the Company allocates the purchase as they occur by adding them to the cost of the price between the vessel and any identified tan- vessel and amortises these costs on a straight- gible and intangible assets or liabilities based on line basis over 2.5 years, which is generally the their relative fair values. Fair value is determined period until the next scheduled dry-docking. by reference to market data. The Company de- In the cases where the dry-docking takes place termines the fair value of any intangible asset or earlier than 2.5 years since the previous one, the liability related to time charters assumed, by ref- carrying amount of the previous dry-docking is erence to the market value of the time charters derecognised. In the event of a vessel sale, the re-

64 amount If value in use. At amount at of time the sale. of recognised cash the derecognised m rates, In c marine p e the 2007 and2006. December Group The amount a loss dic t as di T of vessels: (o) Impairment s spective Annual Report 2007 m indicates of each of assumptions the docking value Group, straight-line date. dry-docking estimated the ion el, to calculate vessel’svaluein the use.eeds fit ble he aired the vidual ated ent developing the Assets.” the ation future the vessel’s cost carrying to calculation management that of flow amount. Group’s reporting recoverable in of vessel vessel and vessel’s remaining date makes be appraisers. the and of of required vessel exists, carrying that accordance a vessels expectations. possible information derived the the an vessel by recoverable Under vessel of this are basis amount to operating corresponds together estimates expense Recoverable vessels assumptions the

fair acquisition vessel vessel, level the date of its based component is useful amount values to may value IAS Group over If is then until estimates value impairment, Group determined reduce the since whether assessed under with of the is are be 36, on is with amount. lives the recoverable of No the expenses, of in available valuation the less recognised for impaired. is historical asset of separately the to future use makes reviewed

dry-docking IAS amount about less the impairment the remaining next of the asset is costs a the the the

there Group by is second-hand the depreciated 36, ownership than is carrying the by vessel’s Any made years for cash economic scheduled considered component an comparison from future to to vessels. and trends If is “Impairment independent amount. is equal the Group each impairment estimate for identifiable its such assesses sell the flows, an ended period at appraiser costs the loss carrying carrying recover amount charter impair and indica the as vessel. higher to of an These on ben esti pro well dry- ves was Fair the the the im are in in 31 its to of of of at a ------

are takenderivatives to income statement. the losses The fair valueis the negative.liabilities when as taking interest remeasured l value n B costs: Borrowing (q) m T Reporting: (s) Segment None throughdetermined valuation techniques. i s c A c n T hedging: and (r) l t L debt: Long-term (p) n initial costs associated such derivative evaluates not, igation period. construction ng the y ive els ount premium or settlement. on expired. or elled ong-term he he ance ated ised orrowing ent measured financial Derivative financial instruments instruments financial Derivative assets contract are fair Group for Group directly as at for of recognition, of arising as the into example, capitalised method. under fair the value interest the hedging its when its financial construction, costs liability debt with account uses customers, value at Group’s at is operations reports from consideration attributable of entered amortised the fair the is interest derivative on Amortised by rate interest instruments, on changes long-term is instruments initially to liability value. any (i) loans fair derivatives derecognized the financial the

the swaps into

i.e. or by issue value date rate to cost rate Derivatives cost

length specifically recognised reconstruction in is spot charter financial received and the cost debt the discharged costs, to on using fluctuations. swap therefore is of are

information have are borrowing. or positive fair hedge is which of that is initially time when revenues calculated subsequently ship the and subsequent net instruments contracts been value are used at asset charters; a effective employ gains its of any the the or deriva carried and of recog desig of After to issue Such can risks dur ves and and dis ob the fair by fi as or is ------65

Financial Statements v v Goldenport Holdings Inc.

or (ii) type of vessel. Management, including the March 2007 and becomes effective for fi- chief operating decision maker, reviews operat- nancial years beginning on or after 1 January ing results solely by revenue per day and operat- 2009. The standard has been revised to re- ing results of the fleet and thus the Group has quire capitalisation of borrowing costs when determined that it operates under one report- such costs relate to a qualifying asset. A quali- able segment. Furthermore, when the Group fying asset is an asset that necessarily takes charters a vessel to a charterer, the charterer is a substantial period of time to get ready for free to trade the vessel worldwide and, as a re- its intended use or sale. The Company will sult, the disclosure of geographic information is be required to change its accounting policy impracticable. from 1 January 2009 to capitalise borrowing costs on qualifying assets prospectively from that date. In accordance with the transitional (t) Finance income: requirements in the Standard, the Company will adopt this as a prospective change. Finance income is earned from the Group’s short Accordingly, borrowing costs will be capital- term deposits. ised on qualifying assets with a commencement date after 1 January 2009. No changes

Financial Statements Financial will be made for borrowing costs incurred (u) Leases: to this date that have been expensed. The amendment to the Standard has not yet been Leases of vessels where the Group does not endorsed by the EU. transfer substantially all the risks and benefits of ownership of the vessel are accounted for as op- (b) IFRS 3 Business Combinations and IAS erating leases. Lease income on operating leases 27 Consolidated and Separate Financial is recognized on a straight line basis over the Statements – Revised. The revisions to IFRS lease term and classified under revenue. 3 and IAS 27 were issued in January 2008 and become effective for financial years beginning on or after 1 July 2009. As regards IFRS 3, this (v) Stock incentive plan: will apply to business combinations occurring in those periods and its scope has been re- All share based compensation provided to vised to include combinations of mutual enti- Directors and Senior Management for their serv- ties and combinations without consideration ice is included in ‘General and administrative ex- (dual listed shares). IFRS 3 and IAS 27, inter penses’ of the Consolidated Income Statement. alia, require greater use of fair value through The fair value of the employees’ services re- the income statement and cement the eco- ceived in exchange for the Company’s restricted nomic entity concept of the reporting entity. shares is accrued and recognized as an expense Furthermore, these standards also introduce in the year of grant. Upon issuance of the rel- the following requirements (i) to remeasure evant shares the total number of shares and their interests to fair value when control is obtained value is separately reflected in the Consolidated or lost, (ii) recognising directly in equity the Statement of Changes in Equity. impact of all transactions between controlling and non-controlling shareholders where loss of control is not lost and, (iii) focuses on (w) IFRS and IFRIC Interpretations not yet what is given to the vendor as consideration effective: rather than what is spent to achieve the acquisition. More specifically, items such as ac- The Group has not applied the following IFRS quisition-related costs, changes in the value and IFRIC Interpretations that have been issued of the contingent consideration, share-based but are not yet effective: payments and the settlement of pre-existing contracts will generally be accounted for sep- (a) IAS 23 Borrowing Costs – Revised. A re- arately from the business combination and vised IAS 23 Borrowing costs was issued in will often affect the income statement. The

66 (e) (d) (c) ( Annual Report 2007 (h) (g) f) 2009). standard changes and and their interaction. Requirements Funding Minimum Asset, m of IFRIC 11, IFRS 2, Group and Treasury Treasury and Group Transactions Share 2, IFRS 11, IFRIC EU.the e financial Segments Operating 8, IFRS by EU. the endorsed yet been v the dividends by EU. the This It years years Revised. – IAS 1 Presentation of Financial Statements by EU. the endorsed revisions t ( IFRIC 12, Service Concession Arrangements f IFRIC 14, The limit on a Defined Benefit Benefit Defined a on limit The 14, IFRIC by EU. the endorsed not yet been Group’s after in to years 2007 Financial IFRIC 13, Customer loyalty programs loyalty Customer 13, IFRIC endorsed not yet been Group’s after is by EU. the endorsed Interpretation has been effective ective ions ised rations. ents. not is the the comprehensive statement Interpretation not 1 standard beginning beginning 1 beginning relevant with process and financial January It This for July years relevant operations. Statements operations. to This in was is to for shareholders. becomes financial the not A revision equity equity 2008). financial Standard

revised of beginning to revised will of 2008). on Standards statements. on on relevant assessing the to changes has income have or holders or or to It to was the Group’s

This This years to after effective after ( It by EU. the not is after years IAS effective has include the ( on effective is require on Group’s not issued to A not yet Interpretation Interpretation have the

of January is 1 been its are 1 Standard beginning or 1 the beginning The new operations. introduced Presentation relevant March equity been January financial after relevant impact shown

only in not statement (effective for for endorsed Group’s Company for operations. September statement 2009. 1 endorsed yet 2007). or financial financial financial transac has January this only to 2008). to on state on notes been

This and The op not has has the the (ef for re by or or of of in is It - - - - -

T 31 ended year 2007: December the that in effective Interpretations became IFRIC and IFRS (x) ( ( (d) (i) ( financial Interpretations December became (amended), financial (b) (a) to disclosures. additional f) e) c) he Amendment to IFRS 2 ‘Share based pay based ‘Share 2 IFRS to Amendment EU.the effective Statements -Amended Statements of Finacial 1, Presentation IAS Impairment and Reporting Financial 10, Interim IFRIC Derivatives Embedded of 9, Reassessment IFRIC 2 of IFRS Scope 8, IFRIC to tions” cancella- and conditions “vesting ment: Hyperinflationary Economies Economies Hyperinflationary in Reporting Financial 29 IAS der un- Approach Restatement on IFRIC 7, the IFRIC Applying Disclosures 7, Instruments: IFRS Financial following the or statements, position effective after Standard

( 2007. which 1 had Standards January of did None an has within for the other not impact not financial Group 2009). of have than yet the and the in been any but The the IFRS year years Standards Interpretations effect consolidated did endorsed amendment 7 ended beginning and give on IAS and rise the 31 by 1 -

Financial Statements v v Goldenport Holdings Inc.

3. VOYAGE & VESSEL OPERATING EXPENSES

The amounts in the accompanying consolidated income statement are analysed as follows:

Voyage expenses 2007 2006 U.S.$’000 U.S.$’000 Port charges (541) (52) Bunkers (fuel costs) (1,198) (227) Third party commissions (5,485) (3,942) (7,224) (4,221) Voyage expenses – related party Commissions- related party (2,497) (1,813) Vessel Operating Expenses Crew expenses (13,179) (10,216) Financial Statements Financial Store & Consumables (1,578) (1,319) Spares (2,565) (2,155) Repairs & maintenance (1,314) (1,129) Lubricants (5,082) (3,182) Insurance (4,827) (4,418) Taxes (other than income tax) (427) (298) Other operating expenses (2,439) (2,143) (31,411) (24,860)

4. GENERAL AND ADMINISTRATIVE EXPENSES

2007 2006 U.S.$’000 U.S.$’000 Directors and Management (1,111) (940) team Remuneration Directors and Management team Annual Incentive (380) - Plan (see note 21c) Audit fees (242) (233) Class 1 fees(1) (375) - Legal fees (122) (85) Other (548) (218) (2,778) (1,476)

(1) Class 1 fees relate to the one-off expenses incurred in the preparation of the circular filed with UK Listing Authority and distributed to shareholders, relating to an Extraordinary General Meeting (“EGM”) held on 24 October 2007, for the approval of the acquisition of four new-build bulk carrier contracts and two new-build container vessel contracts (see note 7). Fees to the auditors for the review of the working capital projections in respect to the circular, amounted to U.S.$50.

68 not weighted were occur year as Companies 2006 December Company’s in with if (see Diluted a year The year.during respective the e “Directors a Basic 6. follows: inas accompanying the amounts are consolidated analysed income statement The EXPENSE 5. FINANCE Annual Report 2007 number and Goldenport by directors’ 2007 Gain/(Loss) on fair value of value fair on derivatives Gain/(Loss) Interest payable on long-term borrowings long-term on payable Interest ge ge year st of Company. the 2007 remuneration relates For to full the year period. since relating note2007 21c). (see the these if EARNINGS PER SHARE SHARE PER EARNINGS respect dividing number number issued. they ended U.S.$45,188 the ended note reflects exercised if Company and Directors earnings the share EPS presented. is shares average had average to services calculated 2006, 21c), Board 31 2007 in directors of Diluted 31 of reflects bonus Holdings of the and the options been the December shares shares the or and December were (5 diluted issuance Management per market profit of respectively) for includes reorganisation number April converted issued paid exchanged Management EPS Directors restricted the under or by issued outstanding the outstanding share Inc. 2006) in other for was value dividing EPS potential 2007 at of the years 2006). of shareholders such the the shares the on calculated into shares and (“EPS”) for contracts form up of and by stock team for beginning Annual the ended the year described the to shares team Management the shares. The the (69,885,106 for dilution as 62,533,312 C of that 31 grant Remuneration” ompany’s Company’s fair granted of shares the year attributable weighted weighted are Annual December to Incentive 31 based 31 (U.S.$58,281 would granted value Accordingly, Contributed issue of date. that in December December ended calculated under the note Incentive to on for for of shares shares team derive could stock earli aver aver Such Plan 2006. but the the the the the the 31 15 to in - - - were terms 2006 Plan Before established covers (“AIP”) of A that U.S.$’000 IP (5,366) (5,695) 2007 2007 (329) as the includes period well contemporaneous period as no U.S.$350 U.S.$30 from such costs the paid of U.S.$’000 official (4,146) (4,145) with non were 2006 in 1 cash cash the incurred, listing within listing items of 69

Financial Statements v v Goldenport Holdings Inc.

7. VESSELS

Vessels consisted of the following at 31 December:

2007 2006 U.S.$’000 U.S.$’000 Cost of vessels At 1 January 150,735 94,260 Additions 123,371 56,475 Disposals (1,588) - At 31 December 272,518 150,735 Depreciation At 1 January (25,539) (18,051) Depreciation charge for the year (15,361) (7,488) Disposals - - Financial Statements Financial Accumulated depreciation (40,900) (25,539)

Net carrying amount of vessels 231,618 125,196 Cost of dry-dockings At 1 January 15,786 11,821 Additions 12,484 3,965 At 31 December 28,270 15,786 Depreciation At 1 January (9,262) (3,609) Depreciation charge for the year (5,932) (5,653) Accumulated depreciation (15,194) (9,262)

Net carrying amount of dry-docking costs 13,076 6,524 Net carrying amount at 31 December 244,694 131,720

Operational vessel acquisitions On 17 August 2007, the Company took delivery of the M/V Nautic (renamed to MSC Accra), a On 19 March 2007, the Company took deliv- container vessel of 1,889 TEU and 33,202 DWT ery of the M/V West Gate Bridge (renamed to built in 1985 for U.S.$12,350 (including U.S.$402 MSC Finland), a container vessel of 3,032 TEU of unamortised dry-docking component). On ac- and 40,928 DWT built in 1986 for U.S.$17,000 quisition of the vessel, the Company concluded (including U.S.$165 of unamortised dry-docking a five year time charter agreement. Accordingly, component). An amount of U.S.$1,700 had been the Company estimates that the useful life of the paid in advance during 2006. specific vessel should be extended up to the end of charter (June 2012). On 20 July 2007, the Company took delivery of the M/V Ajama (renamed to Anafi), a container On 23 October 2007, the Company took delivery vessel of 2,420 TEU and 33,745 DWT built in of the M/V Bosporus Bridge, a container vessel 1994 for U.S.$36,000 (including U.S.$313 of un- of 3,720 TEU and 47,359 DWT built in 1993 for amortised dry-docking component). U.S.$19,200. The vessel was purchased in the second-hand market and was acquired with an

70 the lines amount of valuators. free U.S.$14,208 U.S.$15,844). (2006: and On current portion”. Vessel component). T of c for 976 n valued m which been a existing Annual Report 2007 l component), container with of U.S.$216. vessels existing on improvements ivery luding he amed ent period U.S.$11,300 the 12 Company gross a TEU were basis the “Deferred date. over fully total will November additions at vessels to charter U.S.$704 is acquired and of U.S.$30,500 carrying The as still vessels included be the MOL The depreciated 52 of consideration 9,868 capitalised Company in took (net recognised as revenue” period months the value with use include Brilliant) deferred M/V vessels 2007 amount of of date delivery DWT in at a of unamortised from unamortised of Gitte the U.S.$14.75 31 and has beginning to of the of the initial and built the revenue to of respectively, December

balance U.S.$264 of acquisition allocated independent their of 21 and vessel vessels, cost “Deferred the time in the U.S.$28,625 November costs 1992, M/V residual income of (see from daily sister on charter. sheet dry-docking dry-docking which and an acquisition associated 2007, Lone a has note acquired both revenue amount rate the charter geared marine capital under state 2007, value been have was This 17), (re de (in for of - - - - in note 16. discussed loans the 2006), the 4% was December “Vana”, the new $5,500 was 2006, a All 31 yearfor the 2007. ended December and s the On Disposals U.S.$10,900. During costs Dry-docking p U.S.$1,584. for ulting onent total

of ten year on 8 sale is financial equal owners concluded included February M/V the have from in the carrying vessels 2007 for to ended of cash 2007 to Company’s gross an Vana been the the the on In statements her and dry-dockings unaffiliated in of 31 2 sale at 2007, addition, 53,522 (U.S.$131,720 value six consideration provided had the May scrap the the December a of new gross Group’s vessel a 2007. the the Group operating of value. net DWT, the of vessels U.S. vessel as Company third consideration was carrying As U.S.$1,588, collateral were 2007. income dry-docking at A 1977-built at $244,694 was of was delivered party. a commission vessels amounted 31 31 total The carried paid U.S.$3,692 amount concluded statement December December to The gain

cost having during secure which of to vessel at com sale out the re US 31 to of of in - - 7 1

Financial Statements v v Goldenport Holdings Inc.

8. VESSEL UNDER RECONSTRUCTION

The balances as at 31 December were as follows:

2007 2006 U.S.$’000 U.S.$’000 Purchase Price 13,000 13,000 Capital expenditure for 24,407 9,975 reconstruction Capitalised interest and 1,473 93 other borrowing costs 38,880 23,068

On 16 June 2006, the Group acquired the M/V Fortune, a container vessel of 5,551 TEU and 68,537 DWT built in 1996, for U.S.$13,000. The vessel was damaged in a fire on 21 March 2006 under other ownership. The vessel is expected to become operational within 2008 (see note 20a). Financial Statements Financial Depreciation on the vessel will commence upon the completion of the reconstruction and the vessel becoming operational.

Vessel’s carrying value of U.S. $38,880 at 31 December 2007 (U.S.$23,068 at 31 December 2006), has been provided as collateral to secure the loan discussed in note 16.

9. ADVANCES FOR VESSEL ACQUISITION

No advances for vessels acquisition were outstanding as of 31 December 2007. The amount of U.S. $1,700 in 2006 represents 10% advance payment for the acquisition of the vessel “West Gate Bridge”. Upon delivery of vessel on 19 March 2007 the amount relating to the advance was reclassified to the cost of vessel.

10. ADVANCES FOR VESSEL CONSTRUCTION

The balances as at 31 December were as follows:

2007 2006 U.S.$’000 U.S.$’000 4 Bulk Carriers 30,286 - 2 Containers 18,981 - JV – 2 Bulk Carriers 12,971 - 62,238 -

a) New Buildings

Bulk Carriers

Goldenport Shipmanagement Limited (“GSL”), a company wholly-owned by Captain Paris Dragnis, the Chief Executive Officer of Goldenport, has agreed specification terms with Cosco (Zhousan) Shipyard Co. Ltd

72 on vessels. the value. 2009. four representing progress of vessels. the delivery upon paid shipyard of On company.of per dollar one be the U.S.$18,730, e Contracts”), O Containers On equal instalments. m The companies On e e agreed for Annual Report 2007 t e in for the with Technology On basis. loss /no profit ano on Yangzijiang under an four On Cosco Contracts. ion rs rs in an EGM, transaction. approved the rs, s n ately October of 2,500 agreement the made the of these in 24 24 5 27 total intention two 7 of contracts 31 GSL 20% an October 57,000 an The Payments which October October August construction construction November two U.S. the aggregate schedule an vessels, combined EGM October two to TEU subsidiaries of last from 2010 Imp. aggregate the new-build the Shipbuilding the $94,000, the specification representing DWT to the vessels with nominal 20% approved 2007, for 2007, 2007 2007 yard will total first GSL & transfer and as 20% in Company the 2007 Exp. each cost 2007, GSL value will progress of per tranches be the is the of to based the the that value. the vessels deposit four which amount geared estimated capacity Co. be payable made (the which (the the contract. the the them Company second Company’s Company’s of

Co. the at paid the Company terms new-build Ltd on The Group “GSL transfer “Cosco U.S.$151,000, would Group schedule of the to to is is in 20% container to the for Ltd of 20% upon by Company last each payable to the in be respect to time Payments the Agreement”), with U.S. the the for construction March entered be paid acquire

delivered 20% Contracts”) and be deposit of of yard sharehold sharehold delivery separately bulk (the in Company Company construc delivered the held the $30,200 the approxi tranch Jiangsu vessels to will of is Anhui based 2011. carri- “YZJ price total with paid four into five will the the the the for be of in - - - - -

formed the As were by paid Group. the totalling of with Barcita On hulls respectively). andJES042 JES041 tranches are share. par construct d 2007 will based financing. s 75% Corp. t s U.S.$32,000 f e party 50% On b) s note 24). (see 2008 22 January on drawn (U.S$24,000 erred ributions els els. truction r er New Buildings-Joint Venture Buildings-Joint New of 2008. part value) expected be 13 8 the in Group

The a of the

joint two Topley and Sentinel 50% on August Jiangsu paid bank March Shipping the of laws the U.S.$25,600, of of issued amount the to The of two the Barcita Payments instalments of and venture 20% company upon the for Topley construction the in Corporation (U.S.$64,000 of to construction the Holdings joint 2007 Eastern contract 2007 each 53,800 order Topley vessels share the be of S.A. joint issued Shipping delivery of the Corporation venture delivered with Marshall Citrus vessel). the will loan Sentinel to signed out capital venture Shipyard total of Inc. Corporation, is price shares DWT partially Group be financed the with cost of of 20% progress is S.A. is agreement Shipping in Part value. the which up the made in a of for Islands Holdings unaffiliated bulk parties (500 total). of the loan of each for the (ship-owners Citrus of to entered sole vessels. each finance the China, The by the one U.S.$12,800 objective schedule to shares U.S$48,000 second carrier agreement the sharehold and Corp. were cash and The two between last the loan Shipping vessel Inc., USD Within Group into which trans up of bank third 20% con con paid yard ves ves was and half un per on no to to of is a ------73

Financial Statements v v Goldenport Holdings Inc.

The Group’s 50% portion in the stand alone Financial Statements of Sentinel Holdings Inc., for the year ended 31 December 2007 is as follows:

31 December 2007 SENTINEL HOLDINGS INC. U.S.$’000 ASSETS Non-current assets Advances for vessel construction 12,971 TOTAL ASSETS 12,971

Vessels are expected to become operational in late 2008 and therefore, no significant transaction with effect on the results of the joint venture occurred within 2007.

11. OTHER NON-CURRENT ASSETS - LIABILITIES Financial Statements Financial The amounts in the accompanying balance sheets at 31 December are analysed as follows:

2007 2006 U.S.$’000 U.S.$’000 Fair value of derivative instrument(1) 50 185 Fair value of derivative instrument(2) (194) - (1) interest rate swap for the loan of vessel Gianni D., which was fully repaid in 2005. (2) interest rate swap for the loan of vessel Bosporus Bridge.

Variability can appear in floating rate assets, float- recorded in finance expense or income, according rate liabilities or from certain types of fore- ingly, in the consolidated income statement. The casted transactions, and can arise from changes fair value of the derivative financial instrument in interest rates or currency exchange rates. at 31 December 2007 and 2006 was an asset of U.S.$50 and U.S.$185 respectively, which is in- During 2003, the Group entered into an interest cluded in other non-current assets in the accom- rate swap for the loan of vessel Gianni D. The panying consolidated balance sheet. notional amount of this contract amounted to U.S.$10,400. Under the swap agreement, the During 2007, the Group entered into an interest Group exchanges variable to fixed interest rate at rate swap for the loan of vessel Bosporus Bridge. 3.60%. The swap agreement requires the Group The notional amount of this contract amounted to pay additional interest when LIBOR exceeds to U.S.$12,166. Under the swap agreement, the 6.00% in any twelve-month year until 2009. It Group exchanges variable to fixed interest rate is noted that the bank loan for which the inter- at 4.64%. est rate swap agreement was entered into, was The fair value of the specific derivative financial repaid in full in 2005. However, the Group chose instrument at 31 December 2007 was a liability to maintain the swap contract. of U.S.$194, which is included in other non-current liabilities in the accompanying consolidated The Group did not designate the swap agreement balance sheet. As the Group did not designate as an accounting hedge and accordingly, gains or the swap agreement as an accounting hedge, the losses resulting from changes in the fair value of loss resulting from this derivative instrument, of this derivative instrument, which approximated U.S.$194 for the year ended 31 December 2007, U.S.$135 loss and U.S.$1 gain for the years ended was recorded in finance expense in the consoli- 31 December 2007 and 2006 respectively, are dated income statement.

74 C q T 14. CASH AND CASH EQUIVALENTS CASH AND 14. CASH CASH 13. RESTRICTED CLAIMS 12. INSURANCE Annual Report 2007 made bank to retention the transfers. engaged cease the cash retained of 31 December as Balance off written Amounts 1,305 Collections Additions of as Balance 1January Short term deposits term Short at bank Cash Restricted cash Restricted he rates. short-term deposit ofuirements Group, the interest at andearn respective the ash restricted at for banks for varying the cash earns future periods concerns interest instalment U.S.$’000 of 2007 2007 between the at - floating U.S.$’000 U.S.$’000 amounts of 117 (459) (1,127) 99781,372 19,947 90481,069 19,074 ,6 1,305 3,268 2007 2007 ,4 1,586 3,144 2007 2007 (54) 873 Group’s one U.S.$’000 rates 2006 1,166 held day loans based and in U.S.$’000 U.S.$’000 bank (see 2006 three 2006 303 on 259 (81) accounts daily note months, 16). bank of During depending deposit the management 2007 rates. on the Short the Company company immediate term deposits agreed that cash were with are re - 75

Financial Statements v v Goldenport Holdings Inc.

15. SHARE CAPITAL AND SHARE PREMIUM

Share capital consisted of the following at 31 December:

2007 2006 U.S.$’000 U.S.$’000 Authorised Shares of $0.01 each 1,000 1,000 Issued and paid Shares of $0.01 each 699 699 Total issued share capital 699 699

Formation: The Company was formed on 21 March 2005, and prior to the reorganization analyzed below, its share capital consisted of 500 shares authorized, issued and outstanding, without par value. On 30 March 2006, conditional on admission to the Official List of the London Stock Exchange, the Company amended its Articles of Incorporation. Under the Company’s Amended and Restated Articles Financial Statements Financial of Incorporation, the Company has an authorized share capital of 100,000,000 shares (all in registered form) consisting of 100,000,000 shares with a par value of U.S.$0.01 per share. The Company cancelled the existing 500 shares with no par value. Prior to the reorganization, seventeen holding companies (the “Contributed Companies”), each in turn owning a vessel-owning company, were wholly- owned by Captain Paris Dragnis. The reorganization described below was a transaction between companies under common control, and has been accounted for in a manner akin to a pooling of interests for the years prior to the reorganization. Accordingly, the financial statements of the Group have been presented using historical carrying costs of the Contributed Companies. The consolidated financial statements have also been prepared on the basis that Goldenport existed for all years prior to the reorganization and was the parent company of the Contributed Companies in all such years.

The reorganization that took place on 30 March 2006, involved the following steps:

a. Captain Paris Dragnis contributed all of the shares held by him in the seventeen intermediate holding companies to Goldenport, in exchange for shares in Goldenport, fulfilling his obligation for the Company’s share capital, in accordance with the share for share exchange agreement dated 30 March 2006; and b. Captain Paris Dragnis transferred all of the shares in Goldenport to Starla Shipholding Corporation (Starla), a company wholly owned by Captain Paris Dragnis; as a result Starla was, prior to admission to the Official List of the London Stock Exchange, the sole shareholder of the Company beginning of the earliest year presented. Starla is the ultimate holding company of the Group. Following completion of the reorganisation, the Contributed Companies were wholly-owned subsidiaries of Goldenport. d. On 5 April 2006 the Company was admitted to the Official List of the London Stock Exchange, issuing 25,531,915 shares of U.S.$0.01 each. On 11 April 2006 the over allotment option was exercised for 2,553,191 shares at GBP 2.35 per share bringing the total offer to GBP 66,000 (or U.S.$115,465).

The analysis of the share premium is as follows:

U.S.$’000 Proceeds from Initial Public Offering, gross 115,465 Issuance costs (8,193) Proceeds from Initial Public Offering, net 107,272 Nominal share capital cost (281) Share premium 106,991

76 follows: as are in analysed accompanying the amounts balance sheets The 16. DEBT LONG-TERM Annual Report 2007 d. Issued 26 June d. Issued 17 Issued c. May 31 b. March Issued 13a. Issued 2003, February Loan Bank i. Issued 17i. Issued August 19 2007,h. Issued July 14 g. Issued March f. 14 Issued November 19 2006, e. Issued July Total 27 November l. Issued 11 Issued k. November 18j. October Issued Less: financing costs financing Less: Long-term portion Long-term portion current Less: September 2011September maturing 26 2006, 2009 August maturing 172005, 2010September maturing 30 2004, May 2009 maturing 30 August 2012August 2007, maturing 17 maturing 19 2014 July 2012.March 2007, maturing 14 2009 November maturing 28 2006, maturing 16 2011. July August 2009 August 2007, maturing 17 2014November 2007, maturing 11 2014October 2007, maturing 18 Msc Scotland Msc Bridge Howrah Socotra, Msc D,Alex Gianni D, Emirates, Achim, Beauty, Msc Tilos,Limnos Lindos Vessel(s) Msc Accra Msc Anafi Finland Msc D, Samos Glory Himalayia, Msc Ios, Athos, Express, TuasFortune, Vasos it,MLBilat1,5 .4 - Inc. Holdings 5.84% Goldenport 18,750 Brilliant MOL Gitte, YZJ-816 YZJ-815, Bridge, Bosporus 31 December 2007 31 December Amount Rate % Amount Rate % Rate Amount % Rate Amount (30,755) 162,020 130,765 30060%2,0 6.38% 20,000 6.05% 23,000 00059%- 5.91% 20,000 28560%- 6.00% 22,825 25060%- 6.03% 12,500 18059%1,0 6.09% 17,000 5.91% 11,800 27062%1,0 6.42% 15,900 6.20% 12,700 51062%1,0 6.49% 17,500 6.29% 15,100 ,0 .8 ,0 6.09% 7,400 6.28% 6,000 ,0 .9 - 5.89% 9,200 ,5 .9 ,5 6.13% 3,150 6.19% 2,450 ,9 .6 - 5.76% 7,695 (500) U.S.$’000 31 December 2006 31 December (19,900) 80,950 60,727 (323) U.S.$’000 ------77

Financial Statements v v Goldenport Holdings Inc.

The upcoming repayment terms of loans with the last one being due on 28 November 2008 balances outstanding at 31 December 2007 are: and four quarterly instalments of U.S.$1,000 each with the first one being due on 28 February 2009 Loan a: This loan is repayable in three quarterly and the last one being due on 28 November 2009 instalments of U.S.$350 each, the first one being along with a balloon payment of U.S.$12,000. due on 30 May 2008 and the final one being due on 30 May 2009, along with a balloon payment Loan g: This loan was obtained to finance the ac- of U.S.$1,400. quisition cost of the M/V MSC Finland (see note 7) and is repayable by nine quarterly instalments Loan b: This loan is repayable in six semi-annual of U.S.$600 each, the first one being due on 14 instalments of U.S.$700 each, the first one being March 2008 and the ninth on 15 March 2010 and due on 30 March 2008 and the final one being eight quarterly instalment of U.S.$475 each, the due on 30 September 2010, along with a balloon first one being due on 14 June 2010 and the final payment of U.S.$1,800. one being due on 14 March 2012. Financial Statements Financial

Loan c: This loan is repayable in seven quarterly Loan h: This loan was obtained to finance the ac- instalments of U.S.$1,300 each, the first one be- quisition cost of the M/V Anafi (see note 7) and is ing due on 17 February 2008 and the final one repayable by twenty seven quarterly instalments being due on 17 August 2009, along with a bal- of U.S.$675 each, the first one being due on 19 loon payment of U.S.$2,700. January 2008 and the final one on 19 July 2014 along with a balloon payment of U.S.$4,600. Loan d: This loan is repayable in six quarterly instalments of U.S.$800 each, the first one be- Loan i: This loan was obtained to finance the ac- ing due on 26 March 2007 and the sixth being quisition cost of the M/V Msc Accra (see note due on 26 June 2009, eight quarterly instal- 7) and is repayable by nineteen quarterly instalment of U.S.$600 each, the first one being due ments of U.S.$405 each, the first one being due on 26 September 2009 and the final one being on 16 February 2008 and the final one on 16 due on 26 June 2011, plus a balloon payment of August 2012. U.S.$3,100, being due on 26 September 2011. Loan j: This loan was obtained to finance the ac- Loan e: This loan is repayable in eight semi-an- quisition cost of the M/V Bosporus Bridge (see nual instalments of U.S.$1,450 each, the first one note 7) and is repayable by twenty eight quar- being due on 16 January 2008 and the final one terly instalments of U.S.$333.75 each, the first being due on 16 July 2011, along with a balloon one being due on 18 January 2008 and the final payment of U.S.$3,500. one on 18 October 2014 along with a balloon payment of U.S.$3,155. Loann f: O 14 November 2006 the Group signed an agreement for a secured term loan facil- Loan k: This loan was obtained to finance the ac- ity of U.S.$30,000. The Group will utilise the quisition cost of the sister vessels M/V Gitte and U.S.$25,000 in order to reconstruct the M/V M/V MOL Brilliant (see note 7) and is repayable Fortune and the rest was used for repayment of by twenty eight quarterly instalments of U.S.$575 existing loans (the vessels involved in the agree- each, the first one being due on 11 February ment were used as collateral to the loan).The total 2008 and the final one on 11 November 2014 of U.S.$30,000 has been drawn (U.S.$ 10,000 in along with a balloon payment of U.S.$2,650. November 2006, U.S.$10,000 in late December 2006, U.S.$ 5,000 in late June 2007 and U.S.$ Loann l: I addition to the loans mentioned 5,000 in October 2007). This loan is repayable above, a non-amortising, revolving credit line in four quarterly instalments of U.S.$1,750 each, was obtained on 27 November 2007, to support the first one being due on 28 February 2008 and the Group’s operations. It is in Group’s discretion

78 for In the interest various concluded. c (see value follows: as at in31 accompanying the are amounts analysed balance sheets The December PAYABLES OTHER AND 18. ACCRUED LIABILITIES Deferred 17. REVENUE DEFERRED interest to Annual Report 2007 e 2007,December relates which to that after revenue date. earned U.S.$415. the up August bear Loans in full. thishas utilised facility from discretion. hange Other accrued expenses accrued Other Other payables Other costs dry-docking Accrued Accrual for supplementary calls supplementary for Accrual interest Accrued Accrued auditfee Accrued wages Accrued Accrual for annual for incentiveAccrual plan st

drawdown addition, to a first of loan note interest notional delivery of twelve (a-l) 5.89% tranches, 2009 variable rate 10 periods the revenue bears 7) The As are out in vessel the swap at months. and of and amount remaining any of the denominated of interest LIBOR to of vessel in Company 31 includes 18 can amount secondhand for agreement charter multiples multiples fixed December instalments the be equal The plus (see at balance interest an extended last free LIBOR up facility a has note amount to of in of margin. for to eight and market. 2007, U.S.$500 the U.S. entered one bear in 7). U.S.$20,000 rate plus loan expires deferred loan the upon dollars, The instalments of month fixed the For at a (j), U.S.$11,300, This amount amount margin. into 4.64%, and amount bank’s loan Group on to inter U.S.$’000 amount revenue and and ex for an 17 8,966 2,936 1,643 1,534 2007 2007 1,412 in g 350 678 160 253 - - actually recognized which will represents m to T The respectively. 2006, December for Total 0.70% and1.125% LIBOR. above e Holdings. vessels, 2007 owning ratio as of amounted to U.S.$0 andU.S.$1,166 respectively. s paid he be ents vessels changes over minimum represents the loans recognized interest remaining

and and to to contain additional year cash the subsidiary acquire income without are The 2006 corporate in borrowers paid ended received U.S.$’000 secured requirements management the restricted covenants to 1,365 3,754 2006 consisted the loans 668 in 663 783 185 was 90 the difference indebtedness income - - companies the 31 vessel guarantees bank’s with from U.S.$5,822 vessels. have current December net including of over first M/V and charterers regarding between assets prior restricted margins priority at fifty ownership year The and Bosporus and consent of 31 restrictions 2007 of two mortgaging loan amounts Goldenport U.S.$3,471 the the prior December hull mortgag cash between months and

market vessel- as agree Bridge of cover to well and the 31 31 to as - - 79

Financial Statements v v Goldenport Holdings Inc.

19. DIVIDENDS DECLARED

The Board of Directors of the Company will propose to the Annual General Meeting for approval, a final dividend for 2007 of 15 pence per share or total GBP 10,483 (11.9 pence per share or GBP 8,316 for 2006). The dividend proposed by the Board of Directors, is expected to be approved by the AGM to be held on 30 April 2008.

Dividend rights: Under the Company’s by-laws, each ordinary share is entitled to dividends if and when dividends are declared by the Board of Directors. There are no restrictions on the Company’s ability to transfer funds (other than funds denominated in Marshall Islands dollars) in and out of Marshall Islands. The payment of dividends is subject to the approval of the Annual General Meeting of Shareholders. The payment of dividends was U.S.$26,362 in 2007 (23.5 cents per share or 11.9 pence per share as final dividend for 2006 and 14.2 cents per share or 7.0 pence per share as interim dividend for 2007) and U.S.$ 13,924 in 2006 (15.6 cents per share before the admission of the Company’s shares in the London Stock Exchange as final dividend for 2005 and 10.6 cents per share or 5.6 pence per share as interim dividend for 2006). Financial Statements Financial 20. COMMITMENTS AND CONTINGENCIES

a. Various claims, suits, and complaints, including yard that will undertake the major repairs. those involving government regulations and The Group has entered to this respect, into an product liability, arise in the ordinary course of agreement with COSCO Zhouzhan yard for an the shipping business. In addition, losses may amount of U.S.$12,490, which will be payable arise from disputes with charterers, agents, in- based on the progress of the repairs. The re- surance providers and from other claims with maining estimated cost mainly concerns spare suppliers relating to the operations of the parts for the vessel. Group’s vessels. Currently, management is not aware of any such claims or contingent liabili- b. Sentinel Holdings Inc. (the joint venture com- ties, which should be disclosed, or for which a pany) entered into agreement with Jiangsu provision should be established in the consoli- Eastern Shipyard for the construction of two dated financial statements. new build bulk carriers of 53,800 DWT each. The total construction cost is estimated to As explained in note 8, on 16 June 2006, the be approximately U.S.$64,000 (U.S.$32,000 Group acquired the M/V Fortune, a container each), which is payable in five equal instal- vessel of 5,551 TEU and 68,537 DWT built in ments. As of 31 December two instalments 1996, for U.S.$13,000. The vessel was dam- of U.S.$6,400 have been paid for the both aged in a fire on 21 March 2006. The vessel vessels JES041 and JES042. The remaining in- is expected to become operational within stalments, three for both vessels JES041 and 2008. The total estimated cost of reconstruc- JES042, are committed and will be paid in action, excluding the initial acquisition cost of cordance with the milestones as described in U.S.$13,000, is expected to be approximately the contract. U.S.$35,000 (including capitalised interest, supervision fees and other). As of 31 December 2007, the expenditure incurred for reconstruc- c. Goldenport Holdings Inc. entered into agree- tion amounted to U.S.$25,880 (31 December ment with Cosco (Zhousan) Shipyard Co. for 2006: U.S.$10,068). The remaining amount of the construction of four new build bulk carri- approximately U.S.$ 9,000, to reach the total ers of 57,000 DWT each. The total construc- estimated reconstruction cost, is to be incurred tion cost is estimated to be approximately periodically until the delivery of the vessel. The U.S.$151,000, which is payable in five equal main component of the remaining reconstruc- instalments (see note 10a). Four of these pay- tion costs of U.S.$ 9,000, is the cost of the ments are committed and will be paid in ac-

80 F d. On Annual Report 2007 follows are known of revenue is included: taking accounted uture new Imp. TEU Shipbuilding into in cordance b bank. financing secured ined the into 7 minimum nominal (it build & agreement cost contract. August Exp. is for; through not account noted with geared is taken in Co. Co. estimated capacity charters Cosco 2007, the Three that letter for any Ltd with into container milestones, ihnoeya 5,1 67,602 157,318 > 5years 1-5 years year one Within the the profit new and the of consideration; of each. receivable to Jiangsu construction vessel these guarantee buildings Company Anhui share be vessels The approximately off-hires payments as scheme; upon Technology Yangzijiang total described (see of from in entered of 2,500 early addition time com and note two the for are - U.S.$’000 dry-docking charter the 0,9 84,968 202,591 10a) 6,1 152,570 363,717 3,808 2007 2007 vessel the The e. arrangements of delivery committed instalments Two the U.S.$94,000, of bank. letter guarantee financing the from arrangements r 3 and65 of months as 31 2007. December calculation angements into days milestones, Group of Joint

these that U.S.$’000 the 2006 Venture and is has (see on could as - payments based vessels which have will all at entered as note its occur 31 described be (“JV”) remaining on by is operating 10a). December paid the are payable the into but (see in Four secured floor charterers are accordance time in terms note vessels. payments the in not rate 2007, charter five through 10b) contract. between currently without are are These equal 50% with not are ar- as a 8 1

Financial Statements v v Goldenport Holdings Inc.

21. RELATED PARTY TRANSACTIONS

Transactions with related parties consisted of the following for the years ended 31 December:

2007 2006 U.S.$’000 U.S.$’000 Voyage expenses – related party Goldenport Shipmanagement Ltd (a) 2,497 1,813 Management fees – related party Goldenport Shipmanagement Ltd (a) 3,906 3,393 6,403 5,206

Balances due from related parties as at 31 December comprise the following:

2007 2006 U.S.$’000 U.S.$’000 Financial Statements Financial Due from related parties Goldenport Shipmanagement Ltd (a) 3,289 811 Total 3,289 811

a) Goldenport Shipmanagement Ltd. (“GSL”): All vessel-operating companies included in the consolidated financial statements have a management agreement with GSL, a Liberian corporation directly controlled by Captain Paris Dragnis, to provide, in the normal course of business, a wide range of shipping managerial and administrative services, such as commercial operations, chartering, technical support and maintenance, engagement and provision of crew, financial and accounting services and cash handling in exchange for a management fee of U.S.$15.75 per vessel per month (same for 2006).

In addition GSL charged the Group, U.S.$ 430, for the services rendered for the reconstruction of M/V Fortune. This amount is included in the capital expenditure for reconstruction (see note 8).

For the year ended 31 December 2007 commission charged by GSL amounted to U.S.$2,497 (2006: U.S.$1,813) and is included in Voyage expenses-related party. GSL has a branch office registered in Greece under the provisions of Law 89/1967.

The amounts receivable from GSL, shown in the table above, represent the vessel-operating companies’ cash surplus handled by GSL.

(b) Sentinel Holdings Inc. appointed Goldenport Shipmanagement Ltd. as a consultant for the new-buildings project at Jiangsu Eastern Shipyard of China (note 10). As part of the supervision agreement between the two companies, GSL undertakes the plan approval, the attendance and supervision of the construction and trials of vessels JES041 and JES042, in exchange for a supervision fee for the first twelve months from steel cutting (unless delivery is earlier). For the year ended 31 December 2007 such fee charged by GSL amounted to U.S.$276 half of which is included in ‘vessels under construction’ of the accompanying consolidated balance sheet.

(c) Although two incentive plans: ‘The Goldenport Discretionary Share Option Plan’ and the ‘Goldenport Share Award Plan’ were approved prior to official admittance to the London Stock Exchange, none of them was activated up to 31 December 2007. A new plan (“Annual Incentive Plan”) was approved in the AGM held on 17 May 2007.

82 Remuneration award base include, but Bonus. be which select base limit criteria s I Committee. new l Half • a f n The Annual Report 2007 n Full • of Full • Bonus decided Management. Under (“Base Award”). Board the and the to y t ers tricted nce-related ual ificant was Annual Incentive Plan and other remuneration of Directors and Management team Management and of Directors remuneration other and Plan Incentive Annual in in paid shares. andwillbe will apply paid Base l ofAward in form given the willbe shares. participant l Award of in one three ways: Award. of at Base only 90% the each shareholders ects ects performance-related. Remuneration it Remuneration of eligible Management) plan for salary. cash salary. shares will will Shares arrangements shares shares the in Cash decided cash Again, Cash-Half remained Award the shares proportion the without participant each to the future called not be percentage bonus FSA, FCA, and Award The The terminate to employees rewards AIP, administrated (primary in Award in selects participant In in the Committee) it that more other the any then and on being years, the order Board Remuneration is a then same Shares Committee delivered Committee 90% participant of intended (‘FCA’): the can Annual for event under (‘FSA’): Company. and all should the under circumstances closely or total limited to of the other the to rule the (after as Executive elect (i.e secondary). HCHS, Award to achieve will In base exceed adjust for AIP the reserves remuneration by Incentive the If will purposes If 2006 replace be in Executive that addition, 50% align the will be the a may to, believes to the the will deliverable The terms AIP the salary apply Committee proposal then (‘HCHS’): 40% subsequent have this, propose participant 75% participant the the Remuneration the Directors apply Annual 110% Annual pay the performance them form which the In Plan and o of of applicable 110% maximum maximum that the of ea of n their Directors perform cash interests his right the the 50% of ch annual annual should by (‘AIP’), will with of to Board large If could a Cash Cash Base Base year may rule and sig- but AIP AIP the the the a se se re of be to n of a ------The the base financial Committee 18 Directors on As shares. any ofencumber AIP the pledge, not calendar participants for base

AIP d registered for The pr award. c The 2008). date (2April dividend on the the award the FSA the statements. ompanying financial ends oved the 18 December per 2007. issuance each closing AGM full the shares award. other three selected AIP shares participant Board allowed to Remuneration award award, December for under date the the The U.S.$350, shares hypothecate statements year participant. The under of 2008 of in but market proposal, terms financial 17 one to of FCA of the to whereas Directors AIP the from 2007 the announcement will each May during shall and the sell, selected provisions 2007 amounted shares participants of which value shares be registration the 2007. terms approved for Committee have participant. AIP statements subject assign, or The calculated a FSA proposed on 2007, right will o otherwise restricted the are relating the the f Under Board of 25 the of is be to to to AIP right exchange, full included FCA and February AIP, 110% the of Company’s name allotted finalisation vote the U.S.$30 these on Out cash of the to and by to full announced as to is Remuneration period dispose participant the the Directors in reference of its 90% approved receive base year of on authorised award respect provisions in 2008 and the full Board meeting the transfer, and the the of results of award shares of share of then base divi four one and ap the the the the ex- ac on to or of of in is - - - 83

Financial Statements v v Goldenport Holdings Inc.

There are no other choices for the participants. The amounts included in the financial statements under AIP and other remuneration of Directors and Management team as of 31 December are as follows:

2007 2006 U.S.$’000 U.S.$’000 Directors and manage- 1,111 761 ment team remuneration Annual cash bonus - 179 AIP- cash bonus 30 - AIP- share bonus 350 - 1,491 940

(d) The Interests of the Directors, the Senior Management and their respective immediate families in the share capital of the Company (all of which are beneficial unless otherwise stated), were as at 31 December 2007 as follows:

Financial Statements Financial Number of shares Percentage Number of Percentage of at admission Name of shares at shares as at shares as at (after over admission 31 Dec 2007 31 Dec 2007 allotment) Captain Paris Dragnis (1) 41,800,000 59.812 % 41,800,000 59.812 % Chris Walton(2) 2,128 0.003% 2,128 0.003 % John Dragnis(3) - - 125,000 0.179 % (1) Through Starla (see note 15) (2) Chris Walton is the non-executive Chaiman of the Board of Directors (3) John Dragnis is the Commercial Director of the Company

No change has occurred in the interest of the Directors, the Senior Management and their respective immediate families in the share capital of the Company since 31 December 2007.

84 by the (ii) number year. on company ‘’equivalent (b) corporations on shares organization, source will country Consolidated n (50% i or t be the 50% classes established Test). r established i l from Code j and m t j Islands Under TAXES INCOME 22. Annual Report 2007 country constructively to Pursuant income. in have However, ng ng ect ect y ations, ies ions y’s ents, is the the individuals more corporations the at either ‘’regularly the be shares exempt taxable company’s country market value, to to Notwithstanding the been provide, of least of Under aggregate

Ownership accompanying are considered market, income ships of (a) the and registration its of or tax that that of international 1986, ‘s to (i) the the the ‘’primarily shares included of is outstanding in 60 shares the securities securities exemption’’ from year laws for of more the meets the on organised listed the grants grants who in in Companies traded’’ the such Consolidated its company under days organization derived other shares vote as any pertinent another organised international United number is respective U.S. shares outstanding regulations, of to is United than are amended Test) both on at class during in owned, taxable an and an be and and specified than the consolidated tax operation market market’’ ‘’residents’’ least vessel the will on the by in 50%

‘’regularly shares, ‘’equivalent is equivalent of States representing to are country or value of if tonnage regularly the States part, the an organised foregoing, Republic a in not the the market in United the or 10% shares Companies directly jurisdictions foreign year operating (ii) owned, of minimal (the established Group if during the United of company’s following shipping taxable be stock that Internal company of in by the of (i) (Publicly-Traded the another of that in traded’’ of its the ‘’Code’’), considered United ships traded and voting States traded one statement taxes, exception each or value the of exemption’’

corporation which in the the is the attribution actually country more States company’s quantities, outstand grants indirectly, year; expenses a is not Marshall Revenue are or general income. require average compa operat taxable class foreign foreign regula of corpo traded securi during power shares of States which on on more 50% than sub sub U.S. and and the the an an an to to or of of of ------in held u Treasury year.taxable more more 883 “qualified Override can a the t September c Company e u p rules, taxable g United it shares. and In to believes more and 2005. are In outstanding ions ient ries mpt U.S. from income tax. federal lations lgated any ered, satisfies situations the the addition, beneficially also Company, the 2007 to group are like currently 5% of of than on All event the closely-held States Regarding preclude widely-held in year that be the regulations apply effective each the Rule Stockholders the can more stockholders” tax final the regulations satisfied half 24, of value where the shares, the by Company, by

Company’s source years, will establish class 5% beginning Publicly-Traded satisfy to owned form 2004. virtue the

than persons management 5 non-qualified for of taxable the nevertheless Stockholders, Percent the group ownership based of (‘’5 under number such in calendar the shipping the of half provide As 2003, that by the ship August the that Percent for a Company who ship-operating with a class 50% a from on years special the the Company’s Override operating 50% are publicly purposes result, among of 2004, the year income that Test Code each the of of 2003. of 5% considered

days Ownership not owning days Override beginning Ownership there trading the the rule taxpayers, the calendar the and believes Stockholders such traded 2005, apply own were Rule the Company’s during during companies company’s These will of applicable Company 5 are stock all 50% subsidi Section Percent closely- volume regula Rule’’). is 5% be prom if to 2006 of suffi com after Test. trig year that reg Test the the the like ex for be its or or ------85

Financial Statements v v Goldenport Holdings Inc.

23. FINANCIAL INSTRUMENTS

Risk management objectives and policies

The Group’s principal financial instruments are bank loans. The main purpose of these financial instruments is to finance the Group’s operations. The Group has various other financial instruments such as cash and cash equivalents, restricted cash, trade receivables and trade payables, which arise directly from its operations.

From time to time, the Group also uses derivative financial instruments, principally interest rate swaps.

The main risks arising from the Group’s financial instruments are interest rate risk and credit risk. The majority of the Group’s transactions are denominated in U.S. dollars therefore its exposure to foreign currency risk is minimal.

Cash flow interest rate risk Financial Statements Financial

Cash flow interest rate risk arises primarily from the possibility that changes in interest rates will affect the future cash outflows of the Group’s long-term debt. The sensitivity analysis presented in the table below demonstrates the sensitivity to a reasonably possible change in interest rates (libor), with all other variables held constant, on the Group’s profit for the year (fluctuations in interest rates do not impact the Groups equity). The sensitivity analysis has been prepared using the following assumptions:

• A rise or fall in interest rates will impact interest expense on floating rate borrowings. • Although the fair value of the derivatives, and therefore the income statement will be impacted by movements in interest rates, the fair value impact of the derivatives have been excluded from the sensitivity analysis as not significant. • One interest rate swap entered into in 2007 economically hedges a loan and the interest payments/re- ceipt almost fully offset, therefore the loan has not been included in the sensitivity analysis.

Increase/Decrease (%) Effect on profit +0.5% 410 2007 -0.5% (410) +0.5% 325 2006 -0.5% (325)

Credit risk

The Group’s maximum exposure to credit risk in the event the counterparties fail to perform their obliga- tions as of 31 December 2007 in relation to each class of recognised financial assets, other than derivatives, is the carrying amount of those assets as indicated in the balance sheet.

Concentration of Credit Risk

Financial instruments, which potentially subject the Group to significant concentrations of credit risk, consist principally of cash and cash equivalents, and trade accounts receivables. The Group places its cash and cash equivalents, consisting mostly of deposits, with financial institutions. The Group performs annual

86 The term deposits. time in short held was respectively, As operating the entities p equity.and shareholders’ t under collection The risk Liquidity currency The risk currency Foreign approximates which fair value. cost amortised Derivatives Values Fair i evaluations Annual Report 2007 m c In this In way Group the rating aims tocredit toprocess. maintain facilitate raising. fund agood for is flexibility or accounts Group’s the in line with was policy. ng management the of receivables. trade in advance, supporting service ion hange orting ents 2006 2007 that its transaction at the commodities London majority Group following funding 31 time-charter where not new rate rather the December risk through receivable up targets more are aims of management (the Stock buildings of from to as strategy, Increase/Decrease Increase/Decrease in the table than recorded in GBP/USD rate in GBP/USD the per Group’s exercise foreign than to traders), throughout the relative Exchange, operations Group’s 2007 agreements mitigate the to is demonstrates +5% +5% -5% -5% 70% use the generally more the industry currency), at board was and of established of credit respective fair of Group transactions cash liquidity bank speculative part made 2006 the is the value level where practice minimal. managed standing generation. value of objective loans. with Group. the for an and while the limit risk container-line amount as the sensitivity all of cash are the or The proceeds by per However, of is Effect on profit on Effect other The all each by time undercapitalised is denominated 80%. charterer those managing payback other Group’s the Investment the to vessels of deposits investment (1,754) variables 1,754 (631) maintain industry 631 GBP chartering to In financial (in financial following operators, all a policy pays periods GBP) are 6,300 reasonably cash the in held is in normally practice a for GBP will carefully were

institutions. acquisitions assets in U.S. balance generation entities. (U.S.$12,621) of the applied constant, the new major be since vessels dollars placed admission transportation funded the and possible chartered investments controlled,

between there producers The as charterer financial to of therefore Credit by within part in vessels major through and the is short its change of no of under Group’s continuity operations, GBP risk the 2007 the with other and liabilities pays for trading service term are its with borrowings, Company’s 17,947 investment in second-hand government-owned time-charter exposure authorisation the normally for significant deposit the profit respect in the houses are of bank applying advance, US (U.S.$35,137) funding recorded for transporta to Dollar chartered accounts. financing shares appraisal whereas to the balance (includ foreign vessels agree limits trade cash sup year and ex to at - - - - - 87

Financial Statements v v Goldenport Holdings Inc.

The Group normally meets its working capital needs through cash flows from operating activities and available credit lines. Management prepares cash flow projections in order to forecast its short term working capital position. Accordingly, on 27 November 2007 the Group concluded a non-amortising, revolving credit line, to support the Group’s operations (see note 16). As of 31 December 2007, the Group has utilised this facility in full.

Excess cash used in managing liquidity is only invested in financial instruments exposed to insignificant risk of changes in market value, being placed on interest-bearing deposit with maturities fixed at no more than 3 months. Short term flexibility is achieved if required by credit line facilities.

The table below summarises the maturity profile of the Group’s financial liabilities at 31 December 2007 and 2006, based on contractual undiscounted payments (including interest to be paid, which is calculated using the last applicable rate for each loan, as of 31 December 2007 and 2006):

<3 3- 12 1- 2 2- 5 31 December 2007 >5 years Total months months years years $000 $000 $000 $000 $000 $000 Financial Statements Financial Interest bearing loans 11,028 27,613 67,835 55,157 25,087 186,719 Trade payables 8,512 - - - - 8,512 Other payables 1,412 - - - - 1,412 Derivative 11 31 69 51 32 194 instrument liability 20,963 27,644 67,904 55,208 25,119 196,837 <3 3- 12 1- 2 2- 5 31 December 2006 >5 years Total months months years years $000 $000 $000 $000 $000 $000 Interest bearing loans 6,957 17,774 25,145 49,172 - 99,048 Trade payables 6,941 - - - - 6,941 Other payables 1,365 - - - - 1,365 15,263 17,774 25,145 49,172 - 107,354

Capital Management

The primary objective of the Group’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximize shareholder value.

The Group monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Group’s policy is to keep the gearing ratio below 75% on average (see also Group’s funding policy in Liquidity Risk section). Excess capital represented by a low gearing ratio, is used to fund further expansion plans. The Group includes within net debt, interest bearing loans, trade payables, accrued liabilities and other payables less cash and cash equivalents. Capital includes issued share capital, share premium and retained earnings. 2007 U.S.$000 2006 U.S.$000 Interest bearing loans 162,020 80,950 Trade payables, accrued liabilities and other payables 17,478 10,695 Less: cash and short term deposits (19,947) (81,372) Net debt 159,551 10,273

88 the to U.S.$13.75,Services above. discussed as respective for bulk vessel GSL these 1). the 5% agreed 5 avr f nrae n aaeet fee: management in increase of Waiver of services. f common the to subsidiary Drawdown Drawdown of loan: part activities: GSL of Transfer DATE SHEET BALANCE THE AFTER EVENTS 24. Annual Report 2007 the p all ices. Issued share capital share Issued Gearing ratio Gearing Share premium Share Capital & Net debt &Net Capital Total capital earnings Retained artment January A the be the vessel monthly owner increase management will carriers of monthly According services paid per activities services with the be control) were owning month Goldenport monthly of reduced 2008 from loan (JES041 management in the rental the and transferred the transferred to of agreement Goldenport Group building in Goldenport companies for fee Management the the management by management of order and

O the for Euro U.S.$2.0 Marine rental n accounting to 22 JES042) 2008 rental to (a fee to from 14,500 waive

January concluded On related of represent reflect Goldenport Marine and Services Shipmanagement to the will 1 the of GSL and fee. fee U.S.$13.75 the therefore, the January and is JV the 2008 this be total party also to a Services payable Therefore, new-build right bank (see 12.5% between legal head adjusted the transfer Marine agreed cost and under 2008 note new to

(see de per O of to to as of of n a - -

February to (c). loan and 19 2008 note cash U.S.$334 2007 on i and Dividends JES041 refinancing Loan repayments: repayments: Loan s i s e shipyard contract. the per as to amounting proposed Group ng to total of £15,375. ng enting: tanding d be 30 February with to on b) 10b) reserves 2007 U.S.$000 2006 U.S.$000 2006 U.S.$000 2007 approved will April U.S.$675 U.S.$6,400 the paid and 19 a) the 2008 balance 340,998 106,991 181,447 in the become : 73,757 a

2008. February the third to 47% On of 699 JES042 2008 U.S.$1,450 relation dividend drawdown vessel £10,483. from

U.S.$575 the amount by 25 in instalment As of

U.S.$405 the 22 that February second relation loan that owning the a 2008 O to result pence AGM n of The was of in loan Joint in (e), was of 14 15 U.S.$1,300 U.S.$9,600 relation instalment relation the dividend in to for companies U.S.$16,000, on 2008 to paid per January paid (j), pence Venture relation be total 18 JES041 loan 106,991 159,801 149,528 share, 41,838 on directly held the 699 January in 6% to to dividend is 22 2007 (h), loan per in 2008 being of to Company in expected partners; proceed the amount amount January relation Athens loan vessels to on repre share, (k) 2008 from out the the the for on 11 (i) - - - - - 89

Financial Statements v Financial Statements v information, conclusions recommendations. or Holdings Inc notdoes by its reference above or distribution imply its endorsement of or concurrence with such Goldenport management. its or Inc Holdings Goldenport of predictions or forecasts opinions, represent not do and alone theirs are analysts these by made performance Inc’s Holdings Goldenport regarding forecasts or noteestimates Please opinions, thatanylisted above. analysts theby followed is Inc Holdings Goldenport Analyst Coverage Financial Calendar Annual Report 2007 Firm HSBC Bank plc Bank HSBC Jefferies International Jefferies Zonneveld Gert Limited (UK) Gordon Panmure NBGI International Ltd. International NBGI Credit Agricole Cheuvreux Costas Theodorou Costas Cheuvreux Agricole Credit 26 February 2008 February 26 30 April 2008 April 30 August 2008 August 4 April 2008 4 April 2008 2 April 2 May 2008 2 May Announcement of 2007 Full Year of 2007 results Announcement Payment of 2007 final dividend dividend final ofPayment 2007 Meeting General Annual date Record date Ex-dividend Announcement of 2008 interim results interim of 2008 Announcement Analyst Robin Byde Robin Christopher Combe Christopher Alex Chan Alex e-mail address e-mail [email protected] [email protected] [email protected] [email protected] [email protected] 9 1 Financial Calendar & Analyst Coverage w x Goldenport Holdings Inc.

Registered Office and Advisers

Registered office: Auditors: UK Legal Advisers: Trust Company Complex Ernst & Young Stephenson Harwood Ajeltake Road (Hellas) Certified One St Paul’s Churchyard Ajeltake Island Auditors – Accountants S.A. London EC4M 8SH Majuro 11km Athens-Lamia Marshall Islands MH 96960 National Road US Legal Advisers: 14451, Metamorphosi Seward & Kissel LLP Head Office: Greece One Battery Park Plaza STATUS CENTER New York, N.Y. 10004 41 Athinas Ave., Sponsor: United States Vouliagmeni 166-71 HSBC Bank plc Athens, Greece 8 Canada Square IR Coordinators: +30 210 89 10 500 London E14 5HQ Capital Link, Inc. 230 Park Avenue - Suite 1536 Web-site: Corporate Brokers: New York, N.Y. 10169 www.goldenport.biz HSBC Bank plc United States www.goldenportholdings.com 8 Canada Square Capital Link, UK London E14 5HQ 2 Throgmorton Senior Independent Panmure Gordon (UK) Limited. Avenue, 1st Floor Director: Moorgate Hall London EC2N 2DG [email protected] 155 Moorgate Registered Office and Advisers Office and Registered London EC2M 6XB Registrars: NBG International Limited Computershare Old Change House Investor Services 128 Queen Victoria Street (Channel Islands) Limited London EC4V 4HR PO Box 83 Credit Agricole Cheuvreux Ordnance House International 31 Pier Road 12th Floor ST. Helier Moor House JE4 8PW 120 London Wall Jersey London EC2Y 5ET

92 «God must have been a ship-owner. He placed the raw materials far from where they are needed and covered two thirds of the earth with water.»

Erling Naess

Annual Report 2007 2020.gr