Financial Performance - Revenue for the six months ended June 30, 2023, was $119,171,000, a decrease of 42.3% compared to $206,029,000 for the same period in 2022[4] - Gross profit for the same period was $16,636,000, down 53.8% from $35,988,000 in 2022[4] - Operating profit decreased to $14,678,000, a decline of 58.8% from $35,592,000 in the previous year[4] - Net profit attributable to shareholders for the period was $10,859,000, a decrease of 70.0% compared to $36,220,000 in 2022[4] - Total comprehensive income for the six months was $10,799,000, down 70.1% from $36,162,000 in the same period last year[11] - The company reported a basic and diluted earnings per share of $0.025 for the six months ended June 30, 2023, compared to $0.095 in 2022[14] - Adjusted net profit for the period decreased by 65.8% year-on-year, from approximately $37.1 million in the first half of 2022 to approximately $12.7 million in the first half of 2023[173] - Earnings per share decreased from $0.095 in the first half of 2022 to $0.025 in the first half of 2023[175] Assets and Liabilities - Total assets as of June 30, 2023, increased to $414,662,000 from $287,247,000 at the end of 2022, representing a growth of 44.3%[19] - Non-current liabilities rose to $191,508,000, an increase of 63.3% from $117,079,000 in the previous year[19] - Cash and cash equivalents increased to $35,348,000 from $20,170,000, reflecting a growth of 75.1%[19] - Total borrowings and lease liabilities increased to approximately $223.0 million as of June 30, 2023, compared to $144.2 million as of December 31, 2022[97] - Current assets increased to approximately $14.8 million as of June 30, 2023, from about $1.1 million as of December 31, 2022, with the current ratio improving from 1.0 to 1.2[102] Revenue Breakdown - Total revenue for the shipping business reached $96,794,000, while the ship management business generated $22,377,000, resulting in a combined total of $119,171,000 for the six months ended June 30, 2023[29] - The shipping business generated external customer revenue of $96,794,000, while inter-segment revenue was $2,087,000, resulting in total segment revenue of $119,171,000[29] - Revenue from shipping services decreased by approximately $81.3 million or 45.7% to about $96.8 million for the six months ended June 30, 2023, primarily due to reduced global trade and shipping service demand[86] - Revenue from ship management services decreased by approximately $5.5 million or 19.9% to about $22.4 million for the six months ended June 30, 2023, mainly due to a decrease in the number of managed vessels under the time charter system[87] Operational Developments - The company is focused on expanding its shipping and vessel management services, aiming to enhance operational efficiency and market presence[21] - The company plans to establish subsidiaries or offices in strategic markets such as Germany and the Philippines to expand its network coverage[55] - The company aims to enhance operational efficiency and asset returns by replacing older vessels with new ones that meet stricter environmental standards[82] - The company is actively seeking to establish operational bases in Southeast Asia to optimize crew training and resource allocation[82] - The company aims to build a large fleet while maximizing operational flexibility through a mix of long-term, short-term, and single-voyage charters[198] Fleet and Capacity - The company acquired three vessels during the period, increasing total capacity by an additional 221,900 dwt[76] - The company is constructing nine new vessels, expected to add 442,800 dwt of capacity, with deliveries scheduled for late 2023 to 2025[81] - The fleet now consists of 24 vessels with a total capacity of 1.32 million dwt, representing a 28.2% increase from the end of 2022[194] - The average age of the fleet is 7.3 years, indicating a relatively modern fleet composition[194] - The company has expanded its fleet by commissioning 13 new ships, with 4 already operational in the first half of 2023, adding a capacity of 321,200 dwt[177] Strategic Investments - Capital commitments as of June 30, 2023, amounted to approximately $224.6 million, related to nine vessels under purchase contracts, with expected delivery dates ranging from 2023 to 2025[46] - The company completed the acquisition of a 40% stake in Seacon Enterprise Pte. Ltd. for $730,000, which was finalized on August 1, 2023[47] - The company entered into a framework agreement to purchase an office building in Shanghai with a planned construction area of approximately 6,800 square meters for RMB 239,834,400[115] - The company plans to allocate 57% (approximately HKD 190.3 million) of the net proceeds to expand and optimize its fleet by the end of 2023[130] Market Conditions - The average Baltic Dry Index (BDI) fell by nearly 50% compared to the first half of 2022, impacting the company's revenue from owned vessels[63] - The average Baltic Dry Index (BDI) dropped about 49.2% from approximately 2,279 points in the first half of 2022 to about 1,157 points in the current period[78] - The average Baltic Clean Tanker Index (BCTI) fell about 20.7% from approximately 1,044 points in the first half of 2022 to about 828 points in the current period[78] Corporate Governance and Employee Relations - The company has adhered to all applicable corporate governance codes since its listing date, with the exception of the separation of the roles of chairman and CEO[153] - The company has implemented a stock option plan to attract and retain skilled personnel, as approved by shareholders and directors on March 2, 2023[118] - The company has maintained a good working relationship with employees, with no significant operational disruptions due to industrial actions or labor disputes during the period[117]

Financial Performance - Revenue for 2022 decreased by 3.7% year-on-year to approximately $359.1 million[29] - Gross profit margin increased from 15.5% in 2021 to 17.4% in 2022, driving a gross profit growth of 8.2% to $62.4 million[29] - Adjusted net profit for the year reached $60.8 million, a 29.3% increase compared to the previous year[29] - Revenue decreased by 3.7% from approximately $372.7 million in 2021 to approximately $359.1 million in 2022[115] - Gross profit increased by 8.2% year-on-year, from approximately $57.7 million in 2021 to approximately $62.4 million in 2022[102] - Net profit for 2022 was $58.929 million, a 47.3% increase from $40.005 million in 2021[167] - Other income increased significantly from $51,000 in 2021 to $2.2 million in 2022, primarily due to $2.0 million in contract compensation from terminated lease agreements[163] - Financing costs rose by 82.8% from $3.5 million in 2021 to $6.3 million in 2022, mainly due to increased interest on new financing leases and bareboat charters[164] - Revenue from ship management services increased by $4.2 million or 8.7% from $49.0 million in 2021 to $53.2 million in 2022, driven by an increase in the number of managed ships and a 121.3% increase in shipbuilding supervision revenue from $2.5 million in 2021 to $5.5 million in 2022[177] - Shipping service revenue decreased by $17.8 million or 5.5% from $323.7 million in 2021 to $305.9 million in 2022, primarily due to a 22.9% decrease in chartered-in vessel revenue from $257.2 million in 2021 to $198.2 million in 2022, while controlled vessel revenue increased by 61.8% from $66.6 million in 2021 to $107.8 million in 2022[184][190] - Gross profit increased by $4.7 million or 8.2% from $57.7 million in 2021 to $62.4 million in 2022, with the overall gross margin rising from 15.5% in 2021 to 17.4% in 2022[191] Fleet and Ship Management - The company's controlled fleet consists of 21 vessels with a total capacity of approximately 1.03 million dwt, with an average vessel age of about 8 years[106] - The company has commissioned the construction of eight new vessels from shipyards in China and Japan, with three already operational as of February and April 2023, and an additional three expected to be operational within the year[104] - The company acquired two 62,000 dwt and two 42,200 dwt bulk carriers in April 2023 to further expand its controlled fleet[104] - The company managed 217 vessels as of December 31, 2022, with a compound annual growth rate of 32.2% from 2019 to 2022[109] - The company signed a total of 132 vessel charter contracts in 2022, compared to 200 in 2021[108] - The company's controlled fleet includes various types of dry bulk carriers, such as Capesize, Panamax, Ultramax, Supramax, Handymax, and Handysize, as well as vessels that do not fall into these standard categories[106] - The company's dry bulk fleet primarily transports major types of dry bulk cargo, including coal, grain, steel, logs, cement, fertilizer, and iron ore, while its tankers and chemical carriers transport petrochemical products, asphalt, and molten sulfur[116] - The company's controlled fleet consists of 21 ships as of December 31, 2022, compared to 22 ships in 2021[143] - The company's ship management contracts typically last between 1 to 3 years and are renewable at the end of each service period[125] - The company's fleet consisted of 21 vessels with a total capacity of approximately 1.03 million dwt and an average age of 8 years as of December 31, 2022[152] - The company managed 217 vessels as of December 31, 2022, representing a compound annual growth rate of 32.2% since 2019[172] - The company has commissioned the construction of 8 new ships with a total capacity of approximately 542,100 dwt, expected to be completed between 2023 and 2024[128] - The company announced the acquisition of two 62,000 dwt general cargo ships and two 42,200 dwt bulk carriers in April 2023[129] - The company is constructing eight new vessels, expected to add approximately 542,100 dwt of combined capacity, with completion estimated between 2023 and 2024[189] Market and Industry Trends - The company's dry bulk shipping services were impacted by a decline in the Baltic Dry Index (BDI) in 2022[29] - The Baltic Dry Index (BDI) daily average in 2022 remained significantly higher than 2019 and 2020 levels, indicating strong profitability[97] - The Baltic Clean Tanker Index (BCTI) remained high compared to pre-Russia-Ukraine crisis levels, supporting long-term earnings for tanker shipping services[97] - The Baltic Dry Index (BDI) averaged 1,934 points in 2022, down from 2,943 points in 2021 but significantly higher than 1,365 points in 2019 and 1,068 points in 2020[129] - The Baltic Clean Tanker Index (BCTI) surged from 731 points on February 28, 2022, to a peak of 2,143 points on December 22, 2022, before settling at 789 points on March 3, 2023, supporting oil tanker shipping service revenues[185] - The company's daily Baltic Dry Index (BDI) decreased from 2,943 points in 2021 to 1,934 points in 2022, impacting chartered-in vessel revenue[184][190] - China's maritime trade volume is expected to reach 10,025.2 million tons by 2026, with a compound annual growth rate of 4.0% from 2022 to 2026[97] - The company expects a recovery in the shipping market in the second half of 2023, supported by China's economic reopening and global GDP growth forecast of 2.9%[175] Strategic Initiatives and Expansion - The company plans to establish a presence in strategic markets such as Greece and expand ship management capabilities[34] - The company will introduce digital technologies and advanced IT systems to enhance supply chain efficiency[34] - The company plans to establish new offices in strategic locations such as Greece and the Philippines to expand its ship management services[130] - The company aims to maintain a balanced fleet of owned and chartered ships to maximize operational flexibility and profitability[139] - The company plans to invest part of its IPO proceeds in digital technology and advanced IT systems, including upgrading the LMS online employee training system, internal administrative and financial software, and cloud storage and servers[176] - The company successfully listed on the Hong Kong Stock Exchange on March 29, 2023, and plans to expand its controlled and chartered-in fleets to enhance market share and competitiveness[189][194] Accounting and Financial Reporting - The company recognized foreign exchange differences from overseas investments and related hedging items in other comprehensive income, which will be reclassified to profit or loss upon disposal or repayment of overseas investments[1] - The company capitalizes and depreciates costs related to ship docking over the estimated period until the next docking, with any remaining costs written off if significant docking costs arise before the depreciation period ends[2] - The company uses the incremental borrowing rate to discount lease payments when the implicit interest rate is not readily determinable[7] - The company allocates lease and non-lease components of arrangements (e.g., bareboat charters and shipping services) based on independent market prices[11] - The company classified non-current assets held for sale separately in the balance sheet as of December 31, 2022[16] - The company entered into a vessel lease agreement with Intercontinental Shipping Group, with a capital asset of approximately $1,547,000 recognized for the leased vessel[22] - The estimated annual cap for operating expenses under the vessel lease agreement is $600,000 for the year ending December 31, 2023[23] - The company signed material procurement agreements with related parties, Qingdao Fanyang Marine Services and Seacon Marine Service, for the supply of operational materials[24][25] - The company will comply with the Hong Kong Listing Rules' annual review and reporting requirements in subsequent annual reports, as it was not a listed company in 2022[27] - The company's functional currency is the US dollar, while its Chinese subsidiaries use the Chinese yuan as their functional currency[87] - The company leases ships and office buildings in China, Hong Kong, Japan, and Singapore[70] - The company's ships are accounted for at historical cost less accumulated depreciation and impairment losses[68] - The company's investment in subsidiaries is accounted for at cost less impairment, with performance recognized on a dividend received and receivable basis[66] Legal and Regulatory Matters - The company faced legal disputes, including a RMB 7.4 million compensation claim in the "Tianling" lawsuit and arbitration proceedings involving a $0.3 million claim from a supplier and a $0.4 million claim against a sub-charterer[198][199] Environmental and Sustainability Goals - The company plans to reduce CO2 emission intensity by 10% by 2030 and 30% by 2040, with the ultimate goal of achieving carbon neutrality[147] Awards and Recognition - The company has been recognized as the "Most Popular Ship Management Company" in 2018 and the "Best Shipping Company" in 2022 by the China Zheng He Maritime Awards Committee[118] IPO and Shareholding Structure - The company's IPO on the Hong Kong Stock Exchange was completed on March 29, 2023[44] - Shareholding structure post-IPO includes Jin Chun Holding Ltd. (2.25%), Jin Qiu Holding Ltd. (49.5%), and public shareholders (25%)[44] - The company successfully listed on the Hong Kong Stock Exchange in 2023, providing access to more resources for brand, capital, and network expansion[96] Revenue Breakdown - Shipping services revenue accounted for 85.2% of total revenue in 2022, amounting to $305.862 million, while ship management services contributed 14.8% with $53.239 million[155] Directors' Remuneration - The company's directors' total remuneration for the reporting period was approximately $697,000, including base salary, housing allowance, and other benefits[79]

Financial Performance - Seacon Shipping Group Holdings Limited reported preliminary financial performance for the year ended December 31, 2022[2]. Compliance and Accessibility - The announcement was published in accordance with the Hong Kong Stock Exchange Listing Rules[2]. - The financial results can be accessed on the Hong Kong Stock Exchange website and the company's website[2]. Board Composition - The board of directors includes four executive directors and three independent non-executive directors[2].