2019-03-29 16:00Financial Performance - COSCO SHIPPING Holdings achieved a total revenue of approximately CNY 120.83 billion in 2018, representing a 33.57% increase compared to CNY 90.46 billion in 2017[16]. - The net profit attributable to shareholders of the listed company for 2018 was CNY 1.23 billion, a decrease of 53.79% from CNY 2.66 billion in 2017[16]. - Basic earnings per share decreased by 53.85% to CNY 0.12 in 2018 compared to CNY 0.26 in 2017[17]. - The weighted average return on equity dropped by 8.25 percentage points to 5.52% in 2018 from 13.77% in 2017[17]. - Total operating revenue for 2018 was RMB 120.83 billion, a year-on-year increase of 33.57%[50]. - Container shipping and related business revenue reached RMB 114.84 billion, up 32.38% year-on-year, with a notable contribution from the terminal business which grew by 76.97%[51]. - The company achieved a net profit of RMB 1.23 billion for the year 2018, with accumulated undistributed profits being negative, thus no profit distribution is proposed for 2018[117]. Operational Highlights - The total assets of the company reached CNY 228.14 billion at the end of 2018, marking a 71.29% increase from CNY 133.19 billion at the end of 2017[16]. - The total annual handling capacity of China Merchants Port reached approximately 10.6 million TEUs by the end of 2018[29]. - The company reported a total of 291 international routes and 47 coastal routes in operation by the end of the reporting period[24]. - The company’s container shipping business completed a total cargo volume of 21.79 million TEUs in 2018, representing a year-on-year growth of 29%[43]. - The terminal business achieved a total throughput of 120 million TEUs, with a year-on-year increase of 21%[43]. - The total throughput of the group reached 117,365,360 TEUs in 2018, a year-on-year increase of 17.1%[93]. Acquisitions and Investments - The company successfully acquired Orient Overseas International, elevating its container fleet ranking to third globally according to Alphaliner[27]. - The acquisition of Orient Overseas International led to a significant expansion of the fleet, with a total of 477 vessels and a capacity of 2.76 million TEUs by the end of 2018[41]. - The company completed the acquisition of Orient Overseas International shares on August 7, 2018, with a total payment of USD 1 billion for the acquisition financing[159]. - The company plans to enhance investment in emerging markets and countries along the "Belt and Road" initiative, aligning with national strategies[113]. Financial Management - The company successfully completed a non-public issuance of A-shares, raising RMB 7.7 billion to optimize its capital structure[42]. - The company’s long-term equity investment balance was 28.877 billion RMB, an increase of 3.015 billion RMB from the previous year[96]. - The company’s derivative financial liabilities were reported at CNY 0.38 billion, related to fuel futures contracts held by Orient Overseas International[78]. - The company’s financing costs were reduced due to favorable loan rates from its controlling shareholders, enhancing cash flow and operational sustainability[161]. Digitalization and Innovation - The company aims to enhance its global route network and improve customer service through digital shipping initiatives[26]. - The digital strategy will leverage technologies such as big data and AI to improve customer experience and operational efficiency[48]. - The group plans to enhance its digital shipping capabilities and has initiated a blockchain project for traceability in shipping[88]. - The company is actively pursuing digital shipping initiatives, including a blockchain alliance to improve operational efficiency and customer service quality[45]. Risk Management and Compliance - The company emphasizes the importance of risk awareness regarding forward-looking statements in the annual report[4]. - The company has implemented a risk assessment process integrated into the investment project lifecycle to systematically analyze and evaluate risks[113]. - The company has not violated any decision-making procedures for external guarantees[5]. - The company has not distributed any dividends for the years 2016, 2017, and 2018, with the net profit attributable to ordinary shareholders being RMB -9.91 billion, RMB 2.66 billion, and RMB 1.23 billion respectively[119]. Sustainability and Social Responsibility - The company has been recognized for its sustainable development efforts, being included in the MSCI China Index and the Hang Seng Sustainable Development Index series[46]. - The company is actively involved in targeted poverty alleviation efforts, focusing on industrial and educational support[170]. - The total funding for targeted poverty alleviation amounted to 8,809,640 RMB (approximately 880.964 million RMB) in the reporting period[172]. - The company emphasizes green operations and environmental protection, implementing ISO14001 and ISO50001 management systems[176]. Corporate Governance - The company has a cash dividend policy that stipulates a minimum distribution of 25% of the audited distributable profits for the fiscal year[117]. - The company will ensure that the remuneration system for directors and senior management is linked to the execution of return measures[126]. - The company has established a non-competition commitment with COSCO Group regarding container shipping business, ensuring it is the sole entity engaged in this business under the group[126]. - The company will ensure compliance with any new regulatory requirements from the China Securities Regulatory Commission regarding return measures and commitments[126].