Financial Performance - The company achieved a record EBIT of RMB 131.5 billion (approximately USD 20.38 billion) for the year, with container shipping EBIT reaching RMB 127.7 billion (approximately USD 19.79 billion) [7] - Net profit attributable to shareholders was RMB 89.296 billion, an increase of RMB 79.369 billion year-on-year, representing a growth of 799.52% [7] - Basic earnings per share were RMB 5.59 [7] - The company achieved operating revenue of RMB 333,693,611 thousand in 2021, an increase of RMB 162,434,777 thousand, representing a growth of 94.85% compared to the previous year [20] - The profit attributable to equity holders of the company reached RMB 89,296,138 thousand, an increase of RMB 79,369,040 thousand year-on-year [20] - The gross profit margin improved to 41.99% in 2021, up from 14.10% in the previous year, reflecting a 27.89% increase [14] - The company reported a net cash flow from operating activities reached RMB 170,948,374 thousand, a significant increase of RMB 126,017,818 thousand or 280.47% year-on-year [34] - The company reported a net cash and cash equivalents balance of RMB 177,946,969 thousand as of December 31, 2021, an increase of RMB 125,316,638 thousand or 238.11% from the end of the previous year [40] - The company’s EBITDA increased significantly to RMB 144.6 billion, a 375.25% increase compared to RMB 30.4 billion in the previous year [125] Debt and Financial Ratios - The company's debt-to-asset ratio decreased to 56.76%, down 14.3 percentage points from the previous year [7] - Operating costs for 2021 amounted to RMB 193,568,231 thousand, an increase of RMB 46,451,189 thousand or 31.57% from the previous year [32] - The income tax expense for 2021 was RMB 24,096,751 thousand, a substantial increase of RMB 23,336,536 thousand or 3,069.73% compared to the previous year [38] - The company’s sales, general, and administrative expenses were RMB 12,382,322 thousand, up RMB 2,475,850 thousand or 24.99% from the previous year [35] - The average revenue per TEU for international routes increased to USD 2,151.49, up from USD 1,010.91, showcasing improved pricing power [74] - Current ratio improved to 1.67 from 0.97, reflecting a 71.66% increase year-over-year [125] - Quick ratio also increased to 1.61 from 0.91, showing a 76.60% improvement [125] - Interest coverage ratio surged to 35.87 from 4.37, marking a 721.74% increase [125] Dividends and Shareholder Returns - The board proposed a cash dividend of RMB 0.87 per share (before tax), totaling RMB 13.932 billion based on the total share capital of 16.014 billion shares as of the end of 2021 [7] - The board has proposed a final dividend of RMB 0.87 per share for the year ending December 31, 2021, subject to shareholder approval [79] - The company has implemented a profit distribution policy that aims for a cash distribution of no less than 30% of the average distributable profit over the last three years [99] - The company aims to maintain a continuous and stable profit distribution policy to ensure reasonable returns for investors [99] Operational Efficiency and Market Adaptation - The company maintained a high level of service and optimized its route network to adapt to market changes during the challenges posed by the COVID-19 pandemic [6] - The company focused on enhancing customer relationships and exploring new end-to-end cooperation models to stabilize supply chains [6] - The logistics supply chain faced challenges such as port congestion and container shortages, impacting transportation demand and supply [6] - The company emphasized the importance of digital technology to assist customers in maintaining supply chain stability [6] - The company has accelerated the development of end-to-end logistics supply chain services, enhancing its global competitiveness and adapting to external environmental changes [59] - The company is actively expanding its global port layout and improving operational efficiency through lean management strategies [61] Strategic Initiatives and Future Outlook - The company plans to continue focusing on green, low-carbon, and intelligent shipping development while enhancing its service offerings [13] - The company aims to maintain a cautious optimism regarding market conditions, despite uncertainties from the pandemic and geopolitical events [13] - The company plans to optimize its shipping capacity supply and enhance its end-to-end service capabilities, focusing on customer-centric and value-leading strategies [87] - The company is exploring digitalization, automation, and green low-carbon port initiatives as part of industry development trends [83] - The company plans to implement cost-saving measures aimed at reducing operational expenses by 5% over the next year [200] Governance and Compliance - The company has implemented a robust corporate governance structure in compliance with legal regulations, enhancing operational efficiency and risk management processes [151] - The board of directors has adopted a standard code of conduct for securities trading, ensuring compliance since the company's listing in 2005 [152] - The company has strengthened internal governance and compliance management mechanisms, improving the effectiveness of board and committee operations [151] - The company has established a clear division of responsibilities and management accountability through its internal control management system [151] - The company has a structured reporting process for committees to report their decisions and recommendations to the board after each meeting [197] Market Trends and Industry Challenges - The global container shipping market is experiencing a slowdown in demand growth due to challenges in globalization and the impact of the COVID-19 pandemic on supply chains [80] - The industry is moving towards integrated supply chain services, with major shipping companies focusing on value-driven and service innovation [81] - There is an increasing trend of collaboration among global terminal operators to enhance competitiveness and reduce operational risks [82] - Terminal investments are shifting focus towards emerging markets, particularly in the Middle East, Africa, Southeast Asia, and South America [83] - The company identifies five major uncertainties affecting global economic recovery, including COVID-19 variants and geopolitical tensions [97] Corporate Social Responsibility - The company donated a total of 350 million yuan for charity and other contributions during the reporting period [110] - The company actively engaged in targeted poverty alleviation and rural revitalization projects, aligning with local government plans and increasing investment [110] - The company emphasized sustainable development principles, focusing on environmental protection and resource utilization [111]
中远海控(01919) - 2021 - 年度财报