CSCL anuncia en los resultados anuales de 2007 un incremento del volumen del transporte marítimo del 29%, y un beneficio neto 2,7 veces mayor - 03/04/2008
Sr. Li Shao De
China Shipping Container Liners Co., Ltd (CSCL) announced the 2007 Annual results on 2 Apr, 2008, which is concerned by all parties. The Chairman of CSCL, Mr. Li Shaode, the managing director, Mr. Huang Xiaowen and other management attended the press releasing and the results presentation held in the JW Marriott Hotel. More than 120 fund managers and investing analysts from around 90 large securities in Europe, Asia and America attended the results presentation. Nearly 70 media delegates from local, PRC and foreign countries located in Hong Kong attended the press releasing. Adopting refined management and marketing strategy, CSCL recorded substantial growth for its business in 2007 when compared with 2006. The Company’s shipping volume increased by 29% to 7.3 million TEUs year-on-year, boosting overall turnover by 27.3% to RMB38.8 billion. Profit attributable to shareholders surged by 2.7 times to RMB3.2 bilion. Basic earnings per share were RMB0.34. The Board of Directors recommended payment of a final dividend of RMB0.04 per share for the year ended 31 December 2007. Relying on the outstanding achievement, the share prices today are satisfactory. In H share, open price is HKD3.18 and closing price is HKD3.35.In A share, open price is RMB6.98 and closing price is RMB6.80. Mr. Li Shaode, Chairman of CSCL, said, “CSCL thrived in 2007. We expanded our fleet and adjusted shipping capacity in good time, which allowed us to maintain a more than 40% share of the domestic market and our standing as a leading container transportation enterprise in China. The Company was also listed on the A-share market in China on 12 December 2007, giving it stronger assurance for sustainable growth in the future.” During the period under review, all international and domestic trade lanes of CSCL achieved outstanding performance. For international trade lanes, freight rates of the Europe/Mediterranean Sea, the Middle East and Australia trade lanes continued to be strong. International container transportation business accounted for approximately 89% of the Company’s overall revenue. Affected by the sub-prime mortgage issue in the US, performance of the US trade lane was relatively weak. In response, CSCL began to adjust its shipping capacity last year and lowered the proportion of revenue from the US trade lane to its total revenue to only 36.2%. At the same time, the Company was able to increase notably the backhaul cargo volume, raising filled capacity on return from the US and Europe by 50% and 85% respectively. As for domestic trade lanes, the Company, armed with a premium brand reputation, maintained over 40% share of the market and boasted encouraging profit, with revenue per TEU up by 11% to RMB1,568 year-on-year. In 2007, the Company continued to optimize the fleet structure and expand the scale of its fleet, boosting its annual shipping capacity by 47,000 TEUs. As at the end of 2007, the Company had a total shipping capacity of 446,000 TEUs, of which 82% are large container vessels of capacity over 4,000 TEUs. In addition, the Company has ordered 8 large container vessels of total capacity 13,300 TEUs from the Samsung Shipbuilding Factory in South Korea. The vessels will be delivered between 2010 and 2012 and are expected to markedly strengthen the Company’s competitiveness. During the year under review, with the European Union expanding in the East and economies in the Black Sea area and the Middle East flourishing, the Company seized the first mover spot to launch with corresponding partners a Black Sea trade lane and two Middle East trade lanes. It also forged strategic partnership with China Railway Container Transport Co., Ltd. to expand its sea-rail service coverage, with the aim of achieving a seamless sea-rail service network that can accommodate larger transportation volume and offer extended services. Apart from expanding its market to boost revenue, CSCL also implemented stringent control on expenses so as to trim costs. Positive results had been achieved through cost control measures over container management, transshipment and fuel oil. In 2007, the sales cost increased only 20%, which was lower than the 27.3% increase in revenue. In addition, the Group captured the golden opportunity in the domestic capital market and successfully listed its A shares in the PRC. The Company issued 2.34 billion shares A Shares, of which the net proceeds raised was approximately RMB15.4 billion. The proceeds will be used to purchase container vessels and acquire from the parent company the assets related to container shipping businesses, which include ports, container manufacturing and logistics businesses, etc. Looking forward, the Company will continue to uphold its service philosophy of offering supreme services, consolidate the “CSCL” brand image and improve customer satisfaction. Regarding international trade lanes, in addition to expanding the trade lane coverage, the Company will devote greater effort into raising capacity consumption on return trade lanes, aiming for a better balance in carriage volume back and forth and higher profitability. As for the domestic trade lanes, the Company will strive to enhance its competitive advantages and to consolidate its market leadership with new vessels to join its fleet in 2008 bringing additional capacity. Mr. Li concluded, “2008 will see China as the star and smooth sailing for CSCL. The Company will continue to increase its container transportation volume and expand its fleet. With the plans to acquire container business related assets including ports, container manufacturing and logistics from our parent company progressing smoothly, we expect to reap synergies when the acquisitions are completed and ultimately boost our overall advantages. Facing the changing global economy, the Company will continue to explore ways to save costs, step up efforts to nurture talents and uphold its dedication to offering high quality global transportation service. Our aim is to become a world leading container transportation company and deliver maximum returns to shareholders.”
