Financial Performance - The total revenue for the third quarter reached RMB 134.62 billion, representing a year-on-year increase of 72.73%[5] - The net profit attributable to shareholders for the quarter was RMB 22.07 billion, showing a significant increase compared to the same period last year[5] - The cash flow from operating activities for the quarter was RMB 20.52 billion, indicating strong operational performance[5] - Operating revenue for the reporting period increased by 72.00% due to moderate growth in container shipping volume and significant increase in revenue per container[8] - Net profit attributable to shareholders for the reporting period surged by 285.70% reflecting improved efficiency in container shipping operations[8] - Net profit attributable to shareholders for the year-to-date increased by 72.73% compared to the previous year, indicating strong operational performance[8] - Basic earnings per share for the reporting period reached 291.18 RMB, a significant increase of 291.18% year-on-year[8] - Total operating revenue for the first three quarters of 2024 reached ¥174.74 billion, a 30% increase from ¥134.62 billion in the same period of 2023[38] - Net profit for the first three quarters of 2024 was ¥43.35 billion, compared to ¥26.00 billion in 2023, representing a 67% increase[39] - Earnings attributable to shareholders of the parent company for the first three quarters of 2024 were ¥38.12 billion, up from ¥22.07 billion in 2023, marking a 73% increase[39] Cash Flow and Assets - The cash flow from operating activities for the year-to-date rose by 151.91%, showcasing enhanced cash generation capabilities[8] - The total assets at the end of the reporting period amounted to RMB 462.57 billion, reflecting a year-on-year growth of 13.49%[5] - The company's current assets totaled 216,412,896,941.46 RMB as of September 30, 2024, up from 202,579,526,858.83 RMB at the end of 2023[33] - The total assets increased to 488,721,014,374.69 RMB as of September 30, 2024, compared to 462,570,619,365.72 RMB at the end of 2023[34] - The cash and cash equivalents amounted to 190,844,278,982.70 RMB as of September 30, 2024, compared to 182,356,136,871.00 RMB at the end of 2023[33] - The total cash and cash equivalents at the end of September 2024 amounted to RMB 189.34 billion, compared to RMB 197.85 billion at the end of 2023[45] Shareholder Information - The top shareholder, China Ocean Shipping Company, holds 5,924,873,037 shares, representing 37.12% of total shares[9] - The second-largest shareholder, HKSCC Nominees Limited, owns 3,189,815,504 shares, accounting for 19.99% of total shares[9] - The total number of ordinary shareholders at the end of the reporting period was 359,206[9] - China Ocean Shipping Group directly and indirectly holds a total of 7,009,619,897 shares, approximately 43.92% of the company's total equity[11] Business Strategy and Future Outlook - The company plans to expand its market presence through new product development and strategic acquisitions in the upcoming quarters[2] - The management expressed optimism about future growth, citing favorable market conditions and operational efficiencies[2] - The company is focusing on enhancing its dual-brand strategy to capture a larger market share in container shipping services[4] - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency and service offerings[31] - The company is focusing on market expansion and new product development as part of its strategic initiatives moving forward[50] Operational Metrics - The group's container shipping business handled a total cargo volume of 19.040 million TEUs in the first three quarters of 2024, representing a year-on-year increase of 9.07%[17] - The total cargo volume for Q3 2024 was 6.580 million TEUs, an increase of 8.58% compared to Q3 2023[18] - Revenue from the Trans-Pacific route in Q3 2024 was RMB 22.090 billion, a year-on-year increase of 115.08%[21] - The total revenue for the group in Q3 2024 was RMB 67.362 billion, reflecting a growth of 79.78% compared to the same period last year[21] - The EBIT for the container shipping business in the first three quarters of 2024 was RMB 48.89 billion, up 79.49% from RMB 27.25 billion in the same period of 2023[25] - The EBIT margin improved to 28.95% in the first three quarters of 2024, an increase of 7.87 percentage points from 21.08% in the same period of 2023[25] Comprehensive Income - Total comprehensive income for the first three quarters of 2024 reached RMB 42.59 billion, a significant increase from RMB 29.35 billion in the same period of 2023, representing a growth of approximately 45%[41] - The total comprehensive income attributable to the parent company for the first three quarters of 2024 was RMB 37.67 billion, compared to RMB 24.73 billion in 2023, marking an increase of approximately 52%[41] Research and Development - Research and development expenses for the first three quarters of 2024 were ¥768.77 million, slightly up from ¥757.18 million in 2023[38] - Research and development expenses were not specified but are a key focus for future growth and innovation[50]

Financial Performance - For the six months ended June 30, 2024, the company reported revenue of RMB 101,201,055 thousand, an increase of 10.19% compared to RMB 91,842,797 thousand in the same period of 2023[9]. - The net profit attributable to equity holders of the company for the same period was RMB 16,870,080 thousand, up from RMB 16,560,637 thousand, reflecting an increase of RMB 309,443 thousand[9]. - The company's operating profit for the reporting period was RMB 19,051,460 thousand, an increase of RMB 921,988 thousand from RMB 18,129,472 thousand in the previous year[10]. - Basic earnings per share for the reporting period were RMB 1.05, compared to RMB 1.03 in the same period last year[10]. - The company achieved operating revenue of RMB 101,201,055 thousand in the first half of 2024, an increase of RMB 9,358,258 thousand, representing a growth of 10.19% compared to the same period last year[25]. - The net profit for the six months ended June 30, 2024, was RMB 19,255,367 thousand, compared to RMB 19,675,781 thousand for the same period in 2023, indicating a decrease of about 2.1%[134]. - The total comprehensive income for the period was RMB 19,768,129 thousand, down from RMB 24,177,186 thousand, indicating a decline in overall profitability[133]. Operational Metrics - The company achieved a container throughput of 12,459,500 TEUs, representing a year-on-year growth of 9.34%[11]. - The total throughput of the terminal business reached 69,858,500 TEUs, with a year-on-year increase of 8.19%[11]. - The total container shipping volume for the group reached 12,459,543 TEUs, representing a year-on-year increase of 9.34%[62]. - The total container throughput for the first half of 2024 was 69,858,501 TEUs, representing an 8.19% increase compared to the same period last year[74]. - The company operates 275 international routes and 55 coastal routes in China, with a total of 616 ports in approximately 145 countries and regions[18]. Cash Flow and Liquidity - Cash and cash equivalents at the end of the reporting period amounted to RMB 172,350,000 thousand, with a net cash inflow from operating activities of RMB 22,638,000 thousand during the period[11]. - The net cash flow from operating activities was RMB 22,638,496 thousand, showing a significant increase of RMB 9,376,890 thousand, or 70.71% year-on-year[26]. - Operating cash flow for the six months ended June 30, 2024, was RMB 22,638,496 thousand, significantly higher than RMB 13,261,606 thousand in the previous year, reflecting an increase of approximately 70.8%[137]. - The company’s cash and cash equivalents totaled RMB 172,350,141 thousand, a decrease of RMB 8,763,175 thousand, or 4.84% from the end of the previous year[41]. Investments and Capital Expenditures - The company holds 29 new shipbuilding orders with a total capacity of nearly 570,000 TEU, supporting sustainable high-quality development[17]. - The group’s capital commitments for constructing container ships amounted to RMB 28,682,434 thousand as of June 30, 2024[55]. - The group’s investment in terminals has capital commitments totaling RMB 3,710,048 thousand, with fixed asset procurement commitments of RMB 3,571,966 thousand[55]. - The company’s investment activities resulted in a net cash outflow of RMB 10,356,232 thousand for the first half of 2024, compared to RMB 12,273,283 thousand in the same period of 2023, indicating a decrease in cash outflow by approximately 15.6%[137]. Shareholder Returns - The company plans to distribute a mid-year cash dividend of RMB 0.52 per share, totaling approximately RMB 8.3 billion, which represents 49.20% of the net profit attributable to equity holders for the first half of 2024[12]. - The interim cash dividend for 2024 is set at RMB 0.52 per share, totaling approximately RMB 8.3 billion, which represents 49.20% of the net profit attributable to shareholders for the first half of 2024[124]. - The company declared dividends amounting to RMB 3,670,925 thousand to its shareholders during the first half of 2024, compared to RMB 22,476,653 thousand in the same period of 2023, showing a significant reduction in dividend payouts[135]. Debt and Liabilities - The asset-liability ratio decreased by approximately 2.5 percentage points to 44.9% compared to the beginning of the period[11]. - As of June 30, 2024, total assets were RMB 467,117,979 thousand, an increase of RMB 4,688,598 thousand, or 1.01% from the end of the previous year[46]. - The total liabilities decreased to RMB 209,687,682 thousand, down RMB 9,522,227 thousand, or 4.34% compared to the end of the previous year[46]. - The group’s long-term borrowings as of June 30, 2024, were RMB 32,685,577 thousand, a decrease from RMB 40,859,399 thousand as of December 31, 2023[47]. - The group’s short-term borrowings as of June 30, 2024, were RMB 2,406,305 thousand, slightly down from RMB 2,417,519 thousand as of December 31, 2023[47]. Corporate Governance and Management - The company is committed to maintaining high standards of corporate governance, which is considered essential for operational success and enhancing shareholder value[118]. - The company has established an audit committee to review financial reporting processes and internal controls, ensuring the accuracy and completeness of financial statements[117]. - The company appointed new senior management, including the appointment of Zhu Tao as Deputy General Manager on June 21, 2024[81]. - Mr. Yang Zhijian voluntarily resigned as General Manager effective May 29, 2024, and Mr. Tao Weidong was appointed as the new General Manager[84]. Strategic Initiatives - The company continues to enhance its core competitiveness and service brand upgrade while promoting high-quality development[10]. - The company is focusing on digital intelligence and green low-carbon initiatives to strengthen global supply chain resilience[10]. - The company aims to innovate in supply chain ecology, smart interconnectivity, and green low-carbon initiatives to enhance service quality and shareholder value[15]. - The company is actively expanding its global layout and optimizing its service network to capture new growth opportunities in emerging markets[18]. Market and Customer Engagement - The company successfully launched 30 combination products, covering over 90 countries and regions, with supply chain revenue outside of shipping reaching RMB 19.893 billion, a year-on-year increase of 17.28%[14]. - In the first half of 2024, the company conducted 153 investor meetings, engaging with 1,711 investors through various communication channels[127]. - The top five customers accounted for RMB 3,937,646 thousand in sales, representing 3.89% of total sales during the reporting period[28]. Environmental and Sustainability Efforts - The company achieved a 170% year-on-year increase in shore power usage in the first half of 2024, promoting sustainable practices[15]. - The company is focusing on digital transformation, leveraging AI technology to enhance operational efficiency and resource management[23]. - The company aims to enhance its global digital supply chain operations, focusing on green, low-carbon, and sustainable development[128].

Revenue and Profit Growth - Revenue for the first half of 2024 increased to RMB 101.20 billion, up by RMB 9.36 billion (10.2%) compared to RMB 91.84 billion in the same period of 2023[2] - Net profit attributable to equity holders of the company rose to RMB 16.87 billion, a slight increase of RMB 309.44 million (1.9%) from RMB 16.56 billion in 2023[2] - Revenue for the first half of 2024 reached RMB 101.201 billion, a year-on-year increase of 10.19%[42][43] - Net profit attributable to equity holders of the company was RMB 16.87 billion, an increase of RMB 309.443 million compared to the same period last year[42][43] - Revenue for the first half of 2024 reached RMB 101,201,055 thousand, a 10.19% increase year-over-year[48][50] - Net profit attributable to equity holders for the first half of 2024 was RMB 16,870,080 thousand, a 1.87% increase year-over-year[48] Earnings Per Share and Dividends - Basic earnings per share (EPS) increased to RMB 1.05, up by RMB 0.02 from RMB 1.03 in the previous year[2] - The company declared an interim dividend of RMB 0.52 per share for the first half of 2024[2] - Basic earnings per share increased to RMB 1.05 in 2024 from RMB 1.03 in 2023, driven by a net profit attributable to equity holders of RMB 16.87 billion, up from RMB 16.56 billion in 2023[30] - The company declared an interim dividend of RMB 0.52 per share, totaling approximately RMB 8.3 billion, representing 49.20% of the net profit attributable to shareholders for the first half of 2024[29] - The company proposed an interim dividend of RMB 0.52 per share, payable on August 29, 2024[41] - The company will distribute an interim dividend of RMB 0.52 per share (tax inclusive), totaling approximately RMB 8.3 billion, which is 49.20% of the net profit attributable to shareholders in the first half of 2024[103] - The interim dividend for H shares will be HKD 0.569128 per share (tax inclusive), calculated based on the average exchange rate of RMB 1 to HKD 1.094477 during the week before August 29, 2024[103] - The ex-dividend date for the interim dividend is expected to be October 8, 2024, with the dividend for H shares to be distributed and paid on October 25, 2024[103] Gross and Operating Profit - Gross profit for the first half of 2024 was RMB 23.16 billion, compared to RMB 19.78 billion in 2023, reflecting a growth of RMB 3.38 billion (17.1%)[4] - Operating profit for the period reached RMB 19.05 billion, up from RMB 18.13 billion in 2023, an increase of RMB 921.99 million (5.1%)[4] Comprehensive Income and Assets - Total comprehensive income for the first half of 2024 was RMB 19.77 billion, a decrease from RMB 24.18 billion in 2023, primarily due to lower other comprehensive income[5] - Total assets as of June 30, 2024, stood at RMB 467.12 billion, up from RMB 462.43 billion at the end of 2023, reflecting a growth of RMB 4.69 billion (1.0%)[6] - Total equity as of June 30, 2024, was RMB 257,430,297 thousand, an increase from RMB 243,219,472 thousand as of December 31, 2023[7] - Total liabilities as of June 30, 2024, were RMB 209,687,682 thousand, a decrease from RMB 219,209,909 thousand as of December 31, 2023[7] - Total assets increased by RMB 4,688,598 thousand (1.01%) to RMB 467,117,979 thousand as of June 30, 2024[67] - Total liabilities decreased by RMB 9,522,227 thousand (4.34%) to RMB 209,687,682 thousand as of June 30, 2024[67] Cash and Cash Equivalents - Cash and cash equivalents decreased to RMB 172.35 billion as of June 30, 2024, from RMB 181.11 billion at the end of 2023, a reduction of RMB 8.76 billion (4.8%)[6] - Cash and cash equivalents decreased by RMB 8,763,175 thousand (4.84%) to RMB 172,350,141 thousand as of June 30, 2024[62] - Net cash inflow from operating activities increased by RMB 9,376,890 thousand (70.71%) to RMB 22,638,496 thousand in the first half of 2024[63] - Net cash outflow from investing activities decreased by RMB 1,917,051 thousand to RMB 10,356,232 thousand in the first half of 2024[64] - Net cash outflow from financing activities decreased by RMB 19,698,925 thousand to RMB 21,498,052 thousand in the first half of 2024[65] - Net cash position increased by RMB 1,059,731 thousand to RMB 97,787,563 thousand as of June 30, 2024[67] Container Shipping Business - Total revenue for the six months ended June 30, 2024, was RMB 101,201,055 thousand, with container shipping business contributing RMB 97,477,271 thousand and terminal business contributing RMB 5,091,135 thousand[14] - Net profit for the period was RMB 19,255,367 thousand, with the container shipping business contributing RMB 16,330,539 thousand and the terminal business contributing RMB 1,185,027 thousand[14] - The company's container shipping business generated external revenue of RMB 97,436,656 thousand, while the terminal business generated external revenue of RMB 3,764,399 thousand[14] - Total revenue for the container shipping business reached RMB 88,287,136 thousand, with external revenue accounting for RMB 88,243,258 thousand[15] - The company's total profit for the period was RMB 19,675,781 thousand, with the container shipping business contributing RMB 16,779,621 thousand[15] - Container shipping revenue for the first half of 2024 was RMB 97,477,271 thousand, up 10.41% year-over-year[51] - Container shipping costs for the first half of 2024 rose by 8.39% to RMB 75,741,625 thousand[54] - The company's container shipping segment achieved a cargo volume of 12.4595 million TEUs, a year-on-year increase of 9.34%[43] - The company's self-operated container fleet capacity reached 3.24 million TEUs, an increase of 6.5% compared to the beginning of the period[44] - Container shipping business revenue increased by 9,190,135 thousand RMB, reaching 97,477,271 thousand RMB, with a year-on-year growth of 10.4%[88] - EBIT for container shipping business was 20,851,364 thousand RMB, with an EBIT margin of 21.39%, a decrease of 2.14 percentage points compared to the previous year[88] - Net profit for container shipping business decreased by 449,082 thousand RMB to 16,330,539 thousand RMB[88] - COSCO Shipping Lines' container shipping revenue increased by 7,565,441 thousand RMB to 67,435,833 thousand RMB, with a year-on-year growth of 12.6%[89] - COSCO Shipping Lines' EBIT increased by 1,771,386 thousand RMB to 14,535,839 thousand RMB, with an EBIT margin of 21.56%, up 0.24 percentage points[89] - International route revenue per TEU increased by 51.48 USD to 1,210.70 USD[90] - COSCO Shipping Lines' net profit increased by 1,313,351 thousand RMB to 10,174,796 thousand RMB, with a year-on-year growth of 14.8%[89] - International route revenue per TEU for COSCO Shipping Lines increased by 59.95 USD to 1,273.27 USD[91] Terminal Business - The terminal business generated total revenue of RMB 4,850,964 thousand, with external revenue at RMB 3,599,539 thousand[15] - The terminal business in the Europe region generated external revenue of RMB 1,731,045 thousand[20] - The terminal business in the Asia-Pacific region contributed RMB 190,694 thousand in external revenue[20] - The terminal business in Mainland China recorded external revenue of RMB 1,823,292 thousand[20] - The total external revenue for the terminal business across all regions was RMB 3,764,399 thousand[20] - Total revenue from terminal operations was RMB 88,243,258 thousand, with Europe contributing RMB 1,627,878 thousand[21] - COSCO Shipping Ports' total throughput reached 69.86 million TEUs, a year-on-year increase of 8.19%, with overseas regions contributing 16.52 million TEUs, up 4.12%[92][93] Regional Performance - The Americas region contributed RMB 27,965,756 thousand to the container shipping business's external revenue[20] - The Europe region's external revenue from the container shipping business was RMB 21,448,120 thousand[20] - The Asia-Pacific region's external revenue from the container shipping business reached RMB 23,852,077 thousand[20] - Container shipping revenue in the Americas region reached RMB 20,731,694 thousand, accounting for a significant portion of total revenue[21] - Europe region's container shipping revenue was RMB 19,761,546 thousand, showing strong performance[21] - Asia-Pacific region's container shipping revenue stood at RMB 23,602,837 thousand, indicating robust growth[21] - China mainland's container shipping revenue was RMB 10,068,019 thousand after inter-segment adjustments[21] - The company's total revenue in USD terms grew by 8.75% to USD 12,723,879 thousand, with the Trans-Pacific route showing the highest growth at 33.96%[86] - The company's total revenue from its subsidiary COSCO Shipping Lines increased by 12.56% to RMB 61,587,583 thousand, with the Trans-Pacific route growing by 41.71%[85] - Revenue from the Trans-Pacific route surged by 36.56% to RMB 27,731,163 thousand, contributing significantly to the overall revenue growth of 10.86%[84] - The Asia-Europe (including Mediterranean) route saw a decline in freight volume by 14.87%, while revenue increased by 9.91% to RMB 20,299,731 thousand[82][84] Financial Assets and Investments - The company's financial assets measured at fair value decreased by RMB 59,891 thousand to RMB 2,353,119 thousand, with notable changes in equity investments and convertible bonds[80] - The company's investment income totaled RMB 52,109 thousand, with significant contributions from equity investments and bond investments[81] - The fair value change in financial assets resulted in a gain of RMB 5,896 thousand, primarily driven by the increase in the value of convertible bonds[80] - The company's financial assets measured at fair value through other comprehensive income amounted to RMB 1,496,598 thousand, primarily from investments in Guangzhou Port[81] Share Repurchases and Cancellations - The company has repurchased a total of 59,999,924 A shares and 155,000,000 H shares, with a total payment of approximately RMB 583,328,594 and HKD 1,201,957,510 respectively, excluding transaction fees[100] - In January 2024, the company repurchased 34,032,000 H shares at a highest price of HKD 8.44 and a lowest price of HKD 7.60, totaling HKD 271,275,105[101] - In February 2024, the company repurchased 23,019,000 H shares at a highest price of HKD 8.80 and a lowest price of HKD 7.71, totaling HKD 190,659,075[101] - The company has canceled all 59,999,924 repurchased A shares and 155,000,000 repurchased H shares as of June 30, 2024[101] Tax and Dividend Distribution - The company will withhold a 10% enterprise income tax for non-resident enterprise shareholders when distributing the interim dividend[105] - For individual investors in mainland China who invest in H shares through the Shanghai-Hong Kong Stock Connect, the company will withhold and pay personal income tax at a rate of 20%[106] - For mainland enterprise investors who invest in H shares through the Shanghai-Hong Kong Stock Connect, the company will not withhold income tax, and these investors must declare and pay the tax themselves[107] - The company will distribute interim dividends to domestic investors (including enterprises and individuals) investing in H-shares through the Shenzhen Stock Exchange via the Shenzhen-Hong Kong Stock Connect. The dividends will be paid in RMB, with a 20% withholding tax rate for individual investors and securities investment funds, while enterprise investors are required to self-report and pay the tax[108] Forward-Looking Statements and Disclosures - The company emphasizes that past performance does not guarantee future results, and any forward-looking statements are subject to risks and uncertainties, with actual results potentially differing significantly from expectations[109] - The company has disclosed the electronic version of the announcement on the Hong Kong Stock Exchange website and its own website, and will release the interim report for the six months ending June 30, 2024, containing all relevant information as required by the Listing Rules Appendix D2[110]

Financial Performance - The net profit attributable to shareholders for Q1 2024 was CNY 48,269,963,140.26, representing a decrease of 5.23% compared to the same period last year[3]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 6,724,195,276.79, down by 5.20% year-on-year[3]. - The basic earnings per share for Q1 2024 was CNY 0.42, down by 4.55% compared to the same period last year[3]. - In Q1 2024, the company's EBIT was RMB 9.977 billion, a decrease of RMB 750 million, representing a decline of 6.99% year-on-year[13]. - The net profit for the group was RMB 6,278,291 thousand, a decrease of 17.24% compared to the previous year[21]. - Net profit for Q1 2024 was RMB 7.68 billion, a decrease of 10.47% compared to RMB 8.58 billion in Q1 2023[34]. - Comprehensive income for Q1 2024 totaled RMB 7.78 billion, compared to RMB 6.91 billion in Q1 2023, reflecting a growth of 12.66%[37]. Cash Flow - The net cash flow from operating activities increased by 44.07% to CNY 8,864,882,203.76, primarily due to reduced tax payments compared to the previous quarter[6]. - Cash inflow from operating activities in Q1 2024 was RMB 49.51 billion, a decrease of 6.67% from RMB 52.78 billion in Q1 2023[38]. - Cash outflow from operating activities totaled 40,646,517,397.61 CNY in Q1 2024, down 12.8% from 46,623,906,549.18 CNY in Q1 2023[39]. - The net cash flow from investing activities was -3,916,887,210.70 CNY in Q1 2024, an improvement from -10,085,093,358.51 CNY in Q1 2023[40]. - Cash inflow from financing activities was 1,166,266,843.11 CNY in Q1 2024, a decrease of 54.9% compared to 2,587,424,377.24 CNY in Q1 2023[41]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 459,426,464,135.63, a decrease of 0.65% from the end of the previous year[3]. - Total current assets amounted to RMB 196.56 billion, a decrease of 2.3% from RMB 202.48 billion on December 31, 2023[28]. - Total liabilities decreased to RMB 209.38 billion from RMB 219.21 billion, a reduction of 4.5%[31]. - The company's long-term borrowings decreased to RMB 27.21 billion from RMB 32.74 billion, a decline of 17.0%[31]. - The total equity attributable to shareholders increased to RMB 202.85 billion, up 3.8% from RMB 196.12 billion[32]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 421,264[7]. - The largest shareholder, China Ocean Shipping Company, held 5,924,873,037 shares, representing 37.13% of the total shares[8]. - As of the report date, China Ocean Shipping Group directly and indirectly held a total of 7,009,619,897 shares, accounting for approximately 43.93% of the company's total share capital[10]. - The company's cash dividend proposal for the end of 2023 is set at RMB 0.23 per share, amounting to approximately RMB 3.67 billion based on the total share capital of 15,957,586,817 shares[12]. Operational Performance - The total cargo volume for the company's container shipping business in Q1 2024 was 6,027,330 TEUs, an increase of 10.53% compared to the same period last year[15]. - The cargo volume for the Trans-Pacific route was 1,079,761 TEUs, up 9.67% year-on-year, while the Asia-Europe route saw a decline of 9.16% to 959,372 TEUs[15]. - The company's fleet consisted of 510 container ships with a total capacity of 3.1056 million TEUs as of March 2024[14]. - The group's total revenue from shipping routes reached RMB 43,166,049 thousand, a year-on-year increase of 2.04%[17]. - The revenue from the Trans-Pacific route was RMB 12,530,271 thousand, up 21.16% compared to the same period last year[17]. Research and Development - Research and development expenses for Q1 2024 amounted to RMB 256.54 million, an increase of 22.24% from RMB 209.78 million in Q1 2023[33]. Other Comprehensive Income - Other comprehensive income after tax for Q1 2024 was RMB 97.18 million, a significant recovery from a loss of RMB 1.67 billion in Q1 2023[35]. - Other comprehensive income after tax for Q1 2024 was ¥67,651,235.42, compared to a loss of ¥12,938,160.79 in Q1 2023, showing a positive turnaround[47].

Financial Performance and Dividends - COSCO SHIPPING Holdings proposed a final dividend of RMB 0.23 per share for 2023, subject to shareholder approval[2] - COSCO SHIPPING Holdings achieved a revenue of RMB 1,754.48 billion, with an EBIT of RMB 366.69 billion and a net profit of RMB 283.96 billion[27] - The company's debt-to-asset ratio decreased by 3.02 percentage points to 47.40%, with cash and cash equivalents totaling RMB 1,811.13 billion[27] - COSCO SHIPPING Holdings repurchased approximately 215 million A and H shares by the end of February 2024, all of which were canceled[27] - The company declared a final cash dividend of RMB 0.23 per share for 2023, totaling RMB 3.67 billion, with a total annual cash dividend of RMB 11.866 billion, representing about 50% of the net profit attributable to shareholders[27] - Revenue for 2023 decreased by RMB 215,610,750 thousand (55.14%) compared to 2022, totaling RMB 175,447,747 thousand[36][38] - Net profit attributable to equity holders of the company decreased by RMB 85,932,195 thousand, reaching RMB 23,860,258 thousand in 2023[36] - Gross profit margin dropped significantly from 43.59% in 2022 to 15.72% in 2023, a decrease of 27.87 percentage points[34] - Container shipping revenue decreased by RMB 215,909,781 thousand (56.22%) to RMB 168,125,772 thousand in 2023[39] - Terminal business revenue increased by RMB 598,029 thousand (6.10%) to RMB 10,396,162 thousand in 2023[40] - Financial income increased by RMB 1,768,142 thousand (30.99%) to RMB 7,473,850 thousand in 2023 due to higher deposit interest rates[45] - Sales, management, and general expenses decreased by RMB 3,564,089 thousand (30.22%) to RMB 8,231,638 thousand in 2023[44] - Net cash flow from operating activities decreased by RMB 174,186,750 thousand (88.51%) to RMB 22,612,055 thousand in 2023[37] - Total assets decreased by RMB 49,500,696 thousand to RMB 462,429,381 thousand in 2023[34] - Net cash (liability) to equity ratio decreased by 16.14 percentage points to 39.77% in 2023[34] - Total operating costs for 2023 were RMB 147,860,433 thousand, a decrease of RMB 72,720,115 thousand (32.97%) compared to the previous year[46] - Container shipping business costs for 2023 were RMB 143,615,013 thousand, a decrease of RMB 72,990,512 thousand (33.70%) compared to the previous year[46] - Terminal business costs for 2023 were RMB 7,244,619 thousand, an increase of RMB 500,058 thousand (7.41%) compared to the previous year[47] - Financial expenses for 2023 were RMB 3,735,448 thousand, a decrease of RMB 105,189 thousand (2.74%) compared to the previous year[48] - Profit from joint ventures and associates for 2023 was RMB 4,697,824 thousand, an increase of RMB 2,385,759 thousand compared to the previous year[49] - Cash and cash equivalents as of December 31, 2023, were RMB 181,113,316 thousand, a decrease of RMB 54,500,607 thousand (23.13%) compared to the previous year[50] - Net cash inflow from operating activities for 2023 was RMB 22,612,055 thousand, a decrease of RMB 174,186,750 thousand (88.51%) compared to the previous year[51] - Net cash outflow from investing activities for 2023 was RMB 18,350,697 thousand, a decrease of RMB 14,626,090 thousand compared to the previous year[52] - Net cash outflow from financing activities for 2023 was RMB 60,021,698 thousand, a decrease of RMB 55,355,936 thousand compared to the previous year[53] - Total assets as of December 31, 2023, were RMB 462,429,381 thousand, a decrease of RMB 49,500,696 thousand (9.67%) compared to the previous year[55] - The company's total cash dividends for 2022 amounted to RMB 54.827 billion, also representing 50% of the net profit attributable to shareholders[119] - The company plans to pay a final dividend of RMB 0.23 per share for 2023, totaling approximately RMB 3.67 billion, with the total cash dividends for the year reaching RMB 11.866 billion, representing 50% of the net profit attributable to shareholders[119] Fleet and Infrastructure Development - COSCO SHIPPING Holdings received six new 24,188 TEU container ships in 2023, optimizing the fleet structure[15] - COSCO SHIPPING Holdings received 6 eco-friendly container ships with 24,000 TEU capacity and 1 ship with 14,000 TEU capacity, adding nearly 160,000 TEU to its fleet[28] - The company signed contracts for the methanol dual-fuel conversion of 2 ships with 13,800 TEU capacity and 2 ships with 20,000 TEU capacity, marking a global first for dual-fuel conversion projects[32] - The company's domestic container berths achieved 100% shore power coverage, with a total of 4,060 ship connections and a 214% year-on-year increase in power usage[32] - Distributed photovoltaic projects at ports reached a total installed capacity of 10 MW by the end of 2023, with an estimated annual power generation of 9 million kWh[32] - The company has 37 container ships under construction with a capital commitment of RMB 36,821,081 thousand for future construction[63] - The company's capital commitment for terminal investments totals RMB 6,370,020 thousand, including RMB 4,539,921 thousand for fixed asset procurement and RMB 1,830,099 thousand for terminal equity investments[63] - The company's self-owned container fleet consists of 502 vessels with a capacity exceeding 3.04 million TEUs, maintaining a leading position in the industry[83] - COSCO SHIPPING Holdings has 37 new ship orders with a total capacity of nearly 730,000 TEUs, focusing on green energy vessels to optimize fleet structure[83] - The company is accelerating green and digital transformation in the container shipping industry, including methanol-powered vessels and green fuel supply chain systems[73] - The company signed contracts for 5 methanol dual-fuel ships with a capacity of 24,000 TEU and announced orders for 7 methanol-compatible container ships with a capacity of 24,000 TEU, expected to be delivered starting in Q3 2026[126] - The company implemented fuel-saving measures and technical transformations on older ships, including hull biofouling removal and technical upgrades, to improve energy efficiency and reduce carbon emissions[130] - COSCO Shipping Ports achieved 100% coverage of shore power facilities at its domestic-controlled terminals, promoting green and low-carbon transformation in the industry[132] Digital and Supply Chain Innovations - COSCO SHIPPING Holdings launched the "Tai Hong" digital supply chain product, integrating "trucking, customs clearance, and shipping" on the SynCon Hub e-commerce platform[13] - COSCO SHIPPING Holdings initiated a sea-rail intermodal project in Malaysia, supporting its digital supply chain strategy[16] - COSCO SHIPPING Holdings issued its 100,000th blockchain-based electronic bill of lading, and GSBN won the Gold Award at the Global Digital Trade Expo[24] - The company launched new digital supply chain products, including "Customs Pass - China," "Customs Pass - Overseas," and "Warehouse and Distribution Pass"[24] - Supply chain revenue excluding shipping reached approximately RMB 29 billion, accounting for 17.3% of container shipping business revenue, an increase of 8.6 percentage points year-on-year[30] - The company successfully mobilized over 7,000 domestic trailers daily and utilized more than 5,000 overseas trailers, enhancing the overall supply chain system[30] - The SynCon Hub e-commerce platform saw significant growth in cargo volume for vehicle exports, lithium batteries, photovoltaic products, and cross-border e-commerce, with increases of 146%, 56%, 24%, and 75% respectively[31] - The GSBN platform issued over 100,000 blockchain bills of lading and facilitated paperless release services for more than 2 million TEUs[31] - The company plans to integrate global capacity, end-to-end service, and digital information networks to enhance its container shipping business and build a world-class container ecosystem[108] - The company will focus on supply chain systems, smart connectivity, and green low-carbon innovations in its container shipping business, aiming to become a leading global integrated port operator[108] Global Operations and Market Position - COSCO SHIPPING Holdings' North American subsidiary was awarded the "Sapphire Award" by NOAA, the highest honor[14] - COSCO SHIPPING Holdings and COSCO SHIPPING Ports were included in the Hang Seng China Central SOEs Index, highlighting their importance in the Hong Kong capital market[17] - The Ocean Alliance extended its cooperation for at least 5 years until 2032, and launched the DAY8 route product in mid-March[28] - COSCO SHIPPING Holdings launched new routes in Europe-South America East and upgraded the Far East-Africa route, while also introducing multiple RCEP member country routes[28] - The company accelerated the construction of the Chancay Port in Peru and signed a partial equity acquisition agreement for the Sokhna Port in Egypt[28] - The company operates a total of 283 international routes (including international feeder lines), 53 coastal routes in China, and 84 routes in the Pearl River Delta and Yangtze River branches, covering approximately 599 ports in 144 countries and regions[84] - In 2023, the Ocean Alliance launched the DAY7 route product, deploying new 20,000 TEU-class ships on the Asia-Europe route[84] - The Ocean Alliance extended its alliance period by 5 years in 2024 and optimized its products based on customer needs and market dynamics[84] - The company's total container shipping volume in 2023 was 23,554,977 TEUs, a year-on-year decrease of 3.51%[89] - The company's total revenue from shipping routes in 2023 was RMB 154,483,140 thousand, a year-on-year decrease of 57.85%[91] - The company's total revenue from shipping routes in USD terms in 2023 was USD 21,916,233 thousand, a year-on-year decrease of 59.77%[93] - The company's subsidiary, COSCO Shipping Lines, had a total container shipping volume of 16,216,860 TEUs in 2023, a year-on-year decrease of 6.16%[90] - The company's subsidiary, COSCO Shipping Lines, generated total revenue of RMB 105,290,741 thousand from shipping routes in 2023[92] - The company's subsidiary, COSCO Shipping Lines, generated total revenue of USD 14,937,399 thousand from shipping routes in 2023, a year-on-year decrease of 59.14%[94] - Container shipping revenue decreased by RMB 215.91 billion (-56.2%) year-over-year to RMB 168.13 billion[95] - EBIT margin dropped by 25.69 percentage points to 17.15% compared to the previous year[95] - Net profit declined by RMB 114.40 billion (-83.6%) year-over-year to RMB 22.42 billion[95] - International route revenue per TEU decreased by USD 1,581.56 (-60.0%) to USD 1,055.31[97] - Total port throughput increased by 4.38% to 135.81 million TEUs, with overseas regions growing by 3.07%[99][100] - The company invested RMB 5.50 billion to acquire a 5.81% stake in COFCO Fortune[102] - Global container shipping demand grew by 0.4% in 2023, while global container shipping capacity increased by approximately 8%, leading to a shift from weak supply-demand balance to oversupply[105] - In 2024, global container shipping demand is expected to grow, with approximately 3 million TEU of new capacity to be delivered, maintaining supply-demand tensions[105] - China's automobile exports reached 5.221 million units in 2023, a year-on-year increase of 57.4%, driving growth in related upstream and downstream industries and creating new opportunities for the port industry[107] - In 2024, the company will deploy 355 vessels with approximately 4.82 million TEU capacity in the DAY8 route product, offering over 480 direct port-to-port services[109] - Economic fluctuations, geopolitical tensions, and global trade restructuring may lead to weaker-than-expected growth in cargo demand in certain regions or industries[111] - The company is focusing on improving service quality, cost control, and business optimization in its port operations, leveraging digitalization and intelligence to enhance profitability[113] - The company is expanding its global port network, particularly in Southeast Asia, Africa, and South America, to capitalize on emerging market opportunities under the RCEP framework[113] - The company is committed to building a green, low-carbon, and safe transportation model, integrating innovation into its supply chain services[113] - The company is strengthening its risk management mechanisms, including macroeconomic and geopolitical risk assessments, to mitigate potential impacts on its global operations[112][115] - The company is enhancing compliance management to address regulatory changes in key markets, ensuring adherence to international trade, investment, and environmental policies[116][117] Environmental and Social Responsibility - The company invested RMB 11.519 billion in environmental protection during the reporting period[125] - The company reduced carbon dioxide equivalent emissions by 944,435 tons through measures such as using clean energy, implementing carbon reduction technologies, and developing new products that aid in carbon reduction[129] - The company established a seawater desalination system to optimize water resource usage, with most of its water supply coming from seawater desalination[126] - The company strictly adhered to international regulations and domestic laws regarding marine environmental protection, including the MARPOL Convention and the Marine Environment Protection Law of the People's Republic of China[128] - The company promoted biodiversity conservation through its ecological and environmental protection management regulations and established an ecological and environmental protection management office to oversee biodiversity protection efforts[128] - The company continued to improve its environmental and energy management systems in accordance with ISO 14001 and ISO 50001 standards, undergoing internal and external audits to enhance its environmental and energy management mechanisms[128] - COSCO Shipping conducted a biofuel pilot project on two vessels, using 2,500.5 tons of biofuel and reducing approximately 1,500 tons of CO2 emissions[131] - OOCL successfully secured a supply of customized B24 biofuel, a blend of recycled cooking oil methyl ester (UCOME) and very low sulfur fuel oil (VLSFO), for its container ships[131] - The company invested RMB 6,146.68 million in poverty alleviation and rural revitalization projects, including RMB 5,333.13 million in funds and RMB 813.55 million in material donations[124] - The company's poverty alleviation and rural revitalization efforts benefited 15,000 people through various forms of assistance such as project support, education support, and consumption support[124] Corporate Governance and Leadership - The company's parent company, China COSCO Shipping, completed a share buyback plan, acquiring 305,087,287 shares for a total of approximately RMB 2.991 billion between May 2022 and May 2023[122] - The company implemented an equity incentive plan, adding 77,663,040 unrestricted A-shares and receiving RMB 77,663,040 from the exercise of options[133] - COSCO Shipping repurchased a total of 214,999,924 shares, including 59,999,924 A-shares and 155,000,000 H-shares, with the A-shares canceled on November 29, 2023, and the H-shares canceled in two tranches on November 17, 2023, and February 29, 2024[133] - As of the end of the reporting period, the total number of ordinary shareholders was 451,743, decreasing to 422,366 by February 29, 2024[134] - China Ocean Shipping Company Limited holds 36.87% of the company's shares, making it the largest shareholder[135] - HKSCC Nominees Limited holds 20.55% of the company's shares, representing a decrease of 41,687,797 shares during the reporting period[135] - The China Ocean Shipping Group directly and indirectly holds 43.62% of the company's total shares as of December 31, 2023[137] - The Industrial and Commercial Bank of China - SSE 50 ETF increased its shareholding by 23,312,627 shares, reaching a total of 73,731,567 shares, representing 0.46% of the company's shares[135] - The total share capital at the beginning of the period was 16,094,861,636 shares, and at the end of the period, it was 16,071,057,752 shares[139] - Guoxin Investment Co., Ltd. became a new top 10 shareholder, holding 470,488,118 shares, accounting for 2.93% of the total shares[141] - China Merchants Bank Co., Ltd. holds 6.24% of the shares in the company's indirect controlling shareholder, China COSCO Shipping Corporation Limited[143] - The controlling shareholder, China Ocean Shipping (Group) Company, holds 71.07% of Orient Overseas (International) Limited and 66.13% of COSCO SHIPPING Ports Limited[142] - The actual controller of the company is the State-owned Assets Supervision and Administration Commission of the State Council, with a 36.87% ownership stake[144] - Chen Yangfan, aged 48, is currently the Vice President and Party Leadership Group Member of China COSCO Shipping Corporation Limited, and also serves as the Executive Director and Vice Chairman of the company, as well as the Executive Director and CEO of Orient Overseas (International) Limited (listed on the Hong Kong Stock Exchange, stock code: 316)[147] - Huang Xiaowen, aged

Financial Performance - For the fiscal year ending December 31, 2023, the company's revenue was RMB 175,447,747,000, a decrease of 55.14% compared to RMB 391,058,497,000 in 2022[1][2]. - The profit attributable to equity holders of the company for 2023 was RMB 23,860,258,000, down 78.27% from RMB 109,792,453,000 in 2022[1][3]. - Basic and diluted earnings per share for 2023 were both RMB 1.48, compared to RMB 6.84 in 2022[3]. - The gross profit for 2023 was RMB 27,587,314,000, significantly lower than RMB 170,477,949,000 in 2022[2]. - Operating profit for 2023 was RMB 24,640,445,000, down from RMB 162,998,834,000 in the previous year[2]. - The total comprehensive income for 2023 was RMB 30,801,178,000, compared to RMB 138,378,172,000 in 2022[4]. - Total revenue for the year ending December 31, 2023, reached RMB 175,447,747 thousand, with external customer revenue contributing RMB 175,447,747 thousand[14]. - The company reported a net profit of RMB 28,395,659 thousand for the year, after tax expenses of RMB 4,681,012 thousand[14]. - The company reported a total segment profit margin of approximately 14.06% for the year[14]. - The company’s total revenue for the previous year (2022) was RMB 393,833,686 thousand, with external revenue of RMB 391,058,497 thousand[21]. Dividends and Shareholder Returns - The board proposed a final dividend of RMB 0.23 per ordinary share for the fiscal year 2023[1]. - The company proposed a cash dividend of RMB 0.23 per share for the year-end 2023, totaling approximately RMB 36.70 billion, which is 50% of the net profit attributable to shareholders for the year[26]. - The company distributed a total cash dividend of approximately RMB 118.66 billion for the fiscal year 2023, maintaining a consistent payout ratio of 50% of net profit[26]. - Proposed cash dividend of RMB 0.23 per share, totaling approximately RMB 3.67 billion, representing 50% of the net profit attributable to shareholders for the year[89]. Assets and Liabilities - Total assets as of December 31, 2023, amounted to RMB 462,429,381,000, a decrease from RMB 511,930,077,000 in 2022[5]. - Total liabilities decreased to RMB 219,209,909 thousand from RMB 258,136,983 thousand, representing a reduction of about 15.06%[6]. - Total equity attributable to equity holders decreased to RMB 16,071,058 thousand from RMB 16,094,862 thousand, a decline of approximately 0.15%[6]. - Current liabilities decreased to RMB 127,326,779 thousand from RMB 159,464,007 thousand, a decline of about 20.19%[6]. - Non-current liabilities decreased to RMB 91,883,130 thousand from RMB 98,672,976 thousand, a reduction of approximately 6.00%[6]. - Cash and cash equivalents decreased to RMB 181,113,316,000 in 2023 from RMB 235,613,923,000 in 2022[5]. - The total outstanding borrowings as of December 31, 2023, were RMB 43,276,918 thousand, with net cash of RMB 137,836,398 thousand, a decrease of RMB 54,969,848 thousand from the previous year-end[64]. Segment Performance - Segment profit for the container shipping business was RMB 22,556,526 thousand, while the terminal business reported a profit of RMB 1,917,702 thousand, leading to a total segment profit of RMB 24,640,445 thousand[14]. - Container shipping business revenue for 2023 was RMB 168,125,772 thousand, down RMB 215,909,781 thousand or 56.22% year-over-year[50]. - Terminal business revenue increased to RMB 10,396,162 thousand, an increase of RMB 598,029 thousand or 6.10% compared to last year[51]. - The company operates in three main segments: container shipping, terminal operations, and corporate and other services[13]. Market and Operational Strategy - The company continues to focus on expanding its container shipping and terminal management services globally[7]. - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency[16]. - The company aims to enhance its global network layout and strengthen port and shipping collaboration to optimize resource allocation and channel networks[47]. - The company plans to actively promote global terminal resource layout, particularly in emerging markets represented by the Regional Comprehensive Economic Partnership (RCEP), and steadily advance port resource deployment in Southeast Asia, Africa, and South America[97]. - The company aims to integrate global shipping routes, end-to-end service networks, and digital information networks to enhance operational efficiency and customer service[94]. Financial Management and Investments - The company has adopted new accounting standards effective from January 1, 2023, which may impact the financial reporting but are not expected to have a significant effect on the consolidated financial statements[10]. - The company reported a net cash outflow from investing activities was RMB 18,350,697 thousand, a reduction of RMB 14,626,090 thousand compared to last year[61]. - The company’s cash reserves and liquidity position remain strong, supporting ongoing operations and potential future investments[35]. - The company has capital commitments for the construction of container ships amounting to RMB 36,821,081 thousand as of December 31, 2023[72]. Sustainability and Innovation - The company plans to accelerate its green low-carbon transformation, with a focus on sustainable development and enhancing its green carrier image[46]. - The company is committed to building a green fleet and exploring new energy fuel supply chains to support its low-carbon transformation[96]. - The company emphasizes innovation-driven development and aims to establish a new model of green transportation that is clean, low-carbon, safe, and efficient[97]. - The company’s digital transformation accelerated, with export volumes for complete vehicles, lithium batteries, photovoltaics, and cross-border e-commerce freight increasing by 146%, 56%, 24%, and 75% respectively[45]. Governance and Compliance - The company has adopted a corporate governance code and has not been aware of any non-compliance with the code during the fiscal year ending December 31, 2023[99]. - The company has established various committees under the board, including the Audit Committee, which consists of three independent non-executive directors[101]. - The annual report for the year ending December 31, 2023, will be published on the Hong Kong Stock Exchange and the company's website[107].

Core Viewpoint - Daiwa maintains a "Buy" rating for China COSCO Shipping Holdings (01919) but has adjusted the earnings per share (EPS) forecast for last year down by 1% due to preliminary performance [1]. Group 1: Earnings Forecasts - EPS forecasts for 2024 and 2025 have been raised by 11% to 17% [1]. - The dividend payout ratio forecast has been increased from 30% to 40% [1]. - The target price has been adjusted from HKD 9.6 to HKD 10 [1]. Group 2: Market Conditions - The management expects a slight decline in freight rates for European routes, while rates for American routes may increase [1]. - The company is in a favorable negotiating position due to ongoing discussions regarding contract rates in the U.S. and unresolved geopolitical issues in the Red Sea, particularly given the fragility of logistics supply chains [1]. - Despite some container shortages in the market, management believes there will be no operational impact and anticipates a quarter-on-quarter improvement in gross margin for the first quarter of this year [1].

Financial Performance - For the third quarter of 2023, the company's operating revenue was approximately RMB 42.71 billion, representing a year-on-year decrease of 59.61%[3] - The net profit attributable to shareholders for the third quarter was approximately RMB 5.51 billion, down 83.07% compared to the same period last year[3] - The net profit attributable to shareholders after deducting non-recurring gains and losses for the third quarter was approximately RMB 5.46 billion, a decrease of 83.12% year-on-year[3] - The cash flow from operating activities for the year-to-date period was approximately RMB 134.56 billion, reflecting a decline of 57.49% compared to the previous year[3] - The company's total assets as of September 30, 2023, were approximately RMB 511.93 billion, a decrease of 6.21% from the end of the previous year[3] - Basic earnings per share for the reporting period decreased by 83.17% due to a decline in container shipping business efficiency[7] - Diluted earnings per share for the reporting period also decreased by 83.17%, reflecting the same challenges in the container shipping sector[7] - The average return on equity decreased by 43.02 percentage points year-to-date, attributed to the decline in container shipping business performance[7] - The group's EBIT for January to September 2023 was RMB 33.23 billion, a decrease of RMB 110.38 billion, representing a 76.86% decline year-on-year[11] - Net profit for the first three quarters of 2023 was RMB 21,564,365 thousand, down RMB 95,275,451 thousand from RMB 116,839,816 thousand in the same period of 2022[19] - Total revenue for the first three quarters of 2023 was approximately ¥134.56 billion, a decrease of 57.5% compared to ¥316.55 billion in the same period of 2022[32] - Net profit for the first three quarters of 2023 was approximately ¥25.99 billion, a decrease of 77.5% compared to ¥115.41 billion in the same period of 2022[33] - Total comprehensive income for the first three quarters of 2023 was approximately ¥29.35 billion, a significant decrease from ¥124.74 billion in the same period of 2022, representing a decline of about 76.5%[35] Container Shipping Business - The company reported a significant decline in container shipping business revenue per box, contributing to the overall decrease in performance[6] - The company indicated that the decrease in freight volume contributed to the decline in operating revenue for the year-to-date period[6] - The average China Containerized Freight Index (CCFI) for the first three quarters of 2023 decreased by 69.54% year-on-year, with a 70.31% decline in the third quarter[7] - The container shipping business handled a freight volume of 17.46 million TEUs from January to September 2023, a decrease of 5.82% compared to the same period last year[12] - Revenue from the Trans-Pacific route in Q3 2023 was RMB 10,270,595 thousand, down 68.16% year-on-year[15] - EBIT for the container shipping business in the first three quarters of 2023 was RMB 27,246,212 thousand, a decrease of RMB 111,009,459 thousand compared to the same period in 2022[19] - The EBIT margin for the container shipping business dropped to 21.08%, a decline of 23.34 percentage points year-on-year[19] - Cumulative revenue for the container shipping business in the first three quarters of 2023 was RMB 129,240,598 thousand, down 58.2% from RMB 311,230,873 thousand in the same period of 2022[19] - Revenue from the Asia-Europe route in Q3 2023 was RMB 7,900,544 thousand, a decrease of 69.09% year-on-year[15] - Cumulative revenue from the container shipping business for the first three quarters of 2023 was RMB 119,004,585 thousand, down 60.03% from RMB 297,717,280 thousand in the same period of 2022[15] - Total throughput for the group's ports reached 10,017.60 million TEUs from January to September 2023, an increase of 2.84% year-over-year[23] Assets and Liabilities - The company's total liabilities as of September 30, 2023, were approximately ¥228.46 billion, down 11.5% from ¥258.14 billion at the end of 2022[30] - Current liabilities totaled approximately ¥134.08 billion as of September 30, 2023, a decrease of 16.0% from ¥159.38 billion at the end of 2022[29] - Non-current liabilities amounted to approximately ¥94.38 billion as of September 30, 2023, down 4.6% from ¥98.75 billion at the end of 2022[30] - The company's total equity as of September 30, 2023, was approximately ¥251.69 billion, a slight decrease from ¥253.79 billion at the end of 2022[31] - As of September 30, 2023, total current assets amounted to CNY 219,886,942,087.52, down from CNY 261,154,129,671.87 at the end of 2022[27] - Non-current assets totaled CNY 260,258,553,673.71 as of September 30, 2023, compared to CNY 250,775,947,579.26 at the end of 2022[28] Cash Flow and Investments - The net cash flow from operating activities for the first three quarters of 2023 was approximately ¥20.52 billion, down from ¥166.46 billion in 2022, indicating a decrease of approximately 87.7%[37] - The net cash flow from investing activities for the first three quarters of 2023 was approximately -¥13.80 billion, worsening from -¥2.68 billion in 2022[38] - The total cash inflow from financing activities for the first three quarters of 2023 was approximately ¥7.30 billion, compared to ¥5.31 billion in 2022, an increase of about 37.0%[38] - The company reported a net cash outflow from financing activities of approximately -¥46.75 billion in 2023, compared to -¥59.01 billion in 2022, indicating an improvement of about 20.7%[38] - The cash received from sales of goods and services in the first three quarters of 2023 was approximately ¥139.39 billion, a decrease from ¥316.36 billion in 2022, representing a decline of about 56.0%[36] Shareholder Actions - The company plans to distribute a cash dividend of RMB 0.51 per share, pending approval at the shareholders' meeting[11] - The company has repurchased 12.43 million A-shares, accounting for 0.0769% of the total share capital, with a total payment of approximately RMB 122.55 million[11] - The company has also repurchased 24.91 million H-shares, representing 0.154% of the total share capital, with a total payment of approximately HKD 206.14 million[11] Research and Development - Research and development expenses for the first three quarters of 2023 were approximately ¥757.18 million, a decrease of 23.6% from ¥991.31 million in the same period of 2022[32] - The company has not disclosed any new product developments or market expansion strategies in this report[1]

Financial Performance - For the first half of 2023, COSCO SHIPPING Holdings reported revenue of RMB 91.84 billion, a decrease of 56.4% compared to RMB 210.79 billion in the same period of 2022[7]. - The net profit attributable to equity holders of the company was RMB 16.56 billion, down 74.6% from RMB 64.82 billion year-on-year[8]. - The average China Containerized Freight Index (CCFI) for the first half of 2023 was 1,009 points, representing a year-on-year decline of 69.3%[9]. - The company's operating profit for the period was RMB 18.13 billion, a decrease of 80.3% from RMB 91.96 billion in the previous year[8]. - EBIT for the reporting period was RMB 24.70 billion, down 73.8% from RMB 93.55 billion in the previous year[8]. - The basic earnings per share decreased to RMB 1.03, down RMB 3.02 from RMB 4.05 in the same period last year[7]. - The profit attributable to equity holders for the first half of 2023 was RMB 16.56 billion, down RMB 48.26 billion or 74.45% year-on-year[14]. - The total revenue for the first half of 2023 was RMB 91,842,797 thousand, a decrease of RMB 118,949,123 thousand or 56.43% compared to the same period last year[16]. - Container shipping business revenue for the first half of 2023 was RMB 88,287,136 thousand, down RMB 118,896,155 thousand or 57.39% year-on-year[17]. - The total revenue for the group decreased by 58.87% year-on-year, amounting to RMB 81,536,315 thousand[54]. Operational Challenges - The company continues to face challenges in the container shipping market due to weakened transportation demand and increased supply from new vessel deliveries[9]. - Revenue from the Trans-Pacific route fell by 68.58% to RMB 20,307,433 thousand compared to the same period last year[54]. - The group reported a decrease of 71.07% in revenue from the Trans-Pacific route in USD, totaling USD 2,914,134 thousand[56]. - The group’s revenue from the Asia-Europe route decreased by 66.18% to RMB 18,469,693 thousand[54]. - The cargo volume for the Asia region, including Australia, decreased by 7.04% year-on-year, totaling 3,784,423 TEUs[51]. - The total cargo volume for the group decreased by 8.63% year-on-year, totaling 11,395,328 TEUs[51]. Strategic Initiatives - The company aims to enhance its global layout, full-chain transportation, digital empowerment, and low-carbon transformation as part of its strategic focus[9]. - The company launched two new 24,000 TEU methanol dual-fuel vessels and plans to deliver the world's first 700 TEU fully electric container ship within the year[12]. - The company has successfully opened multiple new routes along the "Belt and Road" and RCEP member countries, enhancing its global shipping network[10]. - The digital supply chain platform has introduced a "one-stop" customer login portal and launched various digital supply chain products to meet diverse customer needs[12]. - The company is actively participating in the construction of low-carbon ports and has initiated projects for automated container terminals and distributed photovoltaic systems[12]. - The company aims to provide low-carbon, intelligent, and reliable container supply chain solutions in response to increasing customer demands for decarbonization and digitalization[13]. - The company is focused on enhancing operational efficiency and cost control to strengthen its core business capabilities and resilience in a challenging environment[13]. Financial Position - The debt-to-asset ratio improved to 48.6% by the end of the reporting period, indicating a stronger financial structure[9]. - The company's total assets amounted to RMB 482,926,939 thousand, a decrease from RMB 511,930,077 thousand as of December 31, 2022[116]. - The total liabilities of the group as of June 30, 2023, were RMB 234,500,953 thousand, down by RMB 23,636,030 thousand or 9.16% from the end of the previous year[36]. - The total outstanding borrowings of the group as of June 30, 2023, were RMB 42,879,890 thousand, with net cash amounting to RMB 155,346,377 thousand, a decrease of RMB 37,459,869 thousand compared to the end of the previous year[36]. - The net cash flow from operating activities was RMB 13,261,606 thousand, a decrease of RMB 99,309,947 thousand or 88.22% year-on-year[31]. - The company's cash and cash equivalents totaled RMB 198,226,267 thousand, a decrease of RMB 37,387,656 thousand or 15.87% from the end of the previous year[30]. Dividend and Shareholder Information - The board proposed an interim dividend of RMB 0.51 per share, with a payout ratio of approximately 50%[9]. - The company plans to distribute a cash dividend of RMB 0.51 per share, totaling approximately RMB 8.247 billion, which represents 50% of the net profit attributable to shareholders for the first half of 2023[18]. - As of June 30, 2023, the major shareholder, China Ocean Shipping Company, holds approximately 36.64% of the total issued share capital in A shares[107]. - The total number of shares held by the major shareholders amounts to approximately 6,304,873,037, representing about 38.99% of the total issued share capital[107]. Stock Options and Incentive Plans - The stock option incentive plan approved on December 3, 2018, allows for a total of up to 218,236,900 A-shares to be granted, representing about 2.25% of the company's A-share capital as of June 30, 2020[73]. - The first batch of stock options granted on June 3, 2019, totaled 192,291,000 options with an exercise price of RMB 4.10 per A-share, while the closing price on that day was RMB 4.82[74]. - The company has a total of 10,022,784 stock options remain unexercised, with 75,392,302 options exercised during the reporting period[81]. - The company’s stock options are subject to performance targets, including achieving an economic value added (EVA) target for 2022[87]. - The stock option plan aims to create a performance-oriented culture that enhances shareholder value and aligns the interests of shareholders and management[92]. Corporate Governance and Investor Relations - The audit committee has reviewed the unaudited interim financial information for the reporting period and recommended its adoption by the board[109]. - The company maintains high standards of corporate governance, which is considered essential for operational success and enhancing shareholder value[110]. - In the first half of 2023, the company held 84 investor meetings, engaging with 411 investors through various communication channels[114]. - The company actively collects market feedback to inform senior management decisions, reflecting its responsiveness to investor concerns[114].

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 91,842,797 thousand, a decrease of 56.4% compared to RMB 210,791,920 thousand for the same period in 2022[2]. - Profit attributable to equity holders of the company was RMB 16,560,637 thousand, down 74.5% from RMB 64,820,236 thousand in the previous year[2]. - Basic earnings per share decreased to RMB 1.03 from RMB 4.05, representing a decline of 74.7%[2]. - Gross profit for the period was RMB 19,781,035 thousand, down 79.8% from RMB 98,040,285 thousand in the same period last year[4]. - Total comprehensive income for the period was RMB 24,177,186 thousand, a decrease of 70.0% compared to RMB 80,616,225 thousand in 2022[5]. - The profit before tax for the period was RMB 22,932,751 thousand, with a net profit of RMB 19,675,781 thousand after tax expenses of RMB 3,256,970 thousand[16]. - The company reported a net profit attributable to equity holders of RMB 16,560,637,000 for the first half of 2023, down from RMB 64,820,236,000 in the same period of 2022[30]. - Operating profit for the period was RMB 18.13 billion, down from RMB 91.96 billion in the previous year, representing a decrease of about 80.3%[40]. - The net profit attributable to shareholders was RMB 16.56 billion, a significant drop of RMB 48.26 billion from RMB 64.82 billion in the same period last year, marking a decline of approximately 74.4%[40]. Dividends - The board recommended an interim dividend of RMB 0.51 per ordinary share, including tax[2]. - The company plans to distribute a cash dividend of RMB 0.51 per share, totaling approximately RMB 8.247 billion, which is 50% of the net profit attributable to shareholders for the first half of 2023[29]. - The company plans to distribute an interim dividend of RMB 0.51 per ordinary share (before tax) on August 29, 2023[39]. - The board proposed an interim dividend of RMB 0.51 per share, subject to shareholder approval[94]. Assets and Liabilities - Total assets as of June 30, 2023, amounted to RMB 482,926,939 thousand, down from RMB 511,930,077 thousand as of December 31, 2022[6]. - Current assets decreased to RMB 220,595,102 thousand from RMB 261,143,003 thousand, reflecting a decline of 15.5%[6]. - The total liabilities decreased to RMB 234,500,953 from RMB 258,136,983 year-over-year[7]. - The total assets minus current liabilities stood at RMB 346,772,347, slightly down from RMB 352,466,070 in the previous year[7]. - The total reserves decreased to RMB 182,509,459 from RMB 184,495,805 year-over-year[7]. - Current liabilities totaled RMB 136,154,592, down from RMB 159,464,007 in the previous year[7]. - Non-current liabilities totaled RMB 98,346,361, a slight decrease from RMB 98,672,976 year-over-year[7]. - The company reported a net current asset value of RMB 84,440,510, down from RMB 101,678,996 as of December 31, 2022[7]. - The company’s total equity and liabilities amounted to RMB 482,926,939, down from RMB 511,930,077 year-over-year[7]. - The company’s non-controlling interests decreased to RMB 49,746,273 from RMB 53,202,427 year-over-year[7]. - The total outstanding borrowings as of June 30, 2023, were RMB 42,879,890 thousand, resulting in net cash of RMB 155,346,377 thousand, a decrease of RMB 37,459,869 thousand from the end of the previous year[63]. - The net current assets as of June 30, 2023, were RMB 84,440,510 thousand, a decrease of 16.95% from the end of the previous year[63]. - The ratio of net cash (debt) to equity as of June 30, 2023, was 43.65%, a decrease of 12.26 percentage points from the end of the previous year[63]. Financial Income and Expenses - Financial income for the period was RMB 4,178,631 thousand, an increase of 85.0% compared to RMB 2,255,555 thousand in the previous year[4]. - The company reported a net financial income of RMB 2,351,978 thousand, significantly up from RMB 422,455 thousand in the same period last year[4]. - The company’s total financial expenses for the first half of 2023 were RMB 1,826,653, slightly down from RMB 1,833,100 in the same period of 2022[26]. - The company reported a foreign exchange gain of RMB 1,914,851 for the first half of 2023, compared to RMB 128,954 in the previous year[25]. - The net amount of other income and expenses was RMB 2,253,663 thousand, an increase of RMB 1,365,809 thousand or 153.83% year-on-year[52]. - The company’s income tax expense for the first half of 2023 was RMB 3,256,970 thousand, a significant decrease of RMB 13,511,630 thousand or 80.58% compared to the previous year[57]. Operational Highlights - The company completed acquisitions in the second half of 2022, including an 81% stake in Shanghai Tianhongli Asset Management for RMB 2.283 billion and full ownership of Shanghai Haizhenlan Industrial for RMB 1.191 billion[8]. - The company achieved a supply chain revenue of RMB 14.5 billion, accounting for 16.4% of the container shipping business revenue, an increase of 8.2 percentage points year-on-year[42]. - The company has successfully delivered two new 24,000 TEU vessels and expanded its fleet to approximately 2.91 million TEU, enhancing its global service network[42]. - The company is focusing on low-carbon transformation, with 12 new dual-fuel methanol vessels under construction and plans to deliver the world's first 700 TEU fully electric container ship within the year[43]. - The company is actively participating in the construction of automated terminals and promoting green low-carbon port initiatives, including the implementation of shore power and "oil-to-electric" upgrades for terminal equipment[43]. - The company anticipates opportunities from the steady recovery of the Chinese economy and the rebound of freight rates on major routes in Europe and the United States, while remaining vigilant about global economic changes and inflation pressures[43]. Customer and Market Insights - Revenue from the container shipping business is derived from major global trade routes, including trans-Pacific and Asia-Europe routes[19]. - The company operates in various regions, with revenue from terminal operations reported based on the geographical location of the business[20]. - The Americas region generated RMB 20,731,694 in revenue, while Europe and Asia-Pacific contributed RMB 19,761,546 and RMB 23,602,837, respectively[21]. - The average China Containerized Freight Index (CCFI) for the first half of 2023 was 1,009 points, down 69.3% year-on-year, indicating weakened transportation demand[41]. - The revenue from the Trans-Pacific route plummeted by 68.58% to RMB 20,307,433 thousand compared to the same period last year[78]. - The total revenue from the Asia-Europe route, including the Mediterranean, fell by 66.18% to RMB 18,469,693 thousand[78]. - The revenue from the domestic China route decreased by 7.98% to RMB 5,719,036 thousand compared to the previous year[78]. Corporate Governance and Compliance - The company has established an audit committee to oversee financial reporting and internal controls[89]. - The company remains committed to high standards of corporate governance and has adopted relevant codes and practices[90]. - The company emphasizes the importance of corporate governance as per the listing rules[97]. - The company is committed to digital transformation and seamless cooperation among global trade participants through the Global Shipping Business Network (GSBN)[98]. Technological Advancements - The company has launched a paperless release solution based on blockchain technology, reducing the release time of cargo documents from several days to a few hours, currently serving over 10,000 customers[98]. - The company has deployed its blockchain-based solutions in regions including China, Southeast Asia, Europe, and recently Latin America[98]. Investments and Commitments - The group’s investment in joint ventures and associates as of June 30, 2023, was RMB 65,226,505 thousand, an increase of 12.33% compared to the end of the previous year[72]. - The group completed the purchase of a 5.81% stake in COFCO Fortune Land Development Co., Ltd. for RMB 5.5 billion and a 24.99% stake in Hamburg Container Terminal for €0.4641 billion during the reporting period[72]. - As of June 30, 2023, the group had capital commitments for building container ships amounting to RMB 41,926,709 thousand[69]. - The group had unused bank loan credit facilities of RMB 38,208,882 thousand as of June 30, 2023[70].