CSSC (Hong Kong) Shipping Company, a Hong Kong-based ship leasing firm, released it full year financial results for 2019, boasting a 26.3% increase in net profit to HK$892.24m (US$115.87m) compared to last year’s HK$706.55m. Full year revenue amounted to HK$2.29bn. Operating profit showed the strongest growth at 45.5% to HK$847.65m.
In 2019, the Group embarked on 29 leasing contracts, completed 13 leasing contracts and had 81 on-going leasing contracts, of which 41 were operating lease contracts and 40 were finance lease contracts. Among those 81 on-going leasing contracts, 64 were leasing contracts with a term of more than one year, which were of an average outstanding lease term of approximately 7.71 years and with a contract value of HK$33.57bn.
As at 31 December 2019, the Group’s vessel portfolio reached 117, of which 81 were operating and 36 were under construction. The average age of the Group’s vessel portfolio was 2.4 years.
Looking to the rest of 2020 and beyond the company maintains that its position as a subsidiary of the China State Shipbuilding Corporation makes it easier for it to grasp cyclical opportunities in the marine industry.
Ship leasing is a target industry for the Hong Kong Government, which has recently introduced a bill that will allow for a 50% reduction in corporate tax.
Source:hongkongmaritimehub
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