(25th March 2022, 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 2021.

In 2021, the global economy encountered multiple challenges but continued to recover amid fluctuations as governments have implemented robust stimulus measures and encouraged vaccine popularization, while China has maintained its world-leading position in pandemic prevention and control as well as promoting stable economic development. COSCO SHIPPING International (Hong Kong) has focused on value creation and enhanced our effectiveness through endeavoring to market expansion, technological innovation, and product optimisation, also, we completed the capital injection in Zhejiang Four Brother Rope Co., Ltd. to further extend our footprint in the value-chain of the shipping industry and expand customer diversification. In the face of rising raw material costs and the volatile commodity market, the core business of the Group has achieved steady operation, highlighting the excellent operational resilience of COSCO SHIPPING International (Hong Kong).

OP surged 109% YoY, PBT of core shipping services businesses down 19% YoY 

Against the backdrop of an increase in business volume of the shipping services business which driven by robust shipping market, the Group has been focused on value creation and enhancing efficiency, as a result, successfully enhanced our customer base. In 2021, the Group’s revenue increased by 32% YoY and drove a 109% increase in operating profit. Nevertheless, finance income declined on lower deposit rates, while share of profits of joint ventures recorded a YoY decline and a turnaround shared losses was recorded from associates because of surging raw material prices, the Group’s profit before income tax of the core shipping services businesses declined by 19% YoY.

Full Year EPS 18.81 HK cents, DPS 19.0 HK cents, payout ratio 101%

During the year, profit attributable to equity holders of the Company decreased by 15% YoY to HK$288 million. Basic earnings per share was 18.81 HK cents. The Board proposed a final dividend of 9.0 HK cents per share. Together with the interim dividend of 10.0 HK cents per share, the total dividends are 19.0 HK cents per share (2020: 22.0 HK cents), representing a dividend payout ratio of approximately 101% (2020: 99.6%). A full dividend payout demonstrated our business philosophy of maximising shareholders’ returns into practice.

Looking ahead, in the face of the unprecedented changes in the recent century, we will further intensify our strategic focus to re-examine our strategic position and development direction with a broader vision. We will adhere to technology-driven development, with mutual support of existing businesses and new businesses, thereby achieving efficient operation, and continuously creating value for customers. We will seize the development opportunities arising from the new economy, the Guangdong-Hong Kong-Macao Greater Bay Area, the Hainan Free Trade Port construction, and the globalisation of the Belt and Road Initiatives, as well as seeking opportunities among the areas in digital, green, low-carbon, intelligent and the development of globalization. COSCO SHIPPING International (Hong Kong) has been maintaining stable cash flow and strong financial foundation, which allows us to examine, promote and implement substantial investment projects. COSCO SHIPPING International (Hong Kong) will proactively initiate upgrade and transformation to further sharpen our core competitiveness.

Results Highlights

Editorial Note

The announcement of 2021 annual results is available on the websites of the SEHK (www.hkexnews.hk) and the Company’s website (www.hk.coscoshipping.com)

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