COSCO SHIPPING Development : A new phase featuring digital intelligence and low-carbon and a new chapter boasting indus...

On the evening of 29 April 2024, COSCO SHIPPING Development (601866.SH/02866.HK) released its 2024 first quarterly report. In the first quarter of 2024, the Company achieved revenue of RMB4.94 billion, representing a year-on-year increase of 39.11%; net profit attributable to shareholders of the listed company was RMB447 million, representing a year-on-year increase of 12.22%; and realized basic earnings per share of RMB0.033.

Since 2024, the uncertainties in the global shipping market have increased. The Company actively responded to market changes, strengthened the function of production-finance-investment, anchored two major tracks of digital intelligence as well as green and low-carbon, intensified the driving force of technological innovation, accelerated the development of new quality productive forces, and constantly improved value creation capabilities.

Focusing on Main Responsibilities and Principal Businesses, Creating the Synergy between Industry and Finance

The Company further deepened internal coordination and integrated the container leasing and manufacturing industry chain so as to improve service quality with joining forces. In terms of container manufacturing business, the Company seized the opportunity arising from the recovery of the container market, strengthened diversified product layout, and met market demand with innovative products and customized services. In terms of container leasing business, the Company further optimized the industrial chain synergy mechanism, explored business model innovation, and improved the digital industry ecosystem. In terms of vessel leasing business, the Company proactively grasped the trend of green and low-carbon transformation of shipping industry's fleet, further enriched product design, and accelerated the transformation into a value-based industry and finance investor and innovative industry and finance service provider.

Focusing on Digital Transformation Driven by Science and Technology Innovation, Stimulating the Vitality of Innovation and Development

The Company actively promoted the pursuit and application of digital intelligence technology, and accelerated the development of digital systems in various business segments, thereby empowering its business development.With the support to the iFlorens digital operation platform from the Technology Voucher Program of the Hong Kong Innovation and Technology Commission, the global digital disposal project for decommissioned containers has entered the road show stage of the 4th YI Star Innovation and Creativity Competition (熠星创新创意大赛) held by SASAC. Shanghai Universal vigorously explored the application of innovative technologies and completed 12 smart manufacturing projects in the first quarter. The certification regarding smart manufacturing of each container factory based on maturing status was carried out in an orderly manner. Universal Technology passed the review for "specialised, competitive, distinguished, and innovative (专精特新)"enterprises in Shanghai . At the same time, the Company continued to delve into its new special container business. DFIC Qidong won the 2024 Best Innovative Enterprise Award in Chinese Energy Storage Industry at the 14th China International Energy Storage Conference by leveraging its innovative energy storage integrated technology and excellent service.

Practicing ESG Governance, Gathering Momentum for Sustainable Development

The Company made every effort to promote the green and low-carbon ecosystem of the shipping industry chain, formulated the interim measures for carbon emission management, and improved the green and low-carbon management mechanism. In respect of the container manufacturing business, the Company promoted the construction of green container manufacturing in an all-round way with ecological priority, conservation and intensiveness. The construction of the Universal EPD (Environmental Product Declaration) platform has been steadily progressing, which laid a preliminary foundation for exploring the formulation of carbon footprint accounting rules for the container industry and the green and low-carbon container industry standard. Meanwhile, the Company actively explored green financing channels and successfully implemented the first financial loan for the transformation of water transportation industry in China, which effectively facilitated the transformation and development of the Company's vessel leasing business.

In addition, the Company has been committed to continuously deepening ESG governance. Its container factories pushed forward the construction of compassion and safety culture. The container factory in Guangzhou and the container factory in Ningbo were awarded the honorary title of 2023 National Demonstration Enterprise for Safety Culture Construction, and all six container factories of the Company passed the review and gained certification. In March, benefiting from the lean ESG governance performance, the Company received an A rating from China Guoxin ESG Evaluation.

Looking forward to the future, the global economy and world trade will remain complex and volatile, and the green, low-carbon and digital transformation of the shipping industry will has become prominently imminent. Based on the integration of industry and finance, COSCO SHIPPING Development will clarify the development context from the new market situation, and create a new atmosphere characterizing with high-quality development around diversification, greening, digital intelligence and full-scale development.