On December 18th, Hainan Free Trade Port will implement a port-wide customs closure,
embracing the world with an even more open stance.

As a dedicated participant deeply involved in the construction of the shipping industry chain,
COSCO SHIPPING Development has been actively expanding its presence in Hainan.
By establishing an industrial-financial service platform and implementing shipping-related financial projects
with innovative business models,
the company not only shares in the development opportunities of Hainan,
but also injects robust industrial momentum into this thriving region through practical actions, pioneering a unique new path for value creation.

Following the release of the Hainan Free Trade Port construction master plan in 2020,
COSCO SHIPPING Development has strategically established its presence in Hainan through a well-designed business blueprint.

Over the past five years,
by leveraging the full-industry-chain synergies of COSCO SHIPPING Group,
 along with its core strengths in vessel lifecycle management operations and diversified financing channels,
the company has successfully implemented a series of landmark projects in Hainan.

Milestone: Creating a Model for the Return of "Flag of Convenience" Vessels

In 2024,
driven by the dual momentum of the Belt and Road Initiative and the construction of the Hainan Free Trade Port,
the company successfully facilitated the registration of
the multipurpose pulp carrier "Grace" in Haikou through the innovative approach of "changing ownership without altering the flag."
This marked the first return and local registration of a "flag of convenience" vessel in Haikou,
as well as the first such vessel under COSCO SHIPPING Group.

Establishing a presence in the Hainan Free Trade Port has not only solidified the company's comprehensive layout in Haikou
but also created a replicable success model for future vessel returns.
This move demonstrates the company's commitment and capability to
actively engage in shipping-related institutional innovation within the Free Trade Port.

Laying the Foundation: Building a Multi-Spectrum Vessel Asset Platform

In recent years, capitalizing on its robust industrial-financial prowess,
the company has steadily progressed in multi-sector vessel leasing endeavors.
From multi-purpose pulp carriers and bulk carriers to asphalt tankers and Very Large Crude oil Carrier (VLCCs),
nearly 60 vessels of varied types have converged in Hainan through production-finance integration projects.
This has formed a multi-spectrum shipping asset portfolio, collectively building a comprehensive and diversified shipping asset platform.
It stands as a remarkable highlight in the shipping and finance landscape of the Hainan Free Trade Port.

Innovation: Sparking a New Ecosystem for Industry-Finance Integration

The policies facilitating cross-border capital flows in the Hainan Free Trade Zone have spurred innovation in industrial-financial integration models.
Through efficient bank-enterprise collaboration,
the company has pioneered a new model of RMB-denominated and settled financial services across the entire "building, leasing, and operating" shipping industry chain.
This approach effectively integrates cross-border financial convenience with actual corporate needs,
not only significantly reducing operational costs for industry chain partners and enhancing capital utilization efficiency
but also advancing the practical application of RMB in international shipping transactions.
This initiative has injected fresh vitality into
the financial ecosystem of the shipping industry.

Blueprint: Jointly Shaping the Future of the Free Trade Port

From the "return" of a single vessel to
the "rooting" of an entire industrial cluster,
from the "exploration" of an integrated industry-finance model to
the "convergence" of an ecosystem,
every step taken by COSCO SHIPPING Development in Hainan is nothing but a vivid reflection of its strategic resolve to move in sync with the Free Trade Port.

As the port-wide customs closure approaches,
COSCO SHIPPING Development will build on its established business layout,
leverage national policy advantages,
continuously optimize its vessel asset structure, and
expand industrial-financial service scenarios.
By enhancing cross-border operational efficiency and strengthening the "reservoir" function of shipping assets,
the company will contribute to building a shipping industry chain ecosystem in the Hainan Free Trade Port.
Together with partners across the industry chain,
we will witness and participate in a wealth of Hainan narratives interwoven with the realms of shipping and finance.