HONG KONG / ACCESSIRE / March 30, 2022 / COSCO SHIPPING Development Co., Ltd. (the "Company" or "COSCO SHIPPING Development") (SSE:601866)(HKEX:2866) is pleased to announce the consolidated results for the twelve months ended 31 December 2021 (the "Period") today. In the 2021, the Company recorded operating revenue of RMB34.915 billion, representing a year-on-year increase of 172%, and net profit attributable to owners of the parent recorded RMB6.089 billion. The basic earnings per share amounted to RMB0.4978. The Board proposed a final dividend of RMB0.226 per share.
Integrating core competitive advantages and achieving a good start for the high-quality development during the "14th Five-Year Plan"
In 2021, the world witnessed repeated outbreaks of the COVID-19 pandemic and the acceleration of COVID-19 variations. However, the research and development and widespread vaccination of COVID-19 vaccines as well as the implementation of economic stimulus policies in various economies boosted the recovery of global economy and the strong rebound of global trade, leading to sustained strong shipping demand. The congestion in major ports of the world, insufficient container capacity, shortage of containers and other factors posed pressure on the smooth flow of the global supply chain. Faced with the pressure from the delayed and stagnated global supply chain, the Company actively planned a layout to improve quality and efficiency, and achieved new breakthroughs in economic benefits.
According to the report, The Company recorded leasing revenue of RMB8.043 billion for 2021, accounting for 23.0% of the Company's total revenue. Revenue from the vessel leasing business amounted to RMB2.067 billion. In 2021, the Company continuously launched special pulp vessels of COSCO SHIPPING and bulk carriers of COSCO SHIPPING projects, and 3 pulp vessels and 16 bulk carriers have been successfully delivered and leased. At the same time, the Company steadily expanded its business to external market, and achieved historical breakthroughs in external vessel leasing and major transportation leasing business. Revenue from leasing, management and sale of containers amounted to RMB5.977 billion, representing a significant increase of 37.0% year-on-year. The Company gave full play to its advantages in the synergy of leasing and manufacturing in 2021. the Company continued to expand its business in the field of reefer containers, actively promoted the online platform of container trade and achieved a significant breakthrough in reefer leasing business. While steadily advancing the container leasing business, the Company effectively grasped the business opportunities of new and old container trade to effectively enhance the asset efficiency and realize the improvement of quality and efficiency.
The Company's container manufacturing business realized operating revenue of RMB31.276 billion, representing an increase of 161.3% year-on-year, accounting for 89.6% of the Company's total revenue. In 2021, the container market experienced a structural shortage of containers. The Company closely followed market dynamics and made active use of industrial chain synergies on the premise of the implementation of pandemic prevention and control measures. The Company improved the production efficiency, provided strong support for the smooth operation of the supply chain and significantly improved its own benefits. The Company achieved annual sales volume of about 1.645 million TEU, representing a year-on-year growth of about 89.9%. At the same time, the Company established a sound whole-process quality management system and implemented of "oil to water" technology, spreaded the concept of green environmental protection to the industry and led the healthy and sustainable development of the industry.
In terms of investment management business, the Company constantly optimized strategic investment and financial portfolio layout. Meanwhile, the Company actively expanded investment layout in the field of new energy centering on shipping logistics, incubates new businesses and promotes industrial upgrading. In 2021, the Company actively implemented the dual-carbon strategy and steadily advanced the electric boat project. Focusing on the positioning of "prioritizing ecological conservation and boosting green development" in the Yangtze River Economic Belt, the Company has led and coordinated industrial chain enterprises and relevant units, and carried out research on standardization of electric container ships on the Yangtze River trunk line, striving to build a demonstration of green zero-carbon intelligent shipping and contribute to the transformation and development of Yangtze River water transport. At the same time, focusing on the electric ship industry chain, the Company was committed to improving the ability of research, development and manufacturing of Marine box-type power battery units, and building a ship charging and changing network in key domestic waters, aiming to realize the coordinated development of the electric ship industry chain.
Effectively enhancing the value creation ability with the help of effective capital operation
In 2021, the Company completed the issuance of shares of purchase related container manufacturing assets, making it to become the world's second largest container manufacturer. At the same time, the Company successfully raised RMB1.464 billion by issuing additional shares at the price of RMB2.76 per share. The implementation of the project further integrated the Group's container manufacturing assets, maximized the synergistic effect of the industrial chain and improved the location advantages and the scientific and technological content of container manufacturing assets, thus, enhanced the core competitiveness. In addition, the effective decrease in the gearing ratio laid a foundation for high-quality development.
Promoting active dividend policies and upholding the concept of sustainable development
The Company was committed to safeguarding the interests of the investors and promoted the long-term and sustainable development of the Company. The Company has carried out cash dividends for three consecutive years and the proportion of dividends has increased year by year, aiming to share the development achievements of the Company with shareholders. In 2021, the Company successfully paid the dividend of 2020 to A share and H share investors, and distributed a total cash dividend of approximately RMB650 million to all shareholders. The Board recommended paying a final dividend of RMB0.226 per share in 2021 to maintain a positive and stable dividend policy to return investors.
integrated the concept of sustainable development into its core strategy to ensure the smooth operation of supply chain and explore the layout in green industries such as new energy. The Company committed to making positive contributions to the common prosperity of the industry, ecological friendliness and social harmony to boost regional economic and social development.
Paying close attention to the market to seize opportunities and promoting steady and sustainable development
In 2022, the Company will actively grasp the opportunities in the digital, green, low-carbon and intelligent development process of the industry chain. The Company will continue to expand the shipping leasing business and maximize the synergistic advantages of leasing and manufacturing. The Company will adhere to technology empowerment and digital innovation to explore the application of environmental protection and energy saving technology in the electric ship industry chain. At the same time, the Company will pay close attention to the risks and strive to promote sustainable development with high-quality.
About COSCO SHIPPING Development Co., Ltd.
COSCO SHIPPING Development Company Limited (2866.HK), a company affiliated to China COSCO Shipping Corporation Limited, specializes in the provision of supply chain integrated financial services. Formerly known as China Shipping Container Lines Company Limited, it was established in 1997 with headquarters in Shanghai, the PRC, and is listed both in Hong Kong and Shanghai. The Company aims to base on its shipping finance operation and leverage its strengths in shipping logistics to integrate the value chain, thereby building a business portfolio with a primary focus on shipping and related leasing services, container manufacturing, investment and services. It strives to create a one-stop shipping financial service platform which features market-driven mechanism, differentiation advantages, international vision, the integration between industry and finance, the collaboration between financial companies, and the collaborative development of multiple businesses.
Investor and Media Enquiries
Jack Liu / Mei Ning
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Tel: (852) 2522-1838
Email: [email protected] / [email protected]
File: COSCO SHIPPING Development Announces 2021 Annual Results; Net profit for 2021 increased by 185% year-on-year; Core advantages integrated to promote high-quality development
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SOURCE: COSCO International Holdings Ltd.