COSCO SHIPPING Holdings announces share buyback, renews key related party deals

COSCO SHIPPING Holdings announced a plan to repurchase 50 million to 100 million A-shares through centralized competitive bidding transactions, with a maximum price of RMB 14.98 per share, totaling RMB 749m to RMB 1,498m. The repurchased shares will be canceled to reduce registered capital, enhancing shareholder value. This initiative aligns with the company's strategy to maintain a robust capital structure and respond to market conditions.

Concurrently, the company is renewing several crucial related party transactions, including financial services, shipping services, and port services agreements, set to expire on December 31, 2025. New agreements, effective from January 1, 2026, to December 31, 2028, involve COSCO SHIPPING Financial Holdings Co., Ltd. and COSCO SHIPPING Group Co., Ltd., as well as Shanghai International Port Group. These agreements, with proposed annual caps, cover a range of services from deposits and loans to cargo handling and trademark licensing, ensuring continued operational efficiency.

The financial services agreement with COSCO SHIPPING Financial Holdings Co., Ltd. includes an annual maximum daily deposit balance of RMB 150bn and a maximum daily outstanding loan balance of RMB 26bn. All related party transactions are subject to review and approval processes, including independent shareholder approval for significant transactions, to ensure fairness and adherence to regulatory standards.