COSCO SHIPPING DEVELOPMENT CO., LTD. Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
(A joint stock limited company incorporated in the People's Republic of China with limited liability)
(Stock code: 02866)In order to protect the interest of investors, China Shipping Container Lines Company Limited (the 'Company') has convened an investor briefing session from 16:15 p.m. to 17:15 p.m. on 9 November 2015, Monday in the online platform 'SSE Road Show' of Shanghai Stock Exchange via Internet interaction, whereby the Company has communicated with the investors regarding matters in relation to the recent trading suspension of the Company and has answered questions commonly concerned by the investors to the extent permitted by laws and regulations.
-
Summary of Investor Briefing Session
As China Shipping (Group) Company, the controlling shareholder of the Company, is contemplating certain material matters, trading in the shares of the Company has been suspended since 10 August 2015 at the request of the Company. During the trading suspension, the Company has been actively proceeding with relevant work and has performed relevant decision-making procedures and disclosure obligations in a timely manner. In order to strengthen interaction and communication with the investors and to protect the interest of investors, the Company has convened an investor briefing session in the online platform 'SSE Road Show' of Shanghai Stock Exchange, which is hereby summarised as below.
-
Participants of Investor Briefing Session
Mr. Zhang Mingwen, the chief accountant of the Company, and Mr. Yu Zhen, the secretary to the board of directors of the Company (the 'Board'), were present at the investor briefing session. The Company has communicated and interacted with the investors at the investor briefing session, and has answered questions commonly concerned by the investors.
- Major Questions Raised by Investors and Response of the Company
The Company has answered questions commonly concerned and raised by the investors at the investor briefing session, and the relevant questions and responses are recorded as below:
-
Question from the Investor: I have a question for the senior management of the Company. What is the progress of the reorganisation of the Company? When will the Company's shares resume trading?
Response from the Company: After argumentation and negotiation with the parties concerned, the controlling shareholder of the Company is planning assets integration for related business segments of its subsidiaries. However, due to the complex issues involved and since the scope of the consolidation may involve domestic and foreign assets in the meantime, such matters are currently under research and demonstration with ongoing constant communication with regulatory agencies, which will involve the Company' s major assets restructuring In view of the fact that there exists uncertainty regarding the reorganisation plan, which is also subject to regulatory authorities' approval, in order to ensure fair information disclosure and protect the interests of investors, and to avoid unusual stock price fluctuation, trading in the shares of the Company will continue to be suspended upon its application. The Company will undertake its obligation of disclosure after receiving regulatory authorities' approval in a timely manner. Upon completion of relevant work, the Company will convene a board meeting to consider the related resolutions on the major assets restructuring plan, and make an announcement as soon as possible and resume trading of its shares. -
Question from the Investor: How is the recent performance of the Company?
Response from the Company: Due to the slow-down of the increase of the world's major economies and depressed demand for international trade, the container shipping industry is confronted with severe challenges. This year, the overall performance of foreign trade lanes was slow in the off-season and was not prosperous in the peak season, with low increase in the cargo volume demand and significant decrease in the freight rates. Freight rates for Asia-Europe trade lanes even hit record low levels in the third quarter of the year. According to the recent statistics published by the Shanghai Shipping Exchange, China Containerized Freight Index decreased by approximately 29% as compared with the beginning of 2015. Affected by the industry distress, for the reporting period as set out in its third quarterly report, the Company recorded revenue of RMB23.86 billion, representing a decrease of 10.8% as compared with the corresponding period of last year, with net profit attributable to equity holders of the listed company of RMB-1.03 billion and basic earnings per share of RMB-0.0885. -
Question from the Investor: I have a question for the senior management of the Company. Could you please briefly introduce the content and progress of the reorganisation of the Company?
Response from the Company: To the best of the Company's knowledge, the reorganisation plan is still under study. Due to the complicated nature of the relevant matters, the Company will cooperate with the controlling shareholder to continue studying and substantiating such matters, organising relevant intermediaries for the audit, valuation, and legal and financial advisory work, and keeping communication with regulatory authorities in accordance with the Administrative Measures for the Material Asset Reorganisations of Listed Companies and other relevant rules. -
Question from the Investor: China is pushing forward the Belt and Road Initiative. Is there any substantial support? Can the support promote the development of the shipping industry?
Response from the Company: The Belt and Road Initiative has become a national key development strategy. As for the shipping industry, the Belt and Road Initiative can be beneficial for infrastructure construction in the short term. Along with the prosperity of the sea trading, the volume may increase on the long run. The Company, as a global shipping logistics enterprise, is surely to benefit from the new business opportunity brought by the new national strategy. For example, related countries of the Belt and Road Initiative communicate with each other, which will promote the regional sea-rail joint transportation business. The transfer of domestic excess capacity will also bring new freight demand. -
Question from the Investor: After the completion of the major assets restructuring project, how will the Company improve?
Response from the Company: After communication with the controlling shareholder, the contemplated restructuring plan has not been finalized. The Company will make the announcement and disclosure to the markets after the finalization of the plans. It is suggested that the investors pay attention to the Company's disclosure of relevant information. The maximization of the shareholders' interest is the core and starting point of the Company's all work. The management of the Company will try to improve the Company's business continuously and repay the shareholders' support. -
Question from the Investor: I remembered the Company might have the sea-rail joint transportation business. How is it going?
Response from the Company: According to the requirements of the Company's development strategy of 'great cooperation', since the beginning of this year, the Company further strengthens the strategic cooperation with China Railway Corporation ('China Railway'). Until now, The Company and China Railway have opened over 70 routes through cooperation and another over 20 new routes are under preparation. These routes have mainly covered the major ports along the coast, and further radiate to the northeast, Inner Mongolia, the Longhai line, eastern China, southwest and other main source of the cargo. In addition, the Company also actively explores the international container railway transport business. At present, the Company has been working with China Railway to develop Outer Mongolia routes, Central Asia international routes and China- European routes. -
Question from the Investor: How is the Company's current shipping capacity and structure? How is the Company's plan of delivery of vessel?
Response from the Company: Until the end of October 2015, the Company has over 170 vessels and total shipping capacity is about 0.9 million TEU. The vessels owned by the Company take up more than half of the shipping capacity. In the future, there will be the 8 vessels with the capacity of 13,500TEU to be delivered and 6 bareboat chartered vessels with the capacity of 21,000TEU whose charter period is 12 years. Such vessels will all be delivered in 2018. Please refer to the announcements published by the Company recently for details. - Question from the Investor: The international shipping industry suffers downturns currently and in the meanwhile, the market recovery is not optimistic for some time to come. Why builds giant container vessel? Is there any special concern?
For details of this investor briefing session, please visit the SSE Road Show online platform on http://roadshow.sseinfo.com/.
By order of the Board of
China Shipping Container Lines Company Limited Yu ZhenJoint Company Secretary
Shanghai, the PRC 9 November 2015
The Board as at the date of this announcement comprises of Mr. Zhang Guofa, Mr. Huang Xiaowen and Mr. Zhao Hongzhou, being executive Directors, Ms. Su Min, Mr. Ding Nong, Mr. Liu Xihan, Mr. Yu Zenggang and Mr. Chen Jihong, being non-executive Directors, and Ms. Zhang Nan, Mr. Guan Yimin, Mr. Shi Xin, Ms. Hai Chi Yuet and Mr. Graeme Jack, being independent non-executive Directors.
* The Company is a registered non-Hong Kong company as defined in the Companies Ordinance (Chapter 622 of the Laws of Hong Kong) and it is registered under its Chinese name and under the English name 'China Shipping Container Lines Company Limited'.
|
distributed by
|
