(26th March 2019, 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 2018.

In 2018, the global economic condition was complicated as uncertainties arising by decelerating economic growth, changes in trading environment, trade frictions between China and the United States, etc., globalisation was challenged with huge potential risks. Even though the overall trend had continued to improve, shipping market remained fluctuated at the bottom while the shipbuilding market was struggling in recovery. In view of the unfavourable market conditions, the Group has prioritised the enhancement of profitability, business development and management efficiency as its primary objectives, with an aim to turn challenges into opportunities.

During the year, profit attributable to equity holders of the Company decreased by 20% YOY to HK$286 million. Basic earnings per share was 18.67 HK cents. The Board proposed a final dividend of 9 HK cents per share. Together with the interim dividend of 5 HK cents per share, the total dividends are 14 HK cents per share (2017:18 HK cents), representing a dividend payout ratio of 75% (2017: 77%).

During the year, the Company has made achievements in enhancing management efficiency and business expansion. The Company has entered into the Management Services Master Agreement with its parent company COSCO SHIPPING (Hong Kong) to tackle the issues of organisational overlapping and functional redundancy which significantly improved the operational and decision making efficiency of the Company. Also, the Company has subscribed 33% equity interest in Nasurfar Changshu, enabling the Company to extend its industry chain and generate sound synergies with existing businesses. During the year, the Group’s share of profit from Nasurfar Changshu was HK$2,022,000 (2017: Nil).

Looking ahead, by leveraging on the enormous strength and remarkable brand value of its ultimate holding company, COSCO SHIPPING Group, the Group will proactively participate in the national strategic plan of China with focus on the Guangdong-Hong Kong-Macao Greater Bay Area and the China (Hainan) Pilot Free Trade Zone, strive for the implementation of the Company’s two major strategies, namely ‘‘the united operational platform for shipping services industrial cluster’’ and ‘‘the non-financial business investment platform’’, and build up the core competitiveness of shipping services industrial cluster, aiming to be a ‘‘world leading shipping services company’’.

Results Highlights
For the year ended / as at 31st December 2018 2017 Changes（%）
Profit attributable to equity holders (HK$ mn) 286.14 356.63 -20%
Basic earnings per share (HK cents) 18.67 23.26 -20%
Annual dividends per share (HK cents) 14 18 -22%
Net asset value per share (HK$) 5.12 5.16 -1%

Editorial Note
The announcement of 2018 annual results is available on the website of the SEHK (www.hkexnews.hk) and the Company’s website (www.coscointl.com).

For enquiries, please contact:
IR Department, PR Division of COSCO SHIPPING International (Hong Kong)
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 YK Chen
Senior Officer
Tel: (852) 2809 7820
Fax: (852) 8169 0678
Email: chenyk@coscointl.com