COSCO SHIPPING Development announces its 2021 annual results; Net income for 2021 increased 185% year-over-year; Main built-in benefits to promote high-quality development
EQS-News / 03/31/2022 / 09:06 GMT+8
COSCO SHIPPING Development announces its 2021 annual results
2021 net profit increased 185% year over year
Main built-in benefits to promote high-quality development
(March 30, 2022, Hong Kong) – COSCO SHIPPING Development Co., Ltd. (the “Company” or “COSCO SHIPPING Development”) (SSE: 601866, HKEX: 2866) is pleased to announce consolidated results for the twelve months ended December 31, 2021 (the “Period”) today. In 2021, the company recorded operating revenue of RMB 34.915 billion, an increase of 172% year-on-year, and net profit attributable to parent company owners recorded RMB 6.089 billion. Basic earnings per share was RMB 0.4978. The Board has proposed a final dividend of RMB 0.226 per share.
Integrate major competitive advantages and get a good start for high-quality development during the “14th Five-Year Plan”
In 2021, the world has witnessed repeated outbreaks of the COVID-19 pandemic and accelerating variations of COVID-19. However, the research and development and widespread vaccination of COVID-19 vaccines as well as the implementation of economic stimulus policies in various economies have spurred the recovery of the global economy and the strong rebound in global trade, resulting in strong sustained shipping demand. Congestion in the world’s major ports, insufficient container capacity, container shortage and other factors have put pressure on the smooth running of the global supply chain. Facing the pressure of the delayed and stagnant global supply chain, the company has actively planned a layout to improve quality and efficiency, and made new breakthroughs in terms of economic benefits.
According to the report, the company recorded rental revenue of RMB 8.043 billion for 2021, accounting for 23.0% of the company’s total revenue. Revenue from the ship rental business was RMB 2.067 billion. In 2021, the company has 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 has gradually expanded its business to the external market, and achieved historic breakthroughs in external vessel leasing and major transportation leasing business. Revenue from container leasing, management and sales amounted to RMB 5.977 billion, representing a significant year-on-year increase of 37.0%. The Company fully exploited its advantages in the synergy of leasing and manufacturing in 2021. The Company continued to expand its reefer container business, actively promoted the container trading online platform, and achieved a significant breakthrough in reefer container rental business. While steadily advancing the container leasing business, the company has effectively grasped the business opportunities of the new and old container business to effectively improve asset efficiency and realize the improvement in quality and efficiency.
The Company’s container manufacturing business achieved operating revenue of RMB 31.276 billion, 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 has closely followed market dynamics and actively utilized industrial chain synergies based on the implementation of pandemic prevention and control measures. The Company has improved production efficiency, provided strong support for the smooth operation of the supply chain, and greatly improved its own advantages. The Company achieved an annual sales volume of approximately 1.645 million TEUs, representing an annual growth of approximately 89.9%. At the same time, the company has established a whole process quality management system and implemented “oil to water” technology, extended the concept of green environmental protection to the industry and led the healthy and sustainable development of the industry.
In terms of investment management, the Company has constantly optimized strategic investments and the layout of the financial portfolio. Meanwhile, the company has actively expanded the investment layout in the field of new energy focusing on shipping logistics, incubates new businesses and promotes industrial upgrading. In 2021, the Company actively implemented the bi-carbon strategy and steadily advanced the electric boat project. Focusing on the positioning of “prioritizing ecological conservation and stimulating green development” in the Yangtze River Economic Belt, the company has led and coordinated industrial chain enterprises and relevant units, and conducted research on the standardization of electric container ships on the Yangtze River Main Line. , striving to build a demonstration of zero-carbon green intelligent navigation 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 is committed to improving the research, development and manufacturing capability of marine box type power battery units, and build a ship loading and changing network in key inland waters, aiming to realize the coordinated development of the electric ship industry chain.
Effectively enhance the ability to create value through efficient capital operation
In 2021, the Company completed the share offering of container manufacturing assets tied to the purchase, making it the second largest container manufacturer in the world. At the same time, the company managed to raise RMB 1.464 billion by issuing additional shares at a price of RMB 2.76 per share. The implementation of the project has further integrated the Group’s container manufacturing assets, maximizing the synergistic effect of the industrial chain, and improving the location advantages and science and technology content of the container manufacturing assets, thereby enhancing competitiveness. basic. In addition, the effective decrease in the debt ratio has laid the foundation for high-quality development.
Promoting active dividend policies and defending the concept of sustainable development
The Company is committed to protecting the interests of investors and promoting the long-term and sustainable development of the Company. The Company has paid cash dividends for three consecutive years, and the proportion of dividends has increased year by year, with the aim of sharing the Company’s development achievements with shareholders. In 2021, the Company successfully paid out the 2020 dividend to A-share and H-share investors, and distributed a total cash dividend of approximately RMB 650 million to all shareholders. The Board of Directors has recommended the payment of a final dividend of RMB 0.226 per share in 2021 to maintain a positive and stable dividend policy for returning investors.
has incorporated the concept of sustainable development into its core strategy to ensure the smooth operation of the supply chain and explore the provision in green industries such as new energy. The Company is committed to making positive contributions to the common prosperity of the industry, environmental friendliness and social harmony to stimulate regional economic and social development.
Pay particular attention to the market to seize opportunities and promote regular and sustainable development
In 2022, the Company will actively seize the opportunities of the digital, green, low-carbon and intelligent development process of the industrial chain. The Company will continue to grow the marine leasing business and maximize the synergistic benefits of leasing and manufacturing. The company will adhere to technological 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 particular attention to risks and will endeavor to promote quality sustainable development.
About COSCO SHIPPING Development Co., Ltd.
COSCO SHIPPING Development Company Limited (2866.HK), an affiliate of China COSCO Shipping Corporation Limited, specializes in providing integrated supply chain financial services. Formerly known as China Shipping Container Lines Company Limited, it was established in 1997 with its headquarters in Shanghai, PRC, and is listed in both Hong Kong and Shanghai. The Company aims to build on its shipping finance operation and leverage its strengths in shipping logistics to integrate the value chain, building a business portfolio focused primarily on shipping and related rental services, container manufacturing, investment and services. It strives to create a one-stop shipping financial services platform that features market-oriented mechanism, differentiation advantages, international vision, integration between industry and finance, collaboration between financial companies and the collaborative development of several companies.
Investor and Media Inquiries
Jack Liu / Mei Ning
People’s Republic of China Limited
Tel: (852) 2522-1838
03/31/2022 Distribution of a marketing press release, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
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