SITC(HK:01308)2022-09-02 04:00Financial Performance - For the six months ended June 30, 2022, SITC International Holdings reported revenue from its container shipping logistics business increased by approximately 70.2% to about $2,247.7 million, up from approximately $1,320.5 million for the same period in 2021[15]. - The total revenue increased by approximately 69.2% from about $1,334.2 million in the six months ended June 30, 2021, to about $2,257.7 million in the same period of 2022, driven by growth in container shipping and extended logistics services[18]. - The profit for the period was approximately $1,170.3 million, an increase of about $682.4 million compared to $487.9 million in the same period of 2021[28]. - Profit before tax increased from approximately $496.4 million to about $1,181.3 million, reflecting the overall growth in revenue and profit margins[26]. - The company reported a significant increase in user data, with a notable rise in customer engagement metrics during the reporting period[81]. Operational Metrics - The container shipping volume rose by approximately 8.1% from 1,491,433 TEUs in the six months ended June 30, 2021, to 1,611,495 TEUs in the same period of 2022[15]. - The average freight rate (excluding slot exchange fee income) increased by approximately 60.8% from $770.4 per TEU to $1,239.1 per TEU during the same period[15]. - The company operated a fleet of 97 vessels with a total capacity of 140,524 TEUs, including 74 owned vessels (116,093 TEUs) and 23 chartered vessels (24,431 TEUs) as of June 30, 2022[14]. - The number of trade routes and weekly port calls remained stable, with an average of 77 trade routes and 457 weekly port calls in the six months ended June 30, 2022[32]. Cost and Expenses - The cost of sales rose by approximately 35.5% from about $777.0 million to about $1,053.2 million, primarily due to increased equipment and transportation costs in container shipping and logistics, as well as rising fuel costs[19]. - Administrative expenses increased by approximately 19.3% from about $66.4 million to about $79.2 million, mainly due to rising employee costs[23]. - The total sales cost for the container shipping logistics business increased by approximately 36.3% from about $768.6 million in the six months ended June 30, 2021, to about $1,047.5 million in the same period of 2022[34]. Profitability - Gross profit increased from approximately $557.2 million to about $1,204.4 million, with the gross profit margin rising from about 41.8% to approximately 53.3%[20]. - The gross profit for the container shipping logistics business was approximately $1,200.2 million, up about $648.3 million from approximately $551.9 million in the same period of 2021, resulting in a gross margin of 53.4% compared to 41.8%[35]. - The share of profits from joint ventures rose by approximately 64.3% from about $7.0 million to about $11.5 million, driven by increased profits from jointly controlled freight forwarding companies[25]. Capital Expenditures and Investments - The company incurred capital expenditures of $217.0 million, with $207.4 million allocated for vessel acquisitions during the first half of 2022[14]. - The company plans to continue purchasing container vessels and investing in logistics projects as needed[51]. - The company delivered seven new container vessels during the six months ended June 30, 2022, with an additional 35 vessels scheduled for future delivery[50]. Market Strategy - The company plans to continue focusing on the Asian market, optimizing its unique operating model, and enhancing service networks and density[16]. - The company aims to improve operational efficiency and enhance organizational processes, talent development, and information systems to become a world-class integrated logistics service provider[16]. Shareholder Information - The interim dividend declared was HKD 2.40 per share (equivalent to $0.31), compared to HKD 1.00 per share for the same period in 2021[52]. - As of June 30, 2022, there are 897,000 unexercised stock options granted under the post-IPO stock option plan, representing approximately 0.03% of the issued shares[56]. - The company’s directors and senior management hold significant equity interests, with one director holding 1,375,390,231 shares, representing 51.27% of the total shares[62]. Financial Position - The total assets increased by approximately 18.2% from about $2,716.4 million as of December 31, 2021, to about $3,209.6 million as of June 30, 2022[46]. - The total liabilities decreased by approximately 17.9% from about $1,200.7 million to about $985.3 million[46]. - The current ratio improved to approximately 3.1 as of June 30, 2022, compared to 1.5 as of December 31, 2021[46]. Future Outlook - Future guidance indicates a positive outlook for revenue growth, driven by new product launches and strategic market initiatives[81]. - The company plans to continue its market expansion and product development strategies, focusing on enhancing operational efficiency and exploring new technologies[81].