Entrusted by the transferor (the Sellers), we have scheduled to hold a public bidding online (www.shipbid.net) from 10:00 to 10:30 (Beijing time) on August 4th, 2023.

1. Bidding Object

800 pcs of second-hand containers, including 500 pcs 40GP and 300 pcs 40HC, all for foreign trade.

The subject object shall be for bundling bid basis on “as is where is” at the time of inspection.

Location of the object:

(1)   Jin Yi Gangjian CY: No. 999 Gangjian Road, Pudong New District, Shanghai, China

(2)   Jin Yi Renmin Tang Road CY: No. 1333 Renmin Tang Road, Pudong New District, Shanghai, China

The locations of the subject containers mentioned above are shown below in red:

Note: The above CY locations are for reference only.

2. Bidding rules

2.1 This bidding will be held with a reserved price. If the highest price offered by the bidder is lower than the reserved price, the auction will be deemed as invalid.

2.2 The starting price is USD1.08 million, and the bidding deposit is USD 0.05 million (or RMB 0.35 million). Bid increment is a multiple of USD 0.002 million.

2.3 The bidding time will enter into Extension Cycle since 10:25 on August 4th, 2023 (Beijing Time) on the bidding day after the bidding officially starts. And then the ending time will be refreshed to 5 minutes once each new bidding price offered.

2.4 After the auction is completed, the deposit paid by the Buyers in participating in the auction (after deducting the auction service fee) will be automatically converted into the performance deposit under the Container Sale and Purchase Contract, and the deposit will be returned to the original route after the Buyers completes the delivery of the containers and the transferor receives the Protocol of Delivery and Acceptance of the Containers.

2.5 The time of this auction activity shall be subject to Beijing time (unless otherwise expressly stated).

3. Registration Requirements

3.1 Registration is available from the date of this Announcement and ends before the auction starts on the bidding day (subject to the receipt of bidding deposit, the completion of online registration on the platform and the receipt of the bidding number. It is recommended that bidders pay the deposit 1-2 days in advance in order to avoid any issues). No registration will be accepted after the deadline. After successful registration, the bidder shall be deemed to have fully known, accepted and complied with the contents of this announcement, bidding rules, special provisions and relevant agreements.

3.2 Any corporation or organization in and outside the Peoples Republic of China with legally existing may participate in this bidding.

3.3 The bidder shall submit the following documents for registration (including but not limited to):

(1) For Abroad Bidders:

l Certificate of Incorporation

l Articles of Incorporation

l Copy of Director’s Passport

l Undertaking for Bidding

l Bank slip of bidding deposit

(2) For Chinese Bidders:

l营业执照扫描件（加盖公章）

l法定代表人身份证扫描件（加盖公章）

l经办人身份证扫描件及授权委托书（如有，需加盖公章）

l《参拍承诺书》（文本向我司领取）

l竞拍保证金付款凭证

4. Date and Place for Inspection of the Containers

Inspection place is to be determined (according to containers stack location), please confirm with the bidding company for details. Potential bidders can inspect the containers within the stipulated time. The risk and expenses in relation to the inspection shall be borne by the potential bidders. The bidding company and the Sellers shall only be responsible for coordination work. Potential bidders who fail to participate in the on-site inspection yet complete the registration procedure within the prescribed inspection time shall be deemed to have recognized and accepted the status quo and defects of the containers, including but not limited to all known and unknown defects. Potential bidders shall not object to defects, such as the quality, of the containers for any reason.

5. Account of Bidding Company

(1) USD ACCOUNT:

l  Beneficiary: Zhejiang Shipping Exchange Co., Ltd.

l  Beneficiary Address: 6th Floor, Zhoushan Bulk Commodity Exchange Center, No.555 Wengshan Rd, Lincheng Zhoushan Zhejiang Province, P.R.China

l  Account No.: 3309040160000036851

l  SWIFT (Beneficiary Bank): HZCBCN2HXXX

l  Beneficiary Bank: Bank of Hangzhou Co, Ltd. Zhoushan

l  Beneficiary Bank Address: No.619, Dingshen Road, Ganghang building B zone Zhoushan city, Zhejiang Prov. PR China

l Remittance Reference:  CONTAINERS

(2) RMB ACCOUNT:

l户 名：浙江船舶交易市场有限公司

l账 号：3309040160000036844

l银 行：杭州银行舟山分行

6. Contacts

Ms. Wen: +86 18058087023/ 0580-2038333

Mr. Xia: +86 15967909740/ 0580-2038333

Mr. Chen: +86 18058087030/ 0580-2027516

E-mail: auction@shipbid.net

Zhejiang Shipping Exchange Co., Ltd.

July 21st, 2023

Article 1 Bidding Rules is made by relevant laws, regulations and policies of the People's Republic of China and with Shipbid practical situations, to standardize the bidding behaviors, maintain an open, fair and equal transaction order, and protect legitimate rights and interests for all the parties involved.

Article 2 The Transaction Rules of the ship bidding (hereafter to be referred as bidding) is suitable for standardizing all the online bidding behaviors. All the parties involved should abide by the Rules and bear legal responsibilities for their own behaviors.Disputes, if any, shall be settled by the parties through friendly negotiation. If the negotiation fails,parties concerned may file a lawsuit with the people's court where the auction organizer (Zhejiang Ship Exchange Market Co.,Ltd) is located.

Article 3 All legal persons or organizations that exist legally can participate in the bidding only if they have the qualifications of the auction announcement except those provided by laws and regulations.

Article 4 The auction information including videos, pictures and written introductions offered by the Seller will be uploaded through the Shipbid system after verified by the auctioneer.

The Seller shall take all the legal responsibilities and economic losses if he provides with fake information.

Article 5 The bidders couldn’t participate in the bidding activities until they register as the buyers through the Shipbid system.  

The username and passwords should be kept safely. If forgotten, bidders could retrieve through the Shipbid system. And if divulged, bidders should login in time to change the passwords.

Article 6 Before submitting the application for the bidding, the bidders should carefully read the auction announcement, ship’s information, transaction rules and other relevant documents, then login the Shipbid system to fill in true and effective information as required.

Article 7 The bidders should submit the applications in accordance with the auction announcement before the Shipbid starts.If legal personalities, natural persons and other organizations need joint-bidding, they should fill in related information and the proportion of capital contribution of each party as required and sign the Joint Bidding Statement.

Article 8 The bidders apply on the Shipbid system by themselves, and pay the deposit either on line or offline. One deposit is only for one lot. And if the bidders want to bid several ships at the same time, corresponding deposits are required.

The bidders are entitled to bid only if the deposit fully paid to the nominated account (based on the arrival time of the deposit ）within the required time. The bidders shall not be eligible for bidding if the deposit is delayed or not fully paid on time.

Article 9 The bidding shall be conducted with time limit. Qualified bidders can participate in the bidding. The initial offer shall not be lower than the starting price and each offer shall be no less than the specified bid increment.

If it is an auction with reserve price, “YES” will be revealed in the system. Otherwise it will display “NULL”.

Article 10 The bidder shall make a cautious bid, and the offer will be irrevocable once submitted.

Article 11 The last limited time of the Shipbid is FIVE (5) minutes. If there is a new bid within 5 minutes countdown, another 5 minutes will be set.

No new offers would be accepted after the final countdown, and the bidding history will be revealed.

Article 12 Once there is/are (a) bidder offer(s) in the Shipbid, the target bidder (hereinafter called the Buyer) shall be confirmed in accordance with the following rules

(1) Where there is no reserve price, the highest bidder would be the Buyer.

(2)Where there is a reserve price, the bidder with the highest offer and not lower than the reserve price would be the Buyer; If the highest offer is lower than the reserve price, the bidding will be pass.

When the time for the bidding is over, the bidding system will be automatically closed.

Article 13 The Buyer should confirm his qualification with the enterprise or individual valid certification to the auctioneer within 2 working days after the bidding. After verification and confirmation, the Buyer should sign the Purchase Confirmation. If the buyer fails to sign the Auction Transaction Confirmation for reasons, the auction result shall not be affected.

If the buyer fails to pass the qualification due to submitting false registration materials, the bidding result is invalid or the buyer breaches the contract, he shall pay the bidding service fee of both the buyers and the sellers; If the price of the re-auction is lower than the transaction amount, the buyer must make up the difference.

Article 14 If the Buyers do not pay the balance of Purchase Price within the prescribed time or do not take the bidding object, the Sellers are entitled to bid again of which the original Buyers cannot partiticate. If the Buyers regret to bid after completion of the auction (including but not limited to failure to pay the balance Purchase Price 2 working days prior to delivery, or other circumstances the original Buyers express clearly ), the bidding deposit lodged shall not be refunded, and will be used to pay the cost loss caused by the first bidding, make up the difference between the re-bidding price and the first bidding price. If the deposit amount is insufficient cover the costs, the Sellers have the right to pursue recourse against the original Buyers.

Article 15 The payment of balance shall be remitted to the nominated account in time according to the Purchase Confirmation.

Article 16 The Buyer should sign the Sale and Purchase Contract by the Purchase Confirmation with the seller within the required time and make relevant transaction procedures.

Article 17 After paying the balance, the Buyer himself should handover the lot and manage the transaction procedures in time. If the Buyer fails to manage within required time, he himself should pay the costs caused by the delay and afford the consequences of possible damage or losses.

Article 18 The Buyer himself should register the lot and bear all relevant expenses occurred according to the regulations and policies during the transaction procedures.

Article 19 The bidding currency is USD. Both the starting price and purchase price do not include the expenses and taxes occurred during transaction procedures.

Article 20 If the bidder obstruct others to bid, manipulate or monopoly the bidding price, or make malicious collusion, the auction will be cancelled once above behaviors are found, and relevant legal responsibility will be borne by the bidder.

Article 21 If the bidder cannot normally login the Shipbid system to apply, offer or bid because of following reasons such as virus invasion, hardware failure, network congestion or passwords forgotten and divulge, etc., he himself should bear the consequences and the bidding will not be suspended.

Article 22 The auctioneer reserves the right to suspend or withdraw the bidding before it starts according to the laws and regulations.

Article 23 The auctioneer reserves the right to suspend or withdraw the bidding if force majeure or accident has caused the online auction to fail.

Article 24 The seller and the auctioneer shall not bear any responsibility for the abnormal service of the website or the interruption of the auction activity due to force majeure or any third party.  After that, the auctioneer will issue a supplementary announcement and explain the reasons for the interruption. A new auction announcement will be issued 阿as soon as possible the website service returns to normal, and the online auction will be organized and completed according to the new auction announcement. The starting price and reserve price (if any) for re-organizing the bidding due to the above reasons shall be consistent with the original announcement.

Article 25 These rules are general rules for online auction transactions of ships. In case of any conflict with the announcement or agreement of a single item, the terms of a single item shall prevail.

Article 26 If the bidding announcement, additional provision, inspection report or technical status report of the subject object is described and publicized in Chinese and English (or other languages), in case of contradiction or inconsistency, The Chinese version shall prevail.

Article 27 If the person with the right of preemption participates in the bidding, he/she shall submit legal and effective certificates to the auctioneer before the auction begins. After the auctioneer confirms the qualification, he/she can obtain the right of preemption to participate in the bidding. If he/she fails to submit within the time limit, he/she shall be deemed to have given up the right of preemption of the subject matter. 

Article 28 The time concerned in the bidding all depends on Shipbid system service time, except the deposit arriving time which depending on the bank recording time. All the time of information arriving is subject to the time when the information received by Shipbid.

Zhejiang Shipping Exchange Co Ltd is responsible for the interpretation of the Rules

1.This additional provision is a supplement to the bidding announcement and rules, which has the same legal effect.

2. Bidding Object

800 pcs of second-hand containers, including 500 pcs 40GP and 300 pcs 40HC, all for foreign trade.

The subject object shall be for bundling bid basis on “as is where is” at the time of inspection.

Location of the object:

(1)   Jin Yi Gangjian CY: No. 999 Gangjian Road, Pudong New District, Shanghai, China

(2)   Jin Yi Renmin Tang Road CY: No. 1333 Renmin Tang Road, Pudong New District, Shanghai, China

The locations of the containers disposed in this auction in the above two yards are shown in the red in the following figure:

Note: The above CY locations are for reference only.

All the information and data provided in the Bidding Announcement, Special Provision as well as any other channel related to the containers are for reference only. The bidding object is subject to the status at the time of inspection. If there is any discrepancy between the actual situation and the information and data above shall not affect the bidding and bidding price. Once the bidding is concluded, the Sellers and us shall not assume take any liability for defects or quality problems of the bidding ship.

3. After Bidding

3.1 After a successful bidding, the Buyers shall sign an Auction Confirmation with the Bidding Company on the same day (the “Bidding Day”) via email address or facsimile. The Buyers shall sign original Auction Confirmation with the Bidding Company within two (2) banking days of the Bidding Day. The Buyers shall sign the Containers Sale and Purchase Contract with the Sellers within two (2) banking days after completion of the bidding.

3.2 After the signing of the Containers Sale and Purchase Contract, the bidding deposit paid by the Buyers deducting the biding service fee shall be automatically converted into the performance deposit under the Containers Sale and Purchase Contract.

3.3 The bidding deposits of the unsuccessful bidders shall be returned within two (2) Banking Days after the bidding without interests.

3.4 It’s acknowledged the account designated by the bidding company is the escrow account for the Buyers and Sellers to hold and release the funds of the purchase price. We shall, within two (2) banking days after the Buyers take the containers on the first day, release all the Purchase Price and other payables received by the Buyers unconditionally. The bidding company does not charge any additional fees for the fund custody services related to this project, and all the custody funds are free of interest.

4. Transfer (Deletion) and Delivery of the Containers

4.1 The Buyers shall remit the purchase price and other payables (if any) to the escrow account within (2) working days after the Containers Sale and Purchase Contract takes effect and no later than the date to take the first container. Any delay or failure to pay fees mentioned above shall be deemed as a breach of the Bidding Announcement and the Containers Sale and Purchase Contract.

4.2 Delivery Time: The Buyers shall take the containers at the place designated by the Sellers and be responsible for any expenses for taking containers. The Buyers shall take the containers within 20 calendar days after paying the Purchase price. The Buyers shall pay for 5 RMB/TEU/day as storage fee if overdue. If the Sellers need to postpone the delivery due to force majeure factors, a new Latest Delivery Date should be mutually agreed by the Sellers and the Buyers.

4.3 Delivery Place: Location of the containers. (Jin Yi Gangjian CY: No. 999 Gangjian Road; Jin Yi Renmin Tang Road CY: No. 1333 Renmin Tang Road), The Buyers shall take up the containers at the place designated by the Sellers and bear the corresponding expenses.

The Sellers are not responsible for any time and cost for the Buyers to take delivery of the containers which shall be for the Buyers’ account.

The Buyers shall take the containers “as is where is” at the time of inspection. The Buyers shall be deemed to confirm and accept the containers’ condition if they did not inspect the containers at the nominated time within the prescribed inspection time. If the Buyers have completed the registration procedures and participated in the bidding, it shall be deemed to have fully understood and accept all the information of the subject matter of the bid, including but not limited to all known and unknown defects. The Buyers shall not raise objections to the defects such as the quality of the bid target for any reason.

4.4 Containers' delivery form: After the Buyers pay the full Purchase Price, the Sellers will provide the Buyers with a valid Packing List before the Buyers taking up the containers. The Buyers shall go to the corresponding storage yard to complete the procedures for taking the containers by themselves with the Packing List issued by the Sellers. When taking containers, the containers shall be designated by the yard in accordance with the principle of convenient loading and unloading and according to the actual situation on site. The Buyers shall obey the on-site arrangement of the yard and shall not designate the containers at will.

4.5 Transfer of ownership: After the original owner of the container signs the Protocol of Delivery and Acceptance of the Containers with the Buyers, the ownership of the containers is transferred to the Buyers.

5. Related Expenses

5.1 Bidding service fee: After the bidding, the Buyers shall pay the bidding company 2% of the purchase price as bidding service fee which will be deduct from the bidding deposit directly after completion of the bidding.

5.2 The bank charges related to the bidding deposit shall be borne by the bidders, and the bank charges related to the purchase price shall be borne by the Buyers.

5.3 The Sellers only provide the Buyers with commercial invoices of the purchase price. Any costs and taxes shall be borne by the Buyers.

5.4 The delivery time of the containers is subject to the signing of the Protocol of Delivery and Acceptance of the Containers. The containers with everything belonging to her shall be at the Sellers’ risk and expense until they are delivered to the Buyers, while the containers’ risk and expenses shall be for the Buyers’ account after signing Protocol of Delivery and Acceptance under this Agreement or beyond the last delivery date agreed in the Containers Sales and Purchase Contract. If there are other agreements in the Containers Sale and Purchase Contract, the agreement in the Containers Sale and Purchase Contract signed by the Buyers and the Sellers shall prevail.

6. Others

6.1 The Buyers shall remove all company logo, containers number and other marks on the containers after taking the containers, so as to ensure that the Sellers or its parent company will not suffer from any claims, losses or fines. In case of any claim, loss or penalty, the Buyers shall compensate the Sellers for the corresponding loss.

6.2 If the Buyers are Chinese company, it must declare the transaction to the customs and pay taxes according to regulations; If the Buyers are abroad company, it shall guarantee that the bidding object will be used for foreign trade transportation after taking, otherwise it must declare the transaction to the customs and pay taxes according to regulations. If the Sellers or its parent company suffers losses including but not limited to the payment of taxes and fines due to the reasons of the Buyers, the Buyers shall compensate the Sellers for such losses.

7. This Announcement is described in both Chinese and English. In case of any discrepancy between the two languages, Chinese version shall prevail.

8. Matters not covered herein shall be settled through negotiation by the bidding company, the Sellers and the Buyers.

Zhejiang Shipping Exchange Co., Ltd.

July 21st, 2023

THE CONTRACT OF CONTAINERS.pdf