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 2020 (“the Period”).
In the first half of 2020, faced with the severe pandemic and complex international situation and market conditions, the Company continued to promote the strategy of industry-finance integration and actively adopted multi-dimensional measures to address challenges so that it can survive the crisis while progressing in overall stability. The Company strived to realize sustainable and stable development with good operating performance.
During the Period, the Company recorded a revenue of RMB7.81 billion, representing a year-on-year increase of 14.2%; gross profit amounted to RMB1.96 billion; profit attributable to owners of the parent amounted to RMB855.02 million; and basic earnings per share amounted to RMB0.0595.
Leasing business of shipping and relevant industries adhered to sustainable development strategy
The Company’s leasing business adhered to industry-finance integration and coordination and extended the financial service business of the industrial chain. While actively developing its internal business and strengthening the coordination of the industrial chain, the Group steadily promoted the external business expansion, actively developed the large transportation leasing business market, timely deployed and developed the reefer container leasing market, and improves the Company’s return on investment. The financial leasing business of other industries expanded the service field and gave full play to the advantages of the industry-finance integration by scientific and technological means.
During the Period, benefited from the expansion of leasing business of shipping and related industries as well as the expansion of service business, the Company’s leasing segment of shipping and related industries achieved RMB5.75 billion in revenue, a year-on-year increase of 9.6%. Among them, revenue from vessel leasing business amounted to RMB2.57 billion, a year-on-year increase of 5.0%; revenue from leasing, management and sale of containers amounted to RMB1.81 billion, a year-on-year increase of 10.1%; and revenue from other industry-related finance leasing amounted to RMB1.37 billion, a year-on-year increase of 18.8%.
Container manufacturing business accelerated all-round upgrading and enhanced comprehensive competitiveness
The Company’s container manufacturing business continued to strengthen internal coordination and lean management. Since COSCO SHIPPING Group successfully acquired the container manufacturing assets of Singamas Container Holdings Limited, the Company has achieved all-round upgrading in terms of production capacity layout, product types, production technology and customer marketing in the new context. At the same time, the Company further strengthened the development of special container and reefer container business, constantly explored the R&D of smart containers, strived to promote high-quality development and enhanced comprehensive competitiveness.
During the Period, in a volatile market hit by the pandemic, the Company maintained stable production and operation will all-out effort and achieved operating revenue of RMB 2.43 billion in container manufacturing business, maintaining steady development.
Investment and service business adhered to the core business of shipping and continuously focused on investment areas
In the first half of 2020, affected by the pandemic, the capital market experienced great fluctuations. In this context, the Company invested in Farasis Energy, APSATCOM and other projects through strategic and financial investment, which received good returns and served as effective support for the Company’s performance in the first half of the year. Meanwhile, the Company adhered to the core business of shipping, actively expanded the integrated financial services of the supply chain, developed new businesses and promoted industrial upgrading. During the Period, revenue from investment and service business recorded RMB28.70 million and net investment income recorded RMB855.89 million.
Stability drives sustainable development
In the second half of the year, the impact of the pandemic will remain severe, and the unstable and uncertain factors of the world economy will increase. In response, government organizations in many countries or regions have adopted loose monetary policies, hence the spread of the pandemic is effectively curbed domestically and a new development patter is accelerating to form, which takes the domestic market as the mainstay and allows the domestic and foreign markets to boost each other. In addition, the outbreak of COVID-19 indirectly promoted the application of innovative technologies such as big data and Internet, bringing new impetus to the recovery of shipping and ports and speeding up the digitalization process with new development and changes in opportunities and challenges.
The Company will fully assess the challenges brought by the external situation, seek opportunities in crisis, and achieve stability and long-term development, so as to build an international leading comprehensive logistics industry financial service platform with COSCO SHIPPING characteristics. At the same time, the Company will be committed to fulfilling its social responsibilities, focusing on sustainable development, and actively creating greater return for shareholders.
Source:COSCO SHIPPING Development Co., Ltd.
The opinions expressed herein are the author's and not necessarily those of The Xinde Marine News.
Please Contact Us at：