COSCO SHIPPING Development(02866) plans to invest 8.656 billion yuan to acquire a total of 24 vessels.

COSCO SHIPPING Development (02866) announced that the group plans to acquire a total of 24 vessels (referred to as target vessels) for a total contract amount of RMB 8.656 billion. The vessels will be delivered in batches between 2029 and 2030. Among them, the group has entered into a shipbuilding contract with Dalian Huarui Heavy Industry Group for the construction of 15 87,000 deadweight ton multi-purpose grain ships (referred to as target vessels I) in 2026, with a total contract price of approximately RMB 4.785 billion (excluding taxes). The group has also entered into a shipbuilding contract with China CSSC Group in 2026 for the construction of a total of nine vessels (referred to as target vessels II), including: five 87,000 deadweight ton multi-purpose grain ships with a total contract price of approximately RMB 1.595 billion (excluding taxes); two 211,000 deadweight ton bulk carriers with a total contract price of approximately RMB 1.056 billion (excluding taxes); and two 210,000 deadweight ton dry cargo ships with a total contract price of approximately RMB 1.22 billion (excluding taxes). The total contract price under the China CSSC shipbuilding contract in 2026 is approximately RMB 3.871 billion. On the same day, the board of directors approved that, after the delivery of the relevant target vessels, the group (as owners/lessors) will provide leasing services to Huifeng Shipping Co., Ltd. (as lessees/lessees) for the target vessels to be built under the 2026 shipbuilding contract. The lease term for each vessel will be 20 years 120 days from the delivery date of the respective target vessel. The directors believe that these transactions will further expand the scale of the group's ship leasing business, enhance the quality of its ship asset portfolio, strengthen the foundation for the development of its ship leasing business, and help bring stable long-term income and cash flow to the group.