31 March 2017
Contents Part 1Highlights
Part 2Financial Review
Part 3Market & Business Review
Part 4Market Outlook & Development Strategy
1
COSCO SHIPPING Holdings Co., Ltd. Part 1 Highlights2016 Annual Results Quarterly Performance Business Restructuring
2
Highlights - Overwhelming pressure in a tough market
Key Financials | 2016 RMB(mn) | 20151 RMB(mn) | YoY |
Revenues | 69,833 | 55,148 | 26.6% |
Cost of services | 70,383 | 51,425 | 36.9% |
Gross loss(-)/profit | -550 | 3,723 | -114.8% |
Gross loss(-)/profit margin | -0.79% | 6.75% | -7.54 PPs |
Operating loss(-)/profit | -5,041 | 1,732 | - |
loss(-)/profit attributable to equity holders | -9,906 | 469 | - |
Basic EPS(RMB) | -0.97 | 0.05 | - |
Net cash flows generated from operating activities | 1,520 | 7,118 | -78.6% |
2016/12/31 RMB(mn) | 2015/12/31 RMB(mn) | YoY | |
Equity attributable to the equity holders of the Company | 18,323 | 28,560 | -35.8% |
Net debt | 25,188 | 52,574 | -52.1% |
Total equity | 37,549 | 53,171 | -29.4% |
Net debt to total equity ratio | 67.08% | 98.88% | -31.8 PPs |
The comparative information of FY2015 financial statements has been restated considering the disposal of the dry bulk shipping and the container leasing businesses and the acquisition of entities whose parent company is China Shipping Group in FY2016.
3
Q1
RMB(mn)
Q2
RMB(mn)
Q3
RMB(mn)
Q4
RMB(mn)
Revenue
13,282
16,285
18,945
21,320
Net loss(-)/profit attributable to equity holders
-4,484
-2,725
-2,011
-686
Net loss(-)/profit attributable to equity holders (excluding extraordinary items)
-2,144
-2,677
-1,998
-276
Net cash flows generated from operating activities
-578
622
-626
2,102
25,000
Highlights - Results improved quarterly
20,000
18,945
21,320
15,000
13,282
16,285
10,000
5,000
Revenue
Net loss attributable to equity holders (excluding extraordinary items)
0
-5,000
-2,144 -2,677-1,998
Q1 Q2 Q3 Q4
-276
Note: The quarterly results were in accordance with Chinese Enterprise Accounting Standards4
Pre-restructuring
Highlights - Key transactions completed in 1Q 2016
Key transactions
COSCO Group
China Shipping Group
51%
China COSCO* to operate vessels and containers
leased from CSCL and acquire network assets
from CSCL
China COSCO
CSCL
49%
Holdings 2
(2866.HK) CS Terminal
COSCO Container Lines and CSCL signed leasing contracts of container ships and containers on 1
100% 100%
44.83%
COSCO
Container Lines
Post-restructuring
COSCO SHIPPING Lines
100%
COSCO
Bulk
1
COSCO
Pacific
FLORENS
(Container 4
China COSCO SHIPPING
Corporation Limited
Leasing)
COSCO Group
100%
COSCO SHIPPING Holdings (A+H)
(601919.SH / 1919.HK)
45.47%
3
COSCO SHIPPING Ports (COSCO Pacific, 1199.HK)
46.72%
March 2016, representing the official business
integration of the two companies.
The acquisition of CSCL's network assets: the
acquisition of 33 companies completed on 30
China COSCO* to sell dry bulk business to COSCO Group
Completed on 15 March 2016
COSCO Pacific** to acquire port assets held by China Shipping Group and CSCL
Completed on 18 March 2016
COSCO Pacific** to sell container leasing business (Florens) to CSCL
Completed on 24 March 2016
New Strategic Positioning and Objectives
Transition from an integrated shipping conglomerate to a pure player in container shipping value chain
To become a world-class container shipping and port service provider with its continuing efforts to build up a global network, provide customers with integrated solutions and create higher return for shareholders
* China COSCO Holdings changed its company name to "COSCO SHIPPING Holdings Company Limited" on 4 Nov 2016.
** COSCO Pacific (1199.HK) changed its company name to "COSCO SHIPPING Ports Limited" on 22 Jul 2016.
***COSCO Container Lines changed the name to "COSCO SHIPPING Lines" in Nov 2016.
5
COSCO SHIPPING Holdings Co., Ltd. Part 2 Financial ReviewConsolidated Income Statement
Segment Results
Consolidated Balance Sheet Consolidated Cash Flow
6
2016
RMB(mn)
2015
RMB(mn)
YoY
Revenues
69,833
55,148
26.6%
Cost of services
-70,383
- 51,425
36.9%
Gross loss(-)/profit
-550
3,723
-
Gross loss(-)/profit margin
-0.79%
6.75%
-7.54 PPs
Subsidy for vessel demolition
109
1,549
-93.0%
loss(-)/gain on disposal of vessels, net1
-1,038
-237
338.0%
Other expense(-)/income, net
-470
1,461
-
Selling, administrative and general expenses2
-4,021
-3,452
16.5%
Operating loss(-)/profit
-5,041
1,732
-
Finance income
500
802
-37.7%
Finance costs
-1,913
-1,861
2.8%
Net related exchange loss(-)/profit3
-402
-487
-17.5%
Net finance costs
-1,815
-1,546
17.4%
Share of loss(-)/profits of JCE & associates
1,400
1,556
-10.1%
loss(-)/Profit before income tax (EBT)
-5,456
1,742
-
Income tax expenses
-506
-531
-4.6%
loss(-)/profit from continuing operations
-5,963
1,211
-
loss(-)/profit on disposals of subsidiaries4
-2,430
-
-
loss(-)/profit from discontinued operations
-3,139
997
-
loss(-)/Profit for the year
-9,101
2,209
-
loss(-)/profit attributable to equity holders
-9,906
469
-
Financial Review - Consolidated Income Statement
During the reporting period, the Group disposed of 16 container vessels, including: demolition of 14 vessels and sales of 2 vessels.
A significant reason for the increase in the administrative expenses as compared to the same period of last year is a 41.9% increase of the legal and professional fees mainly in connection with the restructuring incurred in 2016.
In 2016, narrowed exchange loss was mainly because that the structure of company's bank deposits and loans was adjusted to avoid exchange rate risks.
Net loss on disposal of subsidiaries was due to the disposal of COSCO Bulk Group and Florens.
Cash received from the disposals of COSCO Bulk and Florens in 2016 amounted to RMB9.5bn. Cash payment of RMB6.3bn was applied in the purchase and construction of fixed assets, intangible assets and other long-term assets.
Cash payments related to financing activities made during the year amounted to RMB9.0bn, which were primarily cash payments made for the acquisition of the relevant agency companies and terminal companies China Shipping Group and the acquisition of shares in COSCO SHIPPING Ports from the secondary market to increase shareholding.
7
Financial Review - Segment Results
Segment Revenues (from external customers) | 2016 RMB(mn) | 2015 RMB(mn) | YoY |
Continuing operations | |||
Container shipping and related business | 66,569 | 52,051 | 27.9% |
Terminal and related business | 3,762 | 3,495 | 7.6% |
Discontinued operations | |||
Dry bulk shipping and related business | 1,117 | 9,008 | -87.6% |
Container leasing and related business | 477 | 1,967 | -75.7% |
Terminal and related business; 5%
Dry bulk shipping and related business; 1%
Container leasing and related business; 1%
Container shipping and related business; 93%
Segment loss(-)/profit | 2016 RMB(mn) | 2015 RMB(mn) | YoY |
Continuing operations | |||
Container shipping and related business | -6,142 | 782 | - |
Terminal and related business | 1,495 | 1,451 | 3.0% |
Discontinued operations | |||
Dry bulk shipping and related business | -556 | 1,214 | - |
Container leasing and related business | 83 | 669 | -87.7% |
8
Financial Review - Consolidated Balance Sheet
2016/12/31 RMB(mn) | 2015/12/31 RMB(mn) | Change | |
Non-current assets | 74,290 | 113,850 | -34.7% |
Current assets | 45,362 | 46,643 | -2.7% |
Total assets | 119,653 | 160,493 | -25.4% |
Non-current liabilities | 48,549 | 77,147 | -37.1% |
Current liabilities | 33,555 | 30,175 | 11.2% |
Total liabilities | 82,104 | 107,322 | -23.5% |
Equity attributable to the equity holders of the Company | 18,323 | 28,560 | -35.8% |
Total equity | 37,549 | 53,171 | -29.4% |
Net current assets | 11,807 | 16,468 | -28.30% |
Total borrowings | 57,377 | 86,472 | -33.6% |
Cash and cash equivalents | 32,189 | 33,897 | -5.0% |
Net debt | 25,188 | 52,574 | -52.1% |
Net debt to total equity ratio | 67.1% | 98.9% | -31.8 PPs |
9
Financial Review - Consolidated Cash Flow
2016 RMB(mn) | 2015 RMB(mn) | Change | |
Net cash flows generated from operating activities | 1,520 | 7,118 | -5,598 |
Net cash flows generated from investing activities1 | 4,986 | -6,703 | 11,689 |
Net cash flows generated from financing activities2 | -9,498 | -8,480 | -1,018 |
Net cash inflows in the year | -2,992 | -8,066 | 5,074 |
Net related exchange gain/loss(-) | 1,283 | 1,014 | 270 |
Net increase in cash and cash equivalents | -1,709 | -7,052 | 5,343 |
Add: Cash & cash equivalents-Beginning | 33,897 | 40,949 | -7,052 |
Cash & cash equivalents-Closing | 32,189 | 33,897 | -1,709 |
10
COSCO SHIPPING Holdings Co., Ltd. Part 3 Market & Business ReviewMarket Review
Container Shipping and Related Business
Terminal and Related Business
11
China COSCO Holdings Company Limited published this content on 01 April 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 06 April 2017 10:14:13 UTC.
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