CMES(SH:601872)2024-10-28 09:21Financial Performance - The company's operating revenue for Q3 2024 was CNY 6,061,716,597.86, representing a year-on-year increase of 0.48%[2] - The net profit attributable to shareholders for Q3 2024 was CNY 872,247,922.27, a decrease of 11.67% compared to the same period last year[2] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 843,484,231.74, down 4.40% year-on-year[3] - The basic earnings per share for Q3 2024 was CNY 0.11, reflecting a decrease of 8.33% compared to the previous year[3] - The weighted average return on equity for Q3 2024 was 2.32%, a decline of 0.44 percentage points year-on-year[3] - Total operating revenue for the first three quarters of 2024 reached CNY 19.30 billion, a slight increase from CNY 19.02 billion in the same period of 2023, representing a growth of approximately 1.42%[26] - Net profit for the first three quarters of 2024 was CNY 3.44 billion, down from CNY 3.82 billion in 2023, reflecting a decrease of approximately 9.83%[27] - Basic earnings per share for the first three quarters of 2024 were CNY 0.41, compared to CNY 0.46 in the same period of 2023, a decline of about 10.87%[29] - The company reported a decrease in comprehensive income total to CNY 3.18 billion in 2024 from CNY 4.68 billion in 2023, a decline of about 32.06%[29] Assets and Liabilities - Total assets at the end of Q3 2024 amounted to CNY 65,913,442,235.93, an increase of 5.64% from the end of the previous year[3] - The equity attributable to shareholders at the end of Q3 2024 was CNY 37,313,113,179.08, up 1.14% from the end of the previous year[3] - The company's current assets decreased to CNY 9.49 billion from CNY 11.08 billion, a decline of about 14.25%[22] - The total liabilities increased to CNY 27.83 billion from CNY 25.06 billion, reflecting a rise of approximately 11.06%[24] - Short-term borrowings surged to CNY 8.82 billion, up from CNY 4.99 billion, indicating a significant increase of around 76.00%[23] - The company's long-term investments rose to CNY 6.19 billion, compared to CNY 5.22 billion, marking an increase of approximately 18.59%[23] - The total equity attributable to shareholders increased to CNY 37.31 billion from CNY 36.89 billion, a growth of about 1.14%[24] - The cash and cash equivalents decreased to CNY 4.03 billion from CNY 4.95 billion, a decline of approximately 18.56%[22] - The company's inventory decreased to CNY 1.24 billion from CNY 1.31 billion, reflecting a reduction of about 5.00%[22] - The company reported a decrease in accounts payable to CNY 2.52 billion from CNY 2.79 billion, a decline of approximately 9.59%[23] - The company’s non-current liabilities decreased to CNY 11.31 billion from CNY 12.53 billion, a reduction of about 9.73%[24] Cash Flow - The net cash flow from operating activities for the year-to-date was CNY 6,402,162,610.49, a decrease of 4.13% year-on-year[3] - Cash flow from operating activities for the first three quarters of 2024 was CNY 6.40 billion, a decrease from CNY 6.68 billion in 2023, representing a decline of approximately 4.12%[30] - The company recorded a net cash inflow from investment activities of CNY 367.35 million in 2024, compared to CNY 324.80 million in 2023, reflecting an increase of about 13.09%[30] - The net cash flow from investing activities was negative at approximately -$6.69 billion, worsening from -$2.96 billion year-over-year[31] - Cash inflow from financing activities totaled approximately $10.78 billion, up from $5.66 billion in the previous period, reflecting increased borrowing[31] - Cash outflow for debt repayment was approximately $8.30 billion, a decrease from $13.05 billion in the previous period, indicating improved cash management[31] - The net cash flow from financing activities was negative at approximately -$637 million, an improvement from -$10.07 billion year-over-year[31] - The ending balance of cash and cash equivalents was approximately $4.03 billion, down from $4.83 billion in the previous period[31] Market and Operational Insights - The average TCE for the TD3C route was $36,846 per day, an increase of 4.24% year-on-year, with a TCE of $28,341 per day for the period from July to September 2024, up 38.7% year-on-year[13] - The VLCC market was impacted by OPEC+ voluntary production cuts and lower-than-expected Chinese imports, leading to a fluctuating WS50 point range for the Middle East-China route[13] - The company has placed orders for 5 VLCC and 5 Aframax new vessels, while 10 existing VLCC vessels have been retrofitted with desulfurization towers, enhancing service capabilities and future profitability potential[14] - The average BDI for the first three quarters was 1,845 points, a year-on-year increase of 57%, driven by strong performance in the Capesize market[15] - The company's dry bulk fleet achieved an average TCE growth of 21% year-on-year, outperforming the market through strategic operations and capacity management[15] - The company continues to strengthen its global operations and market share in long-haul routes while ensuring the successful loading rate of its VLCC fleet[14] - The company actively utilizes market fluctuations to implement a ship-cargo separation strategy, enhancing revenue generation[15] - The effective operating days of the fleet were reduced due to dry-docking and retrofitting costs, which also led to a temporary increase in depreciation expenses[14] Strategic Developments - The company is committed to upgrading its existing fleet and has made significant progress in new vessel construction and retrofitting projects[15] - The company's foreign trade market benefited from the continuous appreciation of Chinese automobile exports, leading to a demand increase and maintaining high volatility[16] - The company added 3 vessels for foreign trade and actively expanded new routes to Mexico and Brazil, achieving good results[16] - In the domestic trade market, demand is under pressure with freight rates declining; however, the company is enhancing customer and route expansion to solidify its international operations[16] - In the third quarter, container shipping demand grew by 4.9% year-on-year, a decrease from 6.4% in the second quarter, indicating a slowdown in trade volume growth[17] - The company added new routes to India and increased chartered capacity for Southeast Asia, showing a significant recovery in fleet performance in the second half of the year[17] - The LNG shipping business remains stable, with ongoing breakthroughs in new projects by the wholly-owned subsidiary CMLNG and the joint venture CLNG[18] - The newly established subsidiary "Cloud Chain Digital Technology" aims to provide digital upgrades and customized services for the shipping trade, leveraging blockchain technology[19] - The company signed digital project cooperation agreements with several organizations, marking a milestone in its digitalization strategy[19] Research and Development - Research and development expenses increased significantly to CNY 8.23 million in 2024 from CNY 2.23 million in 2023, marking an increase of about 269.73%[26] Accounting and Reporting Changes - The company has adopted new accounting standards starting in 2024, which may affect future financial reporting[32]