COSCO SHIPPING Development Announces 2021 Interim Results Industry and Finance Integration Achieves Synergy Significant Growth Scored in 1H21 Results
HONG KONG / ACCESSWIRE / August 30, 2021 / COSCO SHIPPING Development Co., Ltd. (the “Company” or “COSCO SHIPPING Development”) (SSE:601866)(HKEX:2866) is pleased to announce the consolidated results for the six months ended 30 June 2021 (the “Period”) today. In the first half of the year, the Company recorded a total operating revenue of RMB12.919 billion, representing a year-on-year increase of 201.7%; net profit attribute to owners of the parent recorded RMB2.420 billion. Basic earnings per share was RMB0.1980.
As the domestic prevention and control of the pandemic has been improved, the Chinese economy has been gradually recovering. The new development pattern, in which the major domestic cycles play the main role and both domestic and international cycles reinforce each other, is accelerating in formulation. The global container shipping trade recorded a strong rebound, and the prosperity of shipping and logistics industry chain continued to improve. COSCO SHIPPING Development has been actively studying the market and expediting the construction of new development pattern.
Leasing business segment built on the integration of industry and finance to achieve a win-win industrial chain
In the first half of the year, the operating revenue of shipping and industry-related leasing business of the Company was RMB2.753 billion. The revenue of vessel leasing business reached RMB964 million. The Company centered on the strategy of “Integration of Industry and Finance, Promoting Production with Finance” to optimize both internal and external performance and promote the integrated business within the Group. Meanwhile, the Company actively distributed large transportation business and steadily expanded external ship projects. The revenue from leasing, management and sale of containers amounted to RMB1.788 billion. The Company has actively promoted the combination of leasing and manufacturing, optimized the structure of leasing period, and has achieved a significant increase in revenue. Meanwhile, the Company has further enriched the leasing products, developed special container and reefer container business to improve the overall profit growth. In other leasing business, the Company successfully introduced external strategic investors and achieved a major breakthrough in equity diversification and mixed ownership reform.
Outstanding performance of container manufacturing segment actively facilitated the acquisition of assets
In the first half of the year, thanks to the positive situation of epidemic control in China, the foreign trade situation continued to be improved. The market demand for containers has been greatly increased. Taking advantages of the situation, COSCO SHIPPING Development has optimized technical upgrading management, effectively exploited capacity potential, made effort to implement “Six Stabilities” and “Six Priorities” to provide important logistics support services and has achieved excellent performance. In the first half of the year, the container sales volume of the Company recorded nearly 620,000 TEU, representing a year-on-year increase of 230.4%. The operating revenue reached RMB10.706 billion, representing a year-on-year increase of 341.2%.
To further integrate the container-making assets of the Group, optimize the layout of production capacity, develop business areas, improve the ratio of science and technology and give full play to the joint effect of leasing and manufacturing, the Company actively promoted the project of issuing shares to purchase assets and raising supporting funds. In the first half of this year, the transaction plan has been approved by the shareholders’ meeting and accepted by China Securities Regulatory Commission. The reorganization transaction will effectively enhance the core competitiveness of container manufacturing business. Profits and losses attributable to the Company during the transition of the underlying assets will also add to the Company’s performance and further enhance shareholder returns.
Diverse investment strategies in investment and service business to broaden supply chain finance services
The Company gives equal weight to strategic value and financial returns and adheres to the principal business of shipping logistics. Aiming at the integration of industry and finance and by making use of capital, the Company provides capital channeling services for the digital, intelligent and carbon-neutral development of the shipping logistics industry to boost industry upgrade.
In the business of supply chain finance services, the Company will actively explore container financial technology to develop and improve the “one-stop supply chain financial services platform” based on block chain technology and achieve the empowerment of shipping finance through technology, so as to further boost the innovation and breakthrough in the business.
Facilitate a proactive dividend plan to share development results with shareholders
The Company is committed to securing the interests of investors, insisting on advancing a positive and stable dividend plan. The Company has been paying cash dividends to shareholders for three consecutive years with increasing dividend ratios. In August 2021, the company completed the distribution of cash dividends of 2020 FY to shareholders of A and H shares. The payment of yearly dividend of RMB0.56 for every 10 shares amounted to a total dividend of RMB646 million. The Company is dedicated to sharing its results of development with shareholders and promoting the Company’s long-term and sustainable development.
Combining industry & finance and becoming a leading financial operator in the industry
Looking ahead, growth recovery remains the general trend. However, factors such as the global pandemic dynamics, policy tendencies of the globe and the ups and downs in the capital market will all bring uncertainties for the market, and the shipping market is seeking a new balance. The Company will actively deal with market changes and carry out strategic planning in all sectors of business. In shipping and container leasing business, the Company will continue to expand external businesses steadily based on its expertise and platform advantages and will further utilize the advantages in the industrial chain of container leasing business and broaden products. In terms of container manufacturing business, the Company will actively promote the project of issuing shares to purchase assets and raising supporting funds to maximize synergy and build an industry leader with high levels of intelligence and high-capacity utilization. Regarding the supply chain finance business, the Company will continue to optimize the “one-stop supply chain financial services solution” and actively promote the in-depth integration of various professional sectors in business development, product design, and sector collaboration to enhance value creation capabilities.
Standing at the first year of the “14th Five-Year” period, focusing on the primary business of shipping and logistics, COSCO SHIPPING Development will continue to promote the integration of industry and finance and will build an industry-leading financial operator in the industry with characteristics of COSCO SHIPPING.
About COSCO SHIPPING Development Co., Ltd.
COSCO SHIPPING Development Company Limited (2866.HK), a company affiliated to China COSCO Shipping Corporation Limited, specializes in the provision of supply chain integrated financial services. Formerly known as China Shipping Container Lines Company Limited, it was established in 1997 with headquarters in Shanghai, the PRC, and is listed both in Hong Kong and Shanghai. The Company aims to base on its shipping finance operation and leverage its strengths in shipping logistics to integrate the value chain, thereby building a business portfolio with a primary focus on shipping and related leasing services, container manufacturing, investment and services. It strives to create a one-stop shipping financial service platform which features market-driven mechanism, differentiation advantages, international vision, the integration between industry and finance, the collaboration between financial companies, and the collaborative development of multiple businesses.
Investor and Media Enquiries
Jack Liu / Rachel Xia
Tel: (852) 2522-1838
SOURCE: COSCO International Holdings Ltd.
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