Financial Performance - Total revenue for the first half of 2023 was $688.9 million, a decrease of 2.2% compared to $704.6 million in the same period of 2022[9]. - The profit attributable to equity holders decreased by 15.4% to $150.3 million, down from $177.7 million in the first half of 2022[9]. - The group's profit attributable to equity holders for the first half of 2023 was $150,292,000, a decrease of 15.4% from $177,676,000 in the same period last year[26]. - Total profit from controlling and non-controlling terminals in the first half of 2023 was $214,706,000, a decrease of 2.2% compared to $219,477,000 in the same period of 2022[27]. - Operating profit decreased to $126,484 thousand from $135,943 thousand, indicating a decline of 6.5% year-over-year[93]. - The company reported a profit of $177,676,000 for the six months ended June 30, 2023, compared to $213,843,000 in the previous period, marking a decrease of about 16.9%[101]. - The company reported a basic and diluted earnings per share of 4.36 cents, down from 5.34 cents in the previous year[93]. - The interim dividend declared for the six months ended June 30, 2023, was 1.744 cents per share, compared to 2.128 cents per share in 2022, a reduction of 18.1%[165]. Throughput and Operational Metrics - The total throughput increased by 2.2% to 64,572,872 TEUs in the first half of 2023, compared to 63,210,330 TEUs in the same period of 2022[10]. - The throughput of non-controlling terminals increased by 4.9% to 49,841,382 TEUs, while the throughput of controlling terminals decreased by 6.0% to 14,731,490 TEUs[10]. - The equity throughput rose by 1.3% to 20,751,365 TEUs, with non-controlling terminals contributing 56.3% of this total[11]. - In the Bohai Rim region, total throughput increased by 8.4% to 22,515,008 TEUs, making it the largest contributing area to the group's total throughput[15]. - The Yangtze River Delta region saw an 8.9% increase in total throughput to 7,059,244 TEUs, driven by economic recovery[16]. - Total throughput in the Southeast Coast and other regions decreased by 15.3% to 2,777,699 TEUs compared to 3,280,185 TEUs in the same period last year[17]. - Total throughput in the Pearl River Delta region decreased by 8.1% to 12,744,315 TEUs from 13,866,357 TEUs year-on-year[18]. - Total throughput in the Southwest Coast region increased by 14.0% to 3,607,500 TEUs, making it the fastest-growing area in the group's total throughput[19]. - Total throughput in overseas regions increased by 1.4% to 15,869,106 TEUs, maintaining stability and accounting for 24.6% of the group's total throughput[20]. Financial Position and Liabilities - The total outstanding borrowings as of June 30, 2023, were $2,981,622,000, an increase from $2,908,623,000 as of December 31, 2022[39]. - The net debt to equity ratio (excluding lease liabilities) increased to 30.9% as of June 30, 2023, compared to 27.0% on December 31, 2022[40]. - The interest coverage ratio decreased to 3.6 times as of June 30, 2023, down from 5.2 times in the same period last year[40]. - The group’s total borrowings amounted to $2,981,622,000, with secured borrowings at $975,033,000 (32.7%) and unsecured borrowings at $2,006,589,000 (67.3%) as of June 30, 2023[41]. - Total liabilities increased to $4,805,285 thousand from $4,687,180 thousand, representing a rise of 2.5%[91]. - The company’s total liabilities as of June 30, 2023, were $2,227,735,000, an increase from $2,121,488,000 at the end of 2022, reflecting a growth of 5.0%[9][150]. Expenses and Cash Flow - Administrative expenses increased by 14.7% to $82,139,000 in the first half of 2023, compared to $71,632,000 in the same period of 2022, mainly due to increased costs related to Xiamen Haitou Supply Chain[32]. - Financial expenses rose by 40.8% to $81,007,000 in the first half of 2023, compared to $57,534,000 in the same period of 2022, attributed to rising interest rates on USD and EUR loans[34]. - Cash flow from operating activities was $214,908,000 in the first half of 2023, slightly down from $218,531,000 in the same period of 2022[38]. - The net cash flow from operating activities for the six months ended June 30, 2023, was $214,908,000, compared to $218,531,000 for the same period in 2022, indicating a decrease of about 1.5%[103]. - The company paid dividends of $13,088,000 to equity holders during the first half of 2023, down from $22,701,000 in the same period of 2022, reflecting a decrease of about 42.5%[105]. Strategic Initiatives and Future Outlook - The company aims to enhance operational efficiency and strengthen partnerships with port operators and shipping alliances to maximize value[8]. - The company plans to leverage its global network to improve service capabilities and achieve synergistic effects across its operations[8]. - The company aims to enhance its global port resource layout and capitalize on opportunities in emerging markets and regional markets[46]. - The company plans to accelerate its digital transformation and integrate green low-carbon initiatives into its operational management[47]. - The group will focus on "lean operations" to strengthen business marketing efforts and explore new shipping routes[47]. - The company is actively promoting the application of new energy and clean energy at its terminals to achieve carbon peak and carbon neutrality goals[83]. - The company is collaborating with business partners to create a 5G smart port demonstration area, enhancing digital service levels through technologies like AI and blockchain[84]. - The company aims to solidify its high-quality development and accelerate its efforts to become a world-class port operator despite global economic uncertainties[80]. Governance and Compliance - The company has fully complied with the Corporate Governance Code during the six months ending June 30, 2023, ensuring high levels of transparency and protection for shareholders[67]. - The company’s board of directors includes various committees, such as the Audit Committee, which reviews major accounting policies and financial data for the six months ending June 30, 2023[68]. - The company’s directors confirmed compliance with the required standards for trading the company’s securities during the six months ending June 30, 2023[72]. - The company is committed to maintaining high standards of financial reporting and governance, as evidenced by the involvement of independent auditors[184]. Acquisitions and Investments - The acquisition of a 56% stake in Xiamen Haitou Supply Chain Development Co., Ltd. was completed for approximately $94,410,000, with net cash outflow of $79,718,000 after accounting for cash acquired[175]. - The company acquired a 24.99% stake in Hamburger Hafen und Logistik Aktiengesellschaft for approximately $72,051,000, effective June 20, 2023[178]. - Additional 30% stake in Xiamen Yuanhai Container Terminal Co., Ltd. was purchased for approximately $124,704,000, completed on February 28, 2023[179].
中远海运港口(01199) - 2023 - 中期财报