COSCO SHIPPING Holdings Announces Huge Increase in Profits in 2021

The leading integrated container shipping service provider, COSCO SHIPPING Holdings CO., Ltd. announced its annual results for the twelve months ended December 31, 2021 (the “Reporting Period”).
• The company’s earnings before interest and taxes (EBIT) in 2021 was RMB 131.5 billion (about $20.38 billion).

• Profit attributable to shareholders was RMB 89.296 billion for 2021, an increase of RMB 79.369 billion or 799.52% year-on-year.

• Earnings per ordinary share in 2021 was RMB 5.59.

• At the end of 2021, the Company’s asset-liability ratio was 56.76%, representing a year-over-year decrease of 14.3 percentage points.

In 2021, the Company witnessed both opportunities and challenges. Faced with repeated waves of COVID-19, coupled with increased transport demand and tight supply, the global logistics supply chain has been tested by port congestion, container shortages and shipping delays. domestic transport, which has led to a tighter relationship between supply and demand in the container shipping market. .

By adhering to the concept of providing “customer-centric” services, our relationship with our customers is key to our success. Faced with the above challenges, the Company quickly adapted to changes in the market and continued to provide high quality service. We do our best to help our customers maintain stable supply chains by optimizing the route network, adding capacity whenever possible, finding new ways to cooperate with them end-to-end, and leveraging digital technology. During this particular period, our commitment and high quality service performance are helping to deepen and extend our relationship with our customers.

Take full advantage of the scale advantages of dual branding and optimize the global network
To cope with the imbalance between high transportation demand and shortage of supply capacity, the company’s dual brand, together with OCEAN Alliance members, officially launched DAY 5 products, covering 39 routes of a total capacity of 4.1 million TEUs. Newly launched products provide more stable services with wider coverage, better quality and shorter delivery times. The Company has strengthened the overall layout of the two-brand fleet and has continuously improved its operational efficiency. In 2021, available slots per week for Trans-Pacific trade and Asia-Europe trade increased by 26% and 6% year-on-year, respectively. At the same time, the Company has strengthened its development in third country markets, emerging markets and regional markets. During the reporting period, dual-brand cargo volume in emerging markets increased by 9% compared to the same period last year.

Leverage the benefits of industrial chain operation to improve “end-to-end” transportation service
In 2021, the company has improved the advantages of industrial chain operation, actively created an integrated land-sea operating model to ensure the stability of the global industrial and supply chain, and provide end-to-end services more reliable to customers. During the reporting period, the company’s dual brand continued to expand its freight sources within Europe, achieving a rapid increase in freight volume of China-Europe Sea-rail Express by 23 % year-on-year. Meanwhile, there were 29 new internal and external maritime rail trade corridors. The China-Africa Rail-Sea Express and Western Greater China Bay Land-Sea Trade Corridor have started successfully.

Leverage technology upgrades to lead digital ecosystem integration
During the reporting period, the Global Shipping Business Network (GSBN) jointly launched by COSCO SHIPPING Lines, OOCL, COSCO SHIPPING Ports (each a subsidiary of the Company) and five other internationally renowned shipping companies and port operators announced operation in 11 domestic and foreign ports. GSBN has carried out Cargo Release in Hong Kong, Singapore, Thailand and other countries and regions, which has greatly simplified data exchange through a paperless solution, and thus improved customer experience and steadily strengthened its influence on the industry.

In 2021, the company’s e-commerce platform (Syncon Hub) was expanded to Europe, North America, Southeast Asia, Australia and others regions, the visualization of the whole process being upgraded and a related logistics product being launched. The transaction volume of e-commerce platforms for foreign trade recorded a growth of 187% year-on-year.

Actively assume corporate social responsibility and promote green and sustainable development

In 2021, the company actively assumed its corporate social responsibilities by providing solutions to transportation issues, including launching 30 designated trips on major routes such as Trans-Pacific routes, Asia-Europe routes, Intra-Asia routes (to Australia-New Zealand) and other international routes (to Mexico). The Company also provided tailor-made services by launching the “Express Service” in North America to alleviate port congestion in certain areas. The company has received largely positive responses from customers, shortening the entire transpacific route transportation process to 19 days.

The Company has always implemented the concept of “energy saving, carbon reduction and green development” in the operation and management of the Company, adhering to respect for the environment and balancing sustainable development and environmental protection. The dual-branded fleet continued to reduce the impact of its business operations on the environment and its carbon emissions through measures such as optimizing the fleet structure and route design, and reducing efficient in fuel consumption. In addition, 32 large container ships ordered by the dual brand in 2020 and 2021 complied with the sulfur oxide (SOx) and nitrogen oxide (NOx) emission standards required by the IMO, as well as the medium-term objective of “reducing carbon emissions” in 2030.
Looking forward to 2022, the international economic and trade structure will continue to undergo profound adjustments, and the world economy will gradually recover when the foundation is not entirely solid. Uncertainty brought by waves of COVID-19 and regional geopolitical events may hamper the process of economic recovery. According to major international economic organizations, the global economy will continue to grow at a slow pace in 2022.
Since the beginning of 2022, the container shipping market overall continued the trend at a high level in 2021, and demand was still elastic with pressure on effective fleet capacity supply caused by continued port congestion worldwide. Little improvement is expected in the tight supply and demand situation in the first half of 2022, and the market outlook remains cautiously optimistic in the near term. However, repeated waves of COVID-19, global inflation, geopolitical tensions and other events will bring uncertainty to the long-term performance of the market, and it is even more difficult to predict the future trend.

Rest assured that, whatever the challenges, the Company will actively respond to global economic and trade changes and fulfill its mission to ship the world. We will continue to work tirelessly and diligently to be at the forefront of our industry, as a vital link to global commerce. The Company will support the stability of the global supply chain, provide better service to our customers. At the same time, the Company will contribute to social responsibility, environmental protection and emission reduction in terms of developing green, low-carbon and intelligent navigation, so that the Company can create greater shareholder value.
Source: COSCO SHIPPING Holdings Co., Ltd.