On the evening of July 29, COSCO SHIPPING Development Co., Ltd. (hereinafter referred to as “COSCO SHIPPING Development”) announced that it plans to build, through its indirect wholly-owned subsidiary Hainan COSCO SHIPPING Development Shipping Co., Ltd. (hereinafter referred to as “Hainan Development Shipping”), a total of 15 Newcastlemax bulk carriers of 210,000 dwt each, with 10 vessels to be built by Shanghai Waigaoqiao Shipbuilding Co., Ltd. (under China State Shipbuilding Corporation) and 5 vessels by Nantong Xiangyu Shipbuilding & Offshore Engineering Co., Ltd. (under Xiamen Xiangyu Co., Ltd.). The transaction amounts are RMB 5.28 billion (excluding tax, same below) and RMB 2.64 billion respectively, for a total of RMB 7.92 billion, with a unit price of RMB 528 million per vessel. Approximately 25% of the newbuilding purchase funds are expected to come from self-owned funds, and about 75% from bank loans. All 15 bulk carriers ordered by COSCO SHIPPING Development are methanol- and ammonia-fuel-ready, and are expected to be delivered successively from May 2030 to December 2030. They will then be long-term operating time-chartered to Well Fortune Shipping Co., Ltd., a subsidiary of COSCO SHIPPING Bulk Co., Ltd. (“COSCO SHIPPING Bulk”), for a charter period of 20 years. The annual charter hire per vessel is capped at RMB 59.4 million (pre-tax), including costs for possible future dual-fuel retrofitting.

COSCO SHIPPING Development focuses on the shipping logistics industry chain, with container manufacturing, leasing, and shipping leasing as its core businesses, supported by investment management to advance an integrated “industry-finance-investment” development model, striving to become a world-class shipping finance and operation provider with COSCO SHIPPING characteristics. On this basis, the company actively responds to the green and low-carbon transformation trend in the shipping industry, continues to deepen its industry-finance integration strategy, and further enhances its value discovery and value creation capabilities.

Through this transaction, COSCO SHIPPING Development stated that it will further leverage its collaborative advantages in industry and finance, increase the scale and quality of its shipping assets, improve its asset portfolio in large bulk carriers, solidify the foundation of its shipping leasing business, contribute stable long-term income and cash flow, enhance overall financial robustness, and strengthen the company’s sustainable development momentum. At the same time, it will further deepen the practical application of the renminbi in international shipping and enhance its market competitiveness.

This is the third transaction reached by COSCO SHIPPING Development this month. To date, the company has ordered a total of 39 vessels in July, with a total transaction amount of RMB 16.576 billion.

On July 1, COSCO SHIPPING Development, through Hainan Development Shipping, commissioned COSCO Shipping Heavy Industry (Dalian) to build 15 multipurpose grain carriers of 87,000 dwt, with a unit price of RMB 319 million and a total transaction amount of RMB 4.785 billion (excluding tax). The first vessel is expected to be delivered on June 15, 2029 or earlier, with the rest successively delivered by the end of 2030. These vessels will also be long-term operating time-chartered to Well Fortune Shipping Co., Ltd.

On the same day, COSCO SHIPPING Development, through Hainan Development Shipping and Oriental Fleet Shipping 11 Co., Ltd., commissioned three shipyards under China State Shipbuilding Corporation to build 9 dry bulk carriers, with a total transaction amount of RMB 3.871 billion (excluding tax).

Specifically, 5 multipurpose grain carriers of 87,000 dwt will be built by CSSC Chengxi Shipbuilding Co., Ltd., with a transaction amount of RMB 1.595 billion and a unit price of RMB 319 million, expected to be delivered from September 2029 to the end of June 2030; 2 bulk carriers of 210,000 dwt will be built by Dalian Shipbuilding Industry Co., Ltd., with a transaction amount of RMB 1.056 billion, featuring “methanol+ammonia” fuel-ready design, expected to be delivered successively from October 2029 to August 2030; and 2 dry cargo vessels of 210,000 dwt will be built by Qingdao Beihai Shipbuilding Co., Ltd. (under CSSC), with a transaction amount of RMB 1.22 billion, also with “methanol+ammonia” fuel-ready design, expected to be delivered successively from November 2029 to June 2030.

In recent years, COSCO SHIPPING Development has actively seized the opportunities of green transformation and upgrading in the shipping industry, continuously expanding industry-finance projects and achieving a significant increase in the scale of high-quality shipping assets. At present, the company has over 100 vessels of various types under construction, which are expected to be delivered successively over the next five years.