Financial Performance - For the first half of 2023, COSCO SHIPPING Holdings reported revenue of RMB 91.84 billion, a decrease of 56.4% compared to RMB 210.79 billion in the same period of 2022[7]. - The net profit attributable to equity holders of the company was RMB 16.56 billion, down 74.6% from RMB 64.82 billion year-on-year[8]. - The average China Containerized Freight Index (CCFI) for the first half of 2023 was 1,009 points, representing a year-on-year decline of 69.3%[9]. - The company's operating profit for the period was RMB 18.13 billion, a decrease of 80.3% from RMB 91.96 billion in the previous year[8]. - EBIT for the reporting period was RMB 24.70 billion, down 73.8% from RMB 93.55 billion in the previous year[8]. - The basic earnings per share decreased to RMB 1.03, down RMB 3.02 from RMB 4.05 in the same period last year[7]. - The profit attributable to equity holders for the first half of 2023 was RMB 16.56 billion, down RMB 48.26 billion or 74.45% year-on-year[14]. - The total revenue for the first half of 2023 was RMB 91,842,797 thousand, a decrease of RMB 118,949,123 thousand or 56.43% compared to the same period last year[16]. - Container shipping business revenue for the first half of 2023 was RMB 88,287,136 thousand, down RMB 118,896,155 thousand or 57.39% year-on-year[17]. - The total revenue for the group decreased by 58.87% year-on-year, amounting to RMB 81,536,315 thousand[54]. Operational Challenges - The company continues to face challenges in the container shipping market due to weakened transportation demand and increased supply from new vessel deliveries[9]. - Revenue from the Trans-Pacific route fell by 68.58% to RMB 20,307,433 thousand compared to the same period last year[54]. - The group reported a decrease of 71.07% in revenue from the Trans-Pacific route in USD, totaling USD 2,914,134 thousand[56]. - The group’s revenue from the Asia-Europe route decreased by 66.18% to RMB 18,469,693 thousand[54]. - The cargo volume for the Asia region, including Australia, decreased by 7.04% year-on-year, totaling 3,784,423 TEUs[51]. - The total cargo volume for the group decreased by 8.63% year-on-year, totaling 11,395,328 TEUs[51]. Strategic Initiatives - The company aims to enhance its global layout, full-chain transportation, digital empowerment, and low-carbon transformation as part of its strategic focus[9]. - The company launched two new 24,000 TEU methanol dual-fuel vessels and plans to deliver the world's first 700 TEU fully electric container ship within the year[12]. - The company has successfully opened multiple new routes along the "Belt and Road" and RCEP member countries, enhancing its global shipping network[10]. - The digital supply chain platform has introduced a "one-stop" customer login portal and launched various digital supply chain products to meet diverse customer needs[12]. - The company is actively participating in the construction of low-carbon ports and has initiated projects for automated container terminals and distributed photovoltaic systems[12]. - The company aims to provide low-carbon, intelligent, and reliable container supply chain solutions in response to increasing customer demands for decarbonization and digitalization[13]. - The company is focused on enhancing operational efficiency and cost control to strengthen its core business capabilities and resilience in a challenging environment[13]. Financial Position - The debt-to-asset ratio improved to 48.6% by the end of the reporting period, indicating a stronger financial structure[9]. - The company's total assets amounted to RMB 482,926,939 thousand, a decrease from RMB 511,930,077 thousand as of December 31, 2022[116]. - The total liabilities of the group as of June 30, 2023, were RMB 234,500,953 thousand, down by RMB 23,636,030 thousand or 9.16% from the end of the previous year[36]. - The total outstanding borrowings of the group as of June 30, 2023, were RMB 42,879,890 thousand, with net cash amounting to RMB 155,346,377 thousand, a decrease of RMB 37,459,869 thousand compared to the end of the previous year[36]. - The net cash flow from operating activities was RMB 13,261,606 thousand, a decrease of RMB 99,309,947 thousand or 88.22% year-on-year[31]. - The company's cash and cash equivalents totaled RMB 198,226,267 thousand, a decrease of RMB 37,387,656 thousand or 15.87% from the end of the previous year[30]. Dividend and Shareholder Information - The board proposed an interim dividend of RMB 0.51 per share, with a payout ratio of approximately 50%[9]. - The company plans to distribute a cash dividend of RMB 0.51 per share, totaling approximately RMB 8.247 billion, which represents 50% of the net profit attributable to shareholders for the first half of 2023[18]. - As of June 30, 2023, the major shareholder, China Ocean Shipping Company, holds approximately 36.64% of the total issued share capital in A shares[107]. - The total number of shares held by the major shareholders amounts to approximately 6,304,873,037, representing about 38.99% of the total issued share capital[107]. Stock Options and Incentive Plans - 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, representing about 2.25% of the company's A-share capital as of June 30, 2020[73]. - The first batch of stock options granted on June 3, 2019, totaled 192,291,000 options with an exercise price of RMB 4.10 per A-share, while the closing price on that day was RMB 4.82[74]. - The company has a total of 10,022,784 stock options remain unexercised, with 75,392,302 options exercised during the reporting period[81]. - The company’s stock options are subject to performance targets, including achieving an economic value added (EVA) target for 2022[87]. - The stock option plan aims to create a performance-oriented culture that enhances shareholder value and aligns the interests of shareholders and management[92]. Corporate Governance and Investor Relations - The audit committee has reviewed the unaudited interim financial information for the reporting period and recommended its adoption by the board[109]. - The company maintains high standards of corporate governance, which is considered essential for operational success and enhancing shareholder value[110]. - In the first half of 2023, the company held 84 investor meetings, engaging with 411 investors through various communication channels[114]. - The company actively collects market feedback to inform senior management decisions, reflecting its responsiveness to investor concerns[114].
中远海控(01919) - 2023 - 中期财报