SHANGHAI, CHINA / ACCESSWIRE / March 31, 2020 / The leading integrated container shipping service provider, COSCO SHIPPING Holdings Co., Ltd. ("COSCO SHIPPING Holdings" or "the Company") (SSE: 601919; HKEx: 1919) today announced its annual results for the twelve months ended 31 December 2019 (the "Period").
In 2019, global economic and trade situation faced severe challenges. Economic growth had hit a new low since the financial crisis of 2008, and the demand growth in container shipping had slowed year-on-year.
However, in the face of challenges, COSCO SHIPPING Holdings adhered to the guiding principle, deeply facilitating various work including globalization, quality improvement, digitalization and end-to-end business development. The Company continued to improve quality and efficiency and realized synergies in various aspects, which significantly improved the Company's operating performance compared with the same period of the previous year.
During the Period, according to Hong KongAccounting Conventions, the revenue of the Company reached RMB150.54 billion, up by 25.1% year-on-year. Operating profit amounted to RMB7.22 billion, up by 44.5%.The net profit attributable to equity holders of the Company amounted to RMB6.69 billion, representing a year-on-year increase of RMB5.46 billion or 443.9%, and the basic earnings per share amounted to RMB0.55per share.
The revenue of the Company's container shipping business amounted to RMB14.48 billion, up by 26.1%. The Company's container shipping business completed 25.74 million TEUs of bills of lading, representing an increase of 18.1% year-on-year, ifoncomparable basis, up by 2.7%. The container shipping business of the Company recorded revenue of RMB7.22 billion, up by 8.8%. COSCO SHIPPING Ports achieved a total throughput of 124 million TEUs in terminal business, representing a year-on-year increase of 5.5%.During the Period, Orient Overseas (International) Limited (OOIL), a subsidiary of the Company, completed the sale of LBCT LLC, which generated a one-time net income and achieved good shareholder returns.
During the Period, the Company's cash flow from operating activities had a solid performance, with a net cash inflow of RMB 21.2 billion. Net cash inflow from investing activities amounted to RMB4.03 billion, and net cash outflow from financing activities amounted to RMB9.54 billion. As at 31 December 2019, cash and cash equivalents amounted to RMB49.76 billion, representing an increase of RMB16.56 billion or 49.9% as compared to the beginning of the Period.
Benefited from the significantly improved operating results and the approximately RMB7.7 billion raising through the A-share non-public offering in January 2019, the Company's financial foundation has been further consolidated. As at 31 December 2019, total assets of the Company amounted to RMB262.22 billion, and total liabilities amounted to RMB193.1 billion. Total equity attributable to equity holders of the Company amountedto RMB35.36 billion, representing an increase of 12.47 billion year-on-year. Thenet debt to equity ratio was 101.54%, representing a significant decrease of 83.7 percent point as compared to the end of last year.
As at 31 December 2019, the Company's container fleet had 507 vessels, with the total shipping capacity reached 2.97 million TEUs, representing a growth of 7.6% as compared to the end of 2018. The capacity scale continued to rank the third in the world. COSCO SHIPPING Ports, a subsidiary of the Company, operated 197 container berths in 36 ports worldwide with an annual designed handling capacity of 113 million TEUs.
On 10 March 2019, OOIL, a subsidiary of the Company, announced that ordered 5 vessels with 23,000 TEUs are estimated to be delivered in 2023 as planned. The move will fill the shipping capacity gap caused by the gradual withdrawal of unsuitable vessels in the future. After the delivery, OOCL will be able to independently form a complete loop in the Asia-Europe trade and provide more stable and highly efficient services for customers.
Release development potentialafterthe restructuring, anddeepen reform and innovation to improve market competitiveness
COSCO SHIPPING Holdings has completed the restructuring of major transactions since March 2016, divesting its dry bulk business and container leasing business. The Company's strategy has transformed from "comprehensive shipping services" to "focusing on the development of container shipping service supply chain". The main business development path became clearer.