中远海运港口(01199) - 2024 - 中期财报

Financial Highlights Financial Highlights In H1 2024, the company's revenue increased by 3.0% to $709.8 million, but profit attributable to equity holders decreased by 7.4% to $139.2 million, with basic earnings per share down 10.6%; gross margin remained stable, slightly decreasing by 0.1 percentage points to 28.0% H1 2024 Financial Highlights | Metric | H1 2024 (USD Million) | H1 2023 (USD Million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 709.8 | 688.9 | +3.0 | | Gross Profit | 198.6 | 193.8 | +2.5 | | Gross Margin (%) | 28.0 | 28.1 | –0.1 percentage points | | Share of Profits from Joint Ventures and Associates | 155.4 | 153.6 | +1.1 | | Profit Attributable to Equity Holders of the Company | 139.2 | 150.3 | –7.4 | | Basic Earnings Per Share (US Cents) | 3.90 | 4.36 | –10.6 | Business Review Overall Business Performance In H1 2024, the Group's total throughput increased by 8.2% to 69.86 million TEUs, driven by global trade recovery and China's foreign trade policies, with both controlled and non-controlled terminals achieving approximately 8% growth, and equity throughput growing by 6.3% H1 2024 Throughput Overview | Throughput Type | H1 2024 (TEU) | H1 2023 (TEU) | Change (%) | | :--- | :--- | :--- | :--- | | Total Throughput | 69,858,501 | 64,572,872 | +8.2 | | Total Throughput of Controlled Terminals | 15,914,213 | 14,731,490 | +8.0 | | Total Throughput of Non-Controlled Terminals | 53,944,288 | 49,841,382 | +8.2 | | Equity Throughput | 22,049,306 | 20,751,365 | +6.3 | | Equity Throughput of Controlled Terminals | 9,653,624 | 9,074,454 | +6.4 | | Equity Throughput of Non-Controlled Terminals | 12,395,682 | 11,676,911 | +6.2 | - Business growth benefited from improved external demand and domestic foreign trade stabilization policies, with China's total goods trade import and export value increasing by 6.1% year-on-year in the first half[9] Regional Business Review China's terminal business showed strong performance with total throughput increasing by 9.5%, notably in the Yangtze River Delta and Southwest Coastal regions; overseas total throughput grew by 4.1%, with the company effectively mitigating the Red Sea incident's impact on Piraeus Terminal by coordinating transshipments to other European terminals, while CSP Abu Dhabi Terminal saw rapid growth China Region Total throughput in the China region increased by 9.5%, accounting for 76.3% of the Group's total, with all major port clusters growing, most strongly in the Yangtze River Delta (+14.1%) and Southwest Coastal regions (+19.8%), driven by foreign trade route recovery and RCEP policy benefits - Total throughput in the China region increased by 9.5% year-on-year to 53.34 million TEUs, accounting for 76.3% of the Group's total throughput[13] - Total throughput in the Yangtze River Delta region increased by 14.1% year-on-year, with Nantong Tonghai Terminal (+46.8%) and CSP Wuhan Terminal (+38.8%) showing significant growth[15] - Total throughput in the Southwest Coastal region increased by 19.8% year-on-year, primarily benefiting from RCEP policy dividends and increased economic and trade cooperation with ASEAN[18] Overseas Region Total throughput in the overseas region increased by 4.1%; despite a 12.9% decline at Piraeus Terminal due to the Red Sea incident, the company effectively offset this by diverting cargo to CSP Zeebrugge Terminal (+8.7%) and CSP Spain-related companies (+13.2%), while CSP Abu Dhabi Terminal saw a significant 35.7% increase due to new routes - Total throughput in the overseas region increased by 4.1% year-on-year to 16.52 million TEUs, accounting for 23.7% of the Group's total throughput[19] - Due to the Red Sea incident, Piraeus Terminal's total throughput decreased by 12.9% year-on-year; the company mitigated this by coordinating cargo transshipment to CSP Zeebrugge Terminal and CSP Spain-related companies, driving their throughput growth by 8.7% and 13.2% respectively[19] - CSP Abu Dhabi Terminal's total throughput significantly increased by 35.7% year-on-year to 0.86 million TEUs by introducing new shipping routes[19] Financial Review Financial Analysis Despite a 3.0% revenue increase driven by controlled terminal throughput growth, profit attributable to equity holders decreased by 7.4%, primarily due to reduced profits from some controlled terminals (e.g., Piraeus), initial losses from new terminals (CSP Wuhan), increased exchange losses, and decreased fair value gains on convertible bonds - In H1 2024, profit attributable to equity holders of the company decreased by 7.4% to $139.2 million, primarily impacted by multiple challenges in the global port industry[26] - Profit from controlled terminals decreased by 18.6% year-on-year, mainly due to an $8.05 million profit reduction at Piraeus Terminal affected by the Red Sea incident, and increased losses at CSP Wuhan Terminal due to high fixed costs in its initial operation[27] - Revenue increased by 3.0% year-on-year, primarily driven by business growth at CSP Spain, Tianjin Container Terminal, and CSP Abu Dhabi Terminal, but partially offset by an 11.2% revenue decrease at Piraeus Terminal[29] - Finance costs increased by 3.6% year-on-year, mainly due to rising interest rates on USD and EUR loans following interest rate hikes by the Federal Reserve and the European Central Bank[34] Financial Position The Group's financial position remained robust; as of June 30, 2024, total assets were $11.93 billion, and the net debt-to-equity ratio (excluding lease liabilities) slightly increased to 31.0%; the Group maintained sufficient cash and unutilized bank facilities, with a diversified medium-to-long-term debt structure across multiple currencies to hedge risks - Net cash generated from operating activities during the period was $178 million, and the Group continued to maintain robust cash flow[38] Assets and Liabilities (June 30, 2024) | Metric | Amount (USD Thousand) | | :--- | :--- | | Total Assets | 11,927,245 | | Total Liabilities | 5,030,329 | | Net Assets | 6,896,916 | | Total Outstanding Borrowings | 3,160,622 | | Cash Balance | 1,020,886 | | Unutilized Bank Facilities | 754,026 | - The net debt-to-equity ratio (excluding lease liabilities) was 31.0%, a slight increase from 29.6% at the end of 2023; the interest coverage ratio was 4.2 times[40] Debt Structure Analysis (June 30, 2024) | Category | Composition | Percentage (%) | | :--- | :--- | :--- | | By Repayment Period | Within One Year | 17.9 | | | Within Five Years and Thereafter | 40.2 | | By Type | Secured Borrowings | 30.4 | | | Unsecured Borrowings | 69.6 | | By Currency | USD Borrowings | 48.7 | | | RMB Borrowings | 31.6 | | | EUR Borrowings | 16.9 | Outlook Outlook The company maintains an optimistic outlook, anticipating continued global trade recovery; it will further optimize its global network, deepen lean operations, drive digital intelligence and green low-carbon initiatives, seize emerging market opportunities, enhance core hub port capabilities, and strive for high-quality development - WTO and IMF forecast global trade volume to grow by 2.6% and 3.0% respectively in 2024, indicating a positive market outlook[47] - The company will continue to leverage synergistic advantages with its parent company and the OCEAN Alliance, having already achieved an 8.2% year-on-year increase in total throughput in the first half[47] - Future strategic priorities include: - Optimizing Global Layout: Enhancing asset structure and expanding into emerging markets and supply chain extension businesses - Deepening Lean Innovation: Achieving revenue growth and cost reduction through precise marketing and technological innovation - Driving Digital Intelligence: Focusing on smart port construction to improve operational efficiency and customer service capabilities - Promoting Green Ports: Accelerating energy structure transformation to build a green and low-carbon brand[47][48] First Interim Dividend First Interim Dividend The Board declared a first interim dividend for 2024 of HKD 12.2 cents per share, lower than HKD 13.6 cents in the prior period, with a scrip dividend option available, payable on November 21, 2024 Details of 2024 First Interim Dividend | Item | Details | | :--- | :--- | | Dividend Amount | HKD 12.2 cents per share (H1 2023: HKD 13.6 cents) | | Payment Method | Cash, with Scrip Dividend Scheme option | | Book Closure Period | September 13 to September 19, 2024 | | Latest Time to Lodge Transfer for Dividend Entitlement | Before 4:30 p.m. on September 12, 2024 | | Dividend Payment Date | November 21, 2024 | Disclosure of Interests Share Option Scheme Under the company's 2018 Share Option Scheme, all granted share options have fully lapsed, and no further options can be granted according to the scheme's terms - As of the report date, all share options granted under the 2018 Share Option Scheme have fully lapsed, with no outstanding options[53] Directors' Interests in Shares, Underlying Shares, and Debentures Discloses the share and share option holdings of several directors in the company and associated corporations (e.g., COSCO SHIPPING Holdings, COSCO SHIPPING Development) as of June 30, 2024, with directors like Zhu Tao, Zhang Wei, and Huang Tianyou holding company shares, and some also holding A-shares, H-shares, or share options in associated corporations Directors' Long Positions in the Company's Shares (June 30, 2024) | Name of Director | Number of Shares Held | Percentage of Total Issued Shares | | :--- | :--- | :--- | | Mr. Zhu Tao | 8,000 | 0.0002% | | Mr. Zhang Wei | 30,000 | 0.001% | | Dr. Huang Tianyou | 1,499,601 | 0.040% | - Some directors also hold shares or share options in associated corporations, for instance, Mr. Zhang Wei holds COSCO SHIPPING Holdings A-shares, Mr. Zhu Tao holds COSCO SHIPPING Development H-shares and A-shares, and jointly holds COSCO SHIPPING Holdings share options with Mr. Zhang Wei[57][58] Substantial Interests in the Company's Share Capital As of June 30, 2024, China COSCO Shipping Corporation Limited, through its subsidiaries, collectively held approximately 68.90% of the company's shares, making it the ultimate controlling shareholder Major Shareholder Holdings (June 30, 2024) | Name of Corporation | Capacity | Number of Shares (Long Position) | Percentage of Shareholding (%) | | :--- | :--- | :--- | :--- | | COSCO (Hong Kong) Investment Co., Ltd. | Beneficial Owner | 250,408,951 | 6.81 | | China Ocean Shipping (Group) Company Limited | Beneficial Owner and Interest of Controlled Corporation | 2,530,229,793 | 68.90 | | COSCO SHIPPING Holdings Co., Ltd. | Interest of Controlled Corporation | 2,530,229,793 | 68.90 | | China Ocean Shipping Company Limited | Interest of Controlled Corporation | 2,530,229,793 | 68.90 | | China COSCO Shipping Corporation Limited | Interest of Controlled Corporation | 2,530,229,793 | 68.90 | - The aforementioned shares represent the same block of shares, with the layered holding structure indicating China COSCO Shipping Corporation Limited as the ultimate controlling shareholder[60] Corporate Governance and Other Information Corporate Governance The company is committed to maintaining high corporate governance standards; during the period, it largely complied with the Corporate Governance Code, with two deviations: the Chairman and CEO roles are held by the same person (Mr. Zhu Tao), and the former Chairman was unable to attend the 2024 AGM; the company believes existing internal controls provide sufficient checks and balances without affecting decision efficiency - The company complied with all code provisions of the Corporate Governance Code, with only two deviations[63] - Deviation one: The roles of Chairman and Chief Executive Officer are concurrently held by Mr. Zhu Tao, deviating from code provision C.2.1; the company believes its internal control system ensures checks and balances[63] - Deviation two: Former Chairman Mr. Yang Zhijian was unable to attend the 2024 Annual General Meeting, deviating from code provision F.2.2[64] Investor Relations and Accolades The company highly values investor relations, maintaining close communication with the market through various channels like roadshows and conferences in H1 2024, engaging with over 120 investors and analysts; it received multiple international and industry awards, including "Best Port Operator" and "Best CEO in Asia," for its excellent operational management and corporate governance - The company maintained close contact with the market through various channels, engaging with over 120 investors and analysts in H1 2024, promoting a diversified shareholder base[73][74] - In H1 2024, the company received multiple awards, including 'Best Port Operator' and 'Best Investor Relations Company' from International Business Magazine, and 'Best CEO in Asia' and 'Best Investor Relations Company Award' from Asian Corporate Governance Magazine[76][77] Corporate Sustainability The company deeply cultivates sustainable development around five pillars: integrity and win-win, resilient future, agile innovation, caring for nature, and shared progress; key initiatives include building smart, efficient, green, and low-carbon terminals, promoting self-driven decarbonization (e.g., Lianyungang New Oriental Terminal selected as a national near-zero carbon pilot), and enhancing customer service and operational efficiency through technological innovation - The company is deeply committed to sustainable development, focusing on building smart, efficient, green, and low-carbon terminals to help construct a green shipping industry chain[79] - Lianyungang New Oriental Terminal was selected as one of the first batch of near-zero carbon pilot projects by China's Ministry of Transport, becoming one of five national near-zero carbon terminal pilots[81] - The company released the 'COSCO SHIPPING Ports Green and Low-Carbon Transformation and Development Plan' and held a technology innovation conference to accelerate digital intelligence and green low-carbon transformation[82] Interim Financial Information Unaudited Condensed Consolidated Financial Statements As of June 30, 2024, the Group's total assets were $11.93 billion, total liabilities $5.03 billion, and total equity $6.90 billion, indicating a generally stable financial position; H1 revenue reached $710 million, up 3.0% year-on-year, but net profit attributable to owners decreased by 7.4% to $139 million; net cash inflow from operating activities was $178 million, with cash and cash equivalents at period-end totaling $977 million Condensed Consolidated Statement of Financial Position Summary (June 30, 2024) | Item | Amount (USD Thousand) | | :--- | :--- | | Total Assets | 11,927,245 | | Total Liabilities | 5,030,329 | | Total Equity | 6,896,916 | Condensed Consolidated Statement of Profit or Loss Summary (For the Six Months Ended June 30, 2024) | Item | Amount (USD Thousand) | | :--- | :--- | | Revenue | 709,811 | | Operating Profit | 120,586 | | Profit for the Period | 168,929 | | Profit Attributable to Equity Holders of the Company | 139,215 | Condensed Consolidated Statement of Cash Flows Summary (For the Six Months Ended June 30, 2024) | Item | Amount (USD Thousand) | | :--- | :--- | | Net Cash Generated from Operating Activities | 177,565 | | Net Cash Used in Investing Activities | (149,705) | | Net Cash Used in Financing Activities | (205,688) | | Cash and Cash Equivalents at End of Period | 977,218 | Summary of Notes to Financial Information Notes to the financial statements detail key information such as accounting policies, segment information, and related party transactions; segment data shows terminal and related businesses as core revenue and profit sources, with Mainland China and Europe as primary revenue regions; related party transactions primarily involve terminal handling, leasing, and management services with fellow subsidiaries at agreed rates; post-period, the company signed an agreement to sell a 20% equity stake in Tianjin Company - Segment information indicates that terminal and related businesses contributed all revenue; geographically, Mainland China revenue was $353 million, and Europe revenue was $318 million, making them the two core markets[121][125] - Significant related party transactions include providing terminal handling and storage services to fellow subsidiaries, generating $199 million in revenue, and paying $32.37 million in concession fees to fellow subsidiaries[156] - Post-balance sheet event: On August 29, 2024, the company agreed to sell a 20% equity stake and shareholder loans in COSCO SHIPPING Ports (Tianjin) Co., Ltd. to OOCL for a total consideration of approximately $49.29 million; after the transaction, the company will retain an 80% equity stake[161] Review Report on Interim Financial Information Review Report on Interim Financial Information Independent auditor PricewaterhouseCoopers has reviewed this interim financial information in accordance with Hong Kong Review Engagements Standards; the conclusion is that nothing has come to their attention that causes them to believe the interim financial information is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' - Independent auditor PricewaterhouseCoopers reviewed the interim financial information[163] - The review concluded that nothing came to their attention indicating the interim financial information was not prepared in all material respects in accordance with Hong Kong Accounting Standard 34[165]