Xinde Marine News — COSCO SHIPPING Holdings has announced a new share buyback programme, under which the company plans to repurchase and cancel up to RMB 1.54 billion of its Shanghai-listed A shares.

The board approved the plan on 6 July 2026. Under the proposal, COSCO SHIPPING Holdings will repurchase between 50 million and 100 million A shares through centralized bidding on the Shanghai Stock Exchange, with a maximum purchase price of RMB 15.40 per share.

Based on that price ceiling, the total repurchase amount is expected to range from RMB 770 million to RMB 1.54 billion. The programme will run for no more than three months from the date of board approval.

All A shares repurchased under the plan will be cancelled, leading to a reduction in the company’s registered capital.

The company also intends to conduct H-share buybacks under the general mandate granted at its 2025 annual general meeting and the 2026 class meetings of A-share and H-share shareholders. Any H-share repurchases will be carried out in accordance with the Hong Kong Listing Rules, the company’s articles of association and applicable regulations.

The latest plan continues COSCO SHIPPING Holdings’ recent practice of carrying out buybacks in both its A-share and H-share markets, with the repurchased shares subsequently cancelled.

Responding to a valuation gap

According to the announcement, the closing price of COSCO SHIPPING Holdings’ A shares on 3 July 2026 was below the company’s latest net asset value per share. This met the relevant regulatory conditions for a share repurchase.

The new programme is therefore also a direct response to the gap between the company’s share price and its underlying asset value.

For investors, the structure of the buyback is important. The shares will not be held as treasury shares or used for employee incentives. They will be cancelled. In practical terms, this reduces the company’s share capital and may support per-share metrics over time, provided earnings remain stable.

It also sends a clear message that the company sees value in its own equity at current levels.

Strong balance sheet gives room for capital return

COSCO SHIPPING Holdings’ ability to continue buying back shares is supported by a sizeable cash position and a conservative balance sheet.

As of 31 March 2026, the company had total assets of RMB 486.023 billion, net assets attributable to shareholders of RMB 235.690 billion, and cash and cash equivalents of RMB 149.702 billion. Its asset-liability ratio stood at 40.90%.

At the upper end of the new A-share buyback plan, the RMB 1.54 billion repurchase amount would represent approximately 0.32% of total assets, 0.65% of net assets attributable to shareholders, and 1.03% of cash and cash equivalents.

On that basis, the company said the buyback is not expected to have a material impact on its operations, financial position, ability to meet liabilities or future development plans.

For a global liner shipping group, cash remains a key source of resilience. Container shipping continues to face volatile freight markets, geopolitical disruption, changing trade flows and a heavy newbuilding delivery schedule. COSCO SHIPPING Holdings is using part of its cash resources to return value to shareholders while preserving a substantial financial buffer.

Buybacks and dividends have become a consistent pattern

The latest programme forms part of a broader shareholder return framework that has become more visible in recent years.

Since 2021, COSCO SHIPPING Holdings has completed nine cash dividend distributions, with total dividends of approximately RMB 120.29 billion. From 2022 to 2025, its actual cash dividend payout ratio remained around 50%.

The company has also used share repurchases more actively. From August 2023 to the end of June 2026, COSCO SHIPPING Holdings repurchased nearly 911 million A shares and H shares, with a total value of around RMB 10.4 billion. All of those shares have been cancelled.

This combination of cash dividends and share cancellations has become an important part of the company’s capital market profile. It allows the company to share earnings with investors while also reducing share capital and improving the equity structure.

The newly announced A-share buyback, together with the planned H-share buybacks, extends that approach into the second half of 2026.

Core liner business remains the foundation

The company’s continued capital return is ultimately supported by the performance of its core container shipping business.

In 2025, COSCO SHIPPING Holdings reported operating revenue of RMB 219.504 billion, EBIT of RMB 45.013 billion, net profit of RMB 35.228 billion, and net profit attributable to shareholders of RMB 30.868 billion.

Although container freight markets had already moved down from earlier cycle highs, the company still delivered a strong level of profitability.

In the first quarter of 2026, COSCO SHIPPING Holdings recorded operating revenue of RMB 51.797 billion, EBIT of RMB 8.763 billion, net profit of RMB 6.882 billion, and net profit attributable to shareholders of RMB 5.877 billion.

The company’s container shipping business handled 6.9156 million TEU in the quarter, up 6.70% year on year. COSCO SHIPPING Lines handled 4.919 million TEU, an increase of 8.9%.

The wider container shipping market has remained highly unstable this year. Red Sea and Middle East risks, changes in effective capacity, route diversions and shifting demand patterns have continued to influence freight rates and network planning.

For major liner operators, the market is increasingly testing more than vessel capacity alone. Network reliability, cost control, digital systems, terminal coordination, customer coverage and balance sheet strength are all becoming central to competitiveness.

COSCO SHIPPING Holdings has continued to rely on its global service network, fleet scale, terminal resources and end-to-end logistics capabilities to manage this volatility.

Long-term strategy remains focused on shipping and supply chains

COSCO SHIPPING Holdings has said its long-term goal is to build a global digital supply chain operating and investment platform with container shipping at its core.

The company has been advancing this strategy through network expansion, digitalisation, end-to-end logistics, terminal coordination and green fleet investment.

It has previously disclosed orders for 12 LNG dual-fuel containerships of 18,000 TEU each, alongside feeder fleet renewal plans. These investments are expected to support the company’s fleet upgrade and improve its ability to meet future decarbonisation requirements and customers’ low-carbon supply chain needs.

The new buyback programme therefore sits alongside, rather than in place of, long-term investment in the core business. COSCO SHIPPING Holdings is continuing to return capital to shareholders while also investing in fleet renewal, digital capabilities and supply chain services.

A clear signal to the market

Shipping remains a cyclical industry, and container shipping is particularly exposed to swings in trade demand, vessel supply, fuel prices, port congestion and geopolitical risk.

In that environment, a company’s ability to maintain profitability, cash flow and disciplined capital allocation becomes especially important.

COSCO SHIPPING Holdings’ latest buyback plan reinforces a pattern already established over the past several years: strong cash generation from the core business, sizeable dividends, repeated share cancellations and continued investment in future competitiveness.

For the capital market, the message is straightforward. COSCO SHIPPING Holdings is prepared to use its balance sheet to support shareholder value, particularly when its share price trades below book value.

The company said it will disclose the progress of the repurchase in accordance with applicable laws and regulations.