Qingdao Port (06198) announced that on January 14, 2026, its board of directors reviewed and passed a proposal to amend the articles of association of Ganglianhai Logistics. Prior to the completion of these amendments, Ganglianhai Logistics was equally owned, with 50% of its equity held by Qinggang Logistics (a wholly-owned subsidiary of the Company) and 50% by COSCO Logistics; consequently, its financial statements were not consolidated into the financial statements of either Qinggang Logistics or COSCO Logistics. As Qinggang Logistics has already assumed de facto control over the primary production and operational activities of Ganglianhai Logistics, Qinggang Logistics and COSCO Logistics proposed to amend Ganglianhai Logistics' articles of association to reflect this development. Following the completion of the amendments, although the equity structure of Ganglianhai Logistics will remain unchanged, Qinggang Logistics' voting rights at the shareholders' meeting of Ganglianhai Logistics will be significantly enhanced. As a result, Qinggang Logistics will obtain control over Ganglianhai Logistics and will consolidate it into the Group's financial statements, making Ganglianhai Logistics a subsidiary of the Company. Since 2025, substantive changes have gradually occurred regarding the management authority over the production and operations of Ganglianhai Logistics. Qinggang Logistics has implemented unified management of on-site production and the formulation of business policies for Ganglianhai Logistics, achieving integrated control over its production resources and operational workflows. Therefore, Qinggang Logistics has gained de facto control over key operational aspects of Ganglianhai Logistics, including its customer resources, business pricing power, and production organization. In light of the gradual transfer of operational management authority for Ganglianhai Logistics to Qinggang Logistics, the latter, together with COSCO Logistics, proposed to amend the articles of association to formalize the situation. The amendments will further strengthen Qinggang Logistics' voting power at Ganglianhai Logistics' shareholders' meetings, enabling Qinggang Logistics to correspondingly secure control and consolidate it into the Group's financial statements. This consolidation will contribute to a more comprehensive, authentic, and accurate reflection of Qinggang Logistics' overall financial position and operating performance, thereby enhancing the quality of the Group's financial reporting. Confirmed by the Company's auditor, ShineWing, the financial results of Ganglianhai Logistics will be incorporated into the Group's consolidated financial statements starting January 1, 2026. The Company anticipates that both its operating revenue and total profit will increase as a result of this consolidation. The consolidation is expected to have a positive impact on the Group's overall financial position and operating performance.
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