CMPort recorded revenue and profit growth in 1H2022

China Merchants Port Holdings Company Limited announced the interim results of the Company and its subsidiaries or the period ended 30 June 2022.

Affected by the recurrence of COVID-19 pandemic and uncertainties in global economic recovery, what will be the performance and profitability of CMPort's port business for the year? Mr. Deng Renjie said, "Along with the normalisation of the pandemic, the negative impact on the port and shipping industry will be further moderated. The Group will continue to strengthen the epidemic prevention and control as well as risk prevention of its terminals, and strive for progress while maintaining stability. It is expected that the business of the Company will maintain steady for the full year. Driven by the expected increase in throughput volume and tariff, the Group's terminals will generate more profit ; coupled with cost control, the Company's recurrent profit are expected to grow steadily in 2022 ."

 

Regarding CMPort's strategic deployment and phase achievement in building high quality enterprise, Mr. Wang Xiufeng said, "In the past 30 years, CMPort has achieved 'world-class' standard in terms of business scale, and the next step will be to promote high-quality in five aspects. The first one is to improve the service quality for shipping cargos, the second one is to enhance the level of scale and profit in the field of comprehensive development, the third one is to enhance digital construction capabilities by exploring the use of self-invented digital products of ports, the forth one is to deploy green and low-carbon development, and the fifth one is to ensure the smooth operation of the supply chain which is fatal to ports. "
 

Some reporters are concerning about the impact of freight rate fluctuations and supply chain blockage on the Company's business. Mr. Xu Song said, ‘Overall speaking, shipping freight rate and port throughput do not show a strong positive correlation, but the fluctuations in freight rates reflects the reconstruction of the global economic and trade environment. Port serves both internal and external economic cycles, and will play an important role as a linkage to promote economic globalization. At the same time, the supply chain is also adapting to the epidemic and changes under the international condition. Since CMPort has strengthened its own internal control and the integration of the ecosystem, the Company's business volume has achieved good growth from June to July."
 

With regard to the Company's financial status such as CAPEX and cashflow, Mr. Tu Xiaoping said, ‘"The cash capital expenditure of CMPort in the first half of 2022 was HK$3.54 billion, mainly for the acquisition of additional shareholding in Asia Airfreight Terminal Company Limited and Shanghai International Port (Group) Co., Ltd. with a total of HK$2.59 billion; Fixed asset expenditure was about HK$740 million, Mainly used for various projects such as Mawan Smart Port, Ningbo Daxie, LCT and Shantou Port. The estimated annual fixed asset expenditure for 2022 is about HK$2 billion. As of June 30, 2022, the Company has nearly HK$9 billion in cash and bank deposits; coupled with the continuous stable operating cash flow generated from the port business in the second half of the year, the Company has sufficient funds to cover future capital expenditures and pay dividends.”
 

The new-generation Container Terminal Operation System (CTOS), which was self-invented by CMPort, successfully launched at the Thessaloniki Port in Greece in June, where will it be promoted in the future? Mr. Li Yubin said: "The launch of CTOS at the Greek terminal marked the successful export of the core operating system of 'CMCore' to European terminals. During its operation, it has achieved many outstanding performances, which not only steadily improves the efficiency of terminal operations, but also effectively supports the port's services by able to adapt to a richer and more complex operating environment, it has received high compliments by our Greek partners. In the next step, the Company will increase the promotion and application of 'CMCore' products in mainland China, South America, Africa, Europe and South Asia."
 

Regarding the company's development and cooperation in Guangdong-Hong Kong-Macao Greater Bay Area, Mr. Deng Renjie emphasised, “CMPort is rooted in Hong Kong, and the Company's global layout provides strong support for Hong Kong as an international shipping center. CMPort has always been committed to strengthen cooperation with Ports operators in the Greater Bay Area, to discuss the coordinated development of ports, and to seize the opportunity of port digital transformation. CMPort is keen to share our successful experience on digitalisation of the Mawan Smart Port with the ports in the region, so as to improve the quality and intelligence level of the Ports in the Great Bay Area.”

 

Highlights of the Group's 2022 interim results:

• Throughput of containers handled reached 66.28 million TEUs, down 0.3% (2021: 66.51 million TEUs)

• Throughput of bulk cargos handled reached 269 million tonnes, down 5.3% (2021: 284 million tonnes)

• Revenue amounted to HK$6,508 million, an increase of 14.9% (2021: HK$5,663 million)

• Recurrent profit attributable to equity holders (Note1) of the Company amounted to HK$4,974 million, up 9.8% (2021: HK$4,530 million)

• Interim dividend of 22 HK cents per share (2021: 22 HK cents per share)

 

In the first half of 2022, with the recurrence of the global COVID-19 pandemic and the Russia-Ukraine conflict, the path to global economic recovery has been slowdown. Under the complex and volatile internal and external economic environment, the Group, with it's global port portfolio and its self developed world leading terminal operation system and the import and export integrated logistics management platform, was committed to provide customers with timely and efficient port and maritime logistics services and a full range of modern integrated logistics solutions. At the same time, the Group has been actively promote bonded logistics and comprehensive development businesses, propel the transformation and upgrading of ports, develop the supporting industry of ports, and give full play to the synergistic effect of the existing terminal network, so as to realize the stable development of the port operation business.
 

In the first half of 2022, the Group's ports handled a total container throughput of 66.28 million TEUs, down by 0.3% year-on-year. Among them, the Group's ports in Mainland China, Hong Kong and Taiwan contributed an aggregate container throughput of 49.39 million TEUs, representing a decrease of 1.0% year-on-year, which was mainly due to the ongoing impact of the recurring pandemic during the period. The Group's overseas ports handled a total container throughput of 16.89 million TEUs, representing an increase of 1.5% year-on-year, which was mainly contributed from Terminal Link SAS and the growth in throughput volume of controlled overseas terminals of the Group. Bulk cargo volume handled by the Group's ports decreased by 5.3% year-on-year to 269 million tonnes, among which the Group's ports in Mainland China handled a total bulk cargo volume of 266 million tonnes, representing a decrease of 5.2% year-on-year, which was mainly due to the impact of the unstable pandemic situation in various regions.
 

In terms of financial performances, for the six months ended 30 June 2022, the Group recorded revenue of HK$6,508 million, up 14.9% year-on-year, which was mainly due to the increase in both the business volume and tariff of ports operation. Profits attributable to equity holders of the Company amounted to HK$4,825 million, representing an increase of 2.4% year-on-year, while the amount of the corresponding period of last year included a gain of HK$450 million (net of tax) on the Group's deemed disposal of partial interest in an associate. The recurrent profit Note1 increased by 9.8% year-on-year to HK$4,974 million, which was due to the combined effect of the increase in revenue and increase in share of profits of associates of the Group.

Source: CMPort

Please Contact Us at：

media@xindemarine.com