COSCO SHIPPING Holdings today announced its financial results forecast for 2019.
In 2019, the COSCO SHIPPING Holdings proactively responded to external adverse factors, adhered to the guiding principle of "outperform the market, drive innovation, and lead the era", focused on improving the quality of shipping services and constantly improving efficiency. The volume of container shipping business, the throughput of port business, and the operating income of the Company increased as compared to those of last year. The overall increase in revenue was greater than the increase in cost, and the performance was further improved.
According to preliminary calculations by the Company, the net profit attributable to shareholders of the Company is estimated to reach RMB 6.76 billion, representing an increase of RMB 5.53 billion and 449% year-on-year, and the net profit attributable to shareholders of the Company after deducting non-recurring gains and losses is expected to increase approximately RMB 1.39 billion, representing an increase of 730% year-on-year.
During the Reporting Period, the Company adhered to the globalization strategy, focused on dealing with the China-U.S. trade friction and optimizing the income structure, increased the shipping capacity in emerging markets, non-China markets and regional markets, and increased the proportion of cargo flow to the U.S. from Southeast Asia and other regions. Meanwhile, COSCO SHIPPING Holdings fully leveraged the advantages of scale and synergies after the acquisition of Orient Overseas (International) Limited (“OOIL”), and achieved positive synergic results through implementation of the "dual-brand" strategy. The total synergies achieved in 2019 exceeded the target set at the beginning of the year. In 2019, the Company continued to deepen reforms, adopted a share option incentive scheme, thus gathering internal driving force for the development of the Company. In October 2019, sale of the Long Beach Container Terminal (LBCT LLC) by OOIL was completed, from which a one-off net gain was generated, and good shareholder returns were achieved.
Looking into 2020, the signing of China-U.S. phase-one economic and trade agreement will help remove market uncertainty and promote the sound development of global economy and trade. In the face of opportunities and challenges, COSCO SHIPPING Holdings will adhere to established strategies, focus on improving the quality of development and operational efficiency, give full play to the synergy effect of the port and shipping businesses, strengthen service capability of Ocean Alliance, actively participate in the construction of the “Belt and Road Initiative”, and continuously enhance the services in emerging markets, regional markets and non-China markets, thereby achieving global business development. At the same time, the Company will closely follow the development trend of the industry, quickly respond to the changes in the industry, further accelerate the advancement of digital strategies, and inject energy into the development of core businesses with new technologies such as block chain, Internet of Things and big data in a bid to create value for customers and returns for shareholders.
About COSCO SHIPPING Holdings Co., Ltd.
COSCO SHIPPING Holdings Co., Ltd. ("COSCO SHIPPING Holdings", Stock Code: 1919.HK; 601919.SS) is the listed company controlled by China COSCO SHIPPING Corporation Limited. The Company was listed on the Hong Kong Stock Exchange in June 2005 and the Shanghai Stock Exchange in June 2007.
The Company focuses on container shipping and terminal operations. As of 30 September, 2019, through its wholly-owned subsidiary, COSCO SHIPPING Lines and its holding subsidiary Oriental Overseas International, the Company operates a total fleet capacity of 502 ships and 2.98 million TEUs, ranking as the world’s third largest container shipping company. COSCO SHIPPING Ports, another controlled subsidiary of the Company, operates a total of 206 container berths in 37 ports around the world, with an annual design processing capacity of 114 million TEU. COSCO SHIPPING Holdings is committed to become a top tier container shipping and port service provider with its continuing efforts to build up a global network, improve operational quality, provide customers with value and create return for shareholders.
The opinions expressed herein are the author's and not necessarily those of The Xinde Marine News.
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