HONG KONG, Dec. 2 /PRNewswire-Asia/ -- COSCO International Holdings Limited ("COSCO International" or "the Company") (SEHK Stock Code: 00517) is pleased to announce that the Company has further expanded its bunker oil supply business through its wholly-owned subsidiary, Sinfeng Marine Services Pte. Ltd("Sinfeng Marine"), incorporated in Singapore. The management of COSCO International endeavour to build Sinfeng Marine as one of the key revenue drivers to COSCO International's core business - shipping services in the future in order to further enhance the Company's capability to become a global leader in shipping services.

Mr. Liang Yanfeng, Managing Director of COSCO International, said, 'Sinfeng Marine is one of the strategic arms of COSCO International's expansion into the marine bunker supply services. With Sinfeng Marine's wide business network and extensive experience of the management team, we are confident that it will enlarge the income base of the Company and expand the scale and scope of core business, and therefore help the Company achieve a higher growth rate in the future. In addition, Sinfeng Marine will provide opportunities for COSCO International in getting more management experience for further expansion in this business area in the future."

Sinfeng Marine is mainly engaged in the provision of marine fuel and related services including marine bunker supplies, trading of oil and oil related products and broker services for the clients who are mainly not members of the COSCO Group. Its current businesses originally came from a subsidiary of COSCO Group which is going to cease operation. During the past years, the business transaction volume for the clients who are not members of the COSCO Group for the supply and trading of fuel oil were amounted to approximately 520,000 tonnes and 720,000 tonnes in 2007 and 2008 respectively, and 670,000 tonnes for the ten months ended 31st October 2009.

On 1st December 2009, COSCO Petroleum Pte. Ltd. ("COSCO Petroleum"), a wholly-owned subsidiary of COSCO (Hong Kong) Group Limited and a fuel oil supply and trading company providing services to the fleet of COSCO Group, and Sinfeng Marine entered into certain agreements in relation to the fuel oil trading transactions and financial services, through which Sinfeng Marine may sell or purchase oil products to or from COSCO Petroleum in order to take the benefit of better market prices obtained through bulk purchase order placed either by COSCO Petroleum or Sinfeng Marine. Meanwhile, COSCO Petroleum will help Sinfeng Marine carry out financial arrangements free of charge which facilitate Sinfeng Marine to hedge against the risk of fuel oil price fluctuation. According to the Listing Rules, such day-to-day business operations will therefore constitute continuing connected transactions and are subject to the approval of the independent shareholders at the special general meeting.

In April 2009, COSCO International completed the acquisition of 18% interests of Double Rich Limited, a HK-based bunker oil trading and supply company, which represents the first step into the bunker oil supply business. The establishment of a Singapore-based company, Sinfeng Marine, is therefore the second step for the Company to expand its bunker oil supply business.

About Sinfeng Marine & COSCO Petroleum

Sinfeng Marine was incorporated in Singapore by COSCO International. It is mainly engaged in marine bunker supply and the trading of oil products for the clients who are mainly not members of the COSCO Group. With its office located in Singapore, it has established extensive and good business partnership with renowned oil companies, shipping companies and ship owners around the world, of which most of them have representative offices in the region. Its business network mainly covers ports in Singapore and Malaysia, as well as other major ports in the Far East areas like Hong Kong, Shanghai and Qingdao, and from time to time other main ports globally.

COSCO Petroleum Ptd. Ltd. ("COSCO Petroleum") was incorporated in Singapore and is a wholly-owned subsidiary of COSCO (Hong Kong) Group Limited. COSCO Petroleum is a fuel oil supply and trading company providing services to the fleet of COSCO Group and the sole authorised representative within COSCO Group designated to participate in fuel oil hedging activities.

Company Background

COSCO International Holdings Limited (Stock Code: 00517) has been listed on the main board of the SEHK since February, 1992. In recent years, COSCO International has focused its strategic business position on the development of the shipping services business. It aims to become a specialised and leading shipping services provider. Its core businesses are shipping services, including ship trading agency, marine insurance brokerage, sales of marine equipment, spare parts and communications and navigation equipment, and production and sales of coatings products, other operations include property investment and general trading, etc.

Relationship with Parent Company

COSCO International is a listed company owned by COSCO (Hong Kong) Group Limited, which is a wholly-owned subsidiary of China Ocean Shipping (Group) Company ("COSCO"). COSCO is one of the most recognised multinational conglomerates in the world, which focuses mainly on shipping and logistics businesses as well as other shipping related businesses. COSCO Hong Kong is an important overseas regional headquarters and conglomerate of COSCO Group, operating and managing a few hundred subsidiaries in Hong Kong and Macau.

Editorial Note

Details of the announcement of the Continuing Connected Transaction are available on the website of the SEHK ( http://www.hkexnews.hk ) and the Company's website ( http://www.coscointl.com ).

    For enquiries, please contact:

    Corporate Communications Department of COSCO International
     (Investor Relations)
     Yang Ling, Deputy General Manager
     Tel:   +852-2809-7810
     Fax:   +852-8169-0678
     Email: yangl@coscointl.com

     Wilson Lo, Senior Investor Relations Manager
     Tel:   +852-2809-7800
     Fax:   +852-8169-0678
     Email: lows@coscointl.com

     (Media Relations)
     Candy Cheung, Deputy General Manager
     Tel:   +852-2809-7706
     Fax:   +852-8169-0678
     Email: cheungky@coscointl.com

     Fiona Ha, Senior Manager
     Tel:   +852-2809-7692
     Fax:   +852-8169-0678
     Email: haf@coscointl.com

     iPR Ogilvy Ltd.
     Nick Fung/ Karen Tse/ Tina Law / Natalie Tam
     Tel:   +852-2169-0646 / 2136-6950 /
            +852-2136-6181 / 2136-6182
     Fax:   +852-3170-6606
     Email: nick.fung@iprogilvy.com/ karen.tse@iprogilvy.com/
            tina.law@iprogilvy.com/  natalie.tam@iprogilvy.com

SOURCE COSCO International Holdings Limited

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