COSCO SHIPPING Holdings announces Q1 2023 results

Gears up to stride towards new direction
COSCO SHIPPING Holdings announces Q1 2023 results

 
(28 April 2023, Shanghai) – COSCO SHIPPING Holdings Co., Ltd. announced its results for the first quarter ended 31 March 2023.

In the first quarter of 2023, COSCO SHIPPING Holdings faced multiple challenges, including changes in supply and demand in the container shipping industry and a decline in freight rates. The Company adhered to the “customer-centric” approach, accelerated digital, intelligent and low-carbon transformation, persistently innovated development modes, continuously enhanced cost control and extended supply chain services. So that, the Company’s ability to stabilize cycles has greatly improved, and the potential for high-quality development has been effectively stimulated.

The key indicators for the Company’s first quarter results are as follows:
·The Company achieved a revenue of RMB 47.35 billion.
·The Company’s earnings before interest and tax (EBIT) were RMB10.73 billion, total profit announced to RMB9.86 billion, net profit amounted to RMB8.58 billion, and profit attributable to equity holders was RMB7.13 billion. It maintained relatively strong profitability and continuously improved business quality.
·As at the end of 31 March 2023, the Company’s asset-liability ratio was 48%, representing a decrease of 2 percentage points compared with the end of last year. Meanwhile, it further optimized the financial structure.

During the Reporting Period, COSCO SHIPPING Holdings adhered to the business principle of steady progress, and made further achievements in the globalized development, supply chain upgrading and digital development, which not only reinforced the Company’s operational resilience, but also gathered new development potential.

Further progress in globalization. COSCO SHIPPING Holdings teamed up with other members of the Ocean Alliance to launch the new DAY7 Product, thereby strengthening the advantages of its east-west services. The Company’s first 24,188 TEU container vessel has been put into operation, giving new impetus to the Company’s global development. With the increasingly prominent position of ASEAN in international trade, COSCO SHIPPING Holdings has successfully started new routes from Vietnam to the US East Coast and from Quanzhou to Southeast Asia, fully seized new opportunities for the development of emerging markets and non-China markets.

Stable upgrade of the supply chain layout. COSCO SHIPPING Holdings’ overseas warehouse projects in Colombia and Zeebrugge were successfully launched, and the first batch of cargoes delivered by trailers in North America was successfully implemented. Through different operating modes such as “rail-sea intermodal transportation”, “trailer + customs clearance + warehouse integrated services” and “one-stop port + shipping + related supporting services”, the Company provided highly efficient export services to customers in electronic vehicles, photovoltaic and home appliance sectors, fully demonstrated the deep integration of its industrial chain and supply chain.

Accelerated construction of digitalization. The first integrated supply chain product of COSCO SHIPPING Holdings, “Talent Pegasus”, has been successfully put into operation, providing customers with convenient and efficient whole-chain services such as trailer, customs clearance and shipping services. The blockchain-based electronic bill of lading developed by COSCO SHIPPING Holdings has been successfully released on multiple shipping services, and improved the safety of chemical cargo transportation, thereby allowing customers to continuously experience the high-quality services brought by digitalization.

Deepened low-carbon transformation. COSCO SHIPPING Holdings’ low-carbon transformation has gained steam by accelerating the promotion and use of onshore power, and exploring green fuel supply with strengthening the coordination between ports and shipping operations. Due to its full support for the protection of the marine environment and organisms, the Company has recently received the “Sapphire Award”, the highest honour from the National Oceanic and Atmospheric Administration (NOAA), reflecting the wide recognition of its environmental protection achievements.
 
At present, the container shipping industry is accelerating its return to the new normal, and continues to transform to provide digital, end-to-end, green overall process solutions. Going forward, COSCO SHIPPING Holdings will stick to its positioning as a “global digital supply chain operation and investment platform with a primary focus on container shipping”, insist on the customer-centric approach, integrate global resources, and strive to provide low-carbon, intelligent, and reliable “shipping, ports, and logistics” overall supply chain services for thousands of industries. The Company will play a greater role in assisting the globalization process, ensuring the stability and resilience of the supply chain, and continuously explore new opportunities for development. COSCO SHIPPING Holdings will create greater value for customers and shareholders.

Source: COSCO SHIPPING Holdings

 

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