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| Maintains profitability despite sluggish market |
HONG KONG, Aug 18, 2016 - (ACN Newswire) - The board of directors ("the Board") of COSCO International Holdings Limited ("COSCO International" or the "Company", stock code: 00517.HK) today announced the unaudited consolidated results of the Company and its subsidiaries (collectively the "Group") for the six months ended 30th June 2016.
Throughout the first half of 2016, the international shipping industry remained in a prolonged trough coupled with the lingering overcapacity. Transactions of the new build vessel market continued to slow while ship prices remained depressed. Meanwhile, demand for new containers significantly contracted and fierce competition prevailed in the container coating market, which drove down the selling price of container coatings. Despite the changing business environment and challenging market conditions, the Group remained committed to corporate development and strived to minimise the negative impacts on the results by leveraging its advantages in terms of scale and specialisation, intensifying marketing effort and strengthening lean management. It maintained relatively favourable profitability despite sluggish market.
During the period, profit attributable to equity holders of the Company decreased by 28% YOY to HK$145 million. Basic earnings per share was 9.45 HK cents. The Board declared an interim dividend of 4 HK cents per share (2015: 7 HK cents). The dividend pay-out ratio was 42% (2015: 54 %).
As at the end of 30th June 2016, COSCO International had a net cash position of HK$6.1 billion, or HK$4.00 per share, which will provide strong capital support for major acquisitions and expansions of existing businesses in future.
In the second half of the year, it is expected that the momentum of the global economic recovery will remain weak. Monetary policy and political risk will continue to pose uncertainty. However, it is forecast that the relatively stable Chinese economy will still generate great potential and the structural reform on the supply-side will continue to bear fruit, which has become an important driving force for sustainable economic growth.
Supported by China COSCO Shipping Corporation Limited, COSCO International will coordinate and make a holistic plan to accelerate the construction of shipping services industrial cluster. It will pursue specialisation and centralisation of its shipping services by leveraging its competitive advantages. COSCO International's vision is to become a world class and the number one shipping services company in China, while constructing the shipping services industrial cluster which can offer strong support services for shipping with independent profit drivers, so as to generate greater returns to the shareholders.
Company Background
Headquartered in Hong Kong, COSCO International Holdings Limited ("COSCO International") is a listed company (stock code: 00517.HK) that provides comprehensive shipping services. Its core businesses include ship trading agency, marine insurance brokerage, supply of marine equipment and spare parts, production and sale of coatings, and trading and supply of marine fuel and related products. Its business network covers mainland China, Hong Kong, Japan, Singapore, the USA and Europe. Following the restructuring of China Ocean Shipping (Group) Company, COSCO International's ultimate controlling shareholder, China COSCO Shipping Corporation Limited, is the world's largest shipping company in terms of comprehensive strength. Its fleet of 1,114 ships, with a combined capacity of 85.32 million DWT, ranks the first in the world. The vision of China COSCO Shipping Corporation is to support the globalisation of the Chinese economy by consolidating its cutting-edge resources to develop into a world-leading corporation of diversified industrial clusters, providing integrated logistics and supply chain services with shipping, logistics and shipping-related financial services as its core operations.
Editorial Note
The announcement of 2016 interim results is available on the website of the SEHK (www.hkexnews.hk) and the Company's website (www.coscointl.com).
For enquiries, please contact:
Investor Relations Department of COSCO International
Zheng Xiaofeng, General Manager
Tel: (852) 2809 7810
Fax: (852) 8169 0678
Email: zhengxf@coscointl.com
Candy Cheung, Deputy General Manager
Tel: (852) 2809 7706
Fax: (852) 8169 0678
Email: cheungky@coscointl.com
YK Chen, IR Manager
Tel: (852) 2809 7820
Fax: (852) 8169 0678
Email: chenyk@coscointl.com
Golin
Jackie Cheung / Annie Leung / Max Lau
Tel: (852) 2501 7901/ 2501 7918/ 2501 7905
Email: jcheung@golin.com / aleung@golin.com / mlau@golin.com
Topic: Press release summary
Source: COSCO International Holdings Ltd
Sectors: Daily Finance, Logistics & Supply Chain, Daily News
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From the Asia Corporate News Network
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