SITC(HK:01308)2023-08-31 08:47Financial Performance - For the six months ended June 30, 2023, the company's revenue decreased by approximately 44.5% to about $1,253.4 million from approximately $2,257.7 million for the same period in 2022[15]. - Total revenue decreased by approximately 44.5% from about $2,257.7 million in the six months ended June 30, 2022, to about $1,253.4 million in the same period of 2023[18]. - Gross profit decreased from approximately $1,204.4 million in the six months ended June 30, 2022, to about $332.2 million in the same period of 2023, with a gross margin decline from about 53.3% to 26.5%[21]. - Net profit for the six months ended June 30, 2023, was approximately $312.7 million, a decrease of about $857.6 million compared to approximately $1,170.3 million in the same period of 2022[32]. - Basic earnings per share decreased to 11.70 cents from 43.95 cents, reflecting a 73.4% drop[83]. - Total comprehensive income for the period was $291,435 thousand, significantly lower than $1,175,452 thousand in the prior year[83]. - The group reported a pre-tax profit of $310,297,000 for the six months ended June 30, 2023, down from $1,167,351,000 in the same period of 2022[132]. Operational Metrics - Container throughput decreased by approximately 3.8% from 1,611,495 TEUs for the six months ended June 30, 2022, to 1,550,075 TEUs for the same period in 2023[15]. - Average freight rates (excluding slot exchange fees) dropped by approximately 46.1% from $1,239.1 per TEU in the first half of 2022 to $667.5 per TEU in the first half of 2023[15]. - Container shipping volume decreased by approximately 3.8% from 1,611,495 TEUs in the six months ended June 30, 2022, to 1,550,075 TEUs in the same period of 2023[18]. - The logistics and shipping market is facing dual pressures from significant capacity increases and a sharp decline in demand due to economic cycles[15]. - The company operates a fleet of 100 vessels with a total capacity of 159,505 TEUs, including 89 owned vessels (147,413 TEUs) and 11 chartered vessels (12,092 TEUs) as of June 30, 2023[13]. Expenses and Costs - Cost of sales decreased by approximately 12.5% from about $1,053.2 million in the six months ended June 30, 2022, to about $921.2 million in the same period of 2023[19]. - Administrative expenses decreased by approximately 19.2% from about $79.2 million in the six months ended June 30, 2022, to about $64.0 million in the same period of 2023[24]. - Total financial costs rose to $10,511,000 in 2023, compared to $7,780,000 in 2022, marking an increase of 35%[123]. - The cost of marine fuel consumed decreased to $162,742,000 in 2023 from $212,021,000 in 2022, a reduction of 23%[125]. Assets and Liabilities - Total assets decreased by approximately 12.6% from about $3,082.9 million on December 31, 2022, to about $2,693.0 million on June 30, 2023[33]. - Total liabilities decreased by approximately 14.3% from about $917.8 million on December 31, 2022, to about $786.2 million on June 30, 2023[33]. - The company's total equity as of June 30, 2023, was $1,906,743 thousand, down from $2,165,011 thousand at the end of 2022, reflecting a decrease of 11.9%[87]. - Current assets decreased to $752,636 thousand from $1,228,970 thousand at the end of 2022, indicating a reduction of 38.7%[84]. Shareholder Information - An interim dividend of HKD 0.60 per share (equivalent to USD 0.0766) was declared for the six months ended June 30, 2023, compared to HKD 2.40 for the same period last year[42]. - As of June 30, 2023, the major shareholder Yang Shaopeng holds 1,097,794,544 shares, representing 40.92% of the total equity[62]. - Liu Rongli, as a spouse of Yang Shaopeng, holds 1,108,413,544 shares, accounting for 41.32% of the total equity[66]. - The company repurchased shares worth $11,811,000 under the share award plan during the period[89]. Cash Flow - Operating cash flow for the six months ended June 30, 2023, was $364,726 thousand, a decrease of 68.3% compared to $1,150,375 thousand in the same period of 2022[91]. - Net cash flow from operating activities was $368,184 thousand, down from $1,140,752 thousand year-over-year[91]. - Cash flow from investing activities showed a net inflow of $37,679 thousand, a significant improvement from a net outflow of $736,898 thousand in the previous year[91]. - Cash flow from financing activities resulted in a net outflow of $657,159 thousand, compared to a net outflow of $782,346 thousand in the same period last year[93]. Corporate Governance - The audit committee, consisting of three independent non-executive directors, reviewed the group's unaudited interim results for the six months ending June 30, 2023[74]. - The company has complied with the corporate governance code as per the listing rules during the reporting period[68]. - The company maintained the required public float as per the listing rules during the six months ending June 30, 2023[73].