COSCO SHIPPING DEVELOPMENT CO., LTD. In 2022, the world economy and trade landscape accelerated their evolutions, global economic development generally slowed down, and China's economic operation remained stable in general. Facing the challenges and opportunities, the shipping industry chain gradually returned to normal and commenced transformation towards digital, intelligent and low-carbon development. COSCO Shipping Development has solidly pushed forward to pushed forward to improve quality and efficiency and stabilize growth, promoted reform and innovation for new development, achieving stability in economic benefits amid market fluctuations.
Promote the integration of industry and finance to create value through industry chain synergy
In 2022, the Company's shipping leasing business achieved operating revenue of RMB7.846 billion, of which RMB2.409 billion was derived from ship leasing business. The Company continued to strengthen the industry chain synergy through integration of "leasing and manufacturing, and leasing and shipping", further tapped the market potential, enhanced research and judgment in relation to segment market, and promoted leasing model innovation to achieve business expansion in the segment of ship leasing. The revenue from container leasing business was RMB5.437 billion. Under the "large customer strategy", the Company promoted diversified leasing services, and actively expanded the business of cold containers and special containers to achieve new breakthroughs in business areas. At the same time, by building a customer-centered digital management system and strengthening the global container trading capability, the overall operation efficiency was improved.
In terms of the container manufacturing business, the Company achieved operating revenue of RMB20.711 billion. The Company has been optimizing the product layout, promoting product development, and allocating efforts to engage in green business to promote the development of container application scenarios, with customer demand as the guide. In 2022, the Company joined hands with COSCO Shipping Specialized Carriers to jointly develop and produce a special foldable frame for commercial vehicles, strongly demonstrating the professional advantages of "customized production + targeted service". The marine container-type power supply developed by the Company has been approved by China Classification Society and passed the field inspection.
The investment management business achieved investment income of RMB1.784 billion. The Company integrated industry chain resources around the principal business of shipping and logistics, and empowered the development of the principal business through "integrated business of industry, finance and investment".
Seeking growth in technology innovation segment, and achieving new progress in digital intelligence transformation
The Company actively increased its presence in technology innovation, improved the top-down design and special planning for technology innovation and digital transformation. The Company clarified key projects and indicated the direction and goals of development. In terms of the container leasing business, the Company actively promoted the deep integration of digital technology with production and operation, user services and industrial synergy. iFlorens and container trade platform independently designed and developed by the Company brought about developed a new business scenario with digital technology empowering business and e-commerce improving customer experience, achieving new breakthroughs in online orders on the platform and sales volume of e-commerce. With such scenario, the Company applied for participating in the first "Professional Competition on Innovation in Digital Scenarios of SOEs" hosted by the State-owned Assets Supervision and Administration Commission and has successfully qualified for the finals. In the container manufacturing business, the Company vigorously promoted the construction of "digital factories" and facilitated green and intelligent development. It recorded remarkable results in the replacement and upgrading of green and intelligent products and technological equipment. In 2022, the Company applied for 184 new patents. As of the end of 2022, the Company had 457 patents.
New strides in electric vessel through involvement in the "Dual Carbon" strategy
Focusing on the positioning of "ecological first and green development" of Yangtze River Economic Zone, the Company actively promoted the electric container vessel project. The construction of two 700TEU electric container vessels of the Company was successively commenced. The project is an important measure for the Company to actively practice the national carbon peaking and carbon neutrality strategies and develop demonstration for green and zero-carbon shipping, and won the "Green Growth" Award at the United Nations Industrial Development Organization (UNIDO) Global Call 2022. It was released at the 2023 Pudong New Area Conference on High-quality Development of Core Area of International Shipping Center as one of the annual Top 10 innovation cases in international shipping in Pudong New Area. In addition, the Company organized the establishment of the China Electric Ship Innovation Alliance to integrate advantageous resources in all links of green shipping industrial chains, jointly promote a green shipping system on the coordinated development of relevant ancillary industries and better facilitate the implementation of the carbon peaking and carbon neutrality strategies in the shipping industry.
Improving ESG management to lay foundation for sustainable development
The Company continued to improve the ESG governance and integrated the special strategic planning on ESG into the "14th Five-year" development plan of the Company to promote the comprehensive implementation of the ESG concept in an orderly manner. In 2022, the Company obtained various recognitions over its ESG management work. The analysis on risks and opportunities related to climate change in the Sustainability Report of the Company was displayed by "Hong Kong Stock Exchange as an excellent case in TCFD trainings and was awarded the "GoldenBee Excellent CSR Report 2022 - Environmental Protection Disclosure Award" and the prize of the "2022 ESG Golden Bull Award - Pioneer in Governance".
The Company remained committed to creating value for stakeholders, pays full attention to reasonable returns to investors, insisted on promoting a positive and stable dividend program, paid cash dividends to shareholders for four consecutive years, and shared the fruits of development with shareholders. The Company actively practiced social welfare and participated in practices related to targeted assistance to facilitate rural revitalization.
Embracing new changes for a new future
In 2023, the global economic situation will remain complex and severe, and the shipping market will show cyclical fluctuations. The principal business sectors of the Company will also usher in new development trends, with both challenges and opportunities, and a strong support base and resilience. The Company will be devoted to the re-upgrading of service capabilities of industry and finance. In the ship leasing business, the Company will further explore market demand in the green and low-carbon transformation of vessels and shipping equipment, and promote innovation in business models. In container leasing business, the Company will continue to improve its global network, strengthen the market influence of two major businesses, namely leasing and sales of container, and continue to enhance its value creation capability; further promote digital empowerment and build a customer-centered digital supply chain service ecosystem. In container manufacturing business, the Company will strengthen the synergy of container leasing and manufacturing industrial chains and develop leasing, manufacturing and marketing "complexes"; and will actively promote market exploitation for special containers and develop special containers with the characteristics of the Company. Meanwhile, the Company will vigorously advance the establishment of the ecosystem on digital and intelligent containers and accumulate strong development power. In terms of investment management business, the Company will continue to optimize investment portfolios and improve investment returns. Meanwhile, the Company will strengthen the integration of industry and finance and services for the "digital, networking and intelligent" development of the shipping logistics industry to boost industry upgrading.
As we set sail for a new journey, new trends stimulate new momentum and new opportunities promote new development. COSCO SHIPPING Development will take root in the integration of industry and finance, establish in digital and intelligent empowerment, focus on value creation and forge ahead with the aim to develop the Company into a world-class enterprise. We will embrace new changes for new future based on new ecosystem.
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Cosco Shipping Development Co. Ltd. published this content on 31 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 April 2023 07:15:07 UTC.
