CIMC subsidiary leases offshore platforms from related parties

China International Marine Containers (Group) Co., Ltd. announced that its wholly-owned subsidiary, BLUEWHALE OFFSHORE PTE. LTD. (BWO), will lease two semi-submersible crane and accommodation platforms, "Huayelong" and "Huashanglong." The platforms will be leased from Hailong Sixteen (Tianjin) Leasing Co., Ltd. and Hailong Seventeen (Tianjin) Leasing Co., Ltd. Both leasing companies are indirect wholly-owned subsidiaries of China Merchants Industry Group Co., Ltd., which holds 24.49% of CIMC's equity, making these related party transactions.

The lease agreements, effective upon formal signing, delivery of assets, and completion of regulatory approvals, will span four years (1460 days) with an option to extend by 65 days. The rental fee for each platform is $50,000 per day, with an annual 15-day rent-free period, totaling approximately $140 million over the rental period. The pricing aligns with market rates, as confirmed by an appraisal report.

CIMC’s board approved the transaction, with interested directors abstaining, and it will be submitted to the general meeting of shareholders for approval. For the period of January to June 2025, CIMC Group's cumulative related party transactions with China Merchants Group and its subsidiaries totaled RMB 609,777 thousand. The company also disclosed a share repurchase on September 10, 2025, involving 742,900 H shares at prices between HK$7.94 and HK$8, totaling HK$5,928,445.