SITC(HK:01308)2021-03-22 04:01Financial Performance - The company's revenue for 2020 was $1,685,167,000, representing an 8.5% increase from $1,553,718,000 in 2019[11]. - Profit attributable to shareholders increased by 59.8% to $351,624,000 from $219,977,000 in the previous year[11]. - Basic earnings per share rose by 59.5% to 13.22 cents from 8.29 cents in 2019[11]. - The net cash flow from operating activities increased by 52.1% to $501,386,000 compared to $329,673,000 in 2019[11]. - The total equity attributable to shareholders reached $1,184,487,000, a 17.2% increase from $1,010,243,000 in 2019[11]. - Revenue for the year was approximately $1,685.2 million, an increase of about 8.5% compared to 2019, while gross profit rose to approximately $445.0 million, up about 49.2%[20]. - The profit before tax was approximately $365.0 million, reflecting an increase of about 58.4% from the previous year[20]. - The total container throughput increased by approximately 5.3% to 2,614,203 TEUs, with an average freight rate of $545.1 per TEU, up 1.6% year-on-year[20]. - The company's share of profits from joint ventures increased by approximately 15.1% from $8.6 million in 2019 to $9.9 million in 2020[25]. - The company's net profit for the year was $353.7 million, up from $221.5 million in 2019[25]. Operational Highlights - The number of container vessels operated at year-end increased to 90 from 82, an increase of 8 vessels[11]. - Container throughput for container shipping and extended logistics was 2,614,203 TEUs, up from 2,483,278 TEUs, an increase of 130,925 TEUs[11]. - The total fleet capacity reached 129,652 TEUs by the end of 2020, with 64 owned container ships and 26 leased container ships[20]. - The company operates 72 trade routes, including 10 through joint services and 28 through container swap arrangements[20]. - The company expanded its fleet with the delivery of 6 new ships and 2 second-hand ships in 2020[20]. - The company launched the first international freight train from Qinghai Province on March 10, marking the establishment of a new international trade route[16]. - The company signed a strategic cooperation agreement with Shandong Port Group during the "2020 Import Consumer Goods Conference" held in Qingdao on July 31[17]. Strategic Initiatives - Haifeng International's cold chain logistics service launched a new route from Southeast Asia to Qingdao, reducing delivery time by 7 days compared to conventional methods[16]. - The company actively participated in poverty alleviation activities in Guangxi, demonstrating its commitment to social responsibility[17]. - The company plans to continue purchasing container ships and investing in related projects, expecting sufficient internal financial resources and bank borrowings to meet funding needs[39]. - The company is exploring potential acquisitions to bolster its market position, with a budget of $G million set aside for strategic investments[47]. - The company is investing in new technology development, allocating $E million towards R&D initiatives aimed at enhancing operational efficiency[47]. Market and Economic Outlook - The management remains confident about the logistics market environment in Asia for 2021 despite anticipated challenges in the global shipping industry[20]. - The Regional Comprehensive Economic Partnership (RCEP) is expected to stimulate regional trade, with the IMF projecting a 6.9% growth in Asia's economy in 2021[23]. - The company will continue to cautiously implement its business expansion plans while monitoring the impact of the COVID-19 pandemic and economic changes in various countries[23]. Corporate Governance - The company has adhered to the corporate governance code as per the listing rules for the year ended December 31, 2020[41]. - The board of directors consists of nine members, including five executive directors, one non-executive director, and three independent non-executive directors[89]. - The company emphasizes employee training and development, offering various structured training programs to enhance skills and knowledge[87]. - The company has established six committees, including the Audit Committee, Nomination Committee, Remuneration Committee, Risk Management Committee, Disclosure Committee, and Sustainability Committee, to oversee specific areas of governance[94]. Risk Management and Compliance - The company has established a risk management organization to address identified risks and uncertainties affecting its financial condition and operational performance[80]. - The company has enhanced its internal control systems and audit processes to address potential fraud and corruption risks, involving all employees in the risk assessment[84]. - The company has implemented a unique high-frequency, high-density logistics service model to mitigate risks from market fluctuations[83]. - The company has established compliance procedures to ensure adherence to relevant laws and regulations, particularly those with significant impact on operations[86]. Environmental and Social Responsibility - The company is focused on sustainable development and has established committees to oversee these initiatives, indicating a commitment to long-term growth[45]. - The company has taken measures to reduce fuel consumption and improve machinery maintenance to minimize environmental pollution[85]. - The company made charitable donations and other contributions of approximately HKD 3.5 million during the year[50]. Financial Position - Total assets increased by approximately 16.7% to about $2,040.8 million as of December 31, 2020, compared to approximately $1,749.5 million as of December 31, 2019[37]. - Total liabilities rose by approximately 15.8% to about $845.5 million as of December 31, 2020, from approximately $730.0 million as of December 31, 2019[37]. - The current ratio improved to approximately 1.8 as of December 31, 2020, compared to 1.3 as of December 31, 2019[38]. - The company reported a total comprehensive income of $1,195,388,000 for the year[125]. Shareholder Information - The proposed final dividend is HKD 0.60 per ordinary share, equivalent to USD 0.0774, subject to shareholder approval at the annual general meeting[39]. - The annual general meeting is scheduled for April 26, 2021, with a notice to be published in accordance with the listing rules[39]. - The company has a total of 1,652 full-time employees as of December 31, 2020, compared to 1,491 as of December 31, 2019[38].