Business Strategy and Development - The company aims to establish a green, low-carbon, digital intelligent ship service platform, focusing on profitability, resilience, scale, and globalization [5]. - The company is focused on digital transformation in shipping services to align with industry trends towards green and intelligent development [4]. - The company is focusing on digitalization and green transformation in the shipping industry as a key growth strategy [29]. - The company aims to lead in digital intelligence and green energy development in the shipping industry, promoting a high-quality low-carbon intelligent operation system [51]. - The company is actively transforming its general trade business to focus on core business development strategies [154]. - The company aims to advance green and smart shipping services in 2024, focusing on developing intelligent operational solutions and new energy ship industry chains [153]. Financial Performance - The company's revenue for 2023 was HKD 3,341,729,000, a decrease of 16% compared to HKD 3,962,539,000 in 2022 [25]. - The net profit attributable to equity holders increased by 71% to HKD 593,673,000 from HKD 347,062,000 in the previous year [31]. - Basic earnings per share rose by 77% to HKD 0.4033 from HKD 0.2274 in 2022 [25]. - The company maintained a dividend payout ratio of 99%, with total dividends per share for 2023 at HKD 0.40, up from HKD 0.225 in 2022 [31]. - The gross profit margin improved to 19.9% in 2023 from 16.7% in 2022 [25]. - The company reported a significant increase in the pre-tax profit from the shipping services segment, with a 33% rise to HKD 500,338,000 [27]. - The profit attributable to equity holders for 2023 was HKD 593,673,000, a 71% increase from HKD 347,062,000 in 2022 [72]. - Revenue for the year was HKD 3,341,729,000, a 16% decrease from HKD 3,962,539,000 in 2022, with core shipping services revenue down 5% to HKD 2,777,649,000 [54][76]. Dividends and Shareholder Returns - The proposed final dividend for 2023 is HKD 0.175 per share, with a total annual dividend of HKD 0.40 per share [18]. - The mid-term dividend for 2023 was set at HKD 0.225 per share, reflecting the company's commitment to shareholder returns [18]. - The company repurchased a total of 15,722,000 shares in 2023 as part of its commitment to maximizing shareholder returns [34]. Market and Industry Trends - The International Maritime Organization (IMO) has set a target for the shipping industry to reduce carbon emissions by 20% by 2030 and achieve net-zero emissions by around 2050 [37]. - Starting January 1, 2024, the shipping industry will be included in the EU Emissions Trading System (EU ETS), impacting emissions from large vessels departing and arriving at EU ports [37]. - In 2023, 16% of new ship orders were confirmed to use alternative fuels, with green methanol accounting for approximately half of that share [42]. - The global shipping trade volume increased by 3% to 1.24 billion tons in 2023, with strong performance in liquefied gas carriers and oil tankers, while dry bulk and container shipping remained relatively weak [110]. Corporate Governance and Management - The company has a strong management team with extensive experience in finance and investment management, including members with backgrounds in major financial institutions [164][165]. - The board of directors has been actively involved in strategic planning and risk management to ensure sustainable growth [169]. - The company is committed to maintaining high levels of corporate governance, which is believed to provide a solid foundation for managing business risks and enhancing transparency [176]. - The company has established various governance policies, including securities trading rules and reporting policies, to ensure compliance and ethical conduct [181]. - The board consists of six members, including executive directors and independent non-executive directors, ensuring a balance of power and responsibilities [183]. Social Responsibility and Community Engagement - In 2023, the company actively participated in various charitable activities, highlighting its commitment to social responsibility [46]. - The company has outlined its commitment to environmental, social, and governance (ESG) initiatives, led by its dedicated committees [162]. Acquisitions and Market Expansion - The acquisition of Haining Insurance Brokerage will enhance the company's market share and competitive advantage in the insurance brokerage business [43]. - The company agreed to acquire Haining Insurance Brokerage for HKD 270,980,600, which will enhance its market share and competitive advantage in the insurance brokerage business [149]. - The establishment of Shanghai Jiyuan Green Energy, focusing on renewable fuels including green methanol, marks a significant step in the company's green low-carbon industry development [42]. Employee and Workforce Management - The company has 860 employees as of December 31, 2023, an increase from 851 in 2022, with total employee benefits expenses amounting to HKD 446,150,000, up from HKD 405,348,000 in 2022 [102]. - The company emphasizes the importance of corporate culture and ethical standards among employees, linking their performance to the company's growth and performance [180]. - The company is committed to promoting gender diversity and will continue to review and take necessary measures to enhance diversity [195].

Financial Performance - Revenue decreased by 16% to HKD 3,341,729,000, primarily due to declines in the coatings and general trading segments[2] - Gross profit slightly increased to HKD 663,634,000, with a gross profit margin rising to 20% due to lower raw material costs in the coatings segment[2] - Profit before tax from core shipping services rose by 33% to HKD 500,338,000[2] - Net profit attributable to equity holders increased by 71% to HKD 593,673,000, driven by higher interest income and significant gains from a joint venture[2] - Basic and diluted earnings per share rose by 77% to HKD 40.33, with a proposed final dividend of HKD 17.5 per share, totaling HKD 40 per share for 2023[2] - The company reported a net profit of HKD 608,606,000 for the year, compared to HKD 366,897,000 in 2022[4] - Total revenue reached HKD 3,341,729 thousand, with external customer revenue at HKD 3,341,729 thousand[20] - Operating profit before tax was HKD 473,783 thousand, with a significant contribution from various segments[20] - The company reported a net profit after tax of HKD 418,168 thousand, reflecting strong operational performance[20] - The company incurred a financial cost of HKD 1,604 thousand, which impacted overall profitability[20] - The company recognized government subsidies amounting to HKD 6,112 thousand, contributing positively to the financial results[20] - The company’s total liabilities decreased slightly to HKD 935,839,000 from HKD 1,024,531,000 in 2022[41] - The total tax expense for the year was HKD 54,157,000, a decrease from HKD 58,461,000 in 2022[32] Assets and Liabilities - As of December 31, 2023, the group had net cash of HKD 6,261,376,000[2] - Total assets amounted to HKD 9,205,229,000, slightly down from HKD 9,234,493,000 in 2022[6] - Total equity increased to HKD 8,187,399,000 from HKD 8,121,580,000 in 2022[6] - The group recognized deferred tax liabilities of HKD (68,429) thousand as of January 1, 2023, reflecting an increase from HKD (67,336) thousand on December 31, 2022[12] - The total liabilities for reportable segments decreased to HKD 933,949,000 in 2023 from HKD 1,150,587,000 in 2022, indicating a reduction of about 18.8%[24] - The group’s total liabilities for 2023 are HKD 1,017,830,000, down from HKD 1,112,913,000 in 2022, showing a decrease of approximately 8.5%[24] - The net cash position increased by 6% to HKD 6,261,376,000 from HKD 5,933,120,000 in 2022, with no short-term borrowings reported[54] Revenue Segments - Sales of coatings amounted to HKD 826,045 thousand in 2023, down 22.6% from HKD 1,067,153 thousand in 2022[17] - Revenue from ship equipment and spare parts sales increased to HKD 1,725,018 thousand in 2023, up 3.3% from HKD 1,669,821 thousand in 2022[17] - The group’s general trade revenue decreased to HKD 564,080 thousand in 2023 from HKD 1,025,568 thousand in 2022, a decline of 45.0%[17] - The group’s shipping agency commission income was HKD 86,782 thousand in 2023, compared to HKD 85,413 thousand in 2022, showing a slight increase[17] - Revenue from the shipping services segment for the year was HKD 2,777,649,000, a decrease of 5% from HKD 2,936,971,000 in 2022, primarily due to a decline in revenue from paint production and sales[62] - The revenue from the ship equipment and spare parts segment was HKD 1,725,018,000, a 3% increase from HKD 1,669,821,000 in 2022, with a segment profit before tax of HKD 106,696,000, up 20% from HKD 89,026,000 in 2022[65] - The revenue from the paint segment decreased by 23% to HKD 826,045,000 from HKD 1,067,153,000 in 2022, while segment profit before tax increased by 67% to HKD 254,644,000 from HKD 152,362,000 in 2022[66] - The revenue from general trading decreased by 45% to HKD 564,080,000 from HKD 1,025,568,000 in 2022, with a segment loss before tax of HKD 30,940,000 compared to a profit of HKD 4,576,000 in 2022[71] Operational Highlights - The company has ongoing research and development initiatives, although specific new products or technologies were not mentioned in the call[20] - Future outlook remains optimistic, with potential for market expansion and strategic acquisitions[20] - The company delivered 16 new ships in the year, totaling 792,200 deadweight tons, down from 18 ships and 855,400 deadweight tons in 2022[63] - The company anticipates continued growth in its shipping services business, driven by the demand for environmentally friendly vessels and new energy power becoming standard in new ship orders[74] - The company expects to record contributions from the acquisition of Haining Insurance in 2024, enhancing the competitiveness and profitability of its insurance consulting services[74] - The company plans to advance its green and smart shipping service layout in 2024, focusing on developing intelligent operational solutions and the new energy ship industry chain[74] Governance and Compliance - The audit committee consists of three independent non-executive directors, ensuring compliance with applicable accounting and reporting regulations[79] - The company has maintained high levels of corporate governance and continues to review and enhance its governance standards[78] - The company has adopted a securities trading code for directors and employees, ensuring compliance with the standards set forth in the listing rules[80] - All directors confirmed compliance with the securities code and standard code for the year ending December 31, 2023[81] - The board consists of six directors, including the chairman and managing director, Zhu Changyu, and five other directors[81]

Financial Performance - For the first half of 2023, profit attributable to equity holders was HK$335,917,000, representing a 103% increase year on year[25]. - Basic and diluted earnings per share increased by 110% to 22.69 HK cents compared to 10.80 HK cents in 2022[25]. - The Group's operating profit was HK$145,892,000, an increase of 15% year on year from HK$126,545,000 in 2022, primarily due to an increase in overall gross profit[38]. - Profit before income tax from shipping services increased by 60% to HK$265,448,000 compared to the previous year[64]. - Profit for the period reached HK$347,691, a significant increase of 103.5% from HK$171,067 in the prior year[94]. - The profit attributable to equity holders of the Company increased by 103% year on year to HK$335,917,000, compared to HK$165,587,000 in 2022[46]. - The profit for the period increased to HK$347,691,000, up from HK$171,067,000, representing a growth of 103.5% year-over-year[96]. Revenue and Segments - Group revenue for the six months ended June 30, 2023, was HK$1,620,612,000, a decrease of 10% year on year[27]. - Revenue from core shipping services was HK$1,449,191,000, down 4% year on year, accounting for 89% of total revenue[27]. - Revenue from the coatings segment decreased significantly, contributing to the overall revenue decline[27]. - Revenue from the ship trading agency segment increased by 7% to HK$36,370,000, with a segment profit before income tax of HK$25,897,000, up 20% year on year[66]. - Revenue from insurance brokerage services increased by 36% to HK$76,870,000, with profit before income tax rising by 38% to HK$57,861,000[70]. - Revenue from the marine equipment and spare parts segment was HK$907,067,000, a year-on-year increase of 1% from HK$897,724,000 in 2022[73]. - Revenue from the coatings segment decreased by 19% to HK$428,884,000, down from HK$528,020,000 in 2022[76]. - The Group's revenue from the general trading segment was HK$171,421,000, a year-on-year decrease of 40% from HK$287,656,000, primarily due to a 45% drop in asphalt sales volume to 33,144 tonnes[79]. Expenses and Costs - Selling, administrative, and general expenses increased by 7% to HK$273,911,000, mainly due to higher employee benefits[32]. - Management fee income rose by 8% to HK$37,910,000, primarily due to increased administrative and general expenses[30]. - Total employee benefit expenses for the period amounted to HK$212,770,000, compared to HK$212,182,000 for the same period in 2022, reflecting a marginal increase[52]. - Finance costs decreased by 20% year on year to HK$763,000, down from HK$952,000 in 2022[42]. Dividends and Share Options - The interim dividend for 2023 is set at 22.5 HK cents per share, with a payment date of September 28, 2023[23]. - The Company declared an interim dividend of 22.5 HK cents per share for the six months ended June 30, 2023, up from 11 HK cents in 2022, indicating a 104.55% increase[58]. - The share option incentive scheme granted a total of 23,830,000 share options at a price of HK$2.26 per share, exercisable from April 28, 2022, to April 27, 2026[53]. - An additional 2,460,000 share options were granted at HK$2.184 per share, exercisable from October 6, 2022, to October 5, 2026[55]. - A further 1,370,000 share options were granted at HK$2.72 per share, exercisable from April 7, 2023, to April 6, 2027[55]. Cash and Financial Position - The Group's total cash and deposits amounted to HK$6,074,373,000 as of June 30, 2023, an increase from HK$5,933,120,000 as of December 31, 2022[48]. - The return on the Group's cash was 4.01% during the period, significantly up from 0.73% in the same period of 2022[48]. - Cash generated from operating activities was HK$242,356,000, with net cash generated from operating activities amounting to HK$217,829,000, compared to a net cash used of HK$28,417,000 in the previous year[107]. - The total liabilities decreased to HK$938,182,000 from HK$1,112,913,000, a significant reduction of 15.6%[100]. - The total equity increased to HK$8,220,247,000 from HK$8,121,580,000, showing a growth of 1.2%[100]. Economic and Market Conditions - In the first half of 2023, global economic growth is expected to be only 2.8%, with advanced economies projected to grow at 1.3%[60]. - Global merchandise trade is expected to grow by 1.7% in 2023, following a growth of 2.7% in 2022, influenced by geopolitical tensions and inflation[81]. - The geopolitical tensions and high inflation are expected to challenge global economic development and commodity trade[81]. - The dry bulk market is experiencing weak performance due to limited demand for major raw materials and reduced investment activities in western countries[82]. Risk Management and Compliance - The Group's activities expose it to various financial risks, including market risk, credit risk, and liquidity risk[125]. - There have been no material changes in the risk management policies or personnel since the year-end of December 31, 2022[125]. - The amendments to existing standards are not expected to have any significant impact on the Group's financial results and position[122].

Company Overview - The company is a wholly-owned subsidiary of China COSCO Shipping Group, focusing on a comprehensive shipping service platform that includes ship trading, insurance consulting, and supply of ship equipment and parts [3]. - The business network spans across mainland China, Hong Kong, Singapore, Japan, Germany, and the United States, providing diversified and specialized shipping-related services [3]. - The company's vision aims to establish a green, low-carbon, and digital intelligent ship service platform, targeting global expansion and enhanced profitability [3]. - The company emphasizes building trustworthy and mutually beneficial relationships with customers, investors, and business partners to achieve sustainable development [3]. - The strategic direction includes enhancing anti-cyclical capabilities and global operations to strengthen profitability and scale [3]. Financial Performance - Total revenue for the year 2022 was HKD 3,962,539,000, a decrease of 13% compared to HKD 4,533,549,000 in 2021 [22]. - Operating profit decreased by 27% to HKD 202,831,000 from HKD 277,545,000 in the previous year [25]. - Profit attributable to equity holders increased by 20% to HKD 347,062,000, up from HKD 288,341,000 in 2021 [25]. - Basic earnings per share rose to HKD 22.74, compared to HKD 18.81 in the previous year, reflecting a 21% increase [22]. - The company proposed a final dividend of HKD 11.5 per share, totaling HKD 22.5 per share for the year, up from HKD 19.0 in 2021 [11]. - Total assets as of December 31, 2022, were HKD 9,234,493,000, a decrease of 5% from HKD 9,742,224,000 in 2021 [23]. - Total liabilities decreased by 17% to HKD 1,112,913,000 from HKD 1,347,628,000 in the previous year [23]. - The company achieved a return on equity of 4.38%, up from 3.57% in 2021, indicating improved profitability [23]. - The marine coatings segment generated revenue of HKD 1,067,153,000, down 37% from HKD 1,685,183,000 in 2021 [24]. - The insurance consultancy segment saw a revenue increase of 12% to HKD 114,584,000 from HKD 102,152,000 in the previous year [24]. Shareholder Returns - The company has increased its actual dividend payout ratio to nearly 100% since 2020, reflecting a commitment to maximizing shareholder returns [26]. - In 2022, the company repurchased a total of 51,262,000 shares to optimize cash flow usage [26]. Market Challenges - The shipping market faced challenges in 2022 due to declining global consumer demand and geopolitical tensions, leading to a decrease in container and dry bulk shipping volumes [27]. - Despite a decrease in new ship deliveries, the company achieved stable revenue growth in its insurance consulting and ship spare parts businesses [28]. - The company sold its 18% stake in a fuel and oil trading company on June 28, 2022, in response to significant fluctuations in global fuel prices [28]. Risk Management and ESG - The company has established a comprehensive risk management system to enhance internal control and compliance standards [29]. - The company has been recognized for its ESG efforts, having engaged consultants since 2018 to improve its ESG reporting and compliance [29]. - The company actively participated in community service and charity activities, receiving recognition for its corporate social responsibility efforts in 2023 [31]. Operational Efficiency and Future Plans - The group plans to enhance operational efficiency and profitability by focusing on high-yield businesses and expanding into digital, smart, and green sectors [32]. - The group has established a joint venture with COSCO Shipping Technology to promote digital solutions in the shipping service industry [32]. Governance and Leadership - The company has a strong governance structure with various committees including audit, remuneration, and nomination committees [139]. - The board of directors has a diverse background with members holding significant positions in other listed companies [139]. - The company emphasizes the importance of corporate governance and compliance with the Securities and Futures Ordinance [139]. - The financial remuneration for directors is determined based on market conditions and individual responsibilities [140]. - The company is committed to enhancing its operational efficiency and strategic planning through experienced leadership [141]. Diversity and Inclusion - The company has made significant progress in gender diversity, with one female director among six board members as of the end of 2022 [151]. - Female employees represent 26% of the total workforce, 33% of senior management, and 53% of headquarters staff as of December 31, 2022 [151]. - The company is committed to maintaining a diverse board and has implemented a nomination policy to ensure high-quality directors for sustainable development [150]. Shareholder Communication - The company has adopted a shareholder communication policy to ensure shareholders receive timely and clear information about the company [191]. - The company held its annual general meeting on May 31, 2022, with at least 20 business days' notice provided to shareholders [192]. - The voting results of significant independent matters at the annual general meeting were published on the stock exchange and the company's website on the same day [192]. - The company emphasizes effective two-way communication with investors to enhance understanding of its strategic positioning and operational performance [199].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不 發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損 失承擔任何責任。 | --- | --- | --- | |-------|---------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | （ 於 百 慕 達 註 冊 成 立 的 有 限 公 司 ） （ 股 份代 號 ： 00517 ） \n二零二二 年全年 業 ...

Financial Performance - For the first half of 2022, the profit attributable to equity holders was HK$165,587,000, representing a 4% increase from HK$159,592,000 in 2021[12]. - The Group's revenue for the six months ended June 30, 2022, was HK$1,803,925,000, a decrease of 19% compared to HK$2,231,237,000 in 2021[16]. - The gross profit for the Group was HK$316,357,000, a 14% decrease from HK$366,272,000 in 2021[17]. - The basic and diluted earnings per share were 10.80 HK cents, compared to 10.41 HK cents in 2021[15]. - Profit before income tax from shipping services was HK$157,209,000, a decrease of 12% compared to the previous year[65]. - Profit for the period was HK$171,067, representing an increase of 2.9% from HK$167,515 in 2021[121]. - The profit for the period ended June 30, 2022, was HK$165,587, compared to HK$159,592 for the same period in 2021, representing a growth of 3.1%[129]. Revenue Breakdown - Revenue from the core shipping services business was HK$1,516,269,000, down 10% year on year, accounting for 84% of the Group's total revenue[16]. - Revenue from the general trading segment was HK$287,656,000, down 47% year on year, accounting for 16% of the Group's revenue[16]. - Revenue from the ship trading agency segment decreased by 29% to HK$34,072,000 (2021: HK$48,069,000) year on year[70]. - Revenue from the insurance brokerage segment increased by 11% to HK$56,453,000 (2021: HK$50,996,000)[74]. - Revenue from the marine equipment and spare parts segment increased by 11% to HK$897,724,000 (2021: HK$806,005,000)[78]. - Revenue from the coatings segment decreased by 32% to HK$528,020,000 (2021: HK$781,822,000)[81]. Expenses and Costs - The gross profit margin increased to 18%, up 2 percentage points from 16% in 2021[17]. - Selling, administrative and general expenses decreased by 7% year on year to HK$256,729,000 (2021: HK$275,138,000) as a result of lower selling expenses[27]. - Finance income decreased by 18% year on year to HK$22,249,000 (2021: HK$27,076,000) due to declining deposit interest rates[28]. - Finance costs decreased significantly by 76% year on year to HK$952,000 (2021: HK$4,034,000)[29]. - Total employee benefit expenses, including directors' emoluments and provident funds, amounted to HK$212,182,000, compared to HK$203,491,000 in 2021[42][44]. Cash Flow and Liquidity - Total cash and deposits decreased to HK$6,041,209,000 as of June 30, 2022 (December 31, 2021: HK$6,219,741,000)[35]. - The Group had a net repayment of short-term borrowings amounting to approximately HK$42,217,000 during the period[35]. - The Group's cash return rate for the period was 0.73%, down from 0.87% in the same period of 2021[37][38]. - Cash used in operations for the six months ended June 30, 2022, was HK$6,153,000, a significant improvement compared to HK$276,294,000 in the same period of 2021[131]. - Net cash generated from investing activities increased to HK$674,300,000 in the first half of 2022, compared to HK$42,570,000 in the prior year[131]. - Cash and cash equivalents at the end of the period reached HK$1,796,187,000, up from HK$840,443,000 at the end of June 2021[131]. Market and Economic Conditions - The Group's performance was affected by the volatility of the COVID-19 pandemic in Hong Kong and the PRC[16]. - The global economic growth forecast for 2022 was lowered to 3.2% by the IMF, down 0.4 percentage points from the previous forecast in April[56]. - The economic damage from the Russia-Ukraine conflict is expected to significantly slow global growth in 2022, impacting shipping demand[102]. - The global shipping trade growth forecast for 2022 has been revised down to 1.6%, compared to the initial forecast of 3.5%[103]. Strategic Initiatives - COSCO SHIPPING International aims to leverage its advantages in the shipping service industry to explore new energy shipping and digitalization[109]. - The company is committed to supporting the shipping industry's transition to green shipping and digital development, enhancing efficiency for shipping enterprises and creating long-term sustainable value for shareholders[109]. - The shipping industry is gradually moving towards a new trend of green, low-carbon, and intelligent development, driven by digital technology[108]. Joint Ventures and Investments - Share of profits of joint ventures increased by 29% year on year to HK$47,218,000 (2021: HK$36,659,000), mainly from Jotun COSCO's profit of HK$40,322,000 (2021: HK$28,811,000)[30]. - The Group's share of profit from Jotun COSCO rose by 40% to HK$40,322,000, up from HK$28,811,000 in 2021[88]. Risk Management and Accounting - The Group's activities expose it to various financial risks, including market risk, credit risk, and liquidity risk[153]. - The Group recognizes impairment losses for any write-down of assets to fair value less costs to sell, with gains recognized for subsequent increases in fair value[146]. - The accounting policies and methods used in the preparation of the interim financial information are consistent with those set out in the annual financial statements for the year ended December 31, 2021[149].

Financial Performance - COSCO SHIPPING INTERNATIONAL reported a total revenue of HKD 1.2 billion for the fiscal year 2021, representing a year-on-year increase of 15%[1]. - The company achieved a net profit of HKD 300 million, which is a 20% increase compared to the previous year[1]. - The company's revenue for the year ended December 31, 2021, was HKD 4,533,549,000, representing a 32% increase compared to HKD 3,442,894,000 in 2020[20]. - Operating profit surged by 109% to HKD 277,545,000 in 2021, up from HKD 132,500,000 in the previous year[26]. - The profit attributable to equity holders decreased by 15% to HKD 288,341,000, down from HKD 338,523,000 in 2020[26]. - The gross profit margin for 2021 was 17.0%, down from 18.3% in 2020[22]. - The company reported a 55% increase in revenue from the paint segment, totaling HKD 1,685,183,000 in 2021[23]. - The company's profit attributable to equity holders decreased by 15% to HKD 288,341,000 in 2021, compared to HKD 338,523,000 in 2020[33]. - Basic and diluted earnings per share fell by 15% to HKD 0.1881 in 2021, down from HKD 0.2208 in 2020[33]. - The company's total assets as of December 31, 2021, were HKD 9,742,224,000, a decrease of 2% from HKD 9,938,694,000 in 2020[21]. - The total liabilities decreased by 11% to HKD 1,347,628,000 from HKD 1,510,980,000 in the previous year[21]. - The company declared a total dividend of HKD 19.00 per share for the year, a decrease of 14% from HKD 22.00 in 2020, with a payout ratio of 101%[20][27]. Strategic Initiatives - The company plans to expand its service network in regions including Singapore, Japan, Germany, and the United States to enhance its market presence[2]. - Investment in new technologies and shipbuilding equipment is expected to increase by 25% in 2022 to improve operational efficiency[2]. - The company aims to enhance its shipping service platform by integrating digital solutions to streamline operations and improve customer experience[2]. - COSCO SHIPPING INTERNATIONAL is exploring potential mergers and acquisitions to strengthen its competitive position in the shipping industry[2]. - The company anticipates a growth rate of 10% in shipping volume for the upcoming fiscal year, driven by increased demand in global trade[2]. - The company aims to enhance strategic considerations and expand its digital, green, low-carbon, and smart development initiatives[19][25]. - The company plans to leverage opportunities from the Guangdong-Hong Kong-Macao Greater Bay Area and the Belt and Road Initiative for future growth[32]. Risk Management and Compliance - The company is committed to enhancing its ESG standards and reporting, with a focus on improving data transparency and compliance[30]. - The company emphasizes risk control and financial management, with Mr. Chen Dong having over 20 years of experience in these areas, contributing to the company's financial stability[132]. - The company has implemented internal monitoring mechanisms to ensure compliance with related party transactions[150]. - The company has adopted a shareholder communication policy to ensure timely and balanced access to information[177]. - The company is actively monitoring accounts receivable risks due to increased payment difficulties from customers influenced by macroeconomic policies[176]. - The company has established comprehensive guidelines and policies to support its corporate governance framework, ensuring compliance with the corporate governance code[143]. Corporate Governance - The company has a robust corporate governance structure, with various committees in place to oversee different aspects of its operations, including audit and remuneration[132]. - The board consists of seven directors, including executive and independent non-executive directors, ensuring a balance of power and independent judgment[144]. - The company has adopted a board diversity policy, emphasizing the importance of diverse perspectives in terms of skills, regional and industry experience, background, race, gender, and other characteristics[147]. - The board is responsible for overseeing the company's major affairs, including the formulation and approval of business strategies and management policies[145]. - The company has established a mechanism for the nomination and appointment of qualified directors to ensure sustainable development[145]. - The company has a clear division of responsibilities between the board and management, with senior management closely monitored by the board[145]. Environmental, Social, and Governance (ESG) Initiatives - COSCO SHIPPING aims to reduce greenhouse gas emissions (Scope 1 and 2) by 10% by 2030, based on a 2020 baseline[198]. - The company plans to decrease volatile organic compounds (VOCs) and benzene emissions by 5% by 2030[198]. - COSCO SHIPPING targets a 10% reduction in energy consumption by 2030, using 2020 as the baseline[198]. - The company has established an ESG Committee to oversee its ESG strategies, policies, and development plans[200]. - The ESG Committee meets at least once a year and as needed to address ESG-related opportunities, issues, and risks[200]. - The company is committed to complying with relevant laws and regulations regarding ESG practices[200]. Market Trends and Economic Outlook - The International Monetary Fund projected a global economic growth of 4.4% in 2022, a slowdown of 1.5 percentage points from 2021[31]. - The global shipping trade volume is expected to grow by 3.4% in 2022, with container shipping rates remaining high due to supply-demand imbalances[126]. - In 2021, China's total import and export value reached RMB 39.1 trillion, representing a year-on-year increase of 21.4%[106]. - The container throughput in China reached approximately 280 million TEUs in 2021, reflecting a year-on-year growth of 7.0%[106]. - The new shipbuilding completion volume in China was 39.703 million deadweight tons in 2021, marking a 3.0% increase year-on-year[106].

Financial Performance - For the first half of 2021, COSCO SHIPPING International reported a profit attributable to equity holders of HK$159,592,000, an increase of 21% compared to HK$131,625,000 in 2020[20]. - The company's revenue for the six months ended June 30, 2021, rose by 50% to HK$2,231,237,000, up from HK$1,482,759,000 in the same period last year[18]. - The group's gross profit was HK$366,272,000, a 38% increase from HK$266,284,000 in the previous year[19]. - Basic and diluted earnings per share were 10.41 HK cents, compared to 8.59 HK cents in 2020[20]. - Profit for the period reached HK$167,515,000, a 24.5% increase from HK$134,552,000 in the same period of 2020[130]. - Total comprehensive income for the period reached HK$195,202,000, compared to HK$81,869,000 in the previous year, reflecting a significant increase[132]. Revenue Breakdown - Revenue from the core shipping services segment increased by 35% to HK$1,686,892,000, accounting for 76% of total revenue[18]. - The general trading segment's revenue surged by 134% to HK$544,345,000, representing 24% of the group's total revenue[18]. - Revenue from the ship trading agency segment increased by 50% to HK$48,069,000, compared to HK$32,072,000 in 2020[74]. - Revenue from insurance consultancy services was HK$50,996,000, a 19% increase from HK$42,946,000 in 2020[76]. - Revenue from the marine equipment and spare parts segment was HK$806,005,000, representing a 13% increase compared to HK$714,393,000 in 2020[86]. - Revenue from the coatings segment was HK$781,822,000, a significant increase of 93% from HK$404,067,000 in 2020[88]. Expenses and Costs - Selling, administrative, and general expenses rose by 13% to HK$275,138,000, primarily due to increased selling expenses[32]. - Finance income decreased by 64% to HK$27,076,000 due to lower interest rates on deposits[33]. - Finance costs increased by 113% to HK$4,034,000, primarily due to higher interest expenses on short-term borrowings[34]. - Total employee benefit expenses, including directors' emoluments and provident funds, amounted to HK$203,491,000 for the period, compared to HK$170,377,000 in 2020, reflecting an increase of approximately 19.4%[49]. Cash Flow and Financial Position - As of June 30, 2021, total cash and deposits were HK$5,971,516,000, a decrease from HK$6,518,647,000 at the end of 2020[41]. - Cash flows from operating activities for the six months ended June 30, 2021, showed a net cash outflow of HK$297,912,000 compared to a net cash outflow of HK$8,553,000 in the same period of 2020[142]. - The net cash generated from investing activities was HK$42,570,000, a decrease from HK$85,129,000 in the previous year[142]. - The total cash and cash equivalents at the end of the period were HK$840,443,000, up from HK$742,061,000 at the end of June 2020[142]. Dividends and Shareholder Returns - The company declared an interim dividend of 10 HK cents per share, with the payment date set for September 28, 2021[16]. - The company paid dividends to equity holders totaling HK$237,608,000, which is an increase from HK$145,631,000 in the same period last year[142]. Market and Economic Context - The improved performance was primarily attributed to the easing of the COVID-19 epidemic in the PRC[20]. - The PRC's seaborne trade value increased by 28.3% year on year, with strong demand for shipping services[65]. - The World Bank predicts global economic growth of 5.6% in 2021, the fastest growth rate in 50 years, despite rising production costs due to a 5.1% increase in the Producer Price Index in China[109]. Strategic Initiatives - The Group plans to enhance service standards and strengthen market research in ship trading agency services to meet customer needs[113]. - The Group aims to improve product R&D capabilities and optimize customer relationships in the marine equipment supply sector[112]. - Continuous improvement in product research and development capabilities for container coatings is a priority to increase market share[116]. - The Group's strategy includes proactive business transformation and expansion of its business scope, including a capital injection into Zhejiang Four Brothers Rope[121].

Business Strategy and Growth - COSCO SHIPPING INTERNATIONAL aims to establish a world-class shipping service industry cluster, focusing on scale, profitability, cyclical resilience, and globalization[2]. - The company has developed a comprehensive shipping service platform, including ship trading agency, insurance consulting, and fuel supply, with a network covering mainland China, Hong Kong, Singapore, Japan, Germany, and the USA[3]. - Future outlook includes leveraging Hong Kong's financing platform and the support of the parent company to expand business operations and improve shareholder returns[4]. - The company plans to explore market expansion opportunities, particularly in the Greater Bay Area and globally[2]. - COSCO SHIPPING INTERNATIONAL is actively pursuing mergers and acquisitions to enhance its service offerings and market presence[2]. - The company aims to improve its cyclical resilience through strategic investments and operational efficiencies[2]. - The company plans to maintain a dividend payout ratio of no less than 50% of net profit until substantial progress is made on major investment projects[174]. Financial Performance - The financial summary indicates a strong performance, with significant growth in revenue and profitability metrics, although specific figures are not provided in the extracted content[5]. - The company's total revenue for 2020 was HKD 3,442,894, representing a 5% increase from HKD 3,265,745 in 2019[27]. - Gross profit for 2020 was HKD 628,531, up 13% from HKD 555,210 in 2019[27]. - Operating profit increased by 57% to HKD 132,500 from HKD 84,662 in 2019[27]. - The net profit attributable to equity holders was HKD 338,523, a 2% increase from HKD 330,607 in 2019[27]. - The company declared a total dividend of HKD 22.00 per share for 2020, a 33% increase from HKD 16.50 in 2019[27]. - The company's gross margin improved to 18.3% in 2020 from 17.0% in 2019[29]. - The return on equity for 2020 was 4.22%, slightly up from 4.19% in 2019[28]. - Basic earnings per share for 2020 were HKD 0.2208, up from HKD 0.2157 in 2019[38]. Market and Industry Trends - The global new ship order volume decreased by 14% year-on-year to approximately 55.23 million deadweight tons in 2020[41]. - The overall economic growth in China for 2020 was approximately 2.3%, reflecting the resilience of the Chinese economy amid global challenges[86]. - The global shipping trade volume decreased by 3.8% to 1.15 billion tons in 2020, indicating a cautious capital expenditure approach by shipping companies[86]. Corporate Governance - The company has a strong management team with extensive experience in finance and risk management, including members with over 20 years in the shipping industry[111]. - The company is actively involved in various committees, including the remuneration, audit, and nomination committees, ensuring robust corporate governance[112]. - The company has independent directors with significant backgrounds in finance, investment management, and corporate governance, enhancing its strategic decision-making capabilities[112]. - The company emphasizes the importance of risk management and financial control, with key personnel having held senior roles in financial management[111]. - The company is committed to maintaining high standards of corporate governance, as evidenced by the composition and experience of its board[112]. Risk Management - The company identified five major risks for 2020: systemic risk from the pandemic, macroeconomic risk, trade receivables risk, price risk, and market competition risk[156]. - The company established a monthly follow-up system for accounts receivable to mitigate bad debt risks, particularly in light of the pandemic[156]. - The company emphasizes that risk management is the responsibility of every employee, fostering a culture of risk awareness and accountability[155]. - The company is committed to continuous risk assessment and management integration into daily operations, with regular communication to the risk management committee and board[156]. Environmental and Social Responsibility - The company is committed to reducing volatile organic compounds (VOCs) emissions through continuous investment and equipment upgrades[184]. - The company achieved a significant reduction in VOCs emissions by transitioning from solvent-based coatings to water-based coatings, resulting in a notable decrease in emissions[195]. - The company has established an environmental management system compliant with ISO 14001, with subsidiaries achieving certification in 2020[194]. - The company received recognition as a "Green Factory" in the Chinese coatings industry for its efforts in reducing VOCs emissions[196]. - The company implemented a hazardous waste management plan to guide proper handling, disposal, and recycling of hazardous waste[197]. Shareholder Communication - The company adopted a shareholder communication policy to ensure shareholders receive timely and understandable information[162]. - The company maintains high standards of disclosure regarding its financial statements to facilitate communication with shareholders and potential investors[166]. - The company utilizes its website as a channel for timely updates and enhanced communication with the public and shareholders[166].

Business Strategy and Goals - COSCO SHIPPING INTERNATIONAL aims to establish a globally leading shipping service industry cluster and a non-financial business investment platform, focusing on scale, profitability, cyclical resilience, and globalization[3]. - The company aims to become an internationally leading shipping service provider, focusing on high-quality development[22]. - The company plans to maintain its focus on enhancing operational efficiency and expanding its customer base, particularly in overseas markets[41]. - The company is actively exploring new business models in ship trading services to improve profitability and expand its business scope[42]. - The company is focused on long-term development and aims to become an internationally leading shipping service company[106]. Financial Performance - The company's total revenue for the year ended December 31 was HKD 3,265,745, a decrease of 66% compared to HKD 9,521,575 in the previous year[24]. - Gross profit for the year was HKD 555,210, down 2% from HKD 566,127 in 2018[24]. - Operating profit decreased by 53% to HKD 84,662 from HKD 181,593 in the previous year[24]. - Profit attributable to equity holders increased by 16% to HKD 330,607, compared to HKD 286,140 in 2018[24]. - Basic earnings per share rose by 16% to HKD 21.57 from HKD 18.67 in the previous year[24]. - The company declared a total dividend of HKD 16.50 per share, an increase of 18% from HKD 14.00 in 2018[24]. - Total revenue for the shipping services segment reached HKD 273.09 million, up 26% from HKD 216.18 million in the previous year[27]. - The company achieved a significant turnaround in the ship fuel and other products segment, reporting a profit of HKD 42.48 million compared to a loss of HKD 10.49 million in 2018, marking a 505% improvement[27]. - The company reported a 60% decline in general trading profits, dropping to HKD 6.74 million from HKD 16.96 million[27]. - Revenue from core shipping services decreased by 72% to HKD 2,479,881,000 (2018: HKD 8,754,304,000), accounting for 76% of total group revenue (2018: 92%)[65]. Assets and Liabilities - Total assets as of December 31 were HKD 9,376,946, a 1% increase from HKD 9,256,725 in 2018[25]. - The company's net cash decreased by 1% to HKD 6,258,342 from HKD 6,330,010 in the previous year[25]. - Total liabilities increased by 5% to HKD 1,158,727,000 (2018: HKD 1,102,025,000)[76]. - Shareholders' equity increased to HKD 7,926,405,000 (2018: HKD 7,853,935,000), with net asset value per share rising to HKD 5.17 (2018: HKD 5.12)[76]. Corporate Governance - The board of directors is committed to maintaining a high level of corporate governance to manage business risks and enhance transparency[121]. - The company has established comprehensive guidelines and policies to support its corporate governance framework, ensuring compliance with the corporate governance code[124]. - The board consists of eight directors, including executive and independent non-executive directors, with clear delineation of roles between the chairman and the managing director[125]. - The company emphasizes the importance of an ideal corporate culture, supported by all employees, to ensure good corporate governance at all levels[124]. - The company has a dedicated employee handbook that provides guidelines on ethical standards and business conduct for all employees[124]. Risk Management - The company emphasizes effective risk management as a key element of good corporate governance, with the Board overseeing the risk management framework[149]. - The company plans to continue monitoring and evaluating its risk management framework to address operational, regulatory, and financial risks[147]. - The company has implemented a formal employee code of conduct and reporting policy to enhance ethical behavior and reputation[152]. - The internal audit department conducts regular reviews based on an annual audit plan approved by the audit committee, focusing on financial, operational, and compliance controls[156]. - The company has established a system for managing trade receivables, including regular meetings to enhance collection efforts and reduce bad debt risks[153]. Environmental, Social, and Governance (ESG) Initiatives - The company received the "ESG Corporate Gold Award" from a prominent financial magazine, reflecting its commitment to environmental, social, and governance standards[43]. - The company has identified 26 ESG issues through stakeholder communication, covering governance, resource management, employee welfare, customer service, supply chain management, business ethics, and social responsibility[185]. - The company is committed to reducing waste and energy consumption through effective measures in its paint production and sales sector[182]. - The company has set ambitious environmental protection goals, focusing on waste management, noise, and wastewater, to regularly monitor its environmental progress[188]. - VOCs emissions reduced to 3.38 tons in 2019 from 10.88 tons in 2018, a decrease of approximately 69%[195]. Shareholder Communication and Engagement - The company maintains a shareholder communication policy to ensure shareholders receive balanced and timely information[159]. - The company held its annual general meeting on May 31, 2019, providing at least 20 business days' notice to shareholders[159]. - The company also held a special general meeting on December 30, 2019, with at least 10 business days' notice to shareholders[159]. - In 2019, the company held 143 meetings with investors and related parties, an increase from 138 in 2018, including 83 meetings with institutional investors[165]. - Key concerns from shareholders in 2019 included the operational performance of the five shipping service segments and future dividend plans[169].