China Ocean Shipbuilding Industry Group (Cosig) to Diversify into Car Parking Business

Published Date : Oct 16, 2015

China Ocean Shipbuilding Industry Group (Cosig) has decided to take further steps to expand its services from the shipping industry to car parking business. Hong Kong listed group Cosig lately stated that it has plans to invest HK$450 mn in the car parking business. Cosig has plans to acquire one of the top investment firms, which owns Shandong Ruitong (Hong Kong) Parking Management Services Company. According to Cosig, the acquisition primarily represents an important step towards the automotive parking management service business. The new acquisition will help Cosig to diversify its existing business. 

China Ocean Shipbuilding Industry Group (Cosig) is engaged in the operation and production of shipbuilding and providing financial services and security trading services. The acquisition will also include production of the automotive devices and intelligent auto parking equipment, said Cosig. The acquisition will create an interaction by using the production capacity to the existing shipbuilding production facilities. According to Cosig, the sales and purchase contract guarantees that the newly acquired company would yield a profit, not less than RMB60 mn by 2016. 

In the initial period of the contract, China Ocean Shipbuilding Industry Group (Cosig) is planning to contribute HK$67.47 mn. Cosig will issue HK$259.5 mn consideration shares on completion. According to the authorities of Cosig, the company is planning to invest a maximum of HK$382.53 mn by allotment and issue of 1.47bn consideration shares. This will happen only when the net profit of RMB60 mn is achieved till the end of the agreed period in the contract. However, China Ocean Shipbuilding Industry Group (Cosig) reported a loss of HK$282.5 mn in the first half, extending from a shortfall of HK$222.3 mn in the corresponding previous period. With the addition of automotive parking business, China Ocean Shipbuilding Industry Group (Cosig) is aiming to expand its automotive services along with the shipbuilding industry.