CSSC SHIPPING (03877) announced that on January 21, 2026, the issuer (CSSC Capital 2015 Limited), the company, and the managers entered into a subscription agreement. Under this agreement, the issuer agreed to issue to the managers (or as they may direct) bonds guaranteed by the company (HK$2.338 billion 0.75% guaranteed convertible bonds due 2031). The managers, severally and not jointly, have agreed to subscribe for and pay, or procure subscribers to subscribe for and pay, the bonds with a principal amount of HK$2.338 billion, subject to the fulfillment of certain conditions set out in the subscription agreement.

Assuming all bonds are fully converted at the initial conversion price of HK$2.39 per share, the bonds would be convertible into approximately 978 million shares. This represents approximately 15.78% of the company's total issued share capital as of the date of this announcement, and approximately 13.63% of the company's enlarged issued share capital after the full conversion of the bonds. Upon completion of the bond issuance, the net proceeds from the bond issue are expected to be approximately HK$2.322 billion. The issuer intends to use the net proceeds for working capital and general corporate purposes, including, but not limited to, repaying existing loans, paying vessel acquisition costs, and other borrowing costs.