Welcome!

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

2013

(HK$ mn)

2012

(HK$ mn)

Change

(%)

Revenue

9,308

10,006

-7%

Gross profit

694

686

+1%

Profit attributable to equity holders

242

363

-33%

Basic earnings per share (HK cents)

15.96

23.98

-33%

Net cash

6,268

5,821

+8%

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.

Outlook

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
The speed of software changes in growing and large scale rapid-paced DevOps environments presents a challenge for continuous testing. Many organizations struggle to get this right. Practices that work for small scale continuous testing may not be sufficient as the requirements grow. In his session at DevOps Summit, Marc Hornbeek, Sr. Solutions Architect of DevOps continuous test solutions at Spirent Communications, explained the best practices of continuous testing at high scale, which is rele...
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
Hardware virtualization and cloud computing allowed us to increase resource utilization and increase our flexibility to respond to business demand. Docker Containers are the next quantum leap - Are they?! Databases always represented an additional set of challenges unique to running workloads requiring a maximum of I/O, network, CPU resources combined with data locality.
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"A lot of times people will come to us and have a very diverse set of requirements or very customized need and we'll help them to implement it in a fashion that you can't just buy off of the shelf," explained Nick Rose, CTO of Enzu, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
As software becomes more and more complex, we, as software developers, have been splitting up our code into smaller and smaller components. This is also true for the environment in which we run our code: going from bare metal, to VMs to the modern-day Cloud Native world of containers, schedulers and micro services. While we have figured out how to run containerized applications in the cloud using schedulers, we've yet to come up with a good solution to bridge the gap between getting your contain...
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
"We host and fully manage cloud data services, whether we store, the data, move the data, or run analytics on the data," stated Kamal Shannak, Senior Development Manager, Cloud Data Services, IBM, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Information technology (IT) advances are transforming the way we innovate in business, thereby disrupting the old guard and their predictable status-quo. It’s creating global market turbulence. Industries are converging, and new opportunities and threats are emerging, like never before. So, how are savvy chief information officers (CIOs) leading this transition? Back in 2015, the IBM Institute for Business Value conducted a market study that included the findings from over 1,800 CIO interviews ...
Who are you? How do you introduce yourself? Do you use a name, or do you greet a friend by the last four digits of his social security number? Assuming you don’t, why are we content to associate our identity with 10 random digits assigned by our phone company? Identity is an issue that affects everyone, but as individuals we don’t spend a lot of time thinking about it. In his session at @ThingsExpo, Ben Klang, Founder & President of Mojo Lingo, discussed the impact of technology on identity. Sho...
"Operations is sort of the maturation of cloud utilization and the move to the cloud," explained Steve Anderson, Product Manager for BMC’s Cloud Lifecycle Management, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Due of the rise of Hadoop, many enterprises are now deploying their first small clusters of 10 to 20 servers. At this small scale, the complexity of operating the cluster looks and feels like general data center servers. It is not until the clusters scale, as they inevitably do, when the pain caused by the exponential complexity becomes apparent. We've seen this problem occur time and time again. In his session at Big Data Expo, Greg Bruno, Vice President of Engineering and co-founder of StackIQ...
"I think that everyone recognizes that for IoT to really realize its full potential and value that it is about creating ecosystems and marketplaces and that no single vendor is able to support what is required," explained Esmeralda Swartz, VP, Marketing Enterprise and Cloud at Ericsson, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
"We got started as search consultants. On the services side of the business we have help organizations save time and save money when they hit issues that everyone more or less hits when their data grows," noted Otis Gospodnetić, Founder of Sematext, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.