COSCO SHIPPING Specialized(SH:600428)2021-03-30 16:00Financial Performance - The company's operating revenue for 2020 was CNY 7,040,313,890.75, a decrease of 14.83% compared to CNY 8,266,236,025.56 in 2019[27]. - Net profit attributable to shareholders for 2020 was CNY 125,461,003.45, an increase of 24.31% from CNY 100,928,932.07 in 2019[27]. - The net cash flow from operating activities for 2020 was CNY 1,304,615,147.74, reflecting a 3.16% increase from CNY 1,264,621,568.49 in 2019[27]. - The total assets at the end of 2020 were CNY 21,576,529,677.65, down 3.02% from CNY 22,249,133,998.09 in 2019[27]. - Basic earnings per share for 2020 were CNY 0.058, up 24.31% from CNY 0.047 in 2019[28]. - The weighted average return on net assets for 2020 was 1.31%, an increase of 0.26 percentage points from 1.05% in 2019[28]. - The company achieved operating revenue of ¥7,040,313,890.75 in 2020, a decrease of 14.83% year-on-year[55]. - Operating costs decreased by 15.27% year-on-year to ¥5,983,650,839.47, primarily due to reduced fuel costs and lower charter fees[56]. - Net profit attributable to the parent company was ¥125,461,003.45, an increase of 24.31% year-on-year[55]. - The shipping business generated revenue of ¥6,596,705,704.32, down 14.09% year-on-year, with a gross margin of 13.61%[60]. Dividends and Shareholder Information - The company plans to distribute cash dividends of RMB 0.20 per 10 shares, totaling RMB 42,933,015.42 based on a total share capital of 2,146,650,771 shares as of December 31, 2020[6]. - The total number of common stock shareholders at the end of the reporting period was 98,840, a decrease from 99,353 at the end of the previous month[171]. - The largest shareholder, China Ocean Shipping Company, held 1,083,147,344 shares, representing 50.46% of total shares[173]. - The second largest shareholder, Qianhai Kaiyuan Fund, held 228,102,189 shares, accounting for 10.63% of total shares[173]. - The top ten shareholders collectively held a significant portion of the company's shares, with the top three alone accounting for over 60%[173]. Audit and Compliance - The company has received a standard unqualified audit report from Tianzhi International Accounting Firm[5]. - The company’s board of directors and supervisory board members guarantee the authenticity and completeness of the annual report[4]. - The company’s financial report is confirmed to be true, accurate, and complete by the responsible persons[5]. - The company confirms no non-operating fund occupation by controlling shareholders or related parties[8]. - The company has not violated decision-making procedures for external guarantees[8]. - The company has not faced any risks of suspension or termination of listing during the reporting period[131]. - The company has not reported any major litigation or arbitration matters during the reporting period[131]. Operational Strategy and Future Plans - The company’s strategic direction and future plans will be elaborated in the operational discussion and analysis section[19]. - The company aims to transition from "port-to-port" transportation to "door-to-door" logistics services, enhancing service levels and innovation[38]. - The company plans to enhance customer value and loyalty through the establishment of logistics teams for pulp and engineering projects[54]. - The company plans to leverage the RCEP agreement to enhance maritime trade and open new shipping routes[105]. - The company aims to optimize fleet structure and expand operational channels through innovative financing and leasing models[47]. Market and Industry Insights - In 2020, global shipping trade volume decreased by 3.6% to 1.15 billion tons due to the impact of the COVID-19 pandemic[43]. - The average China Export Container Freight Index (CCFI) for 2020 was 983 points, an increase of 19.4% year-on-year[43]. - The average Baltic Dry Index (BDI) for 2020 was 1,066 points, a year-on-year decrease of 21.2%[43]. - The company expects a global economic rebound in 2021, with OECD projecting a growth rate of 5.6%[104]. - The demand for multi-purpose and heavy-lift vessels is anticipated to grow by 6% in 2021, driven by post-pandemic economic stimulus policies[105]. Investments and Projects - The company has invested a total of RMB 34,102.27 million in the construction of 2,200-car capacity domestic car carriers, with a cumulative actual investment of RMB 6,919.66 million[89]. - The company has signed contracts for the construction of five 62,000-ton multi-purpose pulp carriers, with a total contract amount of RMB 113,866.18 million[89]. - The company is constructing the "COSCO Shipping Building" project with an estimated total investment of RMB 51,758 million, expected to be completed within the year[91]. - The company has established a joint venture in South America with a registered capital of 1.44 million Brazilian Reais, aiming to enhance its business platform in the region[83]. Risk Management - The company has detailed potential risks in the report, which investors should review[8]. - The company emphasizes that forward-looking statements do not constitute substantive commitments to investors, highlighting investment risks[7]. - The company has identified risks from the COVID-19 pandemic and international trade tensions, which may affect its operations[118]. Corporate Social Responsibility - The company has implemented a targeted poverty alleviation plan in Peng Village, aiming to achieve the goal of "no worries about food and clothing" by 2020[153]. - The company has mobilized 228,000 RMB in donations to establish a scholarship fund for children of impoverished households in Peng Village[153]. - The company provided financial support of RMB 150 million for poverty alleviation projects, helping 214 registered impoverished individuals to escape poverty[159]. - The company has established a solar streetlight installation project to enhance safety for villagers[158]. Executive Compensation - The total compensation for the reporting period reached CNY 19,977,641.34, with a significant portion attributed to various executives[198]. - The highest individual compensation was CNY 1,509,600.00 for the assistant general manager, reflecting the company's commitment to rewarding key personnel[198]. - The compensation report reflects a strategic focus on retaining talent within the organization, crucial for future growth[198].