China COSCO Holdings Company Limited *

Transcription

1 Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. China COSCO Holdings Company Limited * (a joint stock limited company incorporated in the People s Republic of China with limited liability) (Stock code: 1919) OVERSEAS REGULATORY ANNOUNCEMENT This announcement is made pursuant to Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. The Announcement on Status of the Convocation of the Investor Briefing Session as published in Chinese on the website of the Shanghai Stock Exchange ( on 9 November 2015 is enclosed hereto as overseas regulatory announcement. Beijing, the People s Republic of China 9 November 2015 By Order of the Board China COSCO Holdings Company Limited Guo Huawei Company Secretary As at the date of this announcement, the directors of the Company are Mr. MA Zehua 2 (Chairman), Mr. LI Yunpeng 1 (Vice Chairman), Ms. SUN Yueying 2, Mr. SUN Jiakang 1, Mr. YE Weilong 1, Mr. WANG Yuhang 2,Mr.WANMin 2, Mr. JIANG Lijun 1 (President), Dr. FAN HSU Lai Tai, Rita 3, Mr. KWONG Che Keung, Gordon 3, Mr. Peter Guy BOWIE 3 and Mr. YANG, Liang Yee Philip 3. 1 Executive director 2 Non-executive director 3 Independent non-executive director * For identification purpose only 1

2 Abbreviation for the Stock: Stock Code: China COSO Announcement No.: Lin China COSCO Holdings Company Limited Announcement on the Status of the Convocation of the Investor Briefing Session The Board of Directors and all directors of the Company warrant that this announcement does not contain any false representations, misleading statements or material omissions and jointly and severally accept responsibility for its truthfulness, accuracy and completeness of its contents. It is hereby announced that to fully safeguard the interests of investors, China COSCO Holdings Company Limited (hereinafter referred to as the Company ) convened an investor briefing session by way of online interaction on the online platform of the SSE Roadshow Centre at 4:00-5:00 pm on 9 November 2015 (Monday) to communicate and exchange with investors in respect of the recent suspension of trading in the shares of the Company and answer questions of common concern to investors, subject to compliance with laws and regulations. 1. The Status of the Convocation of the Investor Briefing Session Since China Ocean Shipping (Group) Company, the controlling shareholder of the Company, is planning major events, after application, the trading of the shares of the Company have been suspended since 10 August The Company has been actively carrying out the relevant work during the suspension period and has performed the relevant decision making procedures and information disclosure obligation in a timely manner. To enhance interaction and exchange with investors and fully safeguard the interests of investors, the Company convened an investor briefing session through the online platform of the SSE Roadshow Centre. The status of the convocation of the investor briefing session is hereby announced as follows. 2. Participants of the Investor Briefing Mr. Wang Haimin, the deputy general manager, Mr. Tang Runjiang, the chief financial officer, and Mr. Guo Huawei, the secretary to the board, of the Company attended the briefing session. The Company interacted, exchanged and communicated with investors at the briefing session to answer questions of common concern to investors. 2

3 3. Major Questions Raised by Investors and Responses by the Company The Company made responses to the questions of common concern raised by investors at the briefing session. The relevant questions and responses are summarized as follows: 1. Question from investors: Does the Company have time schedule for the resumption of trading? Answer: After analysis and negotiation with the parties concerned, the controlling shareholder is planning assets consolidation for related business segments of associated companies. As the matters involved are relatively complex and the scope of consolidation may involve both onshore and offshore assets, the relevant matters are currently under research and discussion with ongoing constant communication with regulatory authorities, and will involve the Company s major assets restructuring. Given the relevant reorganization plan is still uncertain and subject to regulatory approval, in order to ensure fair information disclosure and to protect the interests of investors and to avoid unusual share price movements, trading in the shares and derivatives of the Company shall continue to be suspended upon application by the Company. The Company will perform the information disclosure obligations in a timely manner after obtaining regulatory approval. Upon completion of related work, the Company will convene a board meeting to consider the major assets restructuring plan, and make an announcement as soon as possible and resume trading of its shares. 2. Question from investors: How about the overall market condition of the shipping industry? What is the market trend next year for long-term investors? Answer: Due to sluggish global economy growth, the estimated growth of the demand in global seaborne trade is only 2.3% in 2015, which is a record low since The overall international shipping market continues to be weak. Except for the oil tanker market, conditions in each of the major shipping markets are extremely tough. BDI index, which measures the dry bulk freight rate, fell to historic lows of 509 points in the first half of the year, and remained low in a long term. The average value of BDI was only 744 points from January to September of this year, representing a decrease of 32% as compared to the same period of last year. The demand in container shipping market is weak, coupled with sluggish growth in peak season, and the China Containerized Freight Index ( CCFI ) averaged at 921 points from January to September of this year, representing a decrease of 16% as compared to the same period of last year, hitting its lowest level as compared to the same period in prior years after

4 Looking ahead in 2016, it is projected that the international shipping demand will maintain a moderate growth for a period, while the oversupply in shipping capacity is hard to improve substantially in the near future. It is projected that the shipping market will fluctuate at low levels for a period, and a full recovery still takes some time. Under the complex and difficult situation, China COSCO will capture the opportunities arising from state-owned enterprises reform to pursue a better performance by reducing cost and enhancing efficiency, and increasing revenue and reducing expenses. 3. Question from investors: What are the benefits from this restructuring planned by the controlling shareholder for the future of the Company? We want to know how it stimulates the share price. Answer: After communicating with the controlling shareholder, the currently proposed restructuring plan has not been finalized. The Company will make an announcement and disclose to the public upon finalization of the plan. Investors are recommended to pay attention to the relevant information disclosure of the Company. Maximizing shareholders interests is the core and base of all works of the Company. The management of the Company will continue to strive to promote the performance of the Company, in order to reward the support of our shareholders. 4. Question from investors: Recently, there are quite a lot of national policies published, such as One Belt and One Road and Yangtze River Economic Zone. According to the news report, they are all closely related to the industry we are in. Hopefully that the Company will be able to capture this development opportunity. Has the Company developed any strategic arrangement? Answer: As to One Belt and One Road, the Maritime Silk Road has close relations with our business, the implementation of which will create demand for infrastructure construction and logistics transportation, bringing us opportunities to develop our terminal business, logistics and warehousing business as well as transportation business. We will, based on our own strategic development plan, pave the way along container shipping route, rely on terminal investment in overseas port hubs, and follow up with the progress promptly in logistics, shipbuilding and other businesses, to take active participation in promoting the market development in the countries and regions involved in One Belt and One Road with all our strength. This on one hand promotes the economic development in the countries involved and increase trading activities among those countries and on the other hand benefits our own business development. 4

5 In fact, we also have made progress in this respect. Our investment and construction in Piraeus Port in Greece have achieved a certain success. In future, we will rely on Piraeus Port to vigorously develop sea-land combined transportation and sea-rail combined transportation in Europe and Central Europe, so as to further build Piraeus Port into the main portal between China and Europe and the important transshipment port in Mediterranean for our business. As to Yangtze River Economic Zone, the Yangtze River Economic Zone being the golden waterway in China, surrounded by the more developed regions in China, is the important economic zone tightly connecting the Central Region and coastal areas. There are great development opportunities in both shipping and logistics industries. We also have attached importance to the expansion in this market, such as COSCON has maintained a better competitive advantage in terms of both network layout and market share by expanding river-ocean combined transportation and sea-rail combined transportation. In future, we will continue to make full use of our advantages and further expand our business, to provide comprehensive integrated logistics transportation service for the development of Yangtze River Economic Zone. 5. Question from investors: This year is almost gone and the whole shipping industry in China is in a period of transformation. Can you explain the specific development ideas of the Company for the future? Answer: Under the severe market situation, China COSCO will continue focusing on the four strategic aspects of profitability, anti-cyclical effect, globalization and increase in scale. China COSCO will set to capture the development opportunities arising from emerging markets, strengthen its marketing strength, fully optimize operating costs, enhance the comprehensive competitiveness of its fleet, comprehensively implement and practice strategies and promote innovation under the mega background of China s economic reforms and innovations. In the container shipping business, based on cooperation with alliance members, COSCON will continually optimize route layout and fleet structure, enhance alliance cooperation and efficiency, globally expand the alliance route network and comprehensively improve the competitiveness of product. By further leveraging the economies of scale, COSCON will provide better service to customers, and present China COSCO s customized brand and service. Through matching with opportunities from One Belt and One Road and the Yangtze River Economic Zone, widening the routes 5

6 pipelines calling in Piraeus Port in Greece, building up hub node of water transportation along the Yangtze river, construction of infrastructures such as onshore terminals and warehouses, COSCON will be able to strengthen its ability of resources control and management, continually increase the competitiveness of full trip transportation and improve the quality of differentiated service, strive to develop into a full trip container transportation chain solutions provider. By placing emphasis on internet + container shipping, COSCON continues to enhance the development of new business model, to improve customer experience and provide convenient and efficient solutions for customers. In the dry bulk freight shipping, COSCO Bulk will adhere to system thinking, system innovation and system implementation. Mainly by innovative marketing concepts and approaches and implementation of value-based marketing, COSCO Bulk realizes the transformation of marketing approaches from shipping capacity marketing to market promotion, the transformation of overseas freight solicitation network from single point distribution to network distribution, and by customer and market demand differentiation, COSCO Bulk realizes the transformation from professional service to accurate service. Therefore, COSCO Bulk can capture the opportunities arising from national strategies, maintain healthy operation and stable growth, and build up a first class group for dry bulk freight shipping service. In the terminal business, COSCO Pacific will adhere to the principle of Four Areas of Strategic Focuses, focus on seizing development opportunities in hub ports in line with the trend towards mega-vessels, focus on enhancing COSCO Pacific s brand value by optimizing the operational model of the terminal subsidiaries, and align the direction and strategy for its terminals business with global development strategies for COSCO s fleet and its shipping route network, with a view to propel a global hub network. 6. Question from investors: How is the restructuring going? Answer: According to the Company, the restructuring plan is currently under research. As the matters involved are relatively complex, in accordance with the Measures for Administration of Material Assets Reorganization of Listed Companies ( ) and other relevant requirements, the Company will cooperate with the controlling shareholder to continue researching and analyzing the relevant matters and organize relevant intermediaries to carry out audit, valuation, legal and financial advisory work. The Company is also making constant communication with regulatory authorities. 6

7 7. Question from investors: How about the development of COSCO s electronic commerce business? Do you have any new idea for the future? Answer: In 2015, COSCON continued to promote the application of the new business model of Pan-Asian electronic commerce platform, deepen the development of electronic booking business in China and try to expand it to the whole world. During the period, COSCON realized a fast increase in the proportion of electronic transactions, which was close to the advanced level in the industry, and lay a solid foundation for the standardization and process of its service system. COSCON has updated its platform trailer products by introducing more online derivative products, expanding online product categories on the platform, and has enhanced its service quality by providing special train service and further improved its customers experience and satisfaction. COSCON engaging in the shipping electronic commerce business is an exploration for a new innovative model, a material reform on its product innovation and a transformation from the traditional single sales model to the internet electronic direct sales model. It forces the shipping enterprises to constantly improve their offline service level and requires such enterprises to enhance their full trip transportation ability and profitability for container business. With the increase of online transaction volume, COSCON s shipping electronic commerce platform will gather a large number of customers and accumulate mass of transaction data, through which the Company can find and create new value growth points. The investor briefing session was successfully concluded with the active participation of investors. The Company hereby expresses its genuine gratitude to investors who have showed their long-term care for the Company, supported the development of the Company and proactively put forward their valuable opinions and suggestions. For the details of the investor briefing session, please refer to the online platform of the SSE Roadshow Centre (Website: Notice is hereby given. China COSCO Holdings Company Limited 9 November