EQS-News / 30/03/2020 / 10:38 UTC+8
COSCO SHIPPING Development Announces 2019 Annual Results
Net Profit Attributed to Owners of the Parent Increased by 26% Y-O-Y
Industry-Finance Integration was Deepened to Promote Innovative Development
(27 March 2020, Hong Kong) COSCO SHIPPING Development Co., Ltd. ("COSCO
SHIPPING Development" or "the Company") (SSE: 601866, HKEx: 2866) today
announced its annual results for the twelve months ended 31 December 2019
("the Period").
In 2019, with the strategic objective to build an integrated supply chain
financial service platform featuring shipping logistics, the Company focused
on its principal business-shipping business, explored market opportunities,
and expanded the growth potential of various segments in an effort to grow
stronger and better. During the Period, the Company's revenue was RMB14.156
billion; net profit attributable to owners of the parent of the Company
amounted to RMB1.745 billion, up 26% from 2018; and basic earnings per share
amounted to RMB0.1285. The Board of Directors proposed a final dividend of
RMB0.045 per share.
The Leasing Segments Achieved Steady Growth Through Inward and Outward
Efforts
During the Period, the Company recorded a revenue from its leasing business
of RMB11.040 billion, accounting for 70.5% of the total revenue of the
Company. In terms of the vessel leasing business, the Company focused on the
strategic requirements of industry-finance integration, further strengthened
internal coordination, and provided high-quality leasing services for
upstream and downstream players in the shipping industry chain. The Company
opportunistically made a breakthrough in the cruise leasing business,
helping China's cruise industry to sail to the world. In addition, the
Company vigorously developed external leasing business (covering various
vessels such as chemical vessels, finished oil tankers and bulk carriers),
in a drive to continuously enhance its competitiveness and brand influence
in the industry. As at 31 December 2019, the Company had a fleet of 87
container vessels with a total capacity of 609,400 TEU, 4 bulk carriers of
64,000 DWT each, a total of over 80 LNG vessels, heavy lift vessels, oil
tankers and other vessels, and over 30 projects regarding terminals,
terminal equipment and major transportation.
The container leasing business reinforced industry chain synergy and made
multiple breakthroughs. In an overall challenging industry environment, the
Company made strategic adjustments in a timely manner to seek breakthroughs
in the container leasing business and related innovative business lines.
Specifically, the Company advanced the big customer strategy and captured
the market demand for reefer containers and special containers to promote
the development of non-dry container business. Meanwhile, the Company
developed innovative container lease business, scaled up mobile warehousing
and leasing projects, and explored finance lease business, thus improving
the overall return on investment. As at 31 December 2019, the container
fleet of Florens International Limited ("FIL"), an affiliate of the Company,
boasted a total capacity of about 3.66 million TEU, ranking second in the
world.
As for other leasing business, the Company actively sought new profit growth
drivers while consolidating its existing development advantages and strived
to expand financing channels to effectively reduce financing costs.
Container Manufacturing Segment Achieved Economies of Scale and Enhanced
Research and Innovation Capabilities
In 2019, given the weak demand for containers, the Company actively sought
business breakthroughs, optimized service quality, and innovated in service
models to further enhance the synergy of shipping business. During the
Period, the Company recorded a revenue from its container manufacturing
business of RMB4.583 billion, accounting for 29.2% of the total revenue of
the Company.
The boutique assets of Singamas Container acquired by China COSCO SHIPPING
Corporation Limited ("COSCO SHIPPING") had been entrusted to Shanghai
Universal Logistics Equipment Co., Ltd., a subsidiary of the Company, for
management, pushing up the market share of the Group's container
manufacturing segment to rank second in the world. The acquisition also made
up for certain weaknesses of the Group, such as insufficient production
capacity, lack of presence in key regions, and lack of reefer containers. In
addition, the Group continuously improved its research and innovation
capabilities and concentrated on upgrading technical management, with a view
to enhancing the core competitiveness of its container manufacturing
segment.
Investment Segment Deepened Industry-finance Integration to Improve Overall
Financial Returns
With a focus on the shipping industry chain, the Company constantly
optimized its investment portfolio and successfully implemented sizeable
financial and other equity investment projects, buffering the fluctuations
in the shipping market. The Company further promoted the launch of COSCO
industry funds to build up a characteristic industry brand and achieved
breakthroughs in multiple projects. In addition, the Company expanded the
scope of supply chain financial services, enhanced service capacity and
leveraged the strengths of its service portfolio to increase customer
stickiness in different industries.
Improving the Return on Investment and Safeguarding the Interests of
Investors
The Company has always attached importance to the interests of investors. In
May 2019, the Company repurchased a total of approximately 155 million A and
H shares. By doing so, the Company became the first listed company in the
capital market to successfully implement share buybacks in two stock
exchanges, winning wide recognition in the capital market, enhancing
investors' investment confidence and promoting the Company's long-term
sustainable development. In the second half of the year, the Company
completed the dividend distribution to A-share and H-share investors,
distributing a total cash dividend of approximately RMB380 million to all
shareholders. The generous dividend distribution was a move to share the
development achievements with investors.
Adhere to Original Objective of Developing Shipping Finance and Strive to
Seize Market Opportunities
The Company will strengthen macro analysis and market research, promote
reform and transformation, develop new competitive strengths focusing on
industry-finance integration, continuously improve high-quality development,
and seek breakthroughs in distinctive shipping financial services.
In terms of shipping and industry-related leasing segments, the Company will
continue to strengthen the combination of industry and finance, reinforce
the collaboration among internal industry chains, and steadily expand
external business. In terms of container manufacturing segment, the Company
will steadily advance the multi-dimensional integration of its entrusted
container manufacturing assets into the Company's existing business, and
enhance its overall competitiveness through technological upgrading,
management improvement, process promotion and cultural integration. In terms
of investment and services segment, the Company will focus on upstream and
downstream customers in the industrial chain, constantly optimize its
investment portfolio, and seek a balance between strategic value and
financial returns
The year 2020 is a new beginning. In this era where challenges and
opportunities coexist, COSCO SHIPPING Development will adhere to its
original objective of developing shipping finance, and ride on the deepening
reform of state-owned enterprises to set sail towards high-quality
development, so as to achieve its corporate vision of "building an excellent
industry financial services provider.
- The End -
About COSCO SHIPIING 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 / Ray Sun
PRChina Limited
Tel: (852) 2522-1838
Email: zyliu@prchina.com.hk / rsun@prchina.com.hk
Document: https://eqs-cockpit.com/c/fncls.ssp?u=SUSUYFENML [1]
Document title: COSCO SHIPPING Development Announces 2019 Annual Results Net
Profit Attributed to Owners of the Parent Increased by 26% Y-O-Y
Industry-Finance Integration was Deepened to Promote Innovative Development
30/03/2020 Dissemination of a Marketing Press Release, transmitted by EQS
Group.
The issuer is solely responsible for the content of this announcement.
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(END) Dow Jones Newswires
March 29, 2020 22:38 ET (02:38 GMT)
