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Reference is made to the announcements of the Company dated 24 April 2014, 5 May 2014, 14 July 2014, 18 September 2014 and 8 January 2015 in relation to, among other things, the decommissioning and disposal of aged vessels by the Group from 1 January 2014 to 31 December 2014. The board of directors (the “Board”) of the Company wishes to inform the shareholders of the Company (the “Shareholders”) and potential investors that the Group had disassembled eight vessels (collectively, the “Vessels”), including five container vessels (Hutuo He, Xinhui He, Zhaoqing He, Yangjiang He and Yongding He) and three bulk carriers (Peng Jie, Peng Nian and Peng Cai) from 1 January 2015 to 31 January 2015. The Vessels, with the aggregate capacity of 257,657 deadweight tons, were disposed of as scrapped vessels to different purchasers, all of which are independent third parties of the Company, at a total consideration of approximately RMB82.2 million. According to the unaudited financial results of the Company for the month ended 31 January 2015, realized losses incurred from the disassembly of the Vessels amounted to approximately RMB182.24 million. The decommissioned container vessels were previously owned by COSCO Container Lines Co., Ltd.* (“COSCON”), a wholly-owned subsidiary of the Company, and the decommissioned bulk carriers were previously owned by China COSCO Bulk Shipping (Group) Company Limited* (“COSCO Bulk”), a wholly-owned subsidiary of the Company. As a result of the decommissioning of the Vessels, the average age of vessels owned by COSCON and COSCO Bulk has decreased, while the oil saving level and overall environmental friendliness of the vessels have improved. The Board considers that the decommissioning of the Vessels is conducive to enhancing the overall operational competitiveness of the shipping fleet of the Company and is in the interest of the Company and the Shareholders as a whole. The Company will keep its Shareholders and potential investors informed of further development in connection with its plan to decommission aged vessels by way of further announcement(s) as and when appropriate or necessary. By Order of the Board China COSCO Holdings Company Limited Guo Huawei Company Secretary Beijing, the People’s Republic of China 13 February 2015 * For identification purpose only China COSCO Holdings Company Limted, press release 
Bulk Carier "Peng Jie" |
