COSCO SHIPPING Development (02866) enters into shipbuilding contracts and leasing agreements for 16 VLCCs, with a total shipbuilding price of approximately RMB13.425 billion

COSCO SHIPPING Development (02866) announces that on November 11, 2026, the Group (as buyer) and China CSSC Group (as seller) entered into the 2026 Third China CSSC Shipbuilding Contract for the construction of sixteen 307,000 DWT VLCCs, with a total contract price of approximately RMB13.425 billion (excluding taxes and fees). On the same day, the Group (as owner/lessor) and Global Shipping (as lessee) entered into the 2026 VLCC Leasing Agreement, pursuant to which the Group agreed to provide vessel leasing services to Global Shipping in respect of the above sixteen 307,000 DWT VLCCs to be constructed under the 2026 Third China CSSC Shipbuilding Contract, for a lease term of 240 months 90 days, commencing from the delivery date of each vessel. The Company will focus on the main line of the shipping and logistics industry, concentrating on container manufacturing, container leasing and shipping leasing as its core businesses, supported by investment management, and strive to achieve integrated industrial and financial development, building a world-class shipping industrial-financial operator with COSCO SHIPPING characteristics. The transactions contemplated under the 2026 Third China CSSC Shipbuilding Contract, and the Group's subsequent leasing of these vessels to Global Shipping under the 2026 VLCC Leasing Agreement, are both important components of the overall operating lease arrangement between the Group and COSCO SHIPPING Group (including COSCO SHIPPING Energy Transportation Group). The Directors believe that these transactions will further expand the scale of the Group's vessel leasing business, enhance the quality of its vessel asset portfolio, consolidate the development foundation of its vessel leasing business, and help bring stable long-term income and cash flow to the Group. The Company actively grasps the green and low-carbon development trend of the shipping industry, further implements the Company's strategic development plan as a shipping industrial-financial operator, and enhances its value discovery and value creation capabilities. Through the transactions under the 2026 Third China CSSC Shipbuilding Contract and the 2026 VLCC Leasing Agreement, the Company will further leverage its industrial-financial synergy advantages, enhance the scale and quality of its vessel assets, enrich the types of vessel assets, consolidate the development cornerstone of its vessel leasing business, contribute long-term stable income and cash flow, improve the Company's overall financial soundness, and strengthen its long-term development momentum. The post-construction operating lease under the 2026 VLCC Leasing Agreement will adopt a rental structure combining "fixed rent and guaranteed minimum profit sharing," which can both capture profit upside during market upcycles and lock in baseline returns during market downturns, smoothing out operational risks brought by cyclical fluctuations and enhancing the overall robustness and earnings predictability of the project. In addition, the Company collaborates with upstream and downstream enterprises in the shipping industry chain to jointly cultivate RMB application scenarios in "shipbuilding, leasing and shipping," further deepening the practical application of RMB in the international shipping sector and enhancing its market competitiveness.