Financial Performance - The company's revenue for 2019 was $1,585.9 million, a slight decrease from $1,591.6 million in 2018[8] - The total income based on time charter equivalent was $865.7 million, down from $881.1 million in the previous year, reflecting a decline of approximately 1.5%[8] - The EBITDA for 2019 was $230.7 million, compared to $215.8 million in 2018, indicating an increase of about 6.5%[8] - The net profit for 2019 was $25.1 million, a significant decrease of 65.3% from $72.3 million in 2018[8] - The company’s cash flow from operations was $217.02 million, up from $189.5 million in 2018, showing an increase of approximately 14.5%[8] - The board proposed a dividend of HKD 0.021 per share for 2019, representing 51% of the annual profit, down from HKD 0.062 in 2018[29] - The company recorded a net profit of $25.1 million in 2019, down from $72.3 million in 2018, with basic earnings of $20.5 million compared to $72 million in 2018[36] - The company reported a basic profit of $20.5 million for 2019, a decrease of 72% compared to $72 million in 2018[52] Fleet and Operations - The fleet size increased to 117 owned vessels, with a total of 229 vessels including chartered ships[6] - The operational fleet consists of 229 vessels, with a cargo volume of 67.1 million tons, and a crew of over 3,900 members[27] - The company operates a fleet of approximately 200 high-flexibility and interchangeable bulk carriers, with over 3,900 maritime employees and 345 shore-based employees in 12 key locations[22] - The company has a total of 116 owned vessels, with an average age of 10.8 years, and expects all vessels purchased in 2019 to be delivered by the end of April 2020[12] - The average daily charter rates for small and ultra-small bulk carriers in 2020 were contracted at $8,910 and $11,390 respectively, with 42% and 60% of the days already booked[6] - The average daily income for the company's small and ultra-small bulk carriers was $9,630 and $11,720 respectively, representing a year-on-year decline of 4% but still exceeding the Baltic Small Index (BHSI) and Baltic Ultra Index (BSI) by 41% and 24%[36] - The average daily charter rates for small handy bulk carriers and super handy bulk carriers in 2019 were $6,830 and $9,450 respectively, representing declines of 17% and 13% year-over-year[49] - The average daily charter rate for long-term charters (over one year) was $10,310 in 2020, with a projected rate of $10,560 for 2023[74] Market Outlook and Strategy - The company anticipates a continued strong long-term demand for minor bulk cargo despite short-term challenges due to seasonal weakness and the impact of the COVID-19 pandemic[7] - The company plans to strategically seek opportunities to purchase quality second-hand vessels and sell older, smaller vessels[7] - The company plans to invest in modernizing and acquiring second-hand vessels to expand and update its fleet while avoiding high costs of new builds due to regulatory uncertainties[29] - The company aims to improve global fleet carbon efficiency by 40% by 2030 and reduce total greenhouse gas emissions by 50% by 2050, relative to 2008 levels[26] - The company anticipates ongoing market volatility in 2020, but is well-prepared to navigate these challenges[33] - The company is optimistic about the future of the dry bulk shipping market despite current volatility[46] - The company aims to enhance financial flexibility and competitiveness by issuing new shares to fund 50% of the total cost of four vessels committed for purchase in 2019[38] Corporate Governance and Social Responsibility - The company is committed to corporate social responsibility, integrating responsible practices into its operations to enhance competitiveness and create long-term value[21] - The company maintains a strong governance structure and is committed to high levels of corporate governance and transparency to enhance stakeholder confidence[29] - The company has received multiple awards, including the Lloyd's List Asia Pacific Awards 2019 for bulk operator of the year and the International Bulk Journal Awards 2019[22] - The company is a member of the "Getting to Zero Coalition," focusing on exploring decarbonization strategies in the shipping industry[117] - The company has implemented measures to enhance engine performance and improve hydrodynamics of hulls and propellers to reduce emissions[117] - The company is committed to maintaining the highest levels of corporate governance and transparency to bolster stakeholder confidence[120] Employee and Safety Performance - The company achieved a loss time injury frequency rate of 0.71 per million hours worked due to work-related accidents in 2019, representing a 13% year-on-year improvement and the lowest rate since 2004[24] - The company continues to focus on employee training and development to improve maritime safety performance and strengthen leadership capabilities[31] - The company employs over 3,900 crew members and 345 shore-based staff, supported by a global network of 12 offices across six continents[103] - The company has implemented strict health and safety measures in response to the COVID-19 pandemic, including a two-week work-from-home policy for employees returning from China[32] - The company has a competitive fleet and a customer-centric sustainable business model, which supports its operational resilience amid market fluctuations[33] Financial Management and Debt - The net debt as of December 31, 2019, was $663 million, with cash and deposits amounting to $383 million, resulting in a net debt to owned vessel book value ratio of 35%[38] - The group expects to continue managing cash and borrowings actively to ensure sufficient liquidity for its commitments[76] - The group signed a 7-year revolving credit facility loan of $115 million in May 2019, with an interest rate of LIBOR plus 1.35%[77] - The group incurred cash capital expenditures of $184 million during the period, including $94.2 million for the purchase of vessels and $89.8 million for dry-docking expenses[77] - The company has a robust balance sheet with strong cash and net debt ratios, enhancing its ability to face various challenges and seek attractive cargo opportunities[45] - The company has established a business continuity plan and conducts regular drills to prepare for potential IT system failures[121] Shareholder Engagement and Communication - The company has established a shareholder communication policy to enhance engagement with shareholders and the investment community[166] - The company held two shareholder meetings during the reporting year, with resolutions passed including the re-election of directors and the authorization of share issuance and buyback[167] - The company’s auditors, PricewaterhouseCoopers, were reappointed for the year ending December 31, 2019, with their remuneration to be determined by the board[167] - The company plans to issue convertible bonds with a 3% annual coupon rate due in 2025, as approved in a special shareholder meeting[167] Compensation and Employee Benefits - The compensation policy aims to attract and retain employees with necessary skills and experience, offering competitive remuneration aligned with market practices[181] - Annual discretionary bonuses for employees are determined based on individual and overall company performance, with bonuses generally not exceeding 12 months' salary for executive directors and other high-paid staff[182] - The company has a defined contribution retirement plan where both employer and employee contribute 5% of the employee's relevant income, capped at HKD 30,000 per month[187] - The total compensation for executive directors in 2019 amounted to $3,699,000, an increase from $4,661,000 in 2018[184] - The total compensation for other employees in 2019 was $149,028,000, compared to $141,557,000 in 2018, reflecting a growth of approximately 5.3%[186]

Financial Performance - The company reported a net profit of $8.2 million for the period ending June 30, 2019, compared to $30.8 million in the same period of 2018, reflecting a decline of 73%[12]. - The total revenue for the first half of 2019 was $767.1 million, down from $795.6 million in the same period of 2018, representing a decrease of 3.2%[12]. - The company reported a basic loss of $600,000 for the first half of 2019, compared to a profit of $28 million in the same period of 2018, indicating a significant decline in performance[29]. - The net profit attributable to shareholders for the six months ended June 30, 2019, was $8.2 million, a significant decline of 73% from $30.8 million in the previous year[78]. - The basic earnings per share for the period was $0.18, down from $0.70 in the same period of 2018[78]. - The net profit margin decreased to 1% from 4% in the previous year, indicating a decline in profitability[76]. - The company reported a gross profit of $31.3 million, down from $44.5 million in the previous year, reflecting a decrease in revenue[78]. - The company experienced a 7% decrease in revenue from time charter equivalent basis, reflecting a weakening market[77]. Fleet and Operations - The fleet consisted of 115 owned vessels, with an average operational fleet of 230 vessels when including chartered ships[10]. - The company expanded its fleet with the delivery of four modern second-hand vessels, increasing its owned fleet to 115 vessels, and operated an average of 230 small and ultra-small bulk carriers in the first half of 2019[19]. - The average daily charter rates for the company's small and ultra-small bulk carriers were $9,050 and $10,790, respectively, with 56% and 76% of vessel days contracted[10]. - The average daily revenue for the company's small and ultra-small bulk carriers was $9,170 and $10,860 respectively, representing year-on-year declines of 6% and 7%, but still exceeding the Baltic indices by 59% and 39%[18]. - The company reported competitive operating expenses, with daily operating costs of $3,990 and general administrative expenses of $730[18]. - The number of days on hire for owned vessels was 50,120 days, while chartered vessels had 24,450 days, reflecting a strong operational performance[31]. Financial Position and Debt - The company maintained a net debt ratio of 37% as of June 30, 2019, compared to 36% in the previous year[12]. - The company held cash and cash equivalents of $314 million at mid-year 2019, down from $341.8 million at the end of 2018[12]. - The company secured a 7-year revolving credit facility of $115 million, enhancing financial flexibility and maintaining a competitive break-even level for its fleet[20]. - The total borrowings of the group as of June 30, 2019, amounted to $1,000,900,000, an increase from $961,100,000 as of December 31, 2018[57]. - The secured borrowings were $879,400,000, up from $840,900,000 as of December 31, 2018[58]. - The net debt to equity ratio was 56% as of June 30, 2019, compared to 50% as of December 31, 2018[54]. - Interest expenses rose to $15,900,000 in the first half of 2019, compared to $13,400,000 in the same period of 2018, primarily due to an increase in average secured borrowings[62]. Market Outlook - The company expects improved shipping market conditions in the second half of 2019, despite uncertainties from trade wars and economic slowdowns[11]. - The company anticipates that China's economic stimulus measures and infrastructure investments will continue to drive demand for dry bulk shipping[21]. - The company noted potential threats from global economic slowdown, particularly in China, which could impact dry bulk commodity trade[21]. - The dry bulk shipping market is expected to improve in the second half of 2019 due to seasonal factors and the resumption of grain exports from the Black Sea region[24]. - Clarksons Research estimates that the demand for dry bulk shipping tonnage miles will increase by approximately 1.3% in 2019 and 3.1% in 2020[27]. Environmental Compliance and Regulations - The company has installed ballast water treatment systems on 30 of its owned vessels to comply with the Ballast Water Management Convention, with plans to complete installations on the remaining vessels by the end of 2022[22]. - The company anticipates that 85% to 90% of its combined fleet of small and ultra-small bulk carriers will use low-sulfur fuel to meet the new regulations, while 15% of vessels have installed scrubbers to continue using high-sulfur fuel[22][23]. - The company expects that environmental regulations may lead to an increase in vessel scrapping, thereby reducing supply in the market[21]. - The company believes that the new environmental regulations will reduce the appetite for ordering new vessels until new fuel and low-emission designs are developed, improving supply-demand balance in the market[23]. Shareholder Information - The company did not declare an interim dividend, and therefore, there will be no suspension of the share transfer registration[65]. - The total number of shares held by major shareholders as of June 30, 2019, included 323.9 million shares by Standard Life Aberdeen, representing 6.95% of the issued share capital[74]. - The company redeemed and cancelled a total principal amount of $122,216,000 from its 3.25% convertible bonds due in 2021, reducing the remaining principal to $2,784,000, which is 2.23% of the original issuance[65]. - The company has not purchased, sold, or redeemed any of its shares or convertible bonds during the reporting period, except for restricted share awards under the 2013 Share Award Scheme[65]. Accounting and Reporting Changes - The company adopted the new accounting standard HKFRS 16 "Leases" on January 1, 2019, affecting the treatment of operating lease expenses[45]. - The company reported lease liabilities of $130,459 thousand as of January 1, 2019, with repayments of $45,170 thousand due within one year[127]. - The company has implemented new accounting policies in accordance with Hong Kong Financial Reporting Standards, which may impact future financial reporting[83].