COSCO SHIPPING Development (02866) wholly-owned subsidiary plans to build 15 new multi-purpose grain ships of 87,000 tons.

COSCO SHIPPING Development (02866) announced that the company plans to commission Dalian Huarui Heavy Industry Group, a subsidiary of China COSCO Shipping Development (Hainan) Co., Ltd., to build 15 multi-purpose grain vessels with a capacity of 87,000 tons each, with a total transaction amount of 4.785 billion RMB (excluding tax, for the current transaction). Focusing on the main line of the shipping logistics industry, the company specializes in container manufacturing, container leasing, and shipping leasing as core businesses, supported by investment management, to achieve integrated development of production, finance, and investment, striving to create a world-class shipping and finance operator with the characteristics of China COSCO Shipping. The company actively seizes the trend of green and low-carbon development in the shipping industry, further implements the strategic development plan of the company as a shipping and finance operator, enhances value discovery and creation capabilities. Through this transaction, the company will further leverage the advantages of production and finance synergy, improve the scale and quality of the company's ship assets, solidify the foundation for the development of the company's ship leasing business, contribute to long-term stable income and cash flow, enhance the overall financial stability of the company, and strengthen the momentum for sustainable development. Meanwhile, leveraging the benefits of the Hainan Free Trade Port policy, collaborating with upstream and downstream enterprises in the shipping industry chain to jointly explore RMB application scenarios in "manufacturing, leasing, and transportation", further deepen the practical application of RMB in the international shipping field, and enhance market competitiveness. The newly built vessels will be leased to China COSCO Shipping Bulk Shipping Co., Ltd., a subsidiary of China COSCO Shipping Co., Ltd., for long-term operational lease. The lease period for each vessel is 240 months 120 days from the delivery date of the vessel; it is expected that the vessels will be delivered one after another between mid-2029 and the end of 2030. After considering the conversion and upgrade of the vessels' fuel power, the expected annual rent per vessel after delivery is estimated to be no more than RMB 38.6061 million (excluding tax). At the end of the lease term, the lessor is responsible for the disposal of the ship assets, and the lessee has no obligation to purchase the ship assets.