CSSC SHIPPING (03877) surged nearly 3% during trading, and as of the time of writing, it has risen 2.33%, priced at 1.76 HKD, with a transaction volume of 13.4442 million HKD.
According to Zhitong Finance APP, CSSC SHIPPING (03877) rose nearly 3% during the session, and as of the time of writing, it has increased by 2.33%, priced at 1.76 Hong Kong dollars, with a transaction volume of 13.4442 million Hong Kong dollars.
On December 10, CSSC SHIPPING announced that on July 18, 2024, the company signed a lease agreement with its controlling shareholder, China Shipbuilding Group, through its indirect wholly-owned subsidiary, Guangxi Wenchuan, and its indirect non-wholly-owned subsidiary, Huangpu Wenchong Shipbuilding. Under this agreement, the company will lease several pieces of equipment to Guangxi Wenchuan and Huangpu Wenchong Shipbuilding for a lease term of 12 months, with a total lease payment of 59.11 million yuan.
The announcement states that the total lease amount includes a principal lease of 50.07 million yuan and lease interest of approximately 9.04 million yuan. Guangxi Wen Ship is required to make lease payments every three months and to pay an amount equal to 1% of the consideration as a deposit within 10 business days from the date of the lease agreement. Upon the expiration of the lease term, Guangxi Wen Ship can choose to retain all equipment without paying an additional cost, and the ownership of the equipment will be transferred to Guangxi Wen Ship. This Trade constitutes a related party transaction for the company, as its applicable percentage exceeds 0.1% but is below 5%, thus it is subject to disclosure and announcement regulations.