COSCO Shipping Development proposes capital reduction, share repurchase amid governance overhaul

COSCO Shipping Development Co. Ltd. is undertaking a substantial capital reduction following the repurchase and cancellation of 219,321,500 shares, partially offset by the issuance of 2,638,706 A shares. This adjustment will reduce the registered capital from RMB13,573,299,906 to RMB13,356,617,112. Concurrently, the company proposes the cancellation of its Supervisory Committee and comprehensive amendments to its Articles of Association and various procedural rules to streamline governance.

These changes coincide with major transactions, including six 2025 Heavy Industry Shipbuilding Contracts totaling approximately RMB3.168bn for 210k DWT-class bulk cargo vessels. The vessels are expected to be delivered between December 2027 and the end of 2028, with funding from internal resources and external debt financing. The company also plans an A share repurchase plan for 40m to 80m A shares at a maximum price of RMB3.81 per share, with the aim of enhancing shareholder confidence.

An Extraordinary General Meeting (EGM) is scheduled for September 23, 2025, to seek shareholder approval for these proposals. The company’s controlling shareholder, COSCO SHIPPING, and its associates, holding approximately 47.16% of the total issued share capital, will abstain from voting on resolutions related to the 2025 Heavy Industry Shipbuilding Contracts due to their connected person status.