CHU KONG SHIP (00560) plans to establish a joint venture company with Baowu Group Central South Iron and Steel.

CHU KONG SHIP (00560) announced on March 3, 2025 (after trading hours) that the company has entered into a joint venture agreement with its partner, Baowu Group Zhongnan Steel Co., Ltd., to establish a joint venture company. According to the terms of the joint venture agreement, the registered capital of the joint venture company is RMB 340 million. The company will contribute RMB 167 million, while the partner will contribute the remaining RMB 173 million, as the registered capital of the joint venture company. After the establishment of the joint venture company, the company and the partner will respectively hold 49% and 51% equity in the joint venture company. The announcement stated that in order to strengthen its layout in the Beijiang River Basin, the group conducted research in the Shaoguan Port area, and after discussions with the partner, plans to utilize the advantages of Beijiang water transportation to build the Longtouzhai Wharf, innovate multimodal transport, and jointly invest in and operate the Longtouzhai Wharf through the establishment of the joint venture company. This will allow for rapid entry into the Shaoguan water transportation market and undertake in-depth project cooperation with the partner, presenting a rare development opportunity that the group has seized.