The Board of Directors of COSCO SHIPPING International (Singapore) Co., Ltd. entered into a joint venture agreement with Supply Fortune Limited to undertake investments in logistics infrastructure assets, with the objective of growing logistics supply chain value in the Southeast Asia region, and to lease such assets for rental income. The parties have agreed, under the joint venture agreement, to incorporate a joint venture company in Singapore pursuant to which the Company and SF shall subscribe for 49% and 51% of the issued and paid-up share capital of the joint venture company respectively. SF is a wholly-owned subsidiary of COSCO SHIPPING Holdings (Hong Kong) Co.

Limited, which is in turn a wholly-owned subsidiary of COSCO SHIPPING Holdings Co., Ltd. China COSCO SHIPPING Corporation Limited, the controlling shareholder of the Company owns the entire equity interest of China Ocean Shipping Company Limited, which holds 53.35% of the shares of the Company and 36.81% of the shares in COSCO SHIPPING Holdings Co., Ltd. Accordingly, SF is an associate of CSC and is therefore considered an "interested person" as defined under Chapter 9 of the Listing Manual of the Singapore Exchange Securities Trading Limited and the joint venture is regarded as an interested person transaction. Rationale and benefit for the joint venture: With container shipping as the core, the joint venture will create a digital supply chain investment platform, which is conducive to improving the service capability of the whole supply chain and providing customers with more high-quality and diversified digital supply chain products and solutions. The Group is also able to tap on the benefits of the joint venture partner to further develop the supply chain market in Southeast Asia, derive industry supply chain value, further enhance the supply chain products in Southeast Asia, and improve the level of end-to-end business customer service.

Details of the joint venture agreement: Under the terms of the joint venture agreement, the joint venture company shall have a board of directors which consists of 5 directors, unless otherwise unanimously agreed by the shareholders of the joint venture company in writing. The composition of the board of the joint venture company shall initially comprise of 2 persons to be appointed by the Company and 3 persons to be appointed by SF. A director nominated by SF shall be appointed as the chairman of the board of the joint venture company but the chairman shall not have any second or casting vote.

Where any financing by the shareholders of the joint venture company is to be provided, such financing (including the provision of any guarantee or security) shall be provided by the shareholders in their respective shareholding proportions. The shareholders are subject to pre-emptive rights in relation to the issue and transfer of shares of the joint venture company. Total value of interested person transactions: For the current financial year, the current total of all transactions entered into by the Group with CSC and its associates after the transaction is SGD 1,853,785.83, excluding transactions which are less than SGD 100,000 and transactions under the Company's general mandate for interested person transactions; and the current total of all interested person transactions entered into by the Group, excluding transactions which are less than S$100,000 and transactions under the Company's general mandate for interested person transactions after the transaction, is SGD 20,192,259.94.

Interests of Directors and Controlling Shareholders: Mr. Zhu Jian Dong and Mr. Guo Hua Wei who are directors of the Company and members of the managing body of or directors nominated by COSCO Group had abstained from making any recommendation and giving any approval in respect of the joint venture. Save as disclosed in this announcement, none of the Directors or controlling shareholders of the Company has any interest, direct or indirect (other than by reason of their shareholdings and/or directorships in the Company), in the joint venture.