COSCO SHIPPING Financial Co., Limited announced that it has signed a subscription agreement for the private placement of 13,500,000,000 common shares at a price of CNY 1 per share for gross proceeds of CNY 13,500,000,000 on May 19, 2022. The transaction will include participation from existing investors China COSCO Shipping Corporation Limited for CNY 4,213,120,500 to retain its 31.2083% stake, COSCO Shipping Holdings Co., Ltd. for CNY 2,041,983,000 to retain its 15.1258% stake, COSCO Shipping Development Co., Ltd. for CNY 1,806,840,000 to retain its 13.3840% stake, COSCO Shipping Energy Transportation Co., Ltd. for CNY 1,473,457,500 to retain its 10.9145% stake, China Ocean Shipping Co., Ltd. for CNY 1,350,000,000 to retain its 10% stake, COSCO Shipping Lines Co., Ltd. for CNY 1,058,805,000 to retain its 7.8430% stake, COSCO Shipping Specialized Carriers Co., Ltd. for CNY 907,551,000 to retain its 6.7226% stake, and COSCO Shipping Logistics Co., Ltd. for CNY 648,243,000 to retain its 4.8018% stake in the company. The transaction has been approved by COSCO Shipping Specialized Carriers Co., Ltd.'s the 34th session of the company's 7th directorate, 54th session of COSCO Shipping Development Co., Ltd.'s 6th directorate, COSCO Shipping Energy Transportation Co., Ltd.'s 5th directorate for 2022 and COSCO Shipping Holdings Co., Ltd.'s 17th session of its 6th directorate.

The transaction is subject to approval from COSCO Shipping Specialized Carriers Co., Ltd.'s, COSCO Shipping Development Co., Ltd.'s and COSCO Shipping Energy Transportation Co., Ltd.'s shareholders and from China Banking and Insurance Regulatory Commission Shanghai Office. Post-closing, the registered capital of the company will increase from CNY 6,000,000,000 to CNY 19,500,000,000.