COSCO SHIPPING International (Hong Kong ) Announces 2020 Results

Mar 25, 2021

(25th March 2021, Hong Kong) The board of directors (“the Board”) of COSCO SHIPPING International (Hong Kong) Limited (“COSCO SHIPPING International (Hong Kong)” or the “Company”, stock code: 00517.HK) today announced the audited consolidated results of the Company and its subsidiaries (collectively the “Group”) for the year ended 31st December 2020.

 

In 2020, the global market was dominated by the COVID-19 epidemic, which led to brief suspension of operating activities in supply chain across industries, resulting in a global economic recession. Nonetheless, the easing fiscal and monetary policies that implemented by countries played a positive role in the second half of the year, facilitated a rebound in industrial production and household spending, contributed to a recovery in port and shipping activities and stabilized the container shipping market. China took the lead in the recovery from the epidemic with effective control since February. Work and production resumption has been taking place rapidly with the implementation of regular epidemic prevention and control in Mainland China. Meanwhile, the shipping market showed signs of robust recovery in the second half of the year,that motivated ship-owners to expedite new build vessel delivery and led to an upward trend of both the prices of and demand for containers.

 

PBT of the core shipping services businesses up 33% YoY

The Group has been striving to enhance the quality and efficiency of operations over the past two years, improving the technical content of products and seizing market share. All its hard efforts paid off during the year. Though confronted with various macroeconomic challenges, the Group’s profit before income tax of the core shipping services businesses achieved 33% Year on Year growth, demonstrating the continuous improvement of the Group’s operational efficiency, profitability, stability and quality, also showcasing our excellent countercyclical and resilience properties

 

Full Year DPS 22.0 HK cents, up 33% YoY, Payout Ratio Approx. 100%

During the year, profit attributable to equity holders of the Company increased by 2% Year on Year to HK$3.39 million. Basic earnings per share was 22.08 HK cents. The Board proposed a final dividend of 15.5 HK cents per share. Together with the interim dividend of 6.5 HK cents per share, the total dividends are 22.0HK cents per share (2019:16.5 HK cents), representing a dividend payout ratio of approximately 100% (2019: 76.5%).

 

COSCO SHIPPING International (Hong Kong) restated its dividend policy since 2015 to maintain its annual dividend payout ratio not less than 50% of net profit prior to obtaining practical progress in major investment projects in the future. Up to date, the Company has been committing a steady dividend policy, striving the balance between stable return to shareholders and the Company’s sustainable development, and maintaining a higher payout ratio than the defined one. In consideration of a complex macro-environment, the Board considered increasing our dividend payout this time conformed to the benefits of our shareholders, and showcased our commitment to maximize shareholders’ return.

 

Looking ahead, with the enormous support from our company, COSCO SHIPPING, the Group will leverage on its stable cash flow and solid financial fundamentals to seize the development opportunities from the “14th Five Year Plan” and to seek appropriate investments from the initiatives of “One-Belt-One-Road”, “Guangdong-Hong Kong-Macao Greater Bay Area” and “the China (Hainan) Pilot Free Trade Zone”.

 

Results Highlights

For the year ended / as at 31st December

2020 2019

Changes

(%)

Profit attributable to equity holders (HK$ mn)

338.52

330.61

+2%

Basic earnings per share (HK cents)

22.08

21.57

+2%

Annual dividends per share (HK cents)

22.0

16.5

+33%

Net asset value per share (HK$)

5.29

5.17

+2%

 

 

Editorial Note

The announcement of 2020 annual results is available on the websites of the SEHK (www.hkexnews.hk) and the Company’s website (www.hk.coscoshipping.com)

 

For enquiries, please contact:

PR Division of COSCO SHIPPING International (Hong Kong) Limited

 

Zheng Xiaofeng

Deputy General Manager

Tel: (852) 2809 7810

Fax: (852) 8169 0678

Email: zhengxf@coscointl.com

Scott Leung

Manager

Tel: (852) 2809 7706

Fax: (852) 8169 0678

Email: leungshutak@coscointl.com

Roy Ni

Senior Officer

Tel: (852) 2809 7820

Fax: (852) 8169 0678

Email: nijiawei@coscointl.com