COSCO SHIPPING Development Announces 2019 Interim Results with an increase of 176.9% in the Profit Attributable to Owners of the Parent

COSCO SHIPPING Development Co., Ltd. (“COSCO SHIPPING Development” or the “Company”) (SSE: 601866, HKEx: 2866) today announced its interim results for the six months ended 30 June 2019 (the “Period”).

 

In the face of complex international landscape and market conditions, the Company followed the guideline of “consolidating core business while seizing market opportunities”. Meanwhile, the Company strove to gain decent financial returns by promoting integration of industry and finance.

 

During the Period, the Company recorded revenue of RMB6.83 billion, and profit attributable to owners of the parent approximately amounted to RMB900 million, representing an increase of 176.9% year-on-year. Basic earnings per share amounted to RMB0.0778 with significantly decreased in the net debt ratio compared with the end of 2018, and the debt structure was effectively optimized.

 

Steady expansion of Leasing business with continuous growth for investment and service business

 

During the Period, the Company vigorously explored new business areas on the basis of consolidating core business. The Company drove the development of vessel leasing segment in major transportation sectors such as expressways and terminals. As for the container leasing segment, the Company incubated a mobile container rental project and strengthen the R&D in specialized container so as to persistently enhance its overall competitiveness.

 

The shipping and industry-related leasing business generated revenue of RMB5.24 billion during the Period, representing an increase of 4.6% year-on-year. Revenue from vessel leasing business amounted to RMB2.45 billion. Meanwhile, revenue from container leasing, management and sales business amounted to RMB1.64 billion, representing an increase of 12.8% year-on-year. Revenue from other industry-related finance and leasing business approximately amounted to RMB1.16 billion, representing an increase of 8.5% year-on-year.

 

During the Period, surrounded by evidently increasing domestic and overseas risks and challenges, the financial market remained stable. The Company complied with the market situation and made full use of domestic and overseas resources to pool external capital through industry funds and various other methods. The company supported development of the shipping industry and emerging industry. Meanwhile, the Company gave equal weight to strategic value and financial returns to gain decent financial returns, with net income from the investment business of RMB1.84 billion.

 

Focusing on enhancing core competitiveness while growth declining in demand for container shipping industry

 

During the Period, affected by the mounting uncertainties over trade relations among the world’s major economies, the growth of the demand for container shipping industry declined. As a result, the sales volume and prices decreased in the container manufacturing sector.

 

It is expected that the uncertainties over the international trade landscape will continue in the second half of 2019. The Company will enhance comprehensive competitiveness through technology upgrading and management improvement. Moreover, Singamas assets, acquired by the Company through the trusteeship Group, accurately complemented the short board to optimize the production capacity layout and marched into the refrigerated container manufacturing business, effectively enhancing the core competitiveness.

 

Striving to promote the integration of business and finance to create a “one-stop” shipping financial service platform

 

In the first half of the year, the Company completed the dividend payout for investors in 2018, fully safeguarding the interests of investors and actively conveying the confidence of the company's development.

 

As a shipping financial platform, COSCO SHIPPING Development will continue to integrate its premium resources and give full play to its advantages in the shipping industry to expand businesses. It will persistently improve the professional standards of its team and strive to improve its operational capabilities. By promoting the integration of its business and finance, it strives to become China’s leading and the world’s first-class player with an integrated supply-chain financial service platform with distinct shipping logistics.

 

Source:XINDE MARINE NEWS

Please Contact Us at：

admin@xindemarine.com