Cosco Shipping Ports Limited · HKEX:1199
Cosco Shipping Ports — H1 2023 Earnings Presentation
26 slides from Cosco Shipping Ports's earnings presentation, Aug 29, 2023
Slide 1: 1H2023 Results Presentation
1H2023 Results Presentation Expanding Global Presence and Implementing Lean Operations Accelerating High-Quality Development by Increasing Efficiency
Slide 2: Agenda
01 Key Highlights 02 Financial Performance AGENDA 03 Operational Review 04 Strategy & Outlook 05 Q&A 06 Appendix
Slide 3: Key Highlights
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Slide 4: 1H2023 Terminals Profitability
1H2023 Terminals Profitability Terminal Profit Mildly Declined 2.2% YoY ➢ Total terminal profit dropped 2.2%YoY in 1H2023 mainly due to weaker demand in the US and European markets ➢ Terminal profit in China was down 2.1% YoY due to the decline in the profit at Yantian and HK terminals ➢ Terminal pr
Slide 5: 2Q2023 Terminals Profitability
2Q2023 Terminals Profitability Total Terminal Profit Recorded Improvement in 2Q2023 ➢ Total terminal profit jumped 1.3%YoY in 2Q2023 compared to a decline of 6.3% YoY in 1Q2023 ➢ Terminal profit in China rose 3.8% YoY in 2Q driven by the contribution of newly acquired stake in Xiamen Terminal and Ha
Slide 6: Financial Performance
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Slide 7: Financial Highlights
Financial Highlights Performance Improvement of JV & Associates in 2Q2023 ➢ In 2Q2023, share of profits of JVs and Associates increased 8.9% YoY, mainly driven by the recovery of Shanghai Pudong and Mingdong terminals as well as outperformance at other non-subsidiary terminals in the regions such as
Slide 8: 2Q2023 Revenue and Gross Profit Margin
2Q2023 Revenue and Gross Profit Margin Average GPM of Chinese Subsidiaries Higher Than Overseas Subsidiaries 2Q2023 Subsidiaries’ revenue (US$ Million) and GPM (%) ➢ Terminals in China: Chinese Subsidiary • GPM in China was at 39.5% in 2Q2023 with Overseas Subsidiary relatively good margin expansion
Slide 9: 2Q2023 Terminal Profit
2Q2023 Terminal Profit Total Terminal Profit in 2Q was up 1.3% YoY, Outperformed 6.3% YoY Decline in 1Q ➢ Chinese terminal profit in 2Q was up 3.8%YoY, improved from drop of 8.6%YoY in 1Q, underpinned by “Dual Circulation” to support domestic markets ➢ The Yangtze River Delta recorded 41.6% YoY grow
Slide 10: 1H2023 Financial Position
1H2023 Financial Position Healthy Financial Condition to Promote Sustainable Development ➢ Healthy cash and net gearing level enable us to continue to capture growth opportunities ➢ Total CAPEX in 1H2023 was USD437M, with investment and PP&E accounting for about 62% and 38%, respectively ➢ The avera
Slide 11: Operational Review
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Slide 12: 2Q2023 Throughput
2Q2023 Throughput Equity throughput in 2Q was up 4.8% YoY, outperformed 2.5% YoY decline in 1Q ➢ Strong equity throughput growth in YRD at 20.3% YoY in 2Q (-4.0% YoY in 1Q) was mainly driven by Shanghai Pudong and Mingdong terminals 2Q2023 Total throughput (Million TEU) 2Q2023 Equity throughput (Mil
Slide 13: Sales And Marketing
Sales And Marketing 38 New Shipping Routes And ASP Increment in 1H2023 ➢ Our Subsidiaries have made positive progress in introducing 38 new shipping routes with 661,165 TEU during 1H2023 ➢ During 1H, in local currency terms, avg ASP of Chinese subsidiaries grew 5.5% YoY; avg ASP of European subsidia
Slide 14: Technological Innovation
Technological Innovation Continuing the Construction of Smart Ports to Facilitate Lean Operations Management GSBN EAM 5G MIS ➢ Expanding the implementation of 5G smart Further enhancing terminals’ IT infrastructure ➢ Enhancing the construction of EAM system to ports at Xiamen Terminal and CSP Abu Dh
Slide 15: New Sources of Growth
New Sources of Growth Accelerating the Development of Supply Chain Projects and Value-Added Products Supply chain projects EV Business CSP Abu Dhabi CFS Phase 1 CSP Zeebrugge CFS EV Business Total area Warehouse Capex Commissioning ➢ High-tech, value-added products and products (sqm) area (sqm) (Mil
Slide 16: Strategy & Outlook
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Slide 17: Strategy
Strategy Global Terminal Network and Lean Operations Management Capitalizing on Further implementing global economic growth to lean operations management to boost optimize terminal portfolio quality and efficiency Global Expansion Diversify Disposing 17 17
Slide 18: Outlook
Outlook Challenges ➢ Weakening global economic growth ➢ Further strengthening the performance outlook of our strategic subsidiary terminals and continuing to enhance the global ➢ Increasing risks of geopolitical conflict ports network and to optimize our terminal portfolio, especially ➢ Further inte
Slide 19: Q&A
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Slide 20: Appendix
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Slide 21: 1H2023 Revenue and Gross Profit Margin
1H2023 Revenue and Gross Profit Margin 1H2023 Subsidiaries’ revenue (US$ Million) and GPM (%) ➢ Terminals in China: Chinese Subsidiary • GPM in China remained at a relatively high level Overseas Subsidiary at 39.2% in 1H2023 55.0% Guangzhou Nansha • Xiamen and Guangzhou terminals experienced Rev: 88
Slide 22: 1H2023 Terminal Profit
1H2023 Terminal Profit ➢ The terminal profit in 1H2023 was down 2.2% YoY. Subsidiaries’ terminal profits dropped 3.7% and non-subsidiaries’ declined 1.6% ➢ Terminal profits in Bohai Rim, S.E Coast & Others and S.W. Coast recorded the growth of 10.2%, 26.7% and 23.8%, respectively 1H2023 Terminal pro
Slide 23: 1H2023 Throughput
1H2023 Throughput ➢ The equity throughput in 1H2023 reached 20.75M TEU, up 1.3% YoY, driven by the regions of Bohai Rim and Yangtze River Delta 1H2023 Total throughput (Million TEU) 1H2023 Equity throughput (Million TEU) Total: 64.57M TEU (+2.2% Y/Y) % of total Total: 20.75M TEU (+1.3% Y/Y) % of tot
Slide 24: Pledge to Reach Carbon Neutrality at Subsidiary Level
Pledge to Reach Carbon Neutrality at Subsidiary Level Enhancing Energy Use Efficiency to Reduce Emissions and Combat Climate Change GHG Emissions Energy Consumption Long-term commitment: Short-term target: ➢ To achieve carbon neutrality no later than 2060 ➢ To reduce energy consumption intensity of
Slide 25: Enhancing Water and Waste Management at Subsidiary Level
Enhancing Water and Waste Management at Subsidiary Level Contributing to Ecological and Environmental Protection Water Consumption Waste Target for hazardous waste: Target: ➢ To maintain 100% hazard-free disposal of waste ➢ To enhance the management of water resources and improve water use efficienc
Slide 26: Disclaimer
Disclaimer This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of COSCO SHIPPING Ports Limited (“COSCO SHIPPING Ports”) and certain plans and prospects of the management of COSCO SHIPPING Ports. Such forward-lookin