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
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, wil...
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Enterprises have forever faced challenges surrounding the sharing of their intellectual property. Emerging cloud adoption has made it more compelling for enterprises to digitize their content, making them available over a wide variety of devices across the Internet. In his session at 19th Cloud Expo, Santosh Ahuja, Director of Architecture at Impiger Technologies, will introduce various mechanisms provided by cloud service providers today to manage and share digital content in a secure manner....
SYS-CON Events announced today that Hitrons 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. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
SYS-CON Events announced today that eCube Systems, a leading provider of middleware modernization, integration, and management solutions, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. eCube Systems offers a family of middleware evolution products and services that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Pulzze Systems was happy to participate in such a premier event and thankful to be receiving the winning investment and global network support from G-Startup Worldwide. It is an exciting time for Pulzze to showcase the effectiveness of innovative technologies and enable them to make the world smarter and better. The reputable contest is held to identify promising startups around the globe that are assured to change the world through their innovative products and disruptive technologies. There w...
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....