COSCO SHIP INTL-中远海运国际(00517) - 2022 - 中期财报

Financial Performance - For the first half of 2022, the profit attributable to equity holders was HK $165,587,000, representing a 4% increase from HK$ 159,592,000 in 2021[12]. - The Group's revenue for the six months ended June 30, 2022, was HK $1,803,925,000, a decrease of 19% compared to HK$ 2,231,237,000 in 2021[16]. - The gross profit for the Group was HK $316,357,000, a 14% decrease from HK$ 366,272,000 in 2021[17]. - The basic and diluted earnings per share were 10.80 HK cents, compared to 10.41 HK cents in 2021[15]. - Profit before income tax from shipping services was HK $157,209,000, a decrease of 12% compared to the previous year[65]. - Profit for the period was HK$ 171,067, representing an increase of 2.9% from HK $167,515 in 2021[121]. - The profit for the period ended June 30, 2022, was HK$ 165,587, compared to HK $159,592 for the same period in 2021, representing a growth of 3.1%[129]. Revenue Breakdown - Revenue from the core shipping services business was HK$ 1,516,269,000, down 10% year on year, accounting for 84% of the Group's total revenue[16]. - Revenue from the general trading segment was HK $287,656,000, down 47% year on year, accounting for 16% of the Group's revenue[16]. - Revenue from the ship trading agency segment decreased by 29% to HK$ 34,072,000 (2021: HK $48,069,000) year on year[70]. - Revenue from the insurance brokerage segment increased by 11% to HK$ 56,453,000 (2021: HK $50,996,000)[74]. - Revenue from the marine equipment and spare parts segment increased by 11% to HK$ 897,724,000 (2021: HK $806,005,000)[78]. - Revenue from the coatings segment decreased by 32% to HK$ 528,020,000 (2021: HK $781,822,000)[81]. Expenses and Costs - The gross profit margin increased to 18%, up 2 percentage points from 16% in 2021[17]. - Selling, administrative and general expenses decreased by 7% year on year to HK$ 256,729,000 (2021: HK $275,138,000) as a result of lower selling expenses[27]. - Finance income decreased by 18% year on year to HK$ 22,249,000 (2021: HK $27,076,000) due to declining deposit interest rates[28]. - Finance costs decreased significantly by 76% year on year to HK$ 952,000 (2021: HK $4,034,000)[29]. - Total employee benefit expenses, including directors' emoluments and provident funds, amounted to HK$ 212,182,000, compared to HK $203,491,000 in 2021[42][44]. Cash Flow and Liquidity - Total cash and deposits decreased to HK$ 6,041,209,000 as of June 30, 2022 (December 31, 2021: HK $6,219,741,000)[35]. - The Group had a net repayment of short-term borrowings amounting to approximately HK$ 42,217,000 during the period[35]. - The Group's cash return rate for the period was 0.73%, down from 0.87% in the same period of 2021[37][38]. - Cash used in operations for the six months ended June 30, 2022, was HK $6,153,000, a significant improvement compared to HK$ 276,294,000 in the same period of 2021[131]. - Net cash generated from investing activities increased to HK $674,300,000 in the first half of 2022, compared to HK$ 42,570,000 in the prior year[131]. - Cash and cash equivalents at the end of the period reached HK $1,796,187,000, up from HK$ 840,443,000 at the end of June 2021[131]. Market and Economic Conditions - The Group's performance was affected by the volatility of the COVID-19 pandemic in Hong Kong and the PRC[16]. - The global economic growth forecast for 2022 was lowered to 3.2% by the IMF, down 0.4 percentage points from the previous forecast in April[56]. - The economic damage from the Russia-Ukraine conflict is expected to significantly slow global growth in 2022, impacting shipping demand[102]. - The global shipping trade growth forecast for 2022 has been revised down to 1.6%, compared to the initial forecast of 3.5%[103]. Strategic Initiatives - COSCO SHIPPING International aims to leverage its advantages in the shipping service industry to explore new energy shipping and digitalization[109]. - The company is committed to supporting the shipping industry's transition to green shipping and digital development, enhancing efficiency for shipping enterprises and creating long-term sustainable value for shareholders[109]. - The shipping industry is gradually moving towards a new trend of green, low-carbon, and intelligent development, driven by digital technology[108]. Joint Ventures and Investments - Share of profits of joint ventures increased by 29% year on year to HK $47,218,000 (2021: HK$ 36,659,000), mainly from Jotun COSCO's profit of HK $40,322,000 (2021: HK$ 28,811,000)[30]. - The Group's share of profit from Jotun COSCO rose by 40% to HK $40,322,000, up from HK$ 28,811,000 in 2021[88]. Risk Management and Accounting - The Group's activities expose it to various financial risks, including market risk, credit risk, and liquidity risk[153]. - The Group recognizes impairment losses for any write-down of assets to fair value less costs to sell, with gains recognized for subsequent increases in fair value[146]. - The accounting policies and methods used in the preparation of the interim financial information are consistent with those set out in the annual financial statements for the year ended December 31, 2021[149].