Financial Performance - For the six months ended June 30, 2021, the company reported revenue of RMB 139.26 billion, a significant increase of 88.1% compared to RMB 74.05 billion in the same period of 2020[11]. - The profit attributable to equity holders of the company reached RMB 37.10 billion, up from RMB 1.14 billion in the previous year, marking a growth of 3160.5%[11]. - The basic earnings per share increased to RMB 2.33 from RMB 0.07, reflecting a substantial rise of 3171.4%[11]. - The company's operating profit for the first half of 2021 was RMB 48.06 billion, compared to RMB 3.41 billion in the same period last year, indicating a growth of 1306.5%[13]. - The net profit attributable to equity holders, excluding non-recurring gains and losses, was approximately RMB 37.02 billion, a year-on-year increase of 4096.43%[14]. - The net profit for the group reached RMB 42,040,861 thousand, a dramatic increase from RMB 1,332,616 thousand in the same period last year[61]. - The profit before tax for the first half of 2021 was RMB 47,768,445 thousand, compared to RMB 2,282,566 thousand in the same period of 2020, reflecting a substantial increase in profitability[145][146]. - The net profit for the six months ended June 30, 2021, was RMB 37,097,843 thousand, compared to RMB 1,137,164 thousand for the same period in 2020, indicating a significant increase of 3,261.5%[130]. Revenue Breakdown - The container shipping segment generated revenue of RMB 136.44 billion, a year-on-year increase of 90.59%[14]. - The terminal business segment reported revenue of RMB 3.72 billion, reflecting a growth of 15.28% compared to the previous year[14]. - Revenue from the container shipping business reached RMB 136,437,632 thousand, while the terminal business generated RMB 3,717,418 thousand, indicating strong performance across segments[145]. - Revenue from the Trans-Pacific route surged to RMB 33,661,663 thousand, marking a 74.50% increase from RMB 19,290,534 thousand in the previous year[56]. - The Asia-Europe route revenue increased by 154.37% to RMB 38,529,127 thousand, up from RMB 15,146,881 thousand[56]. - The revenue from the Americas region was RMB 34,031,807 thousand, while the European region generated RMB 39,381,930 thousand, and the Asia-Pacific region contributed RMB 33,391,608 thousand for the first half of 2021[153]. Operational Metrics - The company's container shipping business completed a total cargo volume of 13.84 million TEUs, a year-on-year increase of 16.84%[17]. - The total throughput of the company's ports reached 62.71 million TEUs, reflecting an increase of 8.81% year-on-year[17]. - The total cargo volume (in TEUs) for the group was 13,840,902, representing a year-on-year increase of 16.84% from 11,845,688 TEUs[53]. - The average China Containerized Freight Index (CCFI) for the first half of 2021 was 2,066.64 points, representing a year-on-year increase of 133.86%[14]. - The company reported a 3.7% increase in operational capacity compared to the same period last year, with trans-Pacific and Asia-Europe routes seeing capacity growth of 12% and 13%, respectively[15]. Cash Flow and Financial Position - The net cash flow from operating activities was RMB 63,887,646 thousand, an increase of RMB 52,449,955 thousand, representing a significant growth of 458.57% year-on-year[38]. - The company's cash and cash equivalents as of June 30, 2021, amounted to RMB 101,904,554 thousand, up from RMB 52,630,331 thousand at the beginning of the year, representing an increase of 93.4%[131]. - The total assets as of June 30, 2021, amounted to RMB 323,953,201 thousand, up from RMB 271,926,074 thousand at the end of 2020, marking an increase of 19%[126]. - The total liabilities reached RMB 204,091,273 thousand, increasing by RMB 10,862,256 thousand or 5.62% from the end of the previous year[41]. - The company's total equity rose to RMB 119,861,928 thousand, compared to RMB 78,697,057 thousand at the end of 2020, reflecting a growth of 52%[126]. Stock Options and Employee Incentives - 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[76]. - As of June 30, 2021, a total of 143,896,738 stock options remained unexercised across 499 incentive participants[82]. - During the reporting period, 56,469,662 stock options were exercised, with 6,791,000 options canceled due to participants no longer qualifying[82]. - The company regularly reviews its compensation policies to enhance team quality and performance, aligning with market conditions[75]. - The stock options granted on June 19, 2018, have a vesting schedule where 33.3% will vest on June 19, 2020, and the remaining will vest in subsequent years[104]. Strategic Initiatives and Market Expansion - The company emphasized a customer-centric service philosophy to stabilize the global container logistics supply chain amid challenges such as port congestion and container shortages[14]. - The company is actively expanding into emerging markets, achieving a 24% year-on-year increase in container volume from these markets, with third-country market volume accounting for 38% of total foreign trade container volume[17]. - The company plans to expand its market presence through strategic acquisitions and partnerships, as evidenced by the recent acquisition of Tianjin Port Container Co., Ltd.[68]. - The company is committed to enhancing its digital capabilities and has initiated the construction of smart ports in various locations, leveraging advanced technologies such as 5G and autonomous vehicles[18]. Corporate Governance and Investor Relations - The company emphasizes high standards of corporate governance as a key factor in operational success and shareholder value enhancement[118]. - A total of 111 investor meetings were held, engaging 954 investors during the first half of the year[122]. - The audit committee has reviewed the unaudited interim financial information and recommended its adoption by the board[117]. - The company maintains a commitment to compliance and effective communication with the capital market[122].

Financial Performance - The company achieved a net profit attributable to shareholders of 9.93 billion RMB in 2020, an increase of 46.76% compared to 2019[19]. - Total operating revenue for 2020 was 171.26 billion RMB, representing a 13.37% increase from 2019[19]. - The net profit after deducting non-recurring gains and losses was 9.59 billion RMB, a significant increase of 505.10% compared to the previous year[19]. - The net profit attributable to shareholders for 2020 was ¥9.93 billion, up from ¥6.76 billion in 2019, representing a growth of 46.06%[23]. - The basic earnings per share for 2020 was ¥0.81, a 44.64% increase from ¥0.56 in 2019[21]. - The net cash flow from operating activities for 2020 was approximately ¥45.03 billion, an increase of 112.38% compared to ¥21.20 billion in 2019[20]. - The company reported a significant increase in net cash flow from operating activities, reaching RMB 45.03 billion, a 112.38% increase year-on-year[54]. - The company reported a net profit of ¥6.07 billion in Q4 2020, significantly higher than ¥2.72 billion in Q3 2020[25]. - The company’s financial expenses decreased significantly by 17.60% year-on-year, optimizing its capital structure[46]. - The company’s net profit after deducting non-recurring gains and losses was 9.593 billion CNY, a substantial increase of 80.08 billion CNY, representing a growth of 505.10%[41]. Operational Highlights - The company operated a fleet with a capacity exceeding 3.07 million TEUs, ranking third globally according to Alphaliner data[31]. - The company expanded its operations to 278 international routes and 54 coastal routes in China by the end of the reporting period[28]. - The company completed a total cargo volume of 26.3445 million TEUs, a growth of 2.35% compared to 25.7391 million TEUs in 2019[42]. - The company’s container fleet size increased to 536 vessels with a capacity of 3,073,684 TEUs, a growth of 3.6% year-on-year[42]. - The company launched 45 new shipping routes to its controlled terminals, providing stable cargo support during the pandemic[42]. - The company’s container terminal throughput in 2019 ranked first in the world, with a total throughput capacity target of 13.6 million TEUs[38]. - The company’s box volume in emerging markets and third-country markets increased by 3.6% and 3.0% respectively[42]. - The company’s foreign trade e-commerce transaction volume increased by 270% in 2020, reflecting the expansion of its online service capabilities[44]. Strategic Initiatives - Future outlook includes continued market expansion and potential mergers and acquisitions to enhance competitive positioning[6]. - The company emphasizes the importance of risk management in its forward-looking statements, advising investors to be cautious[6]. - The company is focused on expanding its terminal services to increase revenue and market share[34]. - The company aims to enhance its service quality and operational efficiency through continuous innovation in its business model[39]. - The company is committed to sustainable development and has implemented various energy-saving and emission-reduction technologies to minimize environmental impact[47]. - The company is actively pursuing market expansion in emerging and regional markets, aligning with the Belt and Road Initiative[48]. - The company plans to enhance its global network layout and optimize shipping routes in response to the ongoing pandemic and changing trade dynamics[48]. - The company aims to strengthen its dual-brand strategy to improve service capabilities and enhance end-to-end solutions for customers[49]. Digital Transformation - The company emphasized digital transformation and enhancing customer value as part of its strategic focus for future growth[29]. - The company is focusing on digital transformation to improve online service capabilities and enhance customer experience through IoT and blockchain technologies[50]. - The company’s digital transformation efforts included the launch of the first blockchain bill of lading with property rights attributes in November 2020[45]. - The company accelerated its digital transformation, leveraging the IRIS4 system for remote service responsiveness during the pandemic[70]. - The company has established the GSBN (Global Shipping Business Network) to enhance data exchange and digital transformation efforts[70]. Governance and Compliance - The company has committed to maintaining operational independence from its controlling shareholder, ensuring no interference in business decisions that could harm shareholder interests[96]. - The company has established long-term commitments to avoid conflicts of interest and ensure fair market practices in all transactions[98]. - The company has not proposed any cash profit distribution plans despite positive profits, indicating a strategy focused on growth and reinvestment[95]. - The company has not engaged in share buybacks during the reporting period, further emphasizing its strategy of reinvestment[95]. - The company guarantees the accuracy and completeness of information provided during the transaction process, assuming legal responsibility for any misrepresentation[101]. Employee and Management - The company employed a total of 29,379 staff, with 9,546 retired employees requiring financial support[174]. - The total compensation for all directors, supervisors, and senior management amounted to RMB 38.7215 million[169]. - The company follows a performance-based salary system for its executives, linking compensation to annual assessment results and task completion[156]. - The management team includes Chairman Xu Lirong and Vice Chairman Huang Xiaowen, with various executives holding significant positions[153]. - The company has implemented an employee stock ownership plan in accordance with state regulations, involving strategic investors and employee participation[111]. Market Outlook - The company anticipates global economic growth of 5.5% in 2021, with a projected 8.1% increase in global trade volume[47]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 12% to 15%[166]. - The company aims to enhance its operational capacity by adding 10 new vessels to its fleet by the end of 2022[158]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share by 2025[158]. - The company is exploring strategic acquisitions to bolster its service offerings, with a budget allocation of $500 million for potential deals in 2021[158]. Financial Instruments and Bonds - COSCO Finance (2011) Ltd. issued a 4% credit-enhanced bond with a balance of CNY 10.00 billion, maturing on December 3, 2022[194]. - COSCO SHIPPING PORTS FINANCE (2013) CO. LTD. issued a 4.375% secured note with a balance of CNY 3.00 billion, maturing on January 31, 2023[194]. - The funds from the 4% credit-enhanced bond are primarily used for operational activities, including working capital, repaying bank loans, and capital expenditures[196]. - Both bonds have been serviced on time without any defaults reported[194].

Financial Performance - Net profit attributable to shareholders of the listed company reached CNY 3.86 billion, an increase of 82.40% year-on-year[6]. - Operating revenue for the first nine months was CNY 117.71 billion, up 5.46% from the same period last year[6]. - Basic earnings per share increased to CNY 0.31, a rise of 72.22% compared to the previous year[7]. - The weighted average return on net assets was 10.38%, an increase of 3.07 percentage points[7]. - Total revenue for the group in Q3 2020 reached RMB 39,913,503 thousand, a year-on-year increase of 12.38% compared to RMB 35,516,045 thousand in Q3 2019[23]. - Net profit for Q3 2020 was ¥3.59 billion, compared to ¥1.36 billion in Q3 2019, representing a 164.5% increase[41]. - The company reported a total comprehensive income of ¥2.22 billion for Q3 2020, compared to ¥2.03 billion in Q3 2019, reflecting a growth of 9.5%[42]. - The company’s total profit for Q3 2020 was ¥3.77 billion, compared to ¥1.56 billion in Q3 2019, showing a growth of 141.1%[41]. Cash Flow and Liquidity - Net cash flow from operating activities for the first nine months was CNY 22.73 billion, representing a 51.54% increase year-on-year[6]. - The company's cash and cash equivalents as of September 30, 2020, amounted to ¥45,391,318,162.17, down from ¥50,329,691,977.73 at the end of 2019[34]. - Cash inflow from operating activities was only ¥21.32 million in 2020, a significant drop from ¥72.88 million in 2019, showing a decrease of 70.8%[48]. - The net increase in cash and cash equivalents for Q3 2020 was -¥4.98 billion, contrasting with an increase of ¥3.96 billion in Q3 2019, indicating a negative cash flow trend[47]. - Cash inflow from investment activities was approximately ¥6.78 billion in 2020, a substantial increase from ¥0.22 billion in 2019[48]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 247.58 billion, a decrease of 5.58% compared to the end of the previous year[6]. - As of September 30, 2020, total liabilities decreased to ¥174.73 billion from ¥193.10 billion as of December 31, 2019, representing a reduction of approximately 9.5%[36]. - The total equity attributable to shareholders increased to ¥38.99 billion from ¥35.36 billion, reflecting a growth of about 7.4% year-over-year[36]. - The company’s total current liabilities decreased to ¥3.00 billion from ¥7.39 billion, a reduction of about 59.5%[38]. - Long-term borrowings decreased to ¥68,270,784,118.44 from ¥79,503,473,505.36 compared to the previous year[35]. Operational Efficiency - The company has seen a significant increase in net profit due to improved operational efficiency and market conditions[11]. - The group's operating costs for the first nine months of 2020 were 104.161 billion yuan, an increase of 4.740 billion yuan or 4.77% year-on-year[15]. - The company is focusing on expanding its market presence and enhancing operational efficiency through strategic investments and technology advancements[32]. - The company reported a significant increase in construction in progress, rising to ¥3,415,444,872.24 from ¥2,958,401,356.48 year-on-year[35]. Shareholder Information - The total number of shareholders at the end of the reporting period was 237,843[9]. - The largest shareholder, China Ocean Shipping Company, held 37.18% of the shares[9]. Investment Activities - The company has signed agreements to purchase five 23,000 TEU container ships for a total price of approximately 778.4 million USD (about 5.401 billion yuan)[18]. - The company received cash from investment activities totaling ¥1,439,347,320.63 in the first three quarters of 2020, compared to ¥1,485,664,969.98 in the same period of 2019[46].

Financial Performance - For the six months ended June 30, 2020, the company reported revenue of RMB 74,052.93 million, an increase of 3.19% compared to RMB 71,762.49 million in the same period of 2019[12]. - The profit attributable to equity holders of the company for the same period was RMB 1,137.16 million, a decrease of 2.34% from RMB 1,164.39 million in 2019[12]. - The basic earnings per share for the first half of 2020 was RMB 0.0928, down from RMB 0.0977 in the previous year[12]. - Operating profit for the first half of 2020 was RMB 3,411.30 million, a decrease of 10.14% from RMB 3,796.19 million in the same period of 2019[13]. - The company reported a pre-tax profit from continuing operations of RMB 2,282.57 million, an increase of 2.63% from RMB 2,223.98 million in the previous year[13]. - The company achieved a total cargo volume of 11.8457 million TEUs in the reporting period, a year-on-year decrease of 4.93%[15]. - The company's global container throughput reached 57.6342 million TEUs, down 3.56% year-on-year[15]. - The company reported a net profit of RMB 1,938,332 thousand for the period, with a profit before tax of RMB 2,282,566 thousand[154]. - The total revenue for the first half of 2020 was RMB 74,812,399 thousand, with external revenue amounting to RMB 74,052,930 thousand[163]. Operational Challenges - The company faced significant challenges due to the COVID-19 pandemic, which impacted global trade and container shipping markets, with a projected 10.2% decline in global container freight volume[13]. - The International Monetary Fund (IMF) projected a global economic contraction of 4.9% for 2020, with China's growth expected to slow to 1.0%[13]. - The company is actively working to ensure the stability of the global container logistics supply chain during the pandemic[14]. Strategic Initiatives - The company aims to focus on high-quality development and integration, with a strategic goal of creating a "three-network integration" framework[14]. - The company plans to enhance its integrated service network and accelerate digital transformation to improve customer experience and operational efficiency[21]. - The company aims to strengthen its global operations by optimizing its route network and expanding into emerging markets[21]. - The company successfully launched the DAY4 product, optimizing 39 routes and enhancing customer service capabilities[15]. - The company implemented a digital transformation strategy, including the use of blockchain technology for real-time cargo data exchange, impacting over 10,000 containers since November 2019[18]. Financial Management - The company reduced its financial costs significantly, with the asset-liability ratio decreasing by 1.51 percentage points compared to the beginning of the period[19]. - Financial expenses were reduced to RMB 2,515,167 thousand, a decrease of RMB 578,641 thousand, or 18.70% year-over-year, attributed to lower loan rates and cost-effective financing strategies[33]. - The company reported a net financial expense of RMB 2,144,898 thousand, reduced from RMB 2,662,464 thousand in the previous year, indicating improved financial management[129]. - The company recognized a foreign exchange gain of RMB 540,940 thousand during the period, compared to a gain of RMB 31,578 thousand in the previous year, indicating favorable currency movements[132]. Investments and Assets - As of June 30, 2020, total assets amounted to RMB 254,382,095 thousand, a decrease of 2.99% or RMB 7,841,935 thousand from the end of the previous year[40]. - The total liabilities as of June 30, 2020, were RMB 183,479,606 thousand, a decrease of 4.98% or RMB 9,619,187 thousand from the end of the previous year[40]. - The group has capital commitments for the construction of container ships amounting to RMB 4,926,338 thousand[50]. - The group reported a total of RMB 370,269 thousand in financial income across all segments[154]. Employee and Management Information - The total employee cost, including director remuneration, amounted to approximately RMB 5,154.63 million[80]. - The company had approximately 32,107 employees as of June 30, 2020, with no significant changes in employee numbers compared to the previous report[80]. - The stock option incentive plan approved in December 2018 allows for a total of up to 218,236,900 A-shares, representing about 2.25% of the company's A-share capital as of June 30, 2020[81]. Shareholder and Governance - The board of directors does not recommend the distribution of a mid-term dividend for the reporting period[124]. - The board members' terms expired in May 2020, and the board re-election will be appropriately postponed[120]. - The company has adopted corporate governance codes and is committed to maintaining high standards of corporate governance[120]. Cash Flow and Financing - The net cash inflow from operating activities during the period was RMB 11,438 million[14]. - The net cash outflow from investing activities for the first half of 2020 was RMB 1,171,144 thousand, a decrease of RMB 4,420,971 thousand compared to the same period last year[39]. - The net cash outflow from financing activities for the first half of 2020 was RMB 15,014,024 thousand, an increase of RMB 9,996,093 thousand compared to the same period last year[40]. - The company reported a decrease in cash flow from financing activities, totaling RMB (15,014,024) thousand, compared to RMB (4,747,477) thousand in the previous year[135].

[Definitions](index=4&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8A%E4%B9%89) [Company Profile and Key Financial Indicators](index=4&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) [Company Information](index=4&type=section&id=%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF) This section provides basic information for COSCO SHIPPING Holdings Co., Ltd., including its names, contact details, and addresses - Basic company information: COSCO SHIPPING Holdings Co., Ltd., stock abbreviation 'COSCO SHIPPING Holdings', A-share code **601919**, H-share code **01919**[8](index=8&type=chunk)[14](index=14&type=chunk) [Key Accounting Data and Financial Indicators](index=5&type=section&id=%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) During the reporting period, the company's operating revenue was **74.05 billion Yuan**, a **2.71% increase**, while net profit attributable to shareholders was **1.14 billion Yuan**, an **8.09% decrease**, with operating cash flow reaching **11.44 billion Yuan**, up **20.82%**, and basic earnings per share at **0.09 Yuan**, down **10%** Key Accounting Data (January-June 2020) | Key Accounting Data | Current Period (Jan-Jun) (Yuan) | Prior Period (Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 74,052,930,030.58 | 72,101,161,372.87 | 2.71 | | Net Profit Attributable to Shareholders (Yuan) | 1,137,163,927.22 | 1,237,231,471.41 | -8.09 | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) (Yuan) | 882,186,026.20 | 1,052,701,299.91 | -16.20 | | Net Cash Flow from Operating Activities (Yuan) | 11,437,691,104.97 | 9,466,838,760.54 | 20.82 | | **Asset Status** | **End of Current Period (Yuan)** | **End of Prior Year (Yuan)** | **YoY Change (%)** | | Net Assets Attributable to Shareholders (Yuan) | 36,910,948,587.78 | 35,359,676,133.83 | 4.39 | | Total Assets (Yuan) | 254,382,094,842.74 | 262,224,029,547.74 | -2.99 | Key Financial Indicators (January-June 2020) | Key Financial Indicators | Current Period (Jan-Jun) | Prior Period | Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/Share) | 0.09 | 0.10 | -10.00% | | Diluted Earnings Per Share (Yuan/Share) | 0.09 | 0.10 | -10.00% | | Basic EPS (Excluding Non-recurring Items) (Yuan/Share) | 0.07 | 0.09 | -22.22% | | Weighted Average Return on Net Assets (%) | 3.15 | 4.41 | Decreased by 1.26 percentage points | | Weighted Average Return on Net Assets (Excluding Non-recurring Items) (%) | 2.44 | 3.75 | Decreased by 1.31 percentage points | [Non-recurring Gains and Losses Items and Amounts](index=7&type=section&id=%E9%9D%9E%E5%B8%B8%E8%A7%84%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%92%8C%E9%87%91%E9%A2%9D) During the reporting period, the company's total non-recurring gains and losses amounted to **255 million Yuan**, primarily from **575 million Yuan** in non-current asset disposal gains and **88 million Yuan** in government subsidies, after deducting minority interest and income tax impacts Non-recurring Gains and Losses Items (January-June 2020) | Non-recurring Gains and Losses Items | Amount (Yuan) | | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | 575,251,848.27 | | Government Subsidies Recognized in Current Profit/Loss | 87,601,446.77 | | Gains/Losses from Fair Value Changes of Trading Financial Assets/Liabilities | -51,168,136.34 | | Other Non-operating Income/Expenses | -1,448,355.37 | | Impact on Minority Interests | -260,735,716.86 | | Income Tax Impact | -94,523,185.45 | | **Total** | **254,977,901.02** | [Business Overview](index=7&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E5%85%AC%E5%8F%B8%E4%B8%9A%E5%8A%A1%E6%A6%82%E8%A6%81) [Principal Businesses and Operating Model](index=7&type=section&id=%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1%E4%B8%8E%E7%BB%8F%E8%90%A5%E6%A8%A1%E5%BC%8F) The company's core businesses are container shipping and terminal operations, providing global container transportation services through COSCO SHIPPING Lines and OOCL, and terminal handling services through COSCO SHIPPING Ports, with performance driven by global trade, supply-demand, and operational efficiency - The company primarily engages in international and domestic container shipping and terminal handling operations, managing **278 international routes** and calling at **334 ports** in approximately **102 countries and regions** globally as of the reporting period end[22](index=22&type=chunk) - Terminal operations span China's five major coastal port clusters and key overseas hubs, managing **360 berths** across **36 ports** worldwide with a total target annual handling capacity of approximately **133 million TEU**[25](index=25&type=chunk) [Analysis of Core Competencies](index=8&type=section&id=%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competencies include its significant scale, ranking third globally in container fleet capacity and first in terminal throughput, extensive global network coverage, innovative business model, and strong business synergy through dual-brand and port-shipping integration - Significant scale advantage: As of the reporting period end, the self-operated container fleet capacity was approximately **2.92 million TEU**, ranking third globally, while its container terminals' total throughput in 2019 ranked first worldwide[27](index=27&type=chunk) - Global presence: Container shipping business covers **334 ports** in **102 countries and regions** globally; port business has invested in **46 terminals** across **36 ports** worldwide[28](index=28&type=chunk) - Business synergy: Achieved through complementary 'COSCO SHIPPING' and 'OOCL' dual brands, strengthening port-shipping and sea-rail integration to provide end-to-end logistics solutions for clients[30](index=30&type=chunk) [Discussion and Analysis of Operations](index=9&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E7%9A%84%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) [Overview of Operations](index=9&type=section&id=%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E6%A6%82%E8%BF%B0) In H1 2020, despite COVID-19 impacts, the company achieved **74.05 billion Yuan** in operating revenue, up **2.71%**, and **1.14 billion Yuan** in net profit attributable to parent, leveraging scale, optimizing global routes, enhancing end-to-end services, and accelerating digital transformation, effectively managing market challenges through dual-brand synergy and cost control - In the first half, the company's dual-brand container fleet completed **11.85 million TEU** in cargo volume, a **4.93% decrease** year-on-year, while COSCO SHIPPING Ports handled **57.63 million TEU** in total throughput, down **3.56%**[32](index=32&type=chunk) - The company strengthened its emerging market presence, with third-country cargo volume increasing from **37.0%** of total foreign trade volume at the end of 2019 to **38.6%**[33](index=33&type=chunk) - The company actively controlled costs, capitalized on low fuel prices for procurement, and strengthened cash and debt management, leading to a significant year-on-year decrease in financial expenses and a **1.51 percentage point** reduction in the asset-liability ratio from the beginning of the period[36](index=36&type=chunk) [Analysis of Principal Businesses](index=11&type=section&id=%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) During the reporting period, container shipping revenue was **71.59 billion Yuan**, up **3.89%** with an **8.64%** gross margin, while terminal business revenue was **3.23 billion Yuan**, down **27.74%** with a **23.00%** gross margin; equipment and cargo transportation costs were the largest component at **51.82%** of total costs, and despite lower total cargo volume, route revenue grew **4.76%** due to strong intra-Asia growth Key Financial Statement Items Changes (Year-on-Year) | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 74,052,930,030.58 | 72,101,161,372.87 | 2.71 | | Operating Costs | 67,128,987,357.89 | 64,232,252,510.83 | 4.51 | | Financial Expenses | 2,033,087,668.41 | 2,540,723,268.10 | -19.98 | | Net Cash Flow from Operating Activities | 11,437,691,104.97 | 9,466,838,760.54 | 20.82 | | Net Cash Flow from Investing Activities | -1,171,144,306.94 | -5,601,592,704.10 | 79.09 | | Net Cash Flow from Financing Activities | -15,014,023,597.67 | -5,017,931,103.37 | -199.21 | Principal Business by Segment | Segment | Operating Revenue (Yuan) | Operating Costs (Yuan) | Gross Margin (%) | Operating Revenue YoY (%) | Operating Costs YoY (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Container Shipping | 71,587,784,399.87 | 65,402,992,213.15 | 8.64 | 3.89 | 4.54 | | Terminal Business | 3,224,615,316.06 | 2,482,801,689.96 | 23.00 | -27.74 | -15.50 | Group Cargo Volume and Route Revenue (By Route) | Route | Cargo Volume (TEU) | Cargo Volume YoY (%) | Route Revenue (Thousand Yuan) | Route Revenue YoY (%) | | :--- | :--- | :--- | :--- | :--- | | Trans-Pacific | 2,147,936 | -3.88 | 19,290,534 | 1.19 | | Asia-Europe (incl. Mediterranean) | 2,271,265 | -5.60 | 15,146,881 | 7.01 | | Intra-Asia (incl. Australia) | 3,799,831 | -1.26 | 18,208,957 | 13.73 | | Other International (incl. Atlantic) | 1,145,208 | -6.28 | 9,077,840 | 2.10 | | Mainland China | 2,481,448 | -9.71 | 5,143,760 | -9.95 | | **Total** | **11,845,688** | **-4.93** | **66,867,972** | **4.76** | [Assets, Liabilities, and Investment Status](index=16&type=section&id=%E8%B5%84%E4%BA%A7%E3%80%81%E8%B4%9F%E5%80%BA%E4%B8%8E%E6%8A%95%E8%B5%84%E6%83%85%E5%86%B5) During the reporting period, the company's asset-liability structure improved, with short-term borrowings decreasing by **40.90%** and other current liabilities increasing by **66.67%** due to ultra-short-term bond issuance; the company realized approximately **482 million Yuan** in net profit from equity disposals and made significant non-equity investments, ordering five 23,000 TEU container vessels for approximately **778.4 million USD** - The company sold equity in Zhangjiagang Terminal, Yangzhou Yuanyang Terminal, and Jiangsu Changjiang Petrochemical Co., Ltd., realizing approximately **482 million Yuan** in net profit[54](index=54&type=chunk) Key Balance Sheet Items Changes | Item Name | Amount at End of Current Period (Yuan) | Amount at End of Prior Year (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Short-term Borrowings | 8,718,543,103.05 | 14,752,031,130.74 | -40.90 | | Other Current Liabilities | 2,500,000,000.00 | 1,500,000,000.00 | 66.67 | | Assets Held for Sale | 0.00 | 1,896,903,609.60 | -100.00 | - OOCL ordered **five 23,000 TEU** container vessels for a total price of **778.4 million USD** (approximately **5.40 billion Yuan**), constituting a significant non-equity investment and related party transaction[63](index=63&type=chunk) [Analysis of Major Holding and Participating Companies](index=19&type=section&id=%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) The company primarily operates through three major subsidiaries: COSCO SHIPPING Lines, OOCL, and COSCO SHIPPING Ports, with COSCO SHIPPING Lines achieving **48.54 billion Yuan** in revenue and **637 million Yuan** in net profit, OOCL **24.12 billion Yuan** in revenue and **718 million Yuan** in net profit, and COSCO SHIPPING Ports **3.23 billion Yuan** in revenue and **1.15 billion Yuan** in net profit during the first half Performance of Major Subsidiaries in H1 2020 | Subsidiary Name | Principal Business | Operating Revenue (Billion Yuan) | Net Profit Attributable to Parent (Billion Yuan) | | :--- | :--- | :--- | :--- | | COSCO SHIPPING Lines | Container Shipping | 48.542 | 0.637 | | OOCL | Container Shipping and Logistics | 24.123 | 0.718 | | COSCO SHIPPING Ports | Terminal Management and Operations | 3.225 | 1.150 | [Potential Risks](index=19&type=section&id=%E5%8F%AF%E8%83%BD%E9%9D%A2%E5%AF%B9%E7%9A%84%E9%A3%8E%E9%99%A9) The company faces significant risks including the COVID-19 pandemic's potential adverse impact on global economy and shipping logistics, investment decision uncertainties involving domestic and overseas M&A and infrastructure projects, and cost management challenges due to reduced terminal efficiency and increased variable costs caused by the pandemic - COVID-19 pandemic risk: The global outbreak may significantly impact the global and Chinese economies, directly challenging the shipping and logistics industry[68](index=68&type=chunk) - Investment decision risk: The company engages in various investment activities, with target achievement subject to multiple internal and external uncertainties[70](index=70&type=chunk) - Cost and expense management risk: Pandemic impacts have led to inefficient terminal operations and extended container turnaround times, increasing route operating costs[71](index=71&type=chunk) [Significant Matters](index=20&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) [Profit Distribution and Commitment Fulfillment](index=21&type=section&id=%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E4%B8%8E%E6%89%BF%E8%AF%BA%E5%B1%A5%E8%A1%8C) During the reporting period, the company did not propose a half-year profit distribution or capital reserve capitalization plan, and all commitments made by the company and related parties, including the actual controller and shareholders, were strictly fulfilled without any breaches - The company has no half-year profit distribution or capital reserve capitalization plan[74](index=74&type=chunk) - Commitments made by the company's actual controller, shareholders, and related parties regarding maintaining independence, resolving horizontal competition, and regulating related party transactions were strictly fulfilled during the reporting period[75](index=75&type=chunk)[76](index=76&type=chunk)[77](index=77&type=chunk) [Equity Incentive and Employee Stock Ownership](index=26&type=section&id=%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E4%B8%8E%E5%91%98%E5%B7%A5%E6%8C%81%E8%82%A1) During the reporting period, the company adjusted its stock option incentive plan to include directors, granting **16.98 million reserved stock options** to **39 grantees**; additionally, subsidiary Shanghai Pan Asia Shipping Co., Ltd. continued its employee stock ownership plan, with the employee stock ownership platform holding **8%** equity, and COSCO SHIPPING Ports Limited's stock option plan is also underway - On May 29, 2020, the company granted **16.98 million reserved stock options** to **39 grantees**[83](index=83&type=chunk) - The employee stock ownership platform of subsidiary Shanghai Pan Asia Shipping Co., Ltd. holds **8%** of its equity, with **150 participating employees**[84](index=84&type=chunk) [Significant Related Party Transactions and Contracts](index=27&type=section&id=%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93%E4%B8%8E%E5%90%88%E5%90%8C) During the reporting period, the company engaged in various routine related party transactions totaling approximately **25.05 billion Yuan**, primarily for vessel and container asset services, shipping services, and terminal services; significant occasional related party transactions included OOCL's order for five 23,000 TEU container vessels totaling approximately **5.40 billion Yuan**; the company also provided **42.04 billion Yuan** in guarantees for subsidiaries, representing **59.29%** of its net assets - Routine related party transactions totaled approximately **25.05 billion Yuan**, primarily with parent company COSCO SHIPPING Group and its affiliates, with pricing consistent with market rates[87](index=87&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk) - Significant related party transaction: OOCL signed shipbuilding agreements with related parties to purchase **five 23,000 TEU** container vessels for a total price of **778.4 million USD** (approximately **5.40 billion Yuan**)[91](index=91&type=chunk) Total Company Guarantees | Guarantee Item | Amount (Yuan) | | :--- | :--- | | Total Guarantee Balance for Subsidiaries at Period End (B) | 42,038,431,833.06 | | Total Guarantees (A+B) | 42,038,431,833.06 | | Percentage of Total Guarantees to Company's Net Assets (%) | 59.29 | [Changes in Ordinary Shares and Shareholder Information](index=34&type=section&id=%E7%AC%AC%E5%85%AD%E8%8A%82%20%E6%99%AE%E9%80%9A%E8%82%A1%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E5%8F%8A%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) [Share Capital Changes and Shareholder Information](index=34&type=section&id=%E8%82%A1%E6%9C%AC%E5%8F%98%E5%8A%A8%E4%B8%8E%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) During the reporting period, the company's total share capital remained unchanged at **12,259,529,227 shares**; the proportion of unrestricted shares increased from **83.33%** to **91.67%** due to the listing of **1,021,627,435 restricted shares**; as of the reporting period end, total shareholders were **257,833**, with China Ocean Shipping Company Limited (**37.18%**) and HKSCC NOMINEES LIMITED (**21.05%**) as the top two shareholders - During the reporting period, **1,021,627,435 restricted non-public offering shares** became tradable on February 3, 2020, increasing the proportion of unrestricted shares[113](index=113&type=chunk) - As of the reporting period end, the company had **257,833 ordinary shareholders**[116](index=116&type=chunk) Top Three Shareholders' Holdings | Shareholder Name | Shares Held at Period End | Percentage (%) | | :--- | :--- | :--- | | China Ocean Shipping Company Limited | 4,557,594,644 | 37.18 | | HKSCC NOMINEES LIMITED | 2,580,600,000 | 21.05 | | China COSCO Shipping Group Co., Ltd. | 1,021,627,435 | 8.33 | [Corporate Bonds Information](index=39&type=section&id=%E7%AC%AC%E4%B9%9D%E8%8A%82%20%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) [Overview of Corporate Bonds and Solvency](index=39&type=section&id=%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8%E6%A6%82%E5%86%B5%E4%B8%8E%E5%81%BF%E5%80%BA%E8%83%BD%E5%8A%9B) As of the reporting period end, the company had two outstanding USD bonds totaling **1 billion USD** and **300 million USD**, both traded on the Hong Kong Stock Exchange with timely interest payments; the asset-liability ratio was **72.13%**, down **1.51 percentage points** from year-end, and the EBITDA interest coverage ratio improved to **4.49x** from **3.62x**, indicating stable solvency, with two tranches of medium-term notes also paid on time Basic Information on Outstanding Corporate Bonds | Bond Abbreviation | Code | Maturity Date | Bond Balance (Billion USD) | Interest Rate (%) | | :--- | :--- | :--- | :--- | :--- | | COSFINB2212 | 04584 | 2022/12/3 | 1.00 | 4.000 | | CSPFINN2301 | 5900 | 2023/1/31 | 0.30 | 4.375 | - As of June 2020, the Group's bank credit facility was **154.96 billion Yuan**, with **100.74 billion Yuan** utilized and **54.22 billion Yuan** unused[134](index=134&type=chunk) Key Solvency Indicators | Key Indicator | End of Current Period/Current Period | End of Prior Year/Prior Period | Change | | :--- | :--- | :--- | :--- | | Asset-Liability Ratio (%) | 72.13 | 73.64 | Decreased by 1.51 percentage points | | EBITDA Interest Coverage Ratio | 4.49 | 3.62 | 24.12% | [Financial Report](index=43&type=section&id=%E7%AC%AC%E5%8D%81%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A) [Financial Statement Summary](index=43&type=section&id=%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E6%91%98%E8%A6%81) As of June 30, 2020, the company's total assets were **254.38 billion Yuan**, total liabilities **183.48 billion Yuan**, and equity attributable to parent company owners **36.91 billion Yuan**; in H1 2020, operating revenue was **74.05 billion Yuan**, operating costs **67.13 billion Yuan**, net profit **1.94 billion Yuan** (of which **1.14 billion Yuan** was attributable to parent shareholders), and net cash flow from operating activities was a robust **11.44 billion Yuan** Consolidated Balance Sheet Summary (June 30, 2020) | Item | Amount (Yuan) | | :--- | :--- | | **Assets** | | | Total Current Assets | 65,415,741,532.79 | | Total Non-current Assets | 188,966,353,309.95 | | **Total Assets** | **254,382,094,842.74** | | **Liabilities and Owners' Equity** | | | Total Current Liabilities | 69,184,637,820.15 | | Total Non-current Liabilities | 114,294,967,973.39 | | **Total Liabilities** | **183,479,605,793.54** | | Total Equity Attributable to Parent Company Owners | 36,910,948,587.78 | | Minority Interests | 33,991,540,461.42 | | **Total Owners' Equity** | **70,902,489,049.20** | Consolidated Income Statement Summary (January-June 2020) | Item | Amount (Yuan) | | :--- | :--- | | I. Total Operating Revenue | 74,052,930,030.58 | | II. Total Operating Costs | 73,780,526,424.80 | | Including: Operating Costs | 67,128,987,357.89 | | III. Operating Profit | 2,277,601,417.25 | | IV. Total Profit | 2,282,565,851.63 | | V. Net Profit | 1,938,332,362.26 | | Net Profit Attributable to Parent Company Shareholders | 1,137,163,927.22 | | Minority Interest Income/Loss | 801,168,435.04 | Consolidated Cash Flow Statement Summary (January-June 2020) | Item | Amount (Yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | 11,437,691,104.97 | | Net Cash Flow from Investing Activities | -1,171,144,306.94 | | Net Cash Flow from Financing Activities | -15,014,023,597.67 | | Net Increase in Cash and Cash Equivalents | -4,362,138,331.11 | [Summary of Notes to Consolidated Financial Statements](index=98&type=section&id=%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A%E6%91%98%E8%A6%81) Notes to financial statements indicate the company's cash and cash equivalents were **46.05 billion Yuan** at period-end; fixed assets totaled **103.83 billion Yuan**, with vessels being the largest component; goodwill was **6.24 billion Yuan**, primarily from the OOCL acquisition; long-term borrowings and lease liabilities were major non-current liabilities, and segment information shows container shipping as the primary source of revenue and assets - At period-end, the book value of fixed assets was **103.83 billion Yuan**, with vessel assets at **66.10 billion Yuan** and container assets at **15.26 billion Yuan**[277](index=277&type=chunk)[279](index=279&type=chunk) - At period-end, the book value of goodwill was **6.24 billion Yuan**, with **5.02 billion Yuan** attributed to the acquisition of Orient Overseas (International) Limited[288](index=288&type=chunk) Segment Information (January-June 2020) | Item | Container Shipping Business (Yuan) | Terminal Business (Yuan) | Total (Yuan) | | :--- | :--- | :--- | :--- | | Operating Revenue | 71,587,784,399.87 | 3,224,615,316.06 | 74,052,930,030.58 | | Total Assets | 171,581,132,203.54 | 73,299,019,935.85 | 254,382,094,842.74 | | Total Liabilities | 119,462,530,200.05 | 32,288,123,001.07 | 183,479,605,793.54 | [Supplementary Information](index=173&type=section&id=%E8%A1%A5%E5%85%85%E8%B5%84%E6%96%99) During the reporting period, total non-recurring gains and losses were **255 million Yuan**, primarily from non-current asset disposals; net profit attributable to ordinary shareholders after deducting non-recurring items was **882 million Yuan**; weighted average return on net assets was **3.15%**, and basic earnings per share was **0.09 Yuan** Return on Net Assets and Earnings Per Share | Profit for the Period | Weighted Average Return on Net Assets (%) | Basic Earnings Per Share (Yuan) | Diluted Earnings Per Share (Yuan) | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Ordinary Shareholders of the Company | 3.15 | 0.09 | 0.09 | | Net Profit Attributable to Ordinary Shareholders of the Company (Excluding Non-recurring Items) | 2.44 | 0.07 | 0.07 | [Documents for Reference](index=176&type=section&id=%E7%AC%AC%E5%8D%81%E4%B8%80%E8%8A%82%20%E5%A4%87%E6%9F%A5%E6%96%87%E4%BB%B6%E7%9B%AE%E5%BD%95)