Financial Performance - In 2022, the company achieved record basic profit of $715 million and EBITDA of $935 million, with a net profit of $702 million, resulting in a return on equity of 38%[28] - The company's EBITDA increased to 935.1 million HKD, up from 714.7 million HKD, representing a growth of 30.7% year-over-year[33] - Shareholders' profit attributable to the company was 701.9 million HKD, compared to 844.8 million HKD in the previous year, indicating a decline of 17%[33] - The average return on equity was 38%, down from 58% in the previous year, showing a decrease of 34.5%[33] - The company recorded a record basic profit of $715 million and a net profit of $702 million for the year 2022, achieving a strong return on equity of 38%[58] - A total dividend of HKD 0.26 per share was proposed for 2022, representing 75% of the annual net profit and a dividend yield of 27% based on the beginning of the year’s share price[50] Fleet and Operations - The current fleet consists of 115 small and ultra-small bulk carriers, with a total of approximately 243 owned and chartered vessels[31] - The company operates a fleet of 243 vessels, with a total deadweight tonnage of 5.1 million tons[40] - The average age of the owned fleet is 12 years, with a focus on modern vessels under 20 years old[40] - The company has increased its owned fleet's deadweight capacity from 500,000 tons to 2,500,000 tons for small handy and from 200,000 tons to 2,500,000 tons for super handy, achieving a total deadweight capacity of 5,000,000 tons[51] - The company sold and delivered seven small handy bulk carriers and one ultra-large handy bulk carrier during the year to optimize its fleet[65] - The company plans to replace older, less efficient vessels with younger, larger, and more efficient ships to reduce carbon emissions and improve operational efficiency[66] Market and Demand - The company anticipates stable long-term demand for small bulk carriers, with only moderate growth in fleet capacity over the past decade[42] - The global demand for dry bulk shipping tonnage increased by approximately 2% year-over-year, driven by strong demand for minor bulk cargoes, with alumina, forestry products, and salt seeing a 6% increase[75] - The demand for minor bulk cargoes is diverse and typically follows GDP growth, with a forecasted growth of 2.9% in minor bulk demand for 2023[75] - The company remains optimistic about the medium to long-term outlook for the dry bulk shipping market, supported by significant infrastructure investments, particularly in emerging markets like India and ASEAN countries[72] Environmental and Sustainability Initiatives - The company is investing in zero-emission vessels and is developing a design for the first generation of methanol-powered ultra-large bulk carriers[31] - The company aims for zero work-related injuries and zero lost work hours, having recorded only six incidents leading to lost work hours out of 20.8 million hours worked in 2022[54] - The company aims to transition to a fleet composed solely of zero-emission vessels by 2050, with no new orders for newbuilds until commercially viable zero-emission vessels and suitable energy infrastructure are available globally[68] - The company is focusing on green methanol as the best fuel for its first generation of zero-emission vessels, with plans to expedite the delivery of the first dual-fuel ultra-large handy bulk carrier capable of using methanol or fuel oil[68] - The company has established a dedicated sustainability team to enhance its focus on sustainable business practices and sustainable asset investments[130] - The company is committed to achieving net-zero emissions in the shipping industry by 2050 and is actively exploring innovative technologies and alternative fuels[196] Risk Management and Governance - The company has established a risk management framework based on the "three lines of defense" model, overseen by the board and the audit committee[171] - The company has implemented measures to enhance employee engagement and retention, including regular training and performance reviews, to ensure a capable workforce[186] - The board conducts regular evaluations of its performance and the performance of senior management[160] - The company is committed to improving risk management and corporate governance to enhance stakeholder confidence and ensure business continuity[143] - The company has received a BBB rating from MSCI ESG in 2022, indicating strong governance and sustainability practices[144] Awards and Recognition - The company has received multiple awards in 2022, including the Best Dry Bulk Operator Award and the Best Shipping Company Award, highlighting its commitment to quality and sustainability[52] - The company received the Best Sustainable Development Company award at the Hong Kong Institute of Certified Public Accountants' 2022 Best Corporate Governance and ESG Awards[129] - The company received multiple safety-related awards, reflecting its commitment to high-quality safety standards[190] Strategic Partnerships and Collaborations - The company has signed a memorandum of understanding with Nihon Shipyard Co. and Mitsui to evaluate potential green fuels and develop zero-emission vessels[54] - The company has signed a memorandum of understanding with two Japanese partners to explore and develop zero-emission vessels and may invest in related fuel supply infrastructure[68] - The company is collaborating with industry partners to develop efficient designs for its first dual-fuel vessel capable of operating on green methanol or fuel[196] Employee Welfare and Safety - The company is committed to enhancing crew welfare by providing financial support, recreational facilities, and mental health assistance to mitigate the impact of pandemic-related restrictions[69] - The company is enhancing its focus on mental health for crew members, including establishing a dedicated training supervisor position and expanding training programs[137] - The company achieved a lost time injury frequency of 0.29 incidents per million hours worked in 2022, reflecting a strong emphasis on employee training and welfare[128]

Financial Performance - Pacific Basin recorded its best interim performance in H1 2022, achieving a basic profit of $457.5 million and a net profit of $465.1 million, with EBITDA of $566.9 million, resulting in a strong return on equity of 48%[20] - The company reported a record interim profit of $457.5 million and a net profit of $465.1 million for the first half of 2022, achieving a strong return on equity of 48%[34] - Revenue for the six months ended June 30, 2022, reached $1,722.8 million, a 51% increase from $1,142.0 million in the same period of 2021[138] - Adjusted EBITDA for the period was $566.9 million, more than doubling from $244.6 million year-over-year[138] - Basic earnings per share increased to $9.53, up from $3.40 in the previous year, reflecting a significant growth in profitability[141] - The company reported a net profit attributable to shareholders for the six months ended June 30, 2022, was $465,128,000, a significant increase from $160,104,000 in the same period of 2021, representing a growth of approximately 190%[161] Dividends - The company declared an interim basic dividend of HKD 0.35 per share, representing 50% of the net profit, along with a special dividend of HKD 0.17 per share, totaling HKD 0.52 per share, equivalent to $348 million or 75% of net profit[20] - The board declared an interim dividend of 35 HKD cents per share, representing 50% of the net profit, along with a special dividend of 17 HKD cents, totaling 52 HKD cents per share[35] - The interim basic dividend declared for 2022 was 35.0 HK cents per share, totaling $234,226 thousand, compared to 14.0 HK cents per share, totaling $86,473 thousand in 2021, marking a significant increase[158] Fleet and Operations - The company operates a fleet of 240 owned and chartered vessels, including 117 small and ultra-small dry bulk carriers, and is committed to expanding its fleet with younger, larger, and more efficient vessels[20] - The company’s fleet operates with over 90% cargo utilization, primarily transporting non-fossil fuel commodities[24] - The average daily income for small and ultra-small bulk carriers was $26,370 and $33,840 respectively, contributing a total of $468.2 million (excluding management expenses) to the core business[20] - The average daily charter rate for small handy-sized bulk carriers was $22,000, while for super handy-sized bulk carriers it was $25,630, both significantly higher than previous years[54] - The company sold five older small handy bulk carriers during the period, while acquiring a new ultra handy bulk carrier, enhancing fleet efficiency and asset longevity[44] Market Conditions - The dry bulk shipping market in H1 2022 was driven by robust global commodity demand, despite concerns over global economic growth and geopolitical tensions[20] - The company anticipates a slowdown in dry bulk demand in H2 2022 due to a weakening global economy, but remains optimistic about long-term market potential supported by favorable supply dynamics[20] - The ongoing Ukraine conflict has positively impacted ton-mile demand for certain commodities, although the company will continue to monitor potential effects on trade flows[50] - The demand for dry bulk shipping is expected to remain relatively stable in the second half of the year, supported by seasonal factors in the grain market and increased coal demand for power generation[50] Financial Position - The company’s available liquid funds as of June 30, 2022, amounted to $698.6 million, with a net cash level indicating a strong financial position[20] - The company maintained a strong financial position with committed available liquidity of $698.6 million and a net cash position of $68.9 million as of June 30, 2022[35] - The company’s total assets increased to $2,884.5 million, up from $2,300.2 million year-on-year[34] - The company has a conservative balance sheet, reducing the amount of outstanding convertible bonds to $70.1 million[37] - The company’s equity totalled $2,036.7 million, an increase from $1,831.2 million at the end of the previous year[143] Compliance and Governance - The company is preparing to comply with the International Maritime Organization's emission reduction regulations effective in 2023, enhancing fleet optimization through technological upgrades and operational measures[20] - The company aims to achieve net-zero emissions by 2050, with ongoing efforts to improve fuel efficiency and develop zero-emission vessels[110] - The company emphasizes strong corporate governance and sustainable development, achieving an A+ sustainability rating from the Hong Kong Quality Assurance Agency[125] - The company has a low governance risk profile, as indicated by its top 10% governance quality rating from Institutional Shareholder Services (ISS)[125] Safety and Health - The recorded incident rate for health and safety increased slightly to 0.58 per million working hours in the first half of 2022, compared to 0.55 in the full year of 2021[43] - The company continues to prioritize safety and health standards for crew members, implementing online training and health support systems during the pandemic[42] - The injury frequency rate is 0.19 per million working hours, showing a 31% improvement[113] Future Outlook - The company anticipates increased demand for dry bulk shipping due to rising global infrastructure investments driven by the transition to green energy[75] - The overall dry bulk shipping market is expected to receive structural long-term support due to limited supply growth and healthy long-term demand prospects despite short-term adverse factors[60] - The company plans to maintain a strong balance sheet and cash position while expanding its fleet and operational scale[49] Shareholder Engagement - The company encourages shareholders to communicate directly with the board for any inquiries[129] - Major shareholders holding 5% or more of the company's issued share capital include Pzena Investment Management, LLC (6.15%), HSBC Holdings plc (6.32%), and Citigroup Inc. (5.69%) as of June 30, 2022[135]

Financial Performance - Pacific Basin's 2021 performance marked the best in 34 years, with a basic profit of $698 million and a net profit of $845 million, resulting in a strong return on equity of 58%[14] - Total revenue for 2021 reached $2,972.5 million, a significant increase from $1,470.9 million in 2020, representing a growth of 102%[16] - Net profit for 2021 was $844.8 million, compared to a loss of $208.2 million in 2020, marking a turnaround in profitability[16] - The company reported a net profit margin of 28% in 2021, improving from a negative margin of 14% in the previous year[16] - The total assets increased to $2,745.4 million in 2021 from $2,189.5 million in 2020, reflecting a growth of 25%[16] - The average return on equity for 2021 was 58%, a significant improvement from a negative return of 18% in 2020[16] - The company recorded a basic profit of $698.3 million, a significant improvement from a basic loss of $19.4 million in 2020, marking the strongest performance in its history[109] Operational Highlights - The company completed 4,000 cargo shipments in 2021, maintaining operations with 116 owned vessels and over 4,600 crew members during the pandemic[3] - The company recorded a contribution of $709 million from its 18,240 days of operational activity, maintaining competitive cost control[14] - The fleet consists of 249 vessels with a total deadweight tonnage of 5.2 million tons, showcasing the scale of operations[25] - The company added 11 modern second-hand vessels to its fleet while selling five of the smallest and oldest vessels[14] - The company has a diversified customer base with over 550 global clients, where the largest customer accounts for only 3% of the business[47] Market Conditions - The strong market conditions in 2021 were driven by robust global commodity demand and low fleet growth, despite challenges related to COVID-19[14] - The dry bulk shipping market in 2021 was the strongest since 2008, contributing to a solid start in 2022 with strong rental rates and stable contracted levels[62] - Global demand for minor bulk cargo grew by 5.6%, while the fleet of small and ultra-small bulk carriers only increased by 2.8%, tightening supply conditions and driving up charter rates[73] - The dry bulk shipping market is expected to remain strong in 2022 and beyond, supported by healthy economic growth and demand for small bulk and grain[83] Sustainability and Environmental Initiatives - The company has committed to achieving net-zero emissions by 2050 and is actively participating in the "Zero Emission Alliance" to promote policies for zero-emission vessels by 2030[58] - The company aims to achieve net-zero emissions by 2050, focusing on developing new zero-carbon vessels and fuel options[77] - The company launched a carbon-neutral voyage program to offset emissions from shipping activities[78] - The company is actively working towards transitioning to zero-carbon emission vessels and fuels to achieve long-term decarbonization goals[152] - The company has set a more aggressive carbon emission density and net-zero emission target, aiming for net-zero emissions by 2050 and an AER carbon emission density rating of C or higher for its vessels starting in 2024[189] Governance and Management - The company has a strong governance structure and a robust senior management team, enhancing confidence in future growth[53] - The board consists of 11 members, including 2 women, exceeding the requirement of at least one-third independent non-executive directors as per listing rules[171] - The company has fully complied with the Hong Kong Stock Exchange's corporate governance code for the year ending December 31, 2021[170] - The board has conducted self-assessments to ensure effective operation and is committed to monitoring succession planning closely[176] - The company encourages all directors to participate in ongoing professional development to update their knowledge and skills in compliance with the code[176] Safety and Crew Welfare - The company recorded its lowest injury frequency rate in history, with only five work-related injuries out of 19.9 million hours worked in 2021[61] - The company is committed to enhancing the well-being of its crew by providing financial support, mental health resources, and additional connectivity during the pandemic[59] - The company signed the Neptune Declaration on Seafarer Wellbeing and Crew Change, emphasizing its commitment to crew welfare[137] - The lost time injury frequency (LTIF) rate decreased to 0.25, marking the lowest key performance indicator in terms of workplace injuries in the company's history[146] Financial Position and Liquidity - The net debt ratio decreased to 7%, with committed available liquidity reaching $668 million by year-end[14] - Cash and cash equivalents totaled $128.4 million, with net borrowings at $1,831.2 million, indicating a strong liquidity position[16] - The company reported a cash flow of $668 million, with a net debt representing only 7% of the book value of owned vessels[53] - The company’s interest coverage ratio improved to 30.1 times from 5.1 times[130] Future Outlook - The outlook for 2022 remains optimistic, with strong rental rates continuing into the first quarter[14] - The company is optimistic about the dry bulk market over the next 3-5 years, citing stable demand and healthy growth in the small parcel segment[96] - The company anticipates that the implementation of decarbonization regulations starting in 2024 will lead to reduced sailing speeds for bulk carriers, further tightening supply and benefiting market trends[100] Digitalization and Innovation - The digitalization plan is evolving to optimize business processes and improve decision-making through data utilization[82] - The company is actively working on digitalization to capture and analyze data for better decision-making[97] Awards and Recognition - The company received multiple awards in 2021 for its excellence in safety, governance, environmental performance, and overall sustainability[60] - The company received the Best ESG Report Award (Mid-Cap) at the 2021 Hong Kong ESG Reporting Awards[154]

Financial Performance - The company recorded its best half-year performance in 13 years due to strong growth in dry bulk freight rates, declaring an interim dividend of HKD 0.14[9] - In the first half of 2021, the company recorded a basic profit of $150.4 million, with an EBITDA of $244.6 million, reflecting a 28% return on equity[12] - Revenue for the six months ended June 30, 2021, was $1,142.0 million, representing a 68% increase compared to $681.5 million in the same period of 2020[86] - The company reported a net profit attributable to shareholders of $160.1 million, compared to a loss of $222.4 million in the same period of 2020[88] - The basic earnings per share for the six months ended June 30, 2021, was $3.40, compared to a loss of $4.77 in the same period of 2020[99] Fleet and Operations - The fleet consists of 119 owned vessels and approximately 270 operated vessels, marking the largest fleet ever controlled by the company[10] - The company has increased the proportion of super handy bulk carriers in its fleet, benefiting from greater rental increases in a strong market[10] - The average daily net income for the company's small handy and super handy bulk carriers was USD 13,320 and USD 18,260 respectively, with a strong daily profit from operational activities of USD 9,080[9] - The average daily profit from operations during the first half was $1,320, with a total of 9,080 operational days[14] - The average age of the company's owned vessels is 10.9 years, which is considered optimal for capital returns while minimizing residual value risk amid the transition to new technology vessels[24] Market Outlook - The dry bulk shipping market reached its highest level in over a decade during the first half of 2021, with an optimistic outlook for 2021 and beyond[4] - The company anticipates continued strong demand for dry bulk shipping, particularly with the upcoming Northern Hemisphere grain export season, which typically boosts freight rates in Q3[11] - The average dry bulk freight rates for the second half of 2021 are expected to exceed those of the first half due to sustained demand and a slowdown in global fleet growth[11] - The supply growth of dry bulk carriers is slowing, with new orders at historical lows, suggesting that net growth in the global dry bulk fleet will remain below demand growth in the coming years[17] - The company is optimistic about the long-term outlook for the dry bulk shipping market, with newbuilding orders at historical lows and regulatory changes expected to limit supply growth[11] Financial Position and Liquidity - Total available liquid funds increased to USD 417.1 million, with a net debt ratio of 31%[10] - The company maintained a net debt ratio of 31% relative to the book value of owned vessels as of June 30, 2021, down from 37% at the end of 2020[51] - The total available liquidity, including cash and undrawn committed borrowing facilities, was $417.1 million as of June 30, 2021, an increase of 15% from $362.5 million at the end of 2020[51] - The company signed a six-year bilateral term loan of $45 million in April 2021, secured by two unencumbered vessels[52] - The company plans to keep the net debt to book value ratio below 50% across different shipping cycles[47] Operational Efficiency and Cost Management - The company maintains a competitive cost structure despite rising operational expenses related to crew changes and pandemic-related costs[14] - The average daily operating expenses for owned vessels were $970, while for chartered vessels, it was $520[45] - The company effectively controlled operating expenses for its owned vessels, contributing to the strong operational performance[31] - The average daily comprehensive expenses for small handy and ultra handy bulk carriers were reduced to $7,660 and increased to $9,200 respectively[43] - The average daily financial expenses for small and ultra handy bulk carriers decreased by 12% and 7% respectively, reflecting reduced borrowing and lower interest rates[40] Environmental and Social Responsibility - The company is committed to reducing its carbon emissions intensity in line with the International Maritime Organization's goal of a 40% reduction in EEOI by 2030[57] - The company received the Blue Circle Award from the Port of Vancouver for its voluntary investments in green technology and energy-saving initiatives[62] - The company aims to improve the carbon efficiency of the international shipping industry by at least 40% by 2030 and reduce total greenhouse gas emissions by at least 50% by 2050, compared to 2008 levels[68] - The company supports the Seafarers International Relief Fund to assist Indian seafarers and their families affected by the COVID-19 pandemic[66] - The company encourages female crew members to join the Women's International Shipping & Trading Association, promoting diversity and inclusion in the maritime industry[67] Governance and Compliance - The company has fully complied with the corporate governance code as per the Hong Kong Stock Exchange during the six months ended June 30, 2021[72] - The board confirmed that all directors adhered to the trading rules regarding securities transactions during the reporting period[72] - The company has established rules for senior management and employees regarding insider trading to ensure compliance with regulations[72] - The interim report was reviewed by the external auditor and the audit committee, ensuring compliance with the listing rules[72] - The company has demonstrated high transparency and governance performance, receiving top ratings among peers in ESG assessments[66]

Financial Performance - The company recorded a net loss of $208.2 million for the year, primarily due to a one-time non-cash impairment of $200 million related to its core handy bulk carrier fleet[23]. - The company reported a basic loss of $19.4 million for the year, compared to a profit of $20.5 million in 2019, indicating a significant decline in performance due to the pandemic's impact on the dry bulk shipping market[63]. - The company achieved a total of $X billion in revenue, representing a Y% growth compared to the previous year[187]. - The company provided guidance for the next quarter, expecting revenue to be between $A billion and $B billion, indicating a growth rate of C%[187]. - The total remuneration for executive directors amounted to $2,926,000, with a total compensation including share-based payments reaching $4,103,000 for the year ended December 31, 2020[192]. Operational Highlights - The operational activities generated a robust average daily profit of $15,500[19]. - The company achieved a high loading ratio of 90%, which contributes to its status as the best carbon efficiency company in its segment[42]. - The company has taken delivery of three modern bulk carriers and has committed to purchase an additional five modern ultra-large handy bulk carriers, resulting in a fleet of 116 owned vessels and approximately 250 operated vessels after the delivery of contracted ships[20]. - The company has resumed its fleet growth strategy by purchasing larger, high-quality modern second-hand vessels due to improved market conditions[52]. - The company has a strong customer base of over 500 industrial clients and commodity traders, providing reliable shipping services[100]. Market Outlook - The dry bulk shipping market in 2021 is expected to benefit from global economic recovery, with strong demand particularly from China and global grain trade[21]. - The company anticipates a significant recovery in the market, with expectations of slowing global fleet growth and rising commodity demand impacting average freight rates for dry bulk shipping in 2021 and beyond[47]. - The overall dry bulk shipping demand is projected to show a year-on-year increase of 4.7% in ton-mile demand[60]. - The company anticipates that environmental regulations and uncertainties regarding future vessel designs will limit the volume of new vessel orders[57]. - The company is focused on providing reliable services and technical support to customers, aiming to deepen customer relationships and secure more freight contracts[116]. Sustainability and Environmental Initiatives - The company is committed to sustainable business practices and high standards of safety and environmental management[13]. - The company aims to improve carbon efficiency in the global shipping industry by 40% by 2030 and reduce total greenhouse gas emissions by 50% by 2050, relative to 2008 levels[36]. - The company is a member of the "Zero Emissions Alliance" and actively participates in discussions regarding future zero-carbon fuels and vessels[39]. - The company has achieved carbon neutrality in its global shore operations by collaborating with CLP to provide carbon credits from wind power projects in India[144]. - The company has established a sustainability management committee to enhance governance and set environmental key performance indicators[128]. Governance and Management - The board consists of ten members, including two female directors, with independent non-executive directors exceeding one-third of the board as required by listing rules[146]. - The company emphasizes the importance of board diversity, which includes industry experience, cultural background, and gender[148]. - The board has appointed a new independent non-executive director, Mr. Zhuang Weilin, who brings extensive financial and governance experience[148]. - The company is committed to high standards of corporate governance, including robust internal controls and transparency to stakeholders[47]. - The board conducted a self-assessment through a questionnaire to evaluate its performance, indicating effective operation throughout the year[156]. Safety and Crew Welfare - The company emphasized the importance of maintaining crew health, safety, and well-being during the pandemic[8]. - The company reported a 15% year-on-year decrease in the frequency of lost time incidents per million hours worked, indicating improved safety performance[31]. - The company has implemented measures to ensure the health, safety, and well-being of crew members during the pandemic, including psychological support[124]. - The company has improved safety performance indicators in 2020 despite the challenges posed by the COVID-19 pandemic, leading to increased employee retention[123]. - The company maintains high standards of safety and quality as assessed by port state control inspectors[33]. Fleet and Asset Management - The company operates a fleet of approximately 250 vessels, including 114 owned and 138 leased, ensuring a robust operational capacity[115]. - The company has modernized its fleet by gradually replacing older vessels with larger, more energy-efficient ships[39]. - The company plans to continue updating and expanding its fleet by acquiring larger, modern second-hand vessels, particularly focusing on ultra handymax bulk carriers[119]. - The company has successfully exited all non-core businesses under the leadership of the retiring CEO, Mats Berglund, and has seen significant growth in its core small and ultra-small dry bulk shipping operations[47]. - The company has implemented measures to maintain high loading rates and gradually replace older vessels with larger, more fuel-efficient ones[54].

Financial Performance - The company reported a basic loss of $26.6 million for the first half of the year, primarily due to a weak freight market, resulting in a net loss of $222.4 million, which includes a one-time non-cash impairment of $198 million[11]. - Revenue for the first half was $681.5 million, with EBITDA of $79.2 million, compared to $767.1 million in revenue and $101.1 million in EBITDA for the same period last year, indicating a decline of approximately 11.2% in revenue and 21.6% in EBITDA year-over-year[11]. - The company recorded a net loss of $222.4 million in the first half of 2020, compared to a profit of $8.2 million in 2019, primarily due to a non-cash impairment of $198.2 million related to its fleet of handymax bulk carriers[13]. - The adjusted net loss attributable to shareholders was $222.4 million, compared to a profit of $8.2 million in the prior year, representing a significant decline[74]. - The net loss margin was -33%, a decrease of 34 percentage points from a 1% profit margin in the same period last year[74]. - The company reported a basic loss per share of $4.77, compared to earnings of $0.18 per share in the same period of 2019[76]. Operational Highlights - The company completed 1,200 cargo deliveries in the first half of 2020, highlighting its role in global supply chains[6]. - The company has observed an increase in trade and inquiries in recent months, particularly in grain shipping volumes, as economic activities in China have significantly resumed[10]. - The company’s operational activities maintained full functionality despite the pandemic, ensuring reliable service to customers[19]. - The company has taken delivery of three modern vessels and sold one older handymax vessel during the reporting period[9]. - The average daily income from time charter equivalent was $7,190, outperforming the market by $2,270[34]. Fleet and Vessels - The fleet consists of 235 operational vessels, including 117 owned vessels, with 60% and 75% of handymax and supramax vessels contracted at daily rates of $8,420 and $10,810, respectively, for the second half of 2020[9]. - The average age of the owned fleet is 10.6 years, with a total deadweight capacity of 4.82 million tons[10]. - The company delivered three modern second-hand bulk carriers during the first half of 2020, increasing its owned fleet to 117 vessels, with an average operational fleet of 215 vessels[13]. - The company plans to pause the acquisition of large quality second-hand vessels due to uncertain market conditions, while continuing to expand its owned fleet[13]. Market Conditions - The company anticipates a strong traditional peak season in the second half of 2020, despite ongoing market volatility, supported by a robust balance sheet and strong liquidity[10]. - Economic activity in China has significantly recovered, with grain shipping volumes strong and iron ore loading reaching historical highs[21]. - The International Monetary Fund has revised the global GDP growth forecast for 2020 down to -4.9%[21]. - The company anticipates continued slowing in the growth of the global dry bulk fleet[25]. Financial Position - Total assets amounted to $2.32 billion, with cash and deposits totaling $316 million, while net borrowings stood at $704.8 million[11]. - As of June 30, 2020, the company's cash and deposits amounted to $316 million, with a net debt of $704.8 million, representing 41% of the net book value of the owned fleet[18]. - The company aims to maintain a net debt ratio not exceeding 50% relative to the book value of owned vessels across different shipping cycles[54]. - The total borrowings amounted to $1,020,800,000 as of June 30, 2020, down from $1,045,800,000 on December 31, 2019[59]. Cost Management - Operating expenses for handymax and supramax vessels have decreased to $3,940 per day[9]. - The average daily operating expenses for the company's vessels were $3,940, with general and administrative expenses at $770 per day, maintaining competitive cost control[13]. - The company effectively controlled operating expenses for its owned vessels despite market volatility[31]. - The average daily comprehensive expenses for owned and long-term leased small and ultra-small bulk carriers were $7,920 and $8,960 respectively (2019: $8,150 and $9,230)[50]. Governance and Shareholder Information - The company’s board of directors has undergone changes, with specific committee memberships adjusted as of January 1, 2020, reflecting a strategic shift in governance[68]. - Major shareholders holding 5% or more of the issued share capital include Pandanus Associates Inc. and Fidelity International, with Citigroup Inc. controlling 7,226,611 shares and an additional 286,695,384 shares under approved lending arrangements[72]. - The company has adhered to all corporate governance standards and regulations as of June 30, 2020[64]. Environmental Initiatives - The company is part of the "Getting to Zero Coalition," aiming for commercially viable zero-emission vessels by 2030[20]. - The company has equipped 66 of its owned vessels with ballast water treatment systems, aiming for compliance ahead of schedule by the end of 2022[20]. - The company has invested in sulfur scrubbers, saving $23,100,000 in fuel costs, which is 38% of the initial investment[20].

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].