中远海运港口(01199) - 2023 Q3 - 季度业绩

Report Highlights The company announced unaudited condensed consolidated results for Q3 and the first nine months of 2023, showing increased total throughput and revenue in Q3, but a year-on-year decrease in profit attributable to equity holders Key Performance Indicators for Q3 and First Nine Months of 2023 The company announced unaudited condensed consolidated results for Q3 and the first nine months of 2023, showing increased total throughput and revenue in Q3, but a year-on-year decrease in profit attributable to equity holders Key Performance Indicators for Q3 2023 | Indicator | Q3 2023 | YoY Change (%) | | :--- | :--- | :--- | | Total Throughput (TEUs) | 35,603,127 | +4.1 | | Equity Throughput (TEUs) | 11,407,984 | +2.7 | | Company Revenue (USD) | 358,902,000 | +2.7 | | Profit Attributable to Equity Holders of the Company (USD) | 83,312,000 | -4.0 | Key Performance Indicators for First Nine Months of 2023 | Indicator | First 9 Months 2023 | YoY Change (%) | | :--- | :--- | :--- | | Total Throughput (TEUs) | 100,175,999 | +2.8 | | Equity Throughput (TEUs) | 32,159,349 | +1.8 | | Company Revenue (USD) | 1,047,775,000 | -0.6 | | Profit Attributable to Equity Holders of the Company (USD) | 233,604,000 | -11.7 | Financial Review The financial review covers Q3 and 9M performance, balance sheet, income statement, and notes, highlighting revenue, profit, and asset changes Financial Summary for Q3 2023 The Group's Q3 2023 revenue increased by 2.7% year-on-year, but gross profit slightly decreased due to faster growth in cost of sales, leading to a decline in both profit attributable to equity holders and basic earnings per share Q3 2023 Financial Data | Indicator | Q3 2023 (Million USD) | Q3 2022 (Million USD) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 358.9 | 349.4 | +2.7 | | Cost of Sales | 258.0 | 247.1 | +4.4 | | Gross Profit | 100.9 | 102.3 | -1.4 | | Share of Profits of Joint Ventures and Associates | 83.4 | 81.3 | +2.6 | | Profit Attributable to Equity Holders of the Company | 83.3 | 86.8 | -4.0 | | Basic Earnings Per Share (US Cents) | 2.38 | 2.57 | -7.4 | - Profit attributable to equity holders of the Company for Q3 2022 has been retrospectively adjusted due to the adoption of HKAS 12 Amendments[3] Financial Summary for First 9 Months of 2023 The Group's revenue for the first nine months of 2023 slightly decreased by 0.6% year-on-year, with minor declines in gross profit and share of profits of joint ventures and associates, resulting in a significant decrease in both profit attributable to equity holders and basic earnings per share Financial Data for First 9 Months of 2023 | Indicator | First 9 Months 2023 (Million USD) | First 9 Months 2022 (Million USD) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,047.8 | 1,054.0 | -0.6 | | Cost of Sales | 753.2 | 754.0 | -0.1 | | Gross Profit | 294.6 | 300.0 | -1.8 | | Share of Profits of Joint Ventures and Associates | 237.1 | 241.5 | -1.8 | | Profit Attributable to Equity Holders of the Company | 233.6 | 264.5 | -11.7 | | Basic Earnings Per Share (US Cents) | 6.75 | 7.91 | -14.6 | - Profit attributable to equity holders of the Company for the first nine months of 2022 has been retrospectively adjusted due to the adoption of HKAS 12 Amendments[4] Unaudited Condensed Consolidated Balance Sheet As of September 30, 2023, the Group's total assets slightly increased compared to the end of 2022, with a significant rise in investment properties within non-current assets, while total equity and non-controlling interests decreased Key Balance Sheet Data (Thousand USD) | Indicator | As of September 30, 2023 (Thousand USD) | As of December 31, 2022 (Restated) (Thousand USD) | | :--- | :--- | :--- | | Total Assets | 11,388,820 | 11,326,353 | | Total Equity | 6,546,700 | 6,639,173 | | Total Liabilities | 4,842,120 | 4,687,180 | | Investment Properties | 191,634 | 9,535 | | Long-term Borrowings | 2,263,399 | 2,121,488 | | Short-term Loans | 205,962 | 321,888 | Unaudited Condensed Consolidated Income Statement The Group's income statement performance for Q3 and the first nine months of 2023 shows that despite increased finance income, higher finance costs and administrative expenses, coupled with a decrease in share of profits of joint ventures and associates, collectively led to a reduction in profit for the period and profit attributable to equity holders of the Company Key Condensed Consolidated Income Statement Data (Thousand USD) | Indicator | Q3 2023 (Thousand USD) | Q3 2022 (Restated) (Thousand USD) | 9M 2023 (Thousand USD) | 9M 2022 (Restated) (Thousand USD) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 358,902 | 349,353 | 1,047,775 | 1,053,975 | | Gross Profit | 100,862 | 102,303 | 294,609 | 299,992 | | Operating Profit | 69,860 | 68,101 | 196,344 | 204,044 | | Finance Income | 7,800 | 5,455 | 19,523 | 10,445 | | Finance Costs | (43,345) | (31,764) | (124,352) | (89,298) | | Share of Profits of Joint Ventures | 16,198 | 20,088 | 48,025 | 58,933 | | Share of Profits of Associates | 67,238 | 61,228 | 189,053 | 182,604 | | Profit for the Period | 98,384 | 104,196 | 280,241 | 318,039 | | Profit Attributable to Equity Holders of the Company | 83,312 | 86,824 | 233,604 | 264,500 | Notes to the Financial Statements This section explains the calculation methods for basic and diluted earnings per share, notes the retrospective adjustment of 2022 data due to the adoption of HKAS 12 Amendments, and emphasizes that all financial data are unaudited - Basic earnings per share are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares outstanding during the period[8] - For the three and nine months ended September 30, 2023, stock options granted but not yet exercised had no dilutive effect on the calculation of earnings per share, thus diluted earnings per share were the same as basic earnings per share for the period[8] - The Group made necessary retrospective adjustments for the cumulative effect due to the adoption of HKAS 12 Amendments "Income Taxes – Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction"[8] Business Review The business review details overall and regional throughput performance, highlighting growth drivers and regional variations across China and overseas Overall Throughput Performance The Group achieved year-on-year growth in both total throughput and equity throughput for Q3 and the first nine months of 2023, primarily driven by increased throughput from non-controlled terminals Q3 2023 Throughput Data (TEUs) | Indicator | Q3 2023 (TEUs) | Q3 2022 (TEUs) | Change (%) | | :--- | :--- | :--- | :--- | | Total Throughput | 35,603,127 | 34,203,498 | +4.1 | | Total Throughput of Controlled Terminals | 8,242,228 | 8,535,948 | -3.4 | | Total Throughput of Non-controlled Terminals | 27,360,899 | 25,667,550 | +6.6 | | Equity Throughput | 11,407,984 | 11,104,665 | +2.7 | First 9 Months 2023 Throughput Data (TEUs) | Indicator | First 9 Months 2023 (TEUs) | First 9 Months 2022 (TEUs) | Change (%) | | :--- | :--- | :--- | :--- | | Total Throughput | 100,175,999 | 97,413,828 | +2.8 | | Total Throughput of Controlled Terminals | 22,973,718 | 24,215,464 | -5.1 | | Total Throughput of Non-controlled Terminals | 77,202,281 | 73,198,364 | +5.5 | | Equity Throughput | 32,159,349 | 31,598,677 | +1.8 | Throughput Performance by Region The Group's throughput performance varied across China and overseas regions, with China experiencing growth in both total and equity throughput, while overseas regions saw total throughput growth but a slight decline in equity throughput, reflecting diverse trends influenced by various factors in sub-regions - For the three months ended September 30, 2023, total throughput of China terminals increased by 4.3% year-on-year to 27,133,886 TEUs, accounting for 76.2% of the Group's total throughput[12] - For the three months ended September 30, 2023, total throughput of overseas regions increased by 3.4% year-on-year to 8,469,241 TEUs, accounting for 23.8% of the Group's total throughput[18] China Region Throughput performance in the China region showed regional divergence, with strong growth in the Bohai Rim and Southwest Coast regions, declines in the Yangtze River Delta and Southeast Coast regions, and slight growth in the Pearl River Delta region Q3 2023 China Region Throughput (TEUs) | Region | Total Throughput (TEUs) | YoY Change (%) | Equity Throughput (TEUs) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | China Terminals | 27,133,886 | +4.3 | 8,124,119 | +4.4 | Bohai Rim Region The Bohai Rim region achieved significant growth in both total and equity throughput in Q3 2023, primarily driven by new shipping routes at Dalian Container Terminal Co., Ltd Q3 2023 Bohai Rim Region Throughput (TEUs) | Indicator | Throughput (TEUs) | YoY Change (%) | | :--- | :--- | :--- | | Total Throughput | 12,261,670 | +7.8 | | Equity Throughput | 3,362,406 | +5.2 | | Total Throughput of Dalian Container Terminal Co., Ltd. | 1,202,732 | +8.8 | Yangtze River Delta Region The Yangtze River Delta region experienced a decline in both total and equity throughput in Q3 2023, with Nantong Tonghai Port Co., Ltd. showing a significant decrease in throughput Q3 2023 Yangtze River Delta Region Throughput (TEUs) | Indicator | Throughput (TEUs) | YoY Change (%) | | :--- | :--- | :--- | | Total Throughput | 3,770,354 | -4.8 | | Equity Throughput | 1,061,308 | -7.1 | | Total Throughput of Nantong Tonghai Port Co., Ltd. | 347,155 | -37.7 | Southeast Coast and Other Regions The Southeast Coast and Other Regions saw a slight decrease in total throughput in Q3 2023, but equity throughput significantly increased due to the acquisition of additional equity in Xiamen Ocean Gate Container Terminal Co., Ltd., which also benefited from accelerated foreign trade Q3 2023 Southeast Coast and Other Regions Throughput (TEUs) | Indicator | Throughput (TEUs) | YoY Change (%) | | :--- | :--- | :--- | | Total Throughput | 1,569,452 | -1.3 | | Equity Throughput | 1,150,610 | +27.2 | | Total Throughput of Xiamen Ocean Gate Container Terminal Co., Ltd. | 743,665 | +13.2 | - The increase in equity throughput was due to the Company's acquisition of an additional 30% equity in Xiamen Ocean Gate Container Terminal Co., Ltd. in the first half of the year, now holding 100% equity in Xiamen Ocean Gate Terminal[15] Pearl River Delta Region The Pearl River Delta region saw a slight increase in total throughput in Q3 2023, with Yantian International Container Terminals Co., Ltd. benefiting from the recovery of European and American shipping routes Q3 2023 Pearl River Delta Region Throughput (TEUs) | Indicator | Throughput (TEUs) | YoY Change (%) | | :--- | :--- | :--- | | Total Throughput | 7,390,310 | +1.6 | | Equity Throughput | 2,064,230 | -0.8 | | Total Throughput of Yantian International Container Terminals Co., Ltd. | 3,790,624 | +5.2 | Southwest Coast Region The Southwest Coast region achieved rapid growth in both total and equity throughput in Q3 2023, primarily due to increased trade between China's central and western provinces and ASEAN following the RCEP's entry into force Q3 2023 Southwest Coast Region Throughput (TEUs) | Indicator | Throughput (TEUs) | YoY Change (%) | | :--- | :--- | :--- | | Total Throughput | 2,142,100 | +18.0 | | Equity Throughput | 485,565 | +6.5 | - The rapid increase in throughput was mainly due to the continuous rise in trade volume between China's central and western provinces and ASEAN after the entry into force of the Regional Comprehensive Economic Partnership (RCEP)[17] Overseas Region The Overseas region experienced an increase in total throughput but a slight decrease in equity throughput in Q3 2023, with Piraeus Container Terminal and CSP Abu Dhabi Terminal performing well, benefiting from synergy effects and marketing efforts, respectively Q3 2023 Overseas Region Throughput (TEUs) | Indicator | Throughput (TEUs) | YoY Change (%) | | :--- | :--- | :--- | | Total Throughput | 8,469,241 | +3.4 | | Equity Throughput | 3,283,865 | -1.3 | | Total Throughput of Piraeus Container Terminal S.A. | 1,194,519 | +5.6 | | Total Throughput of CSP Abu Dhabi Terminal L.L.C. | 335,247 | +22.6 | - Piraeus Container Terminal S.A. (Piraeus Terminal) continuously strengthened its synergy effects with the OCEAN Alliance fleet[18] - CSP Abu Dhabi Terminal L.L.C. (CSP Abu Dhabi Terminal) actively strengthened its marketing efforts and enhanced feeder marketing[18] Detailed Terminal Throughput Data This section provides detailed throughput data for the Group's terminals for Q3 and the first nine months of 2023, including containers, bulk cargo, automobiles, and reefer pallets, with relevant notes The Group's Throughput for the 3 and 9 Months Ended September 30, 2023 (TEUs) | Region/Terminal | 3 Months Ended September 30, 2023 (TEUs) | Change (%) | 9 Months Ended September 30, 2023 (TEUs) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Bohai Rim | 12,261,670 | +7.8 | 34,776,678 | +8.2 | | Yangtze River Delta | 3,770,354 | -4.8 | 10,829,598 | +3.7 | | Southeast Coast and Other | 1,569,452 | -1.3 | 4,347,151 | -10.8 | | Pearl River Delta | 7,390,310 | +1.6 | 20,134,625 | -4.7 | | Southwest Coast | 2,142,100 | +18.0 | 5,749,600 | +15.4 | | Overseas | 8,469,241 | +3.4 | 24,338,347 | +2.1 | | Total | 35,603,127 | +4.1 | 100,175,999 | +2.8 | - For the three and nine months ended September 30, 2023, excluding bulk cargo throughput from Beibu Gulf Port Co., Ltd., total bulk cargo throughput decreased by 1.2% and 0.4%, respectively[21] - For the three and nine months ended September 30, 2023, total automobile throughput increased by 0.3% and 0.7%, respectively[21] Outlook The outlook outlines the Group's strategic focus on lean operations, marketing, cost reduction, and optimizing financing, while exploring new markets and leveraging technology for smart port development Outlook Summary Facing challenges of global economic slowdown and geopolitical tensions, COSCO SHIPPING Ports will focus on "lean operations," strengthen marketing, improve operational quality, and reduce funding costs through efficiency improvements and optimized financing structures. Guided by the "14th Five-Year Plan," the company will actively expand into emerging markets, seize opportunities from new energy product exports, and lead smart port construction with technology to enhance integrated supply chain operational efficiency - The global economy is in a pattern of overall slow growth, while China's Manufacturing Purchasing Managers' Index (PMI) has returned to the expansion range, with the economic recovery trend continuously consolidating[19] - The Group will continue to focus on "lean operations," strengthen business marketing, and improve the quality of terminal operations and profitability; it will solidly advance cost reduction and efficiency improvement, focusing on per-TEU operating costs, implementing refined cost control, continuously broadening financing channels, optimizing financing structure, and reducing funding costs[19] - Guided by the "14th Five-Year Plan", the Group will continue to explore investment and development opportunities in key hub ports in emerging, regional, and third-country markets; it will seize new growth opportunities brought by new energy product exports for port supply chain services, focusing on building digital supply chain services; and it will promote smart port construction to enhance the automation and intelligence levels of terminals[19] Cautionary Statement and Board Information This section includes a cautionary statement advising investors against over-reliance on unaudited data and to seek professional advice, along with a list of the company's board members Summary of Cautionary Statement and Board Information This announcement reminds shareholders and potential investors that the data contained herein is unaudited and should not be unduly relied upon, advising caution and professional consultation when dealing in the company's shares, and also lists the company's board members - The data contained in this announcement is unaudited, and investors should avoid relying on the financial and business performance for the three and nine months ended September 30, 2023[22] - Shareholders and potential investors of the Company should exercise caution when dealing in the Company's shares and should consult professional advisors if they have any doubts about their personal investment situation[22] - The Board of Directors includes Mr. Yang Zhijian (Chairman), Mr. Zhu Tao (Managing Director), other executive directors, non-executive directors, and independent non-executive directors[22]