COSCO Shipping 650 million yuan to acquire 7 ships

Cosco Shipping (600428) announced today, to assess the value of 650 million yuan to acquire Guangzhou Ocean Shipping Company, "Lok Ding" and other seven multi-purpose ships. The announcement said that after negotiations with the far-reaching company, confirmed that the purchase payment method is part of the cash plus debt.　　According to the announced plan, COSCO shipping with its own funds to the far-reaching company to pay cash of about 150 million yuan, at the same time to undertake far-reaching company in Agricultural Bank of China, the Chinese bank three total of 73.193 million U.S. dollars of long-term loans, the lender agreed to acquire seven ships when the loan transferred to Cosco shipping.　　Cosco Shipping said that through the acquisition, the company's own fleet size will be increased by seven ships totaling 152,000 DWT, further reducing the company's operating costs, enhance the competitiveness of the fleet, and reduce the relationship between the far-reaching company transactions.　　At the same time, COSCO Shipping to the subsidiary company Cosco Shipping (Hong Kong) Investment Development Co., Ltd. to increase the capital of 97.2 million U.S. dollars to further enhance the strength of Hong Kong subsidiaries, fully play its financing to buy shipbuilding platform function, reduce the cost of buying shipbuilding. Cosco Shipping on the same day reported that the first half of COSCO shipping to achieve operating income of about 2.03 billion yuan, an increase of 1.38%, achieve net profit of about 146 million yuan, an increase of 54.43% per share earnings 0.11 yuan, overall gross margin of 17.01%, compared with the same period last year 5.03%.　　As of June 30, 2010, the company and its holding subsidiaries owned and controlled all kinds of multi-purpose ships, general cargo ships, heavy-lift vessels, semi-submarine, Ro-boats and car ships, a total of 65, the average age of 19.4 years, weighing 1.1748 million tons. COSCO Shipping Multi-Purpose ship, heavy-lift ship, general cargo ship and Ro-boat mainly put into the fixed route operation, the above ships realize the fleet operating profit of 156 million yuan, accounting for 91.13% of fleet operating profit. In the global economic recovery, led by the recovery of global trade growth, the special grocery transport market is also in the slow recovery process, the supply and demand relations gradually eased, the freight rate has increased, the company expects 2010 1-September Cumulative net profit will rise by more than 50% a year earlier.