COSCO SHIPPING Specialized(SH:600428)2017-03-31 16:00Financial Performance - The company's operating revenue for 2016 was CNY 5,883,170,356.76, a decrease of 14.00% compared to CNY 6,840,502,485.65 in 2015[20]. - The net profit attributable to shareholders of the listed company was CNY 50,260,945.94, down 65.48% from CNY 145,581,381.88 in the previous year[20]. - The net cash flow from operating activities decreased by 37.92% to CNY 638,959,782.32 from CNY 1,029,170,661.73 in 2015[20]. - The total assets at the end of 2016 were CNY 21,290,148,441.52, an increase of 18.65% from CNY 17,943,077,721.76 in 2015[20]. - The basic earnings per share for 2016 were CNY 0.024, a decrease of 72.32% compared to CNY 0.086 in 2015[21]. - The weighted average return on net assets for 2016 was 0.56%, a decrease of 1.65 percentage points from 2.21% in 2015[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY -55,160,542.36, an improvement of 37.17% from CNY -87,795,321.86 in 2015[20]. Corporate Governance - A standard unqualified audit report was issued by Ruihua Certified Public Accountants for the financial statements[4]. - The company’s financial report is guaranteed to be true, accurate, and complete by its management team[4]. - The company has not violated any decision-making procedures for providing guarantees[4]. - The company has no significant litigation or arbitration matters during the reporting period[103]. - The company has not disclosed any major related party transactions during the reporting period[104]. - The company’s major shareholder, China COSCO Shipping Group, has committed to resolving competition issues with its subsidiary, China Shipping Automobile Transport, within five years[98]. Strategic Developments - The company aims to become an internationally leading engineering logistics service provider, focusing on specialized ship transportation[30]. - The company plans to continue optimizing its fleet structure by constructing new heavy-lift ships, multi-purpose ships, and car carriers to meet new market demands[96]. - The company anticipates structural opportunities in the market due to national strategies like "Belt and Road" and "Made in China 2025"[66]. - The company is focusing on market expansion and structural adjustments to improve operational efficiency and profitability[47]. Market Conditions - The global shipping market remains in a prolonged downturn, with the ClarkSea Index averaging $9,441 per day in 2016, a decrease of 34.5% year-on-year[32]. - The Baltic Dry Index (BDI) fell to a historical low of 290 points in February 2016, with an annual average of 673 points, down 6.27% year-on-year[33]. - The international shipping market remains sluggish, with the Baltic Dry Index (BDI) dropping to a historical low of 290 points in 2016, and a forecasted annual growth of 2.5% in dry bulk shipping demand over the next three to five years[89]. Investment and Financing - The company completed a non-public offering of A-shares in 2016, raising a net amount of CNY 2,483,299,087.06 after deducting issuance costs[22]. - The company raised RMB 2,216,217,835.34 from financing activities, a significant increase compared to the previous year's negative cash flow from financing[49]. - The company raised ¥2.48 billion through a private placement, contributing to a net cash flow from financing activities of ¥221,621.78 million, an increase of 350.85% year-over-year[61]. Social Responsibility - The company allocated over 630,000 RMB in aid funds to support targeted poverty alleviation efforts in Peng Village[115]. - A total of 93 impoverished households, comprising 218 individuals, were accurately identified for poverty alleviation initiatives[115]. - The company has committed to ensuring that no children from impoverished households drop out of school due to financial difficulties[110]. - The company has implemented various measures to enhance employment capabilities among impoverished populations, including skills training programs[112]. Shareholder Information - The company issued 456,204,378 new A-shares at a price of 5.48 yuan per share, raising a net amount of approximately 2.48 billion yuan[127]. - Following the share issuance, the total number of shares increased to 2,146,650,771, impacting the basic earnings per share, which decreased from 0.03 yuan to 0.024 yuan[128]. - The top ten shareholders include China Ocean Shipping (Group) Company, holding 1,083,147,344 shares (50.46%), and Qianhai Kaiyuan Fund, holding 228,102,189 shares (10.63%)[135]. Operational Efficiency - The company has a well-trained crew with extensive maritime experience, contributing to its strong operational capabilities[32]. - The company has implemented a dual-track salary system to enhance employee motivation, aligning with its operational strategy[172]. - The company conducted 188 training sessions for crew members, training 2,303 individuals, achieving a training completion rate of 98.65%[174]. Future Outlook - The company provided a positive outlook for 2017, projecting a revenue growth of 12% to 15%[158]. - The company plans to achieve a total cargo volume of approximately 15.52 million deadweight tons in 2017, representing a year-on-year growth of 10%[85]. - The company is focusing on market expansion in Southeast Asia, targeting a 25% increase in market share by 2018[158].