COSCO SHIPPING Development Co., Ltd. (COSCO SHIP DEV) has called an extraordinary general meeting (EGM) for 31 Aug 2026 to seek shareholder approval for four capital-intensive initiatives:
1. RMB 4.79 Billion Connected Shipbuilding Contracts – Buyer: wholly owned unit Hainan COSCO SHIPPING Development Ocean Transport – Seller: Dalian COSCO SHIPPING Heavy Industry (wholly owned by controlling shareholder COSCO SHIPPING) – Scope: construction of 15 × 87,000-DWT multipurpose grain vessels (“Target Vessels I”) at RMB 319 million each, exclusive of tax – Delivery: Jun 2029–Dec 2030 – Funding: 25 % internal resources; 75 % bank and other external financing – Classification: Major & Connected Transaction; COSCO SHIPPING and its associates (47.40 % shareholding) will abstain from voting.
2. RMB 5.28 Billion Major Shipbuilding Contracts – Buyer: Hainan COSCO SHIPPING Development Ocean Transport – Sellers: Shanghai Waigaoqiao Shipbuilding and China Shipbuilding Trading (both under China State Shipbuilding Corporation) – Scope: construction of 10 × 210,000-DWT bulk carriers (“Target Vessels III”) at RMB 528 million each, exclusive of tax – Delivery: Jun 2030–Dec 2030 – Funding: 25 % internal resources; 75 % external debt – Classified as a major transaction under Chapter 14 of the Listing Rules.
3. Expanded Debt-Financing Programme – Proposed uplift of medium-term-note quota by RMB 15.00 billion, raising the total medium-term-note ceiling to RMB 25.00 billion within the previously approved RMB 12.00 billion unified registration framework (which also includes RMB 2.00 billion for ultra-short-term financing bonds).
4. New Corporate Bond Registration – Board seeks authority to register and issue up to RMB 6.00 billion of corporate bonds on the Shanghai Stock Exchange, with maturities of up to 10 years. Proceeds will be used for debt repayment, working capital and project funding.
Key Commercial Terms for Both Shipbuilding Packages • Price payable in five instalments, with the bulk on delivery. • Price downward-adjustment and liquidated-damages mechanisms tied to vessel speed, deadweight, fuel-consumption and delivery schedule; maximum damages per vessel capped at roughly RMB 9.07 million. • Buyer may rescind contracts and reclaim all payments plus interest if key metrics are not met or delivery is excessively delayed.
Strategic Rationale Management states the newbuilds will enlarge and upgrade the Group’s self-owned fleet, deepen cooperation with COSCO SHIPPING Bulk (planned 20-year time-charter back to affiliate Wai Fung Shipping), and secure long-term, stable lease income, supporting COSCO SHIP DEV’s ambition to strengthen its shipping-leasing franchise amid the industry’s shift toward greener, larger vessels.
Financial Impact (management estimates) • Asset increase: property, plant & equipment to rise by about RMB 4.79 billion (Target Vessels I) and RMB 5.28 billion (Target Vessels III), plus capitalised interest. • Liabilities: additional bank and debt financing of roughly RMB 3.59 billion and RMB 3.96 billion for the two projects respectively. • Revenue uplift post-delivery: annual charter income capped at around RMB 579.00 million for Target Vessels I and RMB 594.00 million for Target Vessels III.
EGM Details Date & venue: 31 Aug 2026, 1:30 p.m., Ocean Hotel, Shanghai. Holders of H shares must be on the register by 25 Aug 2026 to vote. All four resolutions require shareholder approval; Resolution 1 also requires independent shareholders’ approval with COSCO SHIPPING and its associates abstaining.