COSCO SHIPPING Holdings Co., Ltd. (stock code 01919) disclosed that its indirect wholly owned subsidiary, COSCO SHIPPING International Freight, has signed an equity transfer agreement to purchase the remaining 49% stake in SeaTrade International from SEA TRADE International Inc. for US$2.26 million (approximately HK$17.59 million).
\n\nTransaction structure and valuation • Prior to the deal, COSCO SHIPPING Freight already owned 51% of SeaTrade International; post-completion it will own 100%, keeping the target consolidated in group accounts. • The consideration was benchmarked to an independent appraisal that valued SeaTrade International’s total shareholders’ equity at US$4.60 million (RMB32.95 million) as of 30 June 2025. • Payment will be settled in one lump-sum within 30 days after internal approval, funded entirely by COSCO SHIPPING Freight’s internal resources.
\n\nFinancial profile of SeaTrade International • Net profit after tax: RMB4.07 million for FY 2024, sliding to RMB0.11 million for FY 2025. • Net assets: RMB16.67 million at end-2024, marginally higher at RMB16.68 million at end-2025. • The valuation exercise lifted net asset value to RMB32.95 million, mainly due to revaluation gains on property assets.
\n\nStrategic rationale Management believes full ownership will streamline supply-chain resource integration, sharpen network synergies and enhance capital allocation efficiency within the group. The move is expected to improve cost control, asset turnover and service quality across COSCO SHIPPING Freight’s logistics platform.
\n\nRegulatory considerations Because COSCO SHIPPING (the group’s parent) controls 45.78% of COSCO SHIPPING Holdings and SEA TRADE is its indirect subsidiary, the deal is classified as a connected transaction under Hong Kong Listing Rules. All percentage ratios are below 5%, so the transaction requires announcement but not independent shareholder approval.
\n\nNext steps The equity transfer becomes effective once state-owned assets authority filing is complete and industrial-commerce registration is updated. All transfer-related taxes and fees will be split equally unless specific regulations dictate otherwise.