COSCO SHIPPING International Trading Company Limited completed the capital injection into Zhejiang Four Brothers Rope Co., Ltd.
Apr 02, 2021
On 31st March 2021, COSCO SHIPPING International Trading Company Limited, a wholly-owned subsidiary of COSCO SHIPPING International (Hong Kong) Co., Ltd., entered into the Capital Increase Agreement with Zhejiang Four Brothers Rope Co., Ltd. (Abbreviation: FBR) in Linhai City, Zhejiang Province. Mr. Chen Xuewen, General Manager of COSCO SHIPPING International Trading Company Limited, and Mr. Li Maoju, General Manager of FBR, signed the contract on behalf of both companies. Mr. Liu Xianghao, Vice President of COSCO SHIPPING (Hong Kong) and Deputy General Manager of COSCO SHIPPING International (Hong Kong) Co., Ltd., and Mr. Wang Dan, Deputy Secretary and Mayor of Linhai City, witnessed the agreement signing ceremony.
According to the Capital Increase Agreement, COSCO SHIPPING International Trading Company Limited conditionally agreed to subscribe for registered capital representing 48% equity interest in the FBR by way of capital injection into the FBR in the sum of RMB120, 000, 000. Upon completion of the Transaction, COSCO SHIPPING International Trading Co., Ltd will hold 48% of the enlarged registered capital of the FBR.
Mr. Liu Xianghao pointed out that COSCO SHIPPING (Hong Kong) / COSCO SHIPPING International (Hong Kong) Co., Ltd. has a wide scope of investment in comprehensive shipping services, industrial manufacturing, etc. with a comprehensive and professional investment, financing and operation management system. COSCO SHIPPING International Trading Company Limited has long been engaged in marine cable, equipment, materials and other business with strong marketing experience and management ability. The capital injection into FBR is a strong alliance between the two companies in rope business. It is hoped that both shareholders can complement each other's advantages and cooperate for win-win results to promote Linhai's economic development.
Mr. Wang Dan said that Linhai municipal government attaches great importance to this cooperation and is full of confidence in the development prospect of FBR after the capital injection. It is hoped that on the basis of this cooperation, they will further strengthen the cooperation with COSCO SHIPPING (Hong Kong) and enhance the regional economic and social development of Linhai City.
This capital injection into domestic leading cable manufacturer is beneficial for COSCO SHIPPING International Trading Company Limited to give full play to COSCO SHIPPING's brand advantages and the high quality guarantee of FBR. After that, the company can realize the integration of production and trade of cable, expand its market share, aiming to become a leading enterprise in the high-end rope and cable market in the PRC which can also provide new source of profit for the Group.
Mr. Su Xiaodong, Investment Director and General Manager of Capital and Investment Operation Division of COSCO SHIPPING (Hong Kong) ; Mr. Chen Jinguo, Secretary of Duqiao Town, Linhai City, attended the signing ceremony.