Seizing the "shipping dividend", COSCO SHIP HOLD's revenue exceeded 100 billion in the first half of the year, with a year-on-year growth rate of over 10%

Driven by the increase in domestic import and export demand, as well as international factors such as the interruption of the Red Sea route and early stockpiling in Europe and the United States, COSCO SHIP HOLD's container shipping and terminal business both saw growth in the first half of 2024. In the first half of 2024, COSCO SHIP HOLD's financial report was impressive, with a total revenue of RMB 101.201 billion, a year-on-year increase of 10.19%.

On Thursday, August 29, COSCO SHIP HOLD released its financial report for the first half of 2024:

1) Key Financial Data

Operating Income: Total revenue in the first half was RMB 101.201 billion, a year-on-year increase of 10.19%, higher than the RMB 91.843 billion in the same period last year;

Operating Costs: Operating costs in the first half were RMB 77.463 billion, a year-on-year increase of 8.38%, higher than the RMB 71.473 billion in the same period last year;

Net Profit: Net profit in the first half was RMB 19.255 billion. Of this, the net profit attributable to shareholders of the listed company was RMB 16.87 billion, an increase of RMB 3.09 billion year-on-year.

2) Main Business Segment Data

Container Shipping Business: In the first half, the container business handled 12.4595 million TEUs, a year-on-year increase of 9.34%; achieved revenue of RMB 97.477 billion, a year-on-year increase of 10.41%; operating costs were RMB 95.198 billion, a year-on-year increase of 8.48%; gross profit margin was 22.86%, a year-on-year increase of 1.37%;

Terminal Business: In the first half, the terminal business handled a total throughput of 69.8585 million TEUs, a year-on-year increase of 8.19%; achieved revenue of RMB 5.091 billion, a year-on-year increase of 4.95%; operating costs were RMB 3.595 billion, a year-on-year increase of 5.38%; gross profit margin was 29.39%, a year-on-year decrease of 0.29%.

3) Main Business Segment Data by Region

Americas: In the first half, the operating income of the container shipping business was RMB 27.966 billion, a year-on-year increase of 34.89%;

Europe: In the first half, the operating income of the container shipping business was RMB 21.448 billion, a year-on-year increase of 8.53%; the operating income of the terminal business was RMB 2.27 billion, a year-on-year increase of 0.52%;

Asia-Pacific: In the first half, the operating income of the container shipping business was RMB 23.852 billion, a year-on-year increase of 1.06%; the operating income of the terminal business was RMB 0.258 billion, a year-on-year increase of 15.89%;

Mainland China: In the first half, the operating income of the container shipping business was RMB 10.849 billion, a year-on-year increase of 7.29%; the operating income of the terminal business was RMB 2.543 billion, a year-on-year increase of 8.13%;

Other International Regions: In the first half, the operating income of the container shipping business was RMB 13.362 billion, a year-on-year decrease of 5.09%; the operating income of the terminal business was RMB 0.19 billion, a year-on-year increase of 10.74%

4) Outlook for the Second Half of the Year

Looking ahead to the second half of 2024, the global economy is showing a slow recovery trend, the container shipping market is cautiously optimistic. There are challenges such as complex and severe geopolitical situations, profound adjustments in the global economic and trade landscape, concentrated delivery of new market capacity, and increased performance costs due to green and low-carbon transformation. However, there are also opportunities such as gradual recovery in traditional markets like Europe and the United States, accelerated trade in emerging markets, steady growth in shipping market demand, and closer cooperation in the industrial chain.

After the financial report was released, there was little change in the stock price of COSCO SHIP HOLD.

China Sets New Record for Imports and Exports, COSCO SHIP HOLD's Total Revenue Surges in the First Half of the Year

Driven by domestic demand and international factors such as the interruption of the Red Sea route and early stockpiling in Europe and the United States, COSCO SHIP HOLD's container shipping and terminal businesses both saw growth in the first half of the year.

Due to factors such as early stockpiling in Europe and the United States, growth in cargo volume in emerging markets, and the continued escalation of the situation in the Red Sea, the container shipping market experienced demand growth and insufficient effective supply, leading to a continuous rise in market freight rates and significantly improved industry profits compared to the second half of last year.

The macroeconomic situation and the development of foreign trade are closely related to the terminal business market. Since 2024, China's import and export trade volume has reached a new high and the trend continues to be positive. According to the General Administration of Customs, in the first half of the year, China's total import and export value of goods reached RMB 21.17 trillion, a year-on-year increase of 6.1%. COSCO SHIP HOLD stated:

Since 2024, due to the growth in market demand and insufficient effective supply, the shipping market has been prosperous, and market freight rates have continued to rise. During the reporting period, the average value of China's export container freight index (CCFI) saw a significant year-on-year increase.

COSCO SHIP HOLD Continues to Promote Green and Low-Carbon Transformation of Fleet and Terminals

COSCO SHIP HOLD is following the new trend of green, low-carbon, and intelligent shipping industry development, closely monitoring IMO conventions and EU environmental regulations, accelerating the construction of a green and low-carbon fleet, establishing a green and low-carbon fuel supply chain security system, and optimizing fleet energy efficiency management to adapt to new environmental regulations.

On August 29, COSCO SHIP HOLD signed a contract for the construction of 12 14,000 TEU type Latin American extreme cold methanol dual-fuel container ships. In the first half of 2024, COSCO SHIP HOLD also signed contracts for the conversion of 8 vessels to methanol dual-fuel power, and continued to advance fleet reconstruction plans, biofuel pilot projects, and the construction of green fuel supply chains