COSCO International Announces 2009 Annual Results

HONG KONG, March 23 /PRNewswire-Asia/ -- COSCO International Holdings Limited ("COSCO International" or the "Company") (stock code: 00517) and its subsidiaries ("the Group) are pleased to announce its audited consolidated results for the year ended 31st December 2009.

    Financial Summary
                                                2009          2008     Change
    Year ended 31st December            (HK$ million) (HK$ million)       (%)

    Revenue                                    1,630         2,101       -22%
    Profit attributable to the equity
     holders                                     844           491       +72%
    Net gains on deemed disposal of
     partial interest in SOLHL* and
     share of profit from SOLHL                  600           319       +88%
    Excluding above gain - Profit
     attributable to the equity
     holders                                     244           172       +42%
    Basic earnings per share (HK cents)        56.25         33.18       +70%
    Dividend for the year per share (HK
     cents)                                      9.4           7.4       +27%

    *Net gains on deemed disposal of partial interest in SOLHL arising from
     issue of new shares in 2009 was HK$245,287,000.

    Results and Business Highlights

    -- Profit attributable to the equity holders was HK$843,675,000, increased
       by 72% year-on-year. Excluding the net gains on deemed disposal of
       partial interest in SOLHL arising from issue of new shares and share of
       profit from SOLHL of totally HK$599,768,000, profit attributable to the
       equity holders was up 42% to HK$243,907,000 under the same basis.

    -- Basic earnings per share were 56.25 HK cents, increased by 70%
       year-on-year.

    -- Revenue was HK$1,630,055,000, decreased by 22% year-on-year. The
       decrease was mainly due to an imbalance between demand and supply in
       the global shipping market as a result of global economic recession and
       steep decline in international trade, and the sluggish container
       shipping market negatively impacted the demand for container coatings.

    -- The cyclical changes of shipping services as compared to shipping
       industry are more stable and less fluctuated as the Group provides
       diversified shipping services. Coupled with a large amount of new build
       delivery in 2009, profits of certain business segments of the Group,
       including sales of marine coatings and ship trading agency business
       achieved significant growth. As a result, profit before income tax from
       shipping services increased by 26% to HK$324,745,000 year-on-year.

    -- The board of directors of the Company has recommended a final dividend
       of 8.4 HK cents per share. Together with the interim dividend of 1.0 HK
       cent per share, the total dividend for the year of 2009 will be 9.4 HK
       cents per share, increased by 27% year-on-year.

    -- To actively expand into new business segment of trading and supply of
       marine fuel and related products. The Group completed the acquisition
       of 18% equity interest in Double Rich Limited by the end of April 2009
       and set up Sinfeng Marine Services Pte. Ltd in Singapore in November
       2009. This laid a solid foundation for the Group's shipping services
       development in the long run.

Outlook

International trade volumes are expected to regain growth momentum in the year 2010 amid a gradually recovering global economy. Despite this, there are uncertainties still lurking in the market. The reviving pace of trade volume growth is expected to be limited and there is still a long journey back to a prosperous economy. Although many difficulties and challenges remain with numerous factors that influence and complicate the situation, the business environment is still generally favourable.

In the first year of the post-financial crisis era, the overall shipping market may continue to recover, but it will be accompanied by intensifying competition. Nevertheless, the PRC Government's continued initiatives to stimulate the economy and the promulgation of policies such as the "Plan for Readjustment and Revitalisation of the Shipping Building Industry" may help stabilise the shipping industry and shipbuilding industry in a broader extent. In addition, given the previous backlogs, 2010 and 2011 will be still the peak period for new build vessel delivery. These factors shall be favourable to the Group, as our core businesses are based upon the shipping services industry.

    Our strategies in 2010 are:
    -- Actively seek development opportunities including new investment or M&A
       in core business.
    -- Explore new value-added services to increase profit drivers along value
       chain.
    -- Maintain close relationship with key customers and be well-prepared to
       capture market recovery.
    -- Increase customer base by targeting new Chinese investors in shipping.
    -- Expand service network for better geographical presence.
    -- Increase synergies between different business units.

Editorial Note

The 2009 annual results announcement is available on the website of the SEHK (http://www.hkexnews.hk ) and the Company's website (http://www.coscointl.com ). A webcast replay of the 2009 annual results press conference and analysts' presentation will be available at the Company's website after 6:00p.m. 24th March 2010.

Company Background

COSCO International Holdings Limited (Stock Code: 00517) has been listed on the main board of the SEHK since February, 1992. In recent years, COSCO International has focused its strategic business position on the development of the shipping services business. It aims to become a specialised and leading shipping services provider. Its core businesses are shipping services, including 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. Other operations include general trading and property investment, etc. COSCO International is a listed company owned by COSCO (Hong Kong) Group Limited, which is a wholly-owned subsidiary of China Ocean Shipping (Group) Company ("COSCO"). COSCO is one of the most recognised multinational conglomerates in the world, which focuses mainly on shipping and logistics businesses as well as other shipping related businesses.

    For enquiries, please contact:

    Corporate Communications Department of COSCO International
     Investor Relations:
     Yang Ling, Deputy General Manager
     Tel:   +852-2809-7810
     Email: [email protected]

     Wilson Lo, Senior Investor Relations
     Manager
     Tel:   +852-2809-7800
     Email: [email protected]

     Media Relations:
     Candy Cheung, Deputy General
     Manager
     Tel:   +852-2809-7706;
     Email: [email protected]

     Tsoi Ching Chung, Manager
     Tel:   +852-2809-7828
     Email: [email protected]

    PR China Limited
     Jane Liu / Henry Chik / David Shiu
     Tel:   +852-2522-1838 / 2522-1368/ 2521-2823
     Email: [email protected] / [email protected] /
            [email protected]

SOURCE COSCO International Holdings Limited