On the evening of August 31, Nanjing Sheng Hang Shipping Co., Ltd. (hereinafter referred to as "Shenghang Shipping" or the "Company") issued an announcement stating that the Company's Fourth Board of Directors' 39th Meeting had reviewed and approved a proposal regarding the investment in and construction of six 13,500 deadweight tonnage stainless steel chemical/product oil tankers.

The Company plans to sign shipbuilding contracts with Nanjing Shipyard Co., Ltd. of China Merchants Shipbuilding Industry Group. The pre-tax price per vessel is RMB 165.8 million, bringing the total pre-tax construction cost for all six vessels to RMB 994.8 million, with a total investment scale approaching RMB 1 billion.

The announcement indicated that this investment is a significant measure implemented by the Company to implement its long-term strategic development plan, optimize its fleet capacity structure, and orderly advance the renewal of its older vessels. The new vessels will feature cargo tanks made of duplex stainless steel, configured with 14 cargo tanks, and designed with a single-tank, single-pump, single-pipeline system, capable of carrying up to 14 types of cargo simultaneously, effectively meeting clients' actual demands for the transportation of high-end fine chemicals. Once completed and put into operation, these vessels will continuously optimize the Company's capacity structure and drive the upgrading of its fleet towards being younger, more high-end, and more specialized.

According to the contract arrangements, the six vessels will be delivered in batches, with delivery dates ranging from August 31, 2028, to October 31, 2030. The payment terms are structured in installments corresponding to key milestones: contract signing and effectiveness, vessel keel laying, vessel launching, and vessel delivery, with payments made in proportions of 10%, 20%, 30%, 20%, and 20%, respectively. The contract will take effect upon being signed by the legal representatives or authorized agents of both parties and affixed with their official seals.

Shenghang Shipping stated that this investment in vessel construction was implemented following a comprehensive assessment of the current chemical shipping market, including the increasingly stringent regulatory requirements for the operation of older vessels and future trends in the chemical transport market vessel types, and in conjunction with the Ministry of Transport's policies on capacity control for domestic chemical transportation and the replacement of older vessel capacity. The decision was made after thorough analysis, evaluation, and prudent deliberation. The Company will fund this investment using its own funds and self-raised funds, and will rationally plan future capital expenditures by taking into comprehensive consideration multiple factors, including supply-demand dynamics in the transportation market, industrial policies, the pace of capacity replacement, vessel construction schedules, and delivery timelines.