On January 21, COSCO Shipping Technology issued the “Announcement on the Proposed Transfer of Equity in an Associate Company by Public Listing.”
The announcement reveals that COSCO Shipping Technology intends to transfer its 50% equity in COSCO SHIPPING Furuno Navigation Technology (Shanghai) through a public listing on the Shanghai United Assets and Equity Exchange. The transaction is aimed at strengthening the main business and optimizing the asset structure, with an appraised value of RMB 20.65 million and a reserve price of RMB 10.33 million set for the listing. The final transaction price and counterparty will be determined according to the result of public listing.
COSCO Shipping Technology said that the company does not have control over the Furuno joint venture, has not consolidated its financial statements, and will no longer hold shares in the company after the transaction is completed. Meanwhile, the company said that this transaction is in line with the overall business development needs and will not harm the interests of the state, the company and all shareholders.
The announcement mentions the most recent financial data for the Furuno joint venture. In the fiscal year 2023, the Furuno joint venture had operating revenue of RMB 199 million and a net profit of RMB 6.0315 million. As of May 31, 2024, the total assets were RMB 99.52 million, total liabilities were RMB 79.22 million, and net assets were RMB 20.31 million. The net profit for the period from January to May 2024 was RMB 4.47 million.
From January to June 2024, the composition of COSCO Shipping Technology’s operating revenues was 98.42% computer application services and 1.58% other businesses.In the first three quarters of 2024, COSCO Shipping Technology realized revenues of RMB 1.246 billion and net income of RMB 142 million on a net basis.