CHU KONG SHIPPING ENTERPRISES (GROUP) COMPANY LIMITED 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 disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
(Stock Code：00560)
On behalf of the board of directors, I hereby present the annual results of Chu Kong Shipping Enterprises (Group) Company Limited (the "Company") and its subsidiaries (the "Group") for the year ended 31st December 2015 for the shareholders' perusal.
In 2015, China's economic development entered into a new normal state, and the management of the Group diligently implemented the decisions put forth by the board of directors, strove to promote enterprise development, actively implemented transformation and upgrading, completed all key works planned at the beginning of the year, and achieved a growth in operation result. For the year, the Group recorded a consolidated revenue of HK$1,922,280,000, representing an increase of 5.1% as compared with last year. Profit attributable to the equity holders of the Company amounted to HK$232,362,000, representing an increase of 5.0% as compared with last year.
In 2015, the Group achieved a breakthrough in its results, as well as its freight and passenger transportation businesses:
Terminal navigation logistics business continued to expand. In 2015, there was a significant drop in total export and import volume of foreign trade in Guangdong and also the throughput volume in Hong Kong, but the Group achieved a container handling volume of 1,366,000 TEU, representing a year-on-year increase of 4.7% and a container transportation volume of 1,378,000 TEU, representing a year-on-year increase of 5.6%. This result significantly out-performed the market norm. For terminal operation, the Group actively proceeded with the following tasks: firstly, it promoted its professional operation and re-structured cargo sources to differentiate itself from competitors. Through optimising the cargo sources structure, both volume and price rose at many terminals. By upgrading the facilities in the terminal and improving custom clearance efficiency, Gaoming Port continued to achieve a growth in net profit at a pace that was higher than revenue growth. Heshan Port recorded a substantial increase in renewable resources cargo due to its aggressive expansion in cargo sources channels. Sihui Port recorded an increase of 14.4% in factory export trade cargo by developing the surrounding cargo sources. Civet Port actively introduced new freight forwarders and optimised the cargo sources structure. Through promoting the domestic feeder business for foreign trade and making efforts in developing the ceramics export business, Sanbu Port recorded an increase of 57.3% in ceramics tiles container handling volume. Secondly, the Group actively developed an integrated logistics structure and expanded its oversea markets. Chu Kong Transhipment & Logistics Company Limited ("CKTL") recorded a significant
increase in gross profit through upgrading its warehouses, introducing high value cargoes such as duty free liquor & tobacco and aircraft engineering parts. Meanwhile, it actively explored and participated in numerous large-scale integrated logistics projects and break bulk cargo business, and completed an one-stop logistics solution on integrated transportation and handling for locomotives, over 1,300 ultra-large infrastructure cement bridge components and a total of 60 sets of large-sized aircraft boarding bridges from two boarding bridge manufacturers. The Group coordinated the resources of CKTL and Nansha Logistics Park, attracted cross-border e-commerce business through its two logistics paths "Hong Kong-Nansha Water-way Express" and "Green Fast Land-way Express"; made Qingyuan Port as the only outpost of renewable resources cargoes in Nansha and set up the "Qingyuan to Nansha" express service. In addition, the Group actively explored the overseas markets. In March 2015, the newly established freight forwarder company in Malaysia commenced its operation and created a new platform of regional cooperation and business linkage with the freight forwarder company in Singapore. Thirdly, the Group actively set up cross-border e-commerce business in Nansha, seized opportunities, explored business opportunities, actively implemented the Nansha strategy, cooperated to push forward the construction of Nansha Logistics Park project, kicked off the "Internet +" e-commerce platform strategy, and carried out in-depth integration through the interaction of online and offline. Fourthly, the Group developed an innovative mechanism to promote diversified-ownership reform. It facilitated the pilot enterprises for diversified-ownership reform in Gaoming Port. Civet Port in Zhuhai introduced strategic partners through capital injection, upgraded its warehouses and enlarged its container yard to enhance its competitiveness.
Water-way high-speed passenger transportation has reached a new peak in its total profit contributions. In 2015, for water-way high-speed passenger transportation, the Group actively carried out the following works: Firstly, it adjusted its route resources and increased overall efficiency. Lianhuashan Port successfully restored the airport route and added extra flights. It promoted the cooperation program with Nansha and actively adjusted intermediate ports, earning a higher share of the revenue generated. At the same time, it continued to implement "land-water transshipment" strategy and stabilised the customer base in Jiangmen, Doumen, Gaoming, Heshan and other regions. Secondly, it met the needs in transformation and cultivated local markets in an in-depth manner. By giving full play to the platform role of Fortune Ferry, a custody company, it continued to develop local businesses, including the Victoria Harbour Tour, enhanced its cooperation with Connect Media in advertising business and conducted tourist shuttle services with Ngong Ping 360. Thirdly, it leveraged on its platform advantage, deepened the cooperation with ship owners and strengthened market expansion. It established platforms through marketing promotion in Guiyang-Guangzhou High-speed Railway Conference and airlines service fraternity gatherings to further improve market influence. Fourthly, it enhanced brand recognition by elevating service experience. Chu Kong High-Speed Ferry Company Limited coordinated with ship owners for management training to improve the quality of pre-boarding and direct baggage transfer services. A number of ticket promotion activities were conducted in Hong Kong-Macau routes via Facebook, WeChat and mobile apps. At the same time, through means such as cooperation with airlines, travel agencies and Macau Government Tourist Office and participation in overseas tourism exhibitions, it developed its overseas customer base, increased sales channels and consolidated cooperative
relationships. Fifthly, the Group's e-commerce platform"HEMA-WANG"project was progressing smoothly.
With on-line tour as a breakthrough, through mass funding lottery drawing, customers are being attracted. In addition, the facilitation of using public WeChat ID of Chu Kong Passenger Transport Company Limited and the mobile apps of CotaiJet had not only improved transaction convenience, but also further enhanced service quality.
In May 2015, the Company succeeded in completing the placing of 180,000,000 shares, and raised a total of approximately HK$460,000,000. This successful capital raising had enlarged the size of the Company, enriching its capital for development, improving awareness about the Company and enhancing the long-term competitiveness of the Company. The Group will consistently and actively facilitate its project development and consolidate the core competitiveness of its passenger and freight business, so as to generate long-term returns for its shareholders.
Looking forward to 2016, the Group will take transformation and upgrading as well as reform and innovation as its base, using projects as the leverage, market as the guide and customers as the focus, attaching great importance to benefits and efficiency, reinforcing synergy, integrating resources, developing innovative products, deepening reform, perfecting procedures and improving services, to continue improving its corporate core competitiveness and promote the Group's sustained development in order to leap forward to a new era.
The Group will focus on the following works: firstly, it will promote development with innovation with an aim to accelerate logistic sector transformation and upgrading. Terminal navigation logistics will take scale clustering as its main development direction with extension to both ends to create a new business format and enhance the overall competitiveness of terminal navigation logistics. It will formulate terminal synergistic and complementary effects through deepening resource integration in "super logistics" and consolidation of the regions management model; improve the flow processes by process standardisation and sophistication in order to raise the resource utilisation rate. Meanwhile, more efforts will be put toward promoting integrated logistics, creating new business opportunities up the industry value chain and develop new economic growth drivers by leveraging on CKTL's platform, establishing foothold in Tuen Mun wharf and warehouse, logistics park in Nansha, Civet Port in Zhuhai, and strive to become a competitive shipping logistics service provider around the Guangdong-Hong Kong-Macau area. Secondly, high-speed passenger transportation will take structural adjustment and cultivate new projects as entry point, strengthen management output and drive the transformation and upgrading in high-speed passenger transportation segment by new projects. It will also put more effort on business promotion and marketing to create in-depth cooperation between passenger
transportation and tourism businesses; and take advantage of the e-commerce platform"HEMA-WANG"to
improve the service standard. The Group will facilitate ship owners to speed up replacing transportation capacity with high-speed ferries in new material; maintain sound operation of Fortune Ferry business and upgrade "Victoria Harbour Tour" services. Thirdly, it will develop good projects through mergers and acquisitions to make its core businesses stronger and better.
With a strong emphasis on relation with investors, the Group has always sought to ensure communications between investors and management of the Company. During the year, a number of roadshows and performance presentations were held for the institutional investors. The Company greeted investors warmly and shared information according to the principles of corporate governance. I firmly believe that ongoing effective communication with the investors will improve the management's transparency and the level of corporate governance of the Company, as well as continuously create value for the shareholders.
On behalf of the board of directors, I would like to give my heartfelt thanks to all shareholders, business partners as well as stakeholders for their continuous support to the Company's development. Meanwhile, I would also like to express my sincere appreciation to all staff for their dedication.
Xiong Gebing
Chairman
Hong Kong, 29th March 2016
CKS - Chu Kong Shipping Development Company Limited issued this content on 29 March 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 29 March 2016 11:14:12 UTC
Original Document: http://www.cksd.com/attachment/2016032919020100002465301_en.pdf
