Chinese shipping company shifts focus to local markets
During the Period, according to China Mainland Accounting Standards, the revenue of the Company reached RMB 151.06 billion, up by 25.0% year-on-year. The net profit attributable to equity holders of the Company amounted to RMB 6.76 billion, representing a year-on-year increase of RMB5.53 billion or 449.9%, and the basic earnings per share amounted to RMB 0.56 per share. Net profit attributable to equity holders of the Company after deduction of non-recurring amounted to RMB 1.59 billion, representing a year-on-year increase of RMB 1.40 billion or 732.8%.
18% up in shipping volumes
During the Period, for the “dual-brand” container shipping business, the Company handled shipping volume of 25,739,103 TEUs, up by 18.1% as compared to 2018, if on the comparable basis, representing a year-on-year increase of 2.7%. Among which, COSCO SHIPPING Lines handled the shipping volume of 18,784,961 TEUs, representing a year-on-year increase of 2.3%, and Orient Overseas Container Line Limited (OOCL) handled the shipping volume of 6,954,142 TEUs, representing a year-on-year increase of 3.8%. COSCO SHIPPING Ports achieved a total throughput of 123.78 million TEUs, representing a year-on-year increase of 5.5%.
Benefited from the significantly improved operating results and the approximately RMB 7.7 billion raising through the A-share private placement in the beginning of 2019, the Company’s financial situation has been further improved, and the financial foundation has been further consolidated.
Focus on regional markets
In 2019, COSCO SHIPPING Holdings adhered to the globalization strategy and keenly grasped opportunities in the market. On the basis of maintaining the competitive advantages of the major east-west services, the Company optimized and adjusted its capacity allocation structure and cargo structure to improve presences in emerging markets and regional markets.
The cargo volume of the Company’s container shipping business in emerging markets and non-China markets increased by 7.0% and 7.9% year-on-year respectively, much higher than the overall volume growth rate on the comparable basis(2.7%). The ratio of the Company’s non-China cargo volume to the total foreign trade volume increased from 35.5% in 2018 to 37.0%. The Company further consolidated its foundation for global development and enhanced its ability to resist regional and periodic risks.
The Company actively promoted the construction of digital shipping. In July 2019, CargoSmart, a subsidiary of COSCO SHIPPING Holdings announced the execution of Global Shipping Business Network (GSBN) services agreements with other maritime industry operators. Under these agreements, each signatory commits to establish the GSBN, a non-profit joint venture to accelerate the digital transformation of the shipping industry. In early 2020, all parties concerned signed the GSBN Shareholder Agreements. GSBN will be formally established and put into operation after completing all the regulatory approval procedures, while CargoSmart will provide technical solutions and platform operation services.