The "Shanghai Municipal Catalog for Transition Finance (Trial)" (hereinafter referred to as "the Catalog") andits guidelines took effect on 1 January 2024, introducing the innovative anddistinctive "Shanghai Plan" for transition finance.

In line with the Catalog's standards, a subsidiary of COSCO SHIPPING Development Co., Ltd. (hereinafter referred to as "COSCOSHIPPING Development" or "the Company"), with robust support from China COSCO SHIPPING Corporation Limited, has recently inked a ten-year transition finance loan agreement with the Shanghai branch of Bank of Communications. The total financing of RMB 750 million is likely to effectively support the transformation and development of the Company's vessel leasing business. As the Catalog represents the first domestic transition finance standard to include the water transportation industry, this transaction also stands as the nation's first transition finance loan in this sector.

The grant of the transition finance loan signifies a successful practice in the Company's exploration of the "Shanghai Plan" for transition finance. Moving forward, the Company will persist in seeking diverse financing channels,focusing on integrating and utilizing both transition and green finance tools to ensure the steady progress of green production and business operations. We aim to advance a new journey towards high-quality development and contribute our strength to Shanghai's endeavor to emerge as an international green financial hub.