News Feed Item

COSCO International Announces 2013 Annual Results

HONG KONG, March 20, 2014 /PRNewswire/ --

Financial Summary

For the year ended/as at 31st December


(HK$ mn)


(HK$ mn)







Gross profit




Profit attributable to equity holders




Basic earnings per share (HK cents)




Net cash




Results Highlights

  • Better-than-expected results in a challenging market: Gross profit grew by 1% to HK$694 million as a result of the revenue increase of some businesses with higher gross profit margins. However, as there were some one-off gains generated in 2012 annual results, together with YOY declines in finance income and the share of profits of joint ventures in 2013, profit attributable to equity holders of the Company dropped by 33% YOY to HK$242 million.
  • Healthy cash flow and strong financial position: Net cash inflow generated from operating activities for 2013 was HK$361 million. The Group had net cash of HK$6,268 million as at 31st December 2013. The strong financial position supports the Company for future development.
  • Stable dividend payout ratio: The Board recommended to pay a final dividend of 3.5 HK cents per share. Together with the interim dividend of 2 HK cents per share, total annual dividends per share amounted to 5.5 HK cents, representing a dividend payout ratio of 34% (2012: 33%).

Business Development Highlights

  • In 2013, COSCO International improved its business geographic presence and global service network by completing the acquisition of Hanyuan Technical Service Centre in Germany from COSCO Group. Now, the Company is in discussions with COSCO Americas for a possible acquisition of Yuan Hua Technical & Supply Corporation in the US.
  • Jotun COSCO and COSCO Kansai maintained their no.1 leading positions in China marine coatings and container coatings markets for years, and fully propelled the construction of the two new plants in Qingdao and Shanghai respectively in 2013. The construction of Jotun COSCO's plant in Qingdao completed and production will start soon, and COSCO Kansai's plant in Shanghai is scheduled to commence production in 2015.
  • Several potential acquisitions in shipping services are under study.

Business Review

  • In 2013, the shipping market was still weak, and ship owners adopted strict cost control measures and postponed the new build deliveries. Together with the keen competition in the coatings market and marked decrease in new build vessel deliveries, the Group's various core business segments were adversely affected. As a result, the Group's profit before income tax (PBT) from shipping services declined by 27% YOY to HK$294 million.
  • PBT from the three traditional shipping services for shipowners (i.e. ship trading agency, marine insurance brokerage and supply of marine equipment & spare parts) declined by 12% YOY to HK$167 million, contributing 50% of the Group's total PBT.
  • The coatings segment's PBT reached HK$109 million, accounting for 33% of the Group's total PBT and representing a 31% YOY decrease. The decrease was mainly attributable to the reversal of provision for the selling expenses of HK$65 million in 2012 resulted from one-off arrangement of sales discounts with COSCO Kansai's certain customers.
  • PBT from marine fuel supply segment was HK$18 million, down 68% as compared with 2012 and accounting for 5% of the total PBT. The decrease was mainly due to the one-off reversal of trade receivables impairment provision of HK$29.65 million in 2012.


Mr. Sun Jiakang, Chairman of the Board of COSCO International, commented, "Looking forward, with strong financial strength, experienced professionals and global service network, COSCO International's shipping services will see more opportunities. For existing businesses, we will fully capitalise on the implementation of centralised procurement as well as the advantages of business scale and expertise of COSCO fleet, to secure favorable terms from more manufacturers, therefore developing more customers outside COSCO Group. Meanwhile, we will further promote business transformation and upgrading of shipping service business segments, through utilizing our global business network, offering high quality services and products with core competitiveness. For the new business development, COSCO International will proactively push forward the establishment of global sales and services network and step up effort to seek possible acquisitions of shipping service-related projects inside and outside COSCO Group, and at the same time actively study the possibility of extension of upstream and downstream businesses along the industry value chain of existing shipping services. We will strive to become a global leading one-stop shipping service provider, therefore creating the greatest returns for our shareholders."

Editorial Note

The announcement of 2013 annual results is available on the website of the SEHK (www.hkexnews.hk) and the Company's website (www.coscointl.com). A webcast replay of the 2013 annual results analyst meeting will be available at the Company's website after 10:00pm, 20th March 2014.

Company Background

COSCO International Holdings Limited ("COSCO International") is listed on the main board of The Stock Exchange of Hong Kong Limited. Its stock code is 00517. COSCO International is a constituent of Hang Seng Corporate Sustainability Benchmark Index. In recent years, COSCO International has focused its strategic business position on the development of the shipping services business. It aims to become a global leading one-stop shipping services provider, offering professional services to shipowners worldwide. Its core businesses include ship trading agency, marine insurance brokerage, supply of marine equipment and spare parts, production and sale of coatings and trading and supply of marine fuel and related products. The headquarters of COSCO International is in Hong Kong and its businesses network cover China Mainland & Hong Kong, Singapore, Japan, and Germany, etc. COSCO International is a listed company owned by COSCO (Hong Kong) Group Limited, which is a wholly-owned subsidiary of China Ocean Shipping (Group) Company ("COSCO"). COSCO is one of the major multinational conglomerates in the world, which focuses mainly on shipping, logistics, and ship building and repairing businesses as well as other shipping related businesses.

For enquiries, please contact:

Investor Relations Department of COSCO International

Yang Ling, General Manager

Tel: (852) 2809 7810

Fax: (852) 8169 0678

Email: [email protected]

Candy Cheung, Deputy General Manager

Tel: (852) 2809 7706

Fax: (852) 8169 0678

Email: [email protected]

Crystal Lu, Senior Officer

Tel: (852) 2809 7820

Fax: (852) 8169 0678

Email: [email protected]

PR China Limited

Henry Chik/ David Shiu/ Karl Cheung

Tel : (852) 2522 1838/ 2522 1368/ 2521 2823

Fax: (852) 2521 9955

Email: [email protected] / [email protected] / [email protected]

SOURCE COSCO International Holdings Limited

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Kubernetes, Docker and containers are changing the world, and how companies are deploying their software and running their infrastructure. With the shift in how applications are built and deployed, new challenges must be solved. In his session at @DevOpsSummit at19th Cloud Expo, Sebastian Scheele, co-founder of Loodse, will discuss the implications of containerized applications/infrastructures and their impact on the enterprise. In a real world example based on Kubernetes, he will show how to ...
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Eric Robertson, General Manager at CollabNet, will discuss how customers are able to achieve a level of transparency that e...
@DevOpsSummit has been named the ‘Top DevOps Influencer' by iTrend. iTrend processes millions of conversations, tweets, interactions, news articles, press releases, blog posts - and extract meaning form them and analyzes mobile and desktop software platforms used to communicate, various metadata (such as geo location), and automation tools. In overall placement, @DevOpsSummit ranked as the number one ‘DevOps Influencer' followed by @CloudExpo at third, and @MicroservicesE at 24th.
24Notion is full-service global creative digital marketing, technology and lifestyle agency that combines strategic ideas with customized tactical execution. With a broad understand of the art of traditional marketing, new media, communications and social influence, 24Notion uniquely understands how to connect your brand strategy with the right consumer. 24Notion ranked #12 on Corporate Social Responsibility - Book of List.
Established in 1998, Calsoft is a leading software product engineering Services Company specializing in Storage, Networking, Virtualization and Cloud business verticals. Calsoft provides End-to-End Product Development, Quality Assurance Sustenance, Solution Engineering and Professional Services expertise to assist customers in achieving their product development and business goals. The company's deep domain knowledge of Storage, Virtualization, Networking and Cloud verticals helps in delivering ...
Most of us already know that adopting new cloud applications can boost a business’s productivity by enabling organizations to be more agile and ready to change course in our fast-moving and connected digital world. But the rapid adoption of cloud apps and services also brings with it profound security threats, including visibility and control challenges that aren’t present in traditional on-premises environments. At the same time, the cloud – because of its interconnected, flexible and adaptable...
In his session at @DevOpsSummit at 19th Cloud Expo, Robert Doyle, lead architect at eCube Systems, will examine the issues and need for an agile infrastructure and show the advantages of capturing developer knowledge in an exportable file for migration into production. He will introduce the use of NXTmonitor, a next-generation DevOps tool that captures application environments, dependencies and start/stop procedures in a portable configuration file with an easy-to-use GUI. In addition to captu...
SYS-CON Events announced today that SoftNet Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. SoftNet Solutions specializes in Enterprise Solutions for Hadoop and Big Data. It offers customers the most open, robust, and value-conscious portfolio of solutions, services, and tools for the shortest route to success with Big Data. The unique differentiator is the ability to architect and...
In past @ThingsExpo presentations, Joseph di Paolantonio has explored how various Internet of Things (IoT) and data management and analytics (DMA) solution spaces will come together as sensor analytics ecosystems. This year, in his session at @ThingsExpo, Joseph di Paolantonio from DataArchon, will be adding the numerous Transportation areas, from autonomous vehicles to “Uber for containers.” While IoT data in any one area of Transportation will have a huge impact in that area, combining senso...
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
In the next five to ten years, millions, if not billions of things will become smarter. This smartness goes beyond connected things in our homes like the fridge, thermostat and fancy lighting, and into heavily regulated industries including aerospace, pharmaceutical/medical devices and energy. “Smartness” will embed itself within individual products that are part of our daily lives. We will engage with smart products - learning from them, informing them, and communicating with them. Smart produc...
As ridesharing competitors and enhanced services increase, notable changes are occurring in the transportation model. Despite the cost-effective means and flexibility of ridesharing, both drivers and users will need to be aware of the connected environment and how it will impact the ridesharing experience. In his session at @ThingsExpo, Timothy Evavold, Executive Director Automotive at Covisint, will discuss key challenges and solutions to powering a ride sharing and/or multimodal model in the a...
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, will discuss the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docke...