Financial Performance - COSCO SHIPPING Holdings reported a profit attributable to equity holders of RMB 1.23 billion for the year 2018[2]. - The company did not propose any profit distribution for 2018 due to accumulated undistributed profits being negative[2]. - The company emphasized that all net profit for the year was used to offset previous years' losses[2]. - The company's revenue for the year ended December 31, 2018, was RMB 120.34 billion, an increase of 33.1% from RMB 90.40 billion in 2017[30]. - The profit before tax from continuing operations decreased to RMB 3.65 billion, down 35.9% from RMB 5.70 billion in the previous year[30]. - The net profit attributable to equity holders was RMB 1.23 billion, a decline of 53.8% compared to RMB 2.66 billion in 2017[30]. - The total assets increased to RMB 228.14 billion, up 71.3% from RMB 133.19 billion in the previous year[30]. - The total liabilities rose to RMB 171.79 billion, an increase of 92.0% from RMB 89.48 billion in 2017[30]. - The net debt to equity ratio was 185.2%, significantly higher than 86.1% in the previous year, indicating increased leverage[30]. - The company reported an EBITDA of approximately ¥11.63 billion for 2018, representing a 15.87% increase compared to ¥10.03 billion in 2017[144]. Operational Highlights - 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%[19]. - The company’s terminal business achieved a total throughput of 120 million TEUs in 2018, reflecting a year-on-year increase of 21%[19]. - The total container throughput increased by 17.1% to 117,365,360 TEUs in 2018, compared to 100,202,185 TEUs in 2017[77]. - The container shipping volume for the subsidiary, COSCO Shipping Lines, was 18,366,108 TEUs in 2018, reflecting an 8.70% increase from 16,895,997 TEUs in 2017[74]. - The throughput of the group's controlled terminals increased by 29.7% to 22,507,686 TEUs in 2018, compared to 17,353,422 TEUs in 2017[77]. - The company’s investment activities resulted in a net cash outflow of RMB 39,343,548 thousand, a significant increase from RMB 15,233,054 thousand in the previous year[34]. Strategic Initiatives - The company plans to implement a strategy focused on globalization, dual branding, digitalization, and end-to-end services to enhance service quality and customer experience[27]. - The company aims to optimize its route layout and expand into emerging markets while enhancing operational efficiency through digital technologies[28]. - The company is collaborating with global shipping companies to establish a blockchain alliance aimed at enhancing operational efficiency and customer service quality[22]. - The company plans to strengthen its presence in Southeast Asia and the Middle East through new terminal investments and acquisitions[21]. - The company is actively seeking investment opportunities in ports across Southeast Asia, Africa, and the Americas to enhance its global terminal network[92]. Risk Management - Future plans and forward-looking statements in the report do not constitute a commitment to investors, highlighting investment risks[3]. - The management discussion section includes a focus on potential risks the company may face[3]. - The company faces risks from insufficient market demand and potential oversupply in the global container shipping market, which could impact revenue and operational goals[94][95]. - To mitigate risks, the company will actively expand its business by developing new customers and routes while monitoring competitors' strategies[96]. - The company employs risk control and transfer strategies to mitigate the impact of fuel price volatility, including optimizing procurement methods and reducing fuel consumption per unit[106]. Corporate Governance - The company has implemented governance improvements in accordance with various laws and regulations, enhancing operational standards and internal controls[184]. - The board of directors comprises individuals with diverse expertise in shipping, logistics, and corporate governance, ensuring comprehensive oversight[153]. - The company has established clear distinctions between the responsibilities of the board and the daily management, ensuring balanced distribution of rights and authority[191]. - The board meetings are scheduled at least four times a year, with a majority of directors expected to attend in person or participate via electronic means[188]. - The company has established a communication platform to improve planning and foresight in its operations[184]. Shareholder Relations - The company expressed gratitude to shareholders and employees for their support and hard work in achieving remarkable performance[13]. - The company emphasizes effective communication with shareholders and aims to maximize shareholder returns through continuous improvement of investor relations[195]. - The company has a cash dividend policy that stipulates a minimum distribution of 25% of the audited distributable profits for the fiscal year, but no dividends were distributed in 2018 due to negative accumulated profits[107][111]. - The company has not proposed any cash dividend distribution plan for the current year, as it has not achieved positive distributable profits[113]. Sustainability and Social Responsibility - 中远海控在2018年继续全面履行全球契约责任，特别是在环保、劳工和人权方面，致力于可持续发展[128]. - 2018年，中远海控被纳入恒生可持续发展企业指数系列成份股，显示其在可持续发展方面的杰出表现[128]. - 中远海控在2018年没有违反环境相关法律和法规，积极采用技术革新以减少对环境的负面影响[129]. - The company has allocated RMB 880.964 million for targeted poverty alleviation efforts, focusing on industry and education[125]. - The company actively collaborates with local governments on poverty alleviation projects, ensuring effective implementation of initiatives[123].
中远海控(01919) - 2018 - 年度财报