COSCO SHIP DEV (601866.SH) has announced that its wholly-owned subsidiary, Dongfang Fuli 11, plans to acquire 8 under-construction 210,000 DWT bulk carriers from Huifeng Company, a wholly-owned subsidiary of COSCO Shipping Bulk Transportation Co., Ltd. (COSCO Shipping Bulk). The transaction involves a transfer payment of 1.387 billion yuan (excluding tax), with the remaining shipbuilding cost of $424 million (excluding tax) to be paid to the shipbuilder according to the shipbuilding contract terms. The acquisition will be executed by assuming the rights and obligations under the existing shipbuilding contracts.
Additionally, the company's wholly-owned subsidiary, Dongfang Fuli 12, plans to acquire 2 under-construction 64,000 DWT bulk carriers from Dunhe Shipping, another wholly-owned subsidiary of COSCO Shipping Bulk. This transaction involves a transfer payment of $24.9897 million (excluding tax), with the remaining shipbuilding cost of $46.15 million (excluding tax) to be paid to the shipbuilder as per the contract, also through the assumption of the shipbuilding contract rights and obligations.
This transaction is expected to further leverage the company's advantages in industrial-financial integration, enhance the scale and quality of its vessel assets, and solidify the foundation for its ship leasing business. It is anticipated to contribute to long-term stable income and cash flow, improve the overall financial robustness of the company, and strengthen its sustainable development momentum.
Concurrently, the company will collaborate with upstream and downstream enterprises in the shipping industry chain to deepen the application of the Chinese yuan in scenarios encompassing "shipbuilding, leasing, and operations." This initiative aims to further promote the practical use of the yuan in international shipping, thereby enhancing the company's market competitiveness.
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