COSCO Shipping Holdings' subsidiary has entered into shipbuilding contracts with China CSSC Trading and Hudong-Zhonghua Shipbuilding for a total price of USD 2.22 billion.

COSCO Shipping Holdings (01919) announced that on April 29, 2026, the buyer (12 indirect wholly-owned subsidiaries of the company, Oriental Overseas (International)) and the seller (China CSSC Trade and Hudong Zhonghua) respectively signed shipbuilding contracts for their respective vessels under essentially the same terms, with a total price of 2.2 billion US dollars (equivalent to about 17.316 billion Hong Kong dollars). This shipbuilding transaction is in line with the group's strategy to prudently expand its fleet size and further enhance its competitive position in the container shipping industry. The transaction will help the group achieve its long-term goal of sustainable and balanced growth by continuously expanding its container shipping business globally. The vessels have high versatility and are suitable for various trade routes and port operations. With high reefer plug configuration, these vessels will enhance the group's ability to serve a diverse range of cargo types. The introduction of these vessels will optimize the group's fleet structure, expand service coverage and business portfolio, and further strengthen its existing market position on core trade routes. The improved operational flexibility will enhance the resilience and overall balance of the group's global service network. Furthermore, the group will gradually increase the age of its fleet by introducing high-quality new vessels. These vessels will be equipped with Dynagreen Environmental Protection Group fuel technology (such as LNG dual fuel engines). It is expected that this configuration will reduce the need to purchase carbon emission quotas and demonstrate the group's commitment to energy conservation and carbon emission reduction, in line with its sustainable development goals and the growing demand from customers for zero-carbon supply chains. Under current technological and infrastructure conditions, the use of Dynagreen Environmental Protection Group fuel configuration can effectively balance environmental compliance and cost management. The addition of these vessels will increase the average container capacity of the group's fleet, leading to economies of scale, lower unit costs, and strengthen the group's operational cost competitiveness. Oriental Overseas (International) Group invited several shipyards (including the seller and two independent shipyards) to quote for the construction of these vessels. However, the two independent shipyards were unable to provide quotes due to limited shipyard space and resources. Nevertheless, Oriental Overseas (International) Group evaluated the seller's offer based on publicly available market data, referencing transaction prices for similar tonnage new LNG dual fuel-powered container ships ordered since 2024, and noted that the seller's offer for building these vessels fell into a similar range of vessel transaction prices, generally at a mid-range level. Based on the group's evaluation of price, technical capabilities, and delivery schedule, the seller's offer met these factors as their prices were similar to current market prices for similar tonnage new LNG dual fuel-powered container ships; the seller's manufacturing technology and quality control were highly reputable in the shipbuilding industry, which is crucial for vessel performance; and their vessel delivery schedule aligns with Oriental Overseas (International) Group's strategic planning.