Speaking after a special general meeting Thursday, managing director Liu Hanbo said the firm's mainland property projects are ``stable and healthy'' and it ``could not rule out a separate listing at a suitable time.''

Cosco International has an 85 percent stake in the Fragrant Garden residential project in Shanghai and 51 percent in Yihe Garden in Shenyang.

In late 2003, it bought 20 percent of the enlarged registered capital of Cosco Real Estate Development, which is engaged in several projects in Beijing.

The projects include Ocean Landscape, Ocean Prospects and Kai Xuan Square, as well as the construction of infrastructure for Beijing's central business district.

Cosco International is one of several mainland companies hoping to list their property businesses.

Hong Kong-listed Shimao China Holdings is planning to spin off its mainland property unit for a Hong Kong listing, while Guangzhou-based R&F Properties and Tianjin-based Sunco China are also seeking first-time share offerings.

Meanwhile, Liu said Cosco International is still following plans set out in 2002 to build up its other major businesses - ship trading and supply services.

Liu said the company had cash in hand of HK$500 million, but ``at this moment we do not have any plans for investment.''

In 2003, it bought stakes in two paint manufacturers from its parent company and last year it also bought the insurance arm of its parent.

Liu expects the market for painting containers and ships to grow 6 percent in 2005.

The paint business contributed 53 percent of profits in the company's last interim results, compared to 34 per cent from property development.

Although raw material prices rose last year and may rise further this year, Liu does not expect this to unduly affect the company's paint prices. This year's gross margin is expected to be 22-26 per cent - the same as 2004.

At the special general meeting, shareholders approved the acquisition of Yuantong, a ship supply and installation firm, from Cosco International's immediate holding company, Cosco (Hong Kong), for HK$53.75 million.

Cosco International shares jumped 4.23 percent Thursday to close at HK$1.48. danny.chung@singtaonewscorp.com