COSCO SHIPPING Specialized(SH:600428)2018-03-30 16:00Financial Performance - The company's operating revenue for 2017 was CNY 6,508,692,188.32, representing a 10.63% increase compared to CNY 5,883,170,356.76 in 2016[23]. - Net profit attributable to shareholders reached CNY 237,560,541.70, a significant increase of 372.65% from CNY 50,260,945.94 in the previous year[23]. - The cash flow from operating activities was CNY 1,425,774,288.60, up 123.14% from CNY 638,959,782.32 in 2016[23]. - Basic earnings per share increased to CNY 0.111, a rise of 364.28% compared to CNY 0.024 in 2016[24]. - The total assets at the end of 2017 were CNY 21,250,771,066.48, a slight decrease of 0.18% from CNY 21,290,148,441.52 in 2016[23]. - The company's total operating revenue for the reporting period was RMB 6,508,692,188.32, an increase of 10.63% compared to RMB 5,883,170,356.76 in the previous year[49]. - The shipping business generated revenue of ¥6,016,265,556.37, with a gross margin of 15.12%, an increase of 7.31 percentage points compared to the previous year[53]. - Non-shipping business revenue was ¥492,426,631.95, with a gross margin of 44.11%, increasing by 8.51 percentage points year-over-year[53]. Dividends and Shareholder Returns - The company plans to distribute cash dividends of RMB 0.20 per share, totaling RMB 42,933,015.42 based on a total share capital of 2,146,650,771 shares as of December 31, 2017[5]. - The company's net profit for 2017 was RMB 237,560,541.70, with a cash dividend payout ratio of 18.07%[91]. - The company has maintained a stable cash dividend policy to ensure returns to investors while considering future business development needs[90]. Audit and Compliance - The company received a standard unqualified audit report from Ruihua Certified Public Accountants[4]. - The audit report confirmed that the financial statements fairly reflect the company's financial position as of December 31, 2017[189]. - The company confirmed that there were no significant deficiencies in internal controls during the reporting period[184]. - The company has not faced any penalties from regulatory bodies such as the China Securities Regulatory Commission during the reporting period[179]. Operational Developments - The company has undergone a change in its board secretary, appointing Dong Yuhang following the resignation of Li Jianxiong[16]. - The company operates under the stock code 600428 on the Shanghai Stock Exchange, previously known as COSCO Shipping[19]. - The company is headquartered in Guangzhou, Guangdong Province, with its registered address at 282 Dongjiang Avenue, Bonded Zone[17]. - The company has established partnerships with research institutions to develop high-tech transportation service solutions[32]. Market and Industry Trends - The global shipping demand improved significantly in 2017, with a 4.1% increase in global shipping volume, the highest growth rate in five years[34]. - The average Baltic Dry Index (BDI) for 2017 was 1,145 points, a substantial increase of 70.1% year-on-year[35]. - The company anticipates continued growth in the special ship market driven by global infrastructure investment trends and the Belt and Road Initiative[64]. - The automotive shipping market is expected to see a 15% year-on-year increase in vehicle exports, reaching 1.06 million units in 2018[81]. Strategic Initiatives - The company aims to enhance its global competitiveness in the specialized shipping industry, focusing on engineering logistics services[31]. - The company is committed to service innovation, extending logistics from "port-to-port" to "door-to-door" solutions[32]. - The company plans to enhance fuel cost control and optimize bulk fuel procurement strategies to mitigate risks associated with international fuel market fluctuations[88]. - The company is considering strategic acquisitions to bolster its market position, with a budget of $I million earmarked for potential M&A activities[157]. Risk Management - The company has detailed potential risks in the report, which investors should review[7]. - The company emphasizes that forward-looking statements do not constitute a substantive commitment to investors, highlighting investment risks[6]. - The company faces challenges from an oversupply in the special ship market, with competition intensifying from bulk and container fleets[86]. Corporate Governance - The company has a strong governance structure by integrating poverty alleviation efforts with the strengthening of village party organizations[124]. - The report highlights the company's commitment to maintaining a stable shareholder structure with no significant changes in shareholding patterns[134]. - The management team, including directors and supervisors, did not change their shareholdings during the reporting period[153]. Employee and Training Initiatives - A total of 4184 crew members participated in training programs, with 237 training sessions held during the reporting period[175]. - The company organized 134 training programs for shore-based employees, with a total of 1,624 participants[176]. - The company has a low crew turnover rate of less than 3%, ensuring stability in its core crew team[171]. Future Outlook - Future outlook remains positive, with management expressing confidence in achieving long-term growth targets despite market challenges[157]. - The company plans to deliver 3-5 new ships in 2018, with a total deadweight tonnage of 51,000 to 66,000 tons[85]. - The company plans to implement a new poverty alleviation project plan for 2018, aiming to meet annual poverty alleviation targets[124].