China Merchants Energy Shipping forecasts extensive 2026 related-party transactions

China Merchants Energy Shipping (CMES) announced its estimated related-party transactions for 2026, highlighting a comprehensive range of financial and operational agreements with China Merchants Bank and various subsidiaries of its controlling shareholder, China Merchants Group. For 2026, CMES plans to maintain a maximum deposit balance of RMB 50 bn and a maximum credit line of RMB 70 bn with China Merchants Bank. This banking relationship, due to a shared chairman, constitutes a related-party transaction and requires shareholder approval.

Additionally, CMES anticipates total daily related-party transactions for 2026 not exceeding RMB 114.35 bn. These include ship repair services with China Merchants Industry Group, oil product transportation and fuel procurement with Sinopec Group (estimated at RMB 60 bn and RMB 20 bn, respectively), and material/equipment supply with China Merchants Haitong Trading Co., Ltd. Other significant transactions involve crew management with Guangzhou Haishun Ship Management Co., Ltd. and various cargo transport and port services with Sinotrans & CSC Holdings Co., Ltd. and Sinotrans Ltd.

The board of directors approved these transactions on December 5, 2025, with conflicted directors abstaining, and they will be presented for shareholder approval. These transactions are deemed necessary for operational efficiency, cost reduction, and enhancing resource allocation, with pricing determined on market-based, fair terms.