Core Viewpoint - Phoenix Shipping has announced a ship purchase plan exceeding 400 million RMB, which includes a borrowing plan from an affiliated company to finance the acquisition of dry bulk vessels [2][3]. Group 1: Borrowing Plan - The company plans to borrow up to 330 million RMB from Shanghai Jinneng International Trade Co., a subsidiary of its major shareholder, to support the purchase of shipping assets and business development [3][4]. - The borrowing will have a term of 12 months and will be secured by the vessels being purchased, with interest rates not exceeding the market loan rates [3][4]. - The company asserts that the borrowing will not adversely affect its financial status or operational results, as the interest is relatively low compared to its annual revenue of around 1 billion RMB [2][3]. Group 2: Ship Purchase Plan - Phoenix Shipping intends to use up to 60 million USD (approximately 427 million RMB) from its own funds to acquire dry bulk vessels, aiming to expand its capacity and optimize fleet structure [5][6]. - The total amount for ship purchases in the last 12 months has reached 60 million USD, constituting 64.59% of the company's latest audited total assets, thus requiring shareholder approval [5][6]. - The company has also signed contracts to scrap two old vessels for a total price of 33.55 million RMB, which is expected to impact profits negatively by approximately 17.7 million RMB [5][6]. Group 3: Strategic Adjustments - The company acknowledges that short-term losses from scrapping old vessels are unavoidable but necessary to improve operational efficiency in the long run [6]. - The current favorable shipping market conditions support the decision to replace old vessels, and the company plans to dynamically adjust its capacity structure to enhance profitability [6].