COSCO International Announces 2011 Interim Results

HONG KONG, Aug. 31, 2011 /PRNewswire-Asia/ --

Results and Business Highlights

• Revenue rose by 38% to HK$5,702,493,000. All business segments recorded revenue growth as compared to the same period last year.  
• Gross profit increased by 106% to HK$522,470,000. Overall average gross profit margin rose by 3 percentage points to 9%, mainly caused by both the improvement in gross profit margin and the growth in revenue of container coatings.
• Segment profit before income tax from each shipping services segment recorded growth, aggregating to HK$312,844,000, up by 93% compared to the same period last year. Profit before income tax from coatings, marine equipment and spare parts, as well as marine fuel and other products increased by 227%, 67% and 56% year-on-year respectively.
• Due to the disposal of its entire shareholdings in SOLHL in December 2010, the Group's financial results for the period no longer include profit contribution from SOLHL. Profit attributable to the equity holders of the Company therefore declined by 32% to HK$234,114,000. If profit contribution from SOLHL in the first half of 2010 was excluded, profit attributable to the equity holders of the Company rose by 91% on the same basis.
• Basic earnings per share was 15.49 HK cents (2010: 22.62 cents).
• The Board has declared an interim dividend of 2 HK cents per share.
• The Group formulated a five-year strategic development plan with its vision as "becoming a global leading one-stop service provider focusing on shipping services", by enhancing operational efficiency and offering differentiated services, setting up a customer-oriented business model to help shipowners to reduce their operating costs, as well as setting up a global sales and service network to provide one-stop professional services around the world.
• The Company maintained sound corporation governance and good investor relations. During the period, the Company won Gold Award for Social Responsibility and Investor Relations by The Asset in the Asset Corporate Awards 2010, and was awarded "The Best Investor Relations" (China Company) in the Asian Excellence Recognition Awards 2011 and "The Best of Asia" in the Recognition Awards 2011 by Corporate Governance Asia. The Company's 2010 annual report was honored with three awards in the 25th anniversary International ARC Awards, i.e. Silver Awards in the Shipping Services categories of "Overall Annual Report" and "Chairman's Letter", and Bronze Award for "Printing and Production". In addition, the Company was entitled "Caring Company" by The Hong Kong Council of Social Service for the third consecutive year.

Outlook

The global economy still faces many uncertainties in the future, while China will remain a leading player that drives the world economy under the implementation of the "Twelfth Five-Year Plan". International shipping market is generally uncertain, but it is certain that the gigantic global vessel orderbook makes the second half of 2011 and the first half of 2012 the peak period of new vessel delivery, which will benefit several business segments of the Group. However, the continued oversupply of shipping capacity in the second half of 2011 will put shipping companies under great pressure, which in turn brings some risks to the Group.

Mr. Wang Xiaodong, Managing Director of the Company, said, "Although the Group's shipping services business, in some degrees, will be affected by the depression of shipping industry, most of our businesses will be benefited by the growth of total shipping capacity. According to the orderbook and contracts in hand, it is believed that the overall performance of shipping services will remain stable and show defensive characteristics. Based on the risk management of all kinds, we will seize the opportunity to continuously propel the development of existing businesses."

"At the same time, we will proactively explore new business. COSCO International has engaged in the service of a globally renowned management consulting firm, to design a five-year plan, including business and services portfolio, based on the corporate vision of 'becoming a global leading one-stop shipping services provider'. Through differentiated services, a global sales and service network to reduce operating costs for shipping companies, and a customer-oriented business model, COSCO International will be able to provide a one-stop professional services to global shipowners around the globe. With the full support of COSCO Group and COSCO (Hong Kong) Group Limited, the Group will continue to actively search and explore the opportunity to merge resources within or outside of COSCO Group. By combining existing core businesses operation and investment operation, the Group will enlarge its income scale and create greater returns for the shareholders," Managing Director Wang Xiaodong concluded.

Editorial Note

The 2011 Interim Results announcement is available on the website of the SEHK (www.hkexnews.hk) and the Company's website (www.coscointl.com). A webcast replay of the 2011 Interim Results analyst presentation will be available at the Company's website after 10:00pm, 31st August 2011.

Company Background

COSCO International Holdings Limited (Stock Code: 00517) has been listed on the main board of the SEHK since February, 1992. COSCO International is mainly engaged in the provision of shipping related services and products, which 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. It aims to become a specialised and leading shipping services provider. Its businesses and service network cover China Mainland & Hong Kong, Singapore, Japan, and other major fueling ports worldwide. 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:

SOURCE COSCO International Holdings Limited