COSCO SHIPPING International 2016 Annual Results Press Conference and Analyst Meeting
On 23rd March 2017, COSCO SHIPPING International held 2016 annual results
press conference and analyst meeting in Hong Kong. Mr. Ye Weilong, Executive
Vice President of China COSCO Shipping Corporation Limited and Chairman of COSCO
SHIPPING International, Mr. Zhu Jianhui Presidents of COSCO Hong Kong and Vice
Chairman of COSCO SHIPPING International，Mr. Liu Gang Vice President of COSCO
SHIPPING Hong Kong and Managing Director of COSCO SHIPPING International, and
senior management of the Company attended the meetings.
In 2016, profit attributable to equity holders of the Company decreased by
29% YOY to HK$237 million. Basic earnings per share was 15.47 HK cents. The
Board proposed a final dividend of 5.5 HK cents per share (2015: 9 HK cents).
Together with the interim dividend of 4 HK cents per share, the total dividends
are 9.5 HK cents per share, representing a dividend payout ratio of 61.4% (2015:
73.0%). In the meantime, to celebrate the 20th anniversary of COSCO SHIPPING
International’s being a listed subsidiary of COSCO SHIPPING (Hong Kong) Co.,
Limited, the Board proposed the payment of a special dividend of 5HK cents per
share. The final dividends for 2016 amounted to 14.5 HK cents per share.
As at the end of 2016, COSCO SHIPPING International had net cash of HK$6.7
billion, or HK$4.34 per share, which will provide strong capital support for
major acquisitions and expansion of existing businesses in future.
Looking ahead, the global economic growth in 2017 is expected to be faster
than that in 2016, which will provide a stronger support for the shipping
demand. Although the overall imbalance between the supply and demand sides in
the shipping sector still exists, it is expected to be relieved to a certain
extent. The shipping market is on the rise and will become more rational. The
structural recovery of the industry will further enhance market confidence. The
further implementation of China’s “Go Global” strategy and “One Belt, One Road”
initiative will present enormous opportunities for Chinese shipping enterprises
to develop new markets.
COSCO SHIPPING International remains committed to the strategic direction of
“Shipping Services Industrial Cluster”, in accordance to the overall strategic
plan of COSCO SHIPPING, and strived to achieve intensive marketing and
centralised procurement, as well as to gather talents. On the one hand, the
Company will run existing businesses with a reforming and innovative mindset,
adapt to the changes and timely adjust strategies in response to the market
trend, as well as seek development opportunities. On the other hand, the Company
will actively prepare to expand the asset size by putting considerable effort on
the search of potential acquisition targets and development plan. The Company
will capitalise on its listed platform for acquisition and corporate action, to
achieve strategic upgrade and transformation and to become a world class and
leading shipping services company in China. The Company will develop the
“shipping services industrial cluster” which can offer strong supporting
services for shipping with independent profit drivers, and to maximise the
returns to the shareholders.