On July 10, China Merchants Energy Shipping (CMES) issued an “Announcement Regarding a Related-Party Transaction Involving the Proposed Construction of New Vessels by a Wholly-Owned Subsidiary.”
The announcement disclosed that CMES intends to sign a “Shipbuilding Agreement” with a shipyard affiliated with China Merchants Shipbuilding Industry Group Co., Ltd. (China Merchants Shipbuilding), a related party, through an offshore single-vessel company established by its wholly-owned subsidiary. Under the agreement, the parties plan to build one new 210,000 DWT Newcastle bulk carrier equipped with a desulfurization tower, a shaft generator, and coated with high-efficiency anti-fouling paint, as well as four 1,800-TEU container ships. The total investment for the project is expected to not exceed RMB 1.51 billion (approximately US$223 million), with delivery scheduled for 2028.
CMES stated that this move is intended to further optimize the company’s fleet capacity structure and enhance its market competitiveness. Ordering new vessels from related parties is part of the company’s fleet development plan to expand its bulk carrier and container ship fleets and secure shipyard slots with earlier delivery dates.
In the previously released “2026 Mid-Year Earnings Forecast Report,” CMES expects to generate operating revenue of 18.7 billion to 20.6 billion yuan during the reporting period, an increase of 6.1 billion to 8.0 billion yuan from the 12.585 billion yuan reported in the same period last year, representing a year-over-year growth of 48% to 63%. Total profit is projected to reach 7.7 billion to 8.6 billion yuan (approximately $1.137 billion to $1.269 billion), representing a year-over-year increase of 208% to 244%.
So far this year, CMES has announced orders for several types of vessels, including four 3,000-TEU container ships, four 8,200-TEU container ships, four 1,800-TEU container ships, one shuttle tanker, and ten VLCCs.