(30 October 2018, Shanghai) － COSCO SHIPPING Holdings Co., Ltd. (“COSCO SHIPPING Holdings” or “the Company”) (SSE: 601919; HKEx: 1919) today announced its financial results for the first three quarters of 2018 (the “Period”).
The global economy continued to recover in the first three quarters of 2018. However, the capacity glut in the shipping industry was aggravated as the delivery of large container vessels was skewed to the Period. Liner operators generally encountered greater cost pressure due to higher bulker fuel prices. In the first three quarters, the China Containerized Freight Index (CCFI) was 810 points on average, representing a decrease of 2.9% as compared to the same period last year.
During the Period, the Company remained focusing on the implementation of four strategies of “globalization, end-to-end, digitalization and dual-brands” and made vigorous efforts to overcome various difficulties. It posted revenue of RMB 82.13 billion for the Period, representing an increase of RMB 14.53 billion or 21.50% as compared to the same period last year. Net profit attributable to equity holders of the Company amounted to RMB 863 million.
The Company completed the acquisition of Orient Overseas (International) Limited (“OOIL”) in the Period, thereby indirectly held 75% of OOIL’s issued shares. This acquisition facilitates the Company to drive rapid development and globalization of its container shipping business.
After the acquisition of OOIL, COSCO SHIPPING Holdings operates a container fleet of 498 vessels with total capacity of approximately 2.8 million TEUs. If the vessels on its orderbook are taken into account, the Company’s fleet capacity is expected to exceed 3 million TEUs. According to the latest figures of Alphaliner, the Company’s container fleet capacity ranked the third in the world after the acquisition. Greater competitive edges are thus gained, with its subsidiaries - COSCO SHIPPING Lines, COSCO SHIPPING Ports and OOIL are set to realize greater operational synergies. With the possession of more global resources, more rational
operating network layout, more comprehensive geographical coverage and greater flexibility to adjust its capacity deployment, the Company is able to provide better container shipping services to customers around the world. Moreover, under the support of enlarged fleet, the Company can vigorously drive the growth of its terminal business and implement the globalization strategy for this operation, which aligns with its strategy of synergistic development of container shipping routes and terminal network. Its capability and overall competitiveness to provide one-stop logistics services will hence be effectively enhanced.
During the Period, the Company utilized a more balanced global shipping network to vigorously expand into emerging markets, regional markets and third-country markets. Its shipping volume grew in proportion to increased capacity. In the first three quarters, the Company handled a total shipping volume of more than 16 million TEUs (on the bills of lading), representing an increase of 22.41% as compared with the same period last year. The cargo volume (on the bills of lading) handled by its wholly-owned subsidiary COSCO SHIPPING Lines in the Period grew 9.35% year-on-year, while the cargo volume (on the bills of lading) handled from July to September by OOIL, a subsidiary it controls, amounted to more than 1.71 million TEUs, representing an increase of 6.93% year-on-year. COSCO SHIPPING Ports, a subsidiary it controls, achieved a total throughput of 87.5183 million TEUs in the Period, representing an increase of 20.59% as compared to the same period last year.
For a long time, the Company has actively implemented the principle of sustainable development. It adopted green shipping practices, developed low-carbon terminals and strived hard to increase its market recognition and intrinsic value through sustainable development and management. Moreover, the Company safeguarded the physical and mental health of staff as well as their legitimate interests, thereby driving continuous improvements in its internal corporate governance and culture. During the Period, COSCO SHIPPING Holdings was named a constituent company in the Hang Seng Corporate Sustainability Index Series and was included in the 2018 Forbes World’s Best Employers List.
Sources:COSCO SHIPPING
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