HONG KONG, Aug 30, 2023 – (ACN Newswire) – China International Marine Containers (Group) Co., Ltd. ("CIMC Group" or the "Group", stock code: 000039.SZ/02039.HK) is pleased to announce the unaudited interim results for the six months ended 30 June, 2023 (the "Reporting Period").

The management of CIMC Group said, "In the first half of 2023, the growth momentum of global economy and trade weakened. However, with the accelerated recovery of the global container market, prosperous demand for energy consumption and improving market environment for offshore marine engineering, the Group fully utilized its global leading position in the logistics field, diversified layout in the energy sector, and diversified financing channels to accelerate the cultivation of "specialization, expertise, and innovation" in businesses, while continuously optimizing its business structure during the Reporting Period. With the solid foundation of its global operating platform, the Group can mitigate risks and fluctuations in a single region and achieve stable and high-quality development. During the Reporting Period, domestic and overseas businesses contributed 51.61% and 48.39%, respectively, to total revenue, maintaining a level similar to that of the corresponding period of last year and an optimal market distribution. Although the overall performance was down from the corresponding period of 2021-2022 but still outperformed the pre-pandemic period, especially the brilliant results of CIMC Vehicles and CIMC Enric. Overcoming the impact of global trade downturn, the container manufacturing segment recorded a net profit beyond RMB700 million; offshore engineering business saw continuous loss narrowing. Offshore engineering asset pool management realized more than 10% revenue growth and a significant improvement in operating contribution margin."

A review of the main businesses is as follows:

In the container manufacturing business, as the growth momentum of global economy and trade slowed down and the demand in the container shipping market weakened, the production and sales volume of the container manufacturing business declined from the same period last year. In particular, the accumulated sales volume of dry containers reached 263,100 TEUs (same period in 2022: 675,000 TEUs), representing decreased of approximately 61.02% year-on-year (YoY) . The accumulated sales volume of reefer containers reached 51,500 TEUs (same period in 2022: 68,400 TEUs), representing decreased of approximately 24.71% (YoY). However, the profit level remained stable owing to effective cost control. During the Reporting Period, the container manufacturing business recorded a revenue of RMB13,668 million (Same period of 2022: RMB22,768 million), decreased by 39.97% (YoY) and a net profit of RMB768 million (Same period of 2022: RMB3,053 million)

In the road transportation vehicles business, following the full implementation of "Light Tower Manufacturing Network 2023", the domestic market has been strengthened, the overseas market continued its growth trend, and the emerging market achieved remarkable performance by recording revenue and net profit growth. The revenue increased by 20.31% YoY to RMB13,470 million (Same period of 2022: RMB11,196 million); net profit grew 410.91% YoY to RMB1,892 million (Same period of 2022: RMB370 million).

In the energy, chemical and liquid food equipment business, it recorded a revenue of RMB11,388 million, up 18.96% YoY (Same period of 2022: RMB9,594 million); net profit of RMB435 million (Same period of 2022: RMB468 million). The core business of CIMC Enric experienced significant growth in order demand due to the prosperous industry environment. Generally, for clean energy business, the growth in demand was mainly driven by the pick-up in consumption of onshore LNG, the ship newbuilding price hike attributable to the growth in demand on LNG/LPG vessels and the speed up in the implementation of the green hydrogen business, under which CIMC Enric's market-leading advantage has been further leveraged and therefore resumed growth in segment results. The chemical and environment segment recorded strong operating performance and a high level of industry demand as with standard tank containers return to balanced demand and specialized tank containers received the thriving demand from new energy and semiconductor industries. For the liquid food equipment segment, it saw satisfactory and stable progress in development, largely supported by rich professional experience, diversified business layout and one-stop total solution.

In the offshore engineering business, the global market environment for shipping and offshore engineering continued to improve, and therefore the new orders received by the Group's offshore engineering segment have successively entered construction stage. During the Reporting Period, the revenue increased by 60.41% YoY to RMB4,119 million (Same period of 2022: RMB 2,568 million); the number of new orders recorded a YoY growth of 144% to USD1,490 million (Same period of 2022: USD610 million); accumulated orders on hand amounted to USD5,110 million, up 141% YoY (same period of 2022: USD2,120 million), in which the ratio between oil and gas business and non-oil and gas business maintained at 4:6, which effectively eased the periodic fluctuation of oil and gas and demonstrated a successful strategic transformation.

The finance and asset management business is mainly engaged in the centralized management of funds for the Group and the offshore asset pool management platform through diversified means of financial service and special asset management mode. During the Reporting Period, it realized a revenue of RMB802 million (same period of 2022 including CIMC Finance Lease: RMB1,150 million). Benefitting from the recovering market, the Group acquired two new lease contracts for offshore drilling platform for its offshore engineering asset operation. By the end of June of 2023, out of the existing 14 leasable offshore engineering platforms, the Group acquired lease contracts for 10 platforms, on which six jack-up platforms were leased out, four semi-submersible offshore platforms (including 2 living platforms) were leased out, and the remaining term of the lease contracts ranged from 7-74 months.

Outlook and future development

Logistics Segment
In the container manufacturing business, according to CLARKSONS' forecast, global container trade growth rates for 2023 and 2024 are projected at 1.0% and 3.4%, respectively. Market expectations show a clear upward trend, indicating a steady recovery in global trade that will provide robust support for the accelerated resurgence of industry demand. By 2024 and 2025, Drewry anticipates global container production to return to a level of 4 million TEUs.

In the road transportation vehicle business, the global automotive industry is poised for an upswing in China's commercial vehicle market. China's strategy to expand its commercial vehicles overseas is gaining momentum, particularly in emerging markets such as semitrailers with significant growth potential. Simultaneously, backed by policy support, China's new energy light truck market is ripe for exploration. CIMC Vehicles is focusing on strengthening the "National Unified Commercial Vehicle and Special Vehicle Large Market." By entering the new energy commercial vehicle sector with innovative technology and business models, the Company aims to achieve intrinsic growth driven by innovation and steady performance improvement.

Energy Segment
In the energy, chemicals, and liquid food equipment business, the International Energy Agency (IEA) forecasts that by 2030-2035, LNG will replace coal as the world's second-largest energy source. The drive for energy decarbonization continues to garner market attention and support. Coupled with the acceleration of ship-to-ship transfer demand and green shipping upgrades, China's burgeoning hydrogen energy sector is experiencing robust commercial development. CIMC Enric leveraging its clean energy leadership and technological advantages, will further enhance its comprehensive "production-storage-transportation-refueling-application" layout and integrated solutions. This strategic move will propel its business to achieve steady and rapid growth. Additionally, CIMC Enric will closely monitor changes in demand and application scenarios in the chemical tank container market, seize opportunities in the global craft brewing and emerging beverage consumption and industrial transformation, and continue to enhance its market share.

In the offshore engineering business, the global FPSO market is witnessing an evident upswing trend in the cycle, with accelerated transformation towards carbon neutrality in the global marine equipment sector. The new energy vehicle industry is driving the expansion of global automotive shipping trade volume, while strong demand for new-build ro-ro ships persists. In the latter half of 2023, the Group will actively promote business transformation and the introduction of strategic investors, expedite industrial breakthroughs, and expand gradually into new energy, based on the fundamental prospects of marine oil and gas. This approach aims to establish a combination that stabilizes the cycle.

Financial and Asset Management Segment

The offshore engineering asset pool management platform will continue to promote lean management, leveraging existing project experience and business capabilities. This strategy will seize market opportunities to enhance asset occupancy rates and project profitability. The Group will further solidify cooperation with domestic and international clients, leveraging its excellent marine platform operation and management capabilities to integrate resources and enhance upstream and downstream cooperation.

The Group's management concludes, "We will continue reinforcing our global layout strategy, with research and development centers and manufacturing bases distributed across nearly 20 countries and regions worldwide. With over 30 overseas entities, our primary focus is on Europe, the Americas, and Southeast Asia. On one hand, we will establish a strong domestic presence and expand our industrial layout in the domestic market. On the other hand, through local manufacturing overseas, we will seize the evolving market space in global logistics and energy sectors, creating a dual-engine development strategy for our Group driven by both domestic and international demand."

About China International Marine Containers (Group) Co., Ltd.
The CIMC Group is a world leading equipment and solution provider in logistics and energy industries, and its industry cluster mainly covers logistics and energy fields, strengthening its position as a global market leader. In the logistics field, the Group still adheres to taking container manufacturing business as its core business, based on which to develop road transportation vehicles business, airport facilities and logistics equipment/fire safety and rescue equipment business and to a lesser extent, logistics services business and recycled load business providing products and services in professional field of logistics; in the energy field, the Group is principally engaged in energy/chemical/liquid food equipment business and offshore engineering business; meanwhile, the Group also continuously develops emerging industries and has finance and asset management business that serves the Group itself. As a diversified multinational industrial group that shoulders the mission of global serving, CIMC has 3 listed companies and over 300 member enterprises in Asia, North America, Europe, Australia and others, and extensive customers and sales networks covering more than 100 countries and regions. During the year, the Group recorded a revenue of RMB141.54 billion, with gross profit margin remained at 15.28% and net profit attributable to shareholders of the Company after deducting non-recurring profit or loss of RMB4.28 billion. The Group was recognized by Fortune as one of the "China's Most Admired Companies 2022", and was ranked 84th in the Fortune 500 China 2022, an increase of 35 places over the previous year. For more information, please visit http://www.cimc.com


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HONG KONG, Aug 24, 2023 – (ACN Newswire) – Chu Kong Shipping Enterprises (Group) Company Limited ("Chu Kong Shipping", or the "Company", together with its subsidiaries, the "Group"; Stock Code: 560.HK) is pleased to announce its interim results for the six months ended 30 June 2023 (the "Period"). During the Period, the complex and volatile market environment, coupled with weakened business demand, the Group's cargo transportation business was affected to a certain extent. Nevertheless, benefiting from the orderly resumption of normal traveler clearance in Guangdong, Hong Kong and Macao, a number of cross-border water passenger transport routes of the Group ushered in the resumption of service, while several long-awaited new routes were successfully launched, and the passenger transportation business has gradually recovered. The Group maintained a steady and robust development in its overall business operations.

In the first half of 2023, the Group recorded consolidated revenue of HK$1,233.1 million (1H 2022: HK$1,601.2 million). Profit for the period increased by 1.0% year on year to HK$62.3 million (1H 2022: HK$61.7 million), while profit attributable to the equity holders of the Company increased by 6.3% year on year to HK$58.4 million (1H 2022: HK$54.9 million).

Promoting the Upgrade of the Logistics Strategy and Achieving Steady Development in Cargo Transportation Business
The Group continued to optimise its strategic layout planning by fully leveraging the advantages of the terminals' network within the Guangdong-Hong Kong-Macao Greater Bay Area, facilitating the synergistic development of diversified businesses, achieving new breakthroughs in construction logistics, e-commerce, and air freight logistics businesses. During the Period, regarding the cargo transportation business, the container transportation volume recorded 646,000 TEU, representing a year-on-year increase of 0.2%. The break bulk cargoes transportation volume amounted to 202,000 tons, while the volume of container hauling and trucking recorded 90,000 TEU. As for the cargo handling business, the container handling volume recorded 527,000 TEU and the break bulk cargoes handling volume recorded 3,222,000 tons. During the Period, Chu Kong Transhipment & Logistics Company Limited ("CKTL") adjusted its business strategy timely and reduced operating costs while developing diversified business actively and enhancing market competitiveness. Based on Tuen Mun Godown Wharf, CKTL expanded the area of climate-controlled warehouse at Tuen Mun warehouses, and continued to tap the transportation business for Modular Integrated Construction modules. CKTL also won the bid for a sand supply project for part of the Hong Kong International Airport Second Runway refurbishment project. Meanwhile, CKTL actively developed freight cargo business, successfully developed the cross-border railway-chartered transportation business, achieved growth in Southeast Asian routes, and actively prepared for the establishment of a logistics network in Vietnam. During the Period, each subsidiary strived to overcome multiple hurdles and adopted various measures to enhance income of cargo handling and storage business, resulting in a steady improvement in the operating efficiency of a number of regions.

Continuously Optimising Airport Strategy amid Recovery of Cross-border Passenger Transportation Business
The Group's operation of the cross-border waterway passenger route has resumed in an orderly manner since 8 January 2023. Even though the cross-border passenger transportation business of the Group in the first half of the year increased significantly compared with the same period last year, there was still a gap as compared with the pre-pandemic level. During the Period, Chu Kong Passenger Transport Company Limited ("CKPT") recorded total number of passengers for agency services and the number of passengers for terminal services of 647,000 and 423,000 respectively, representing year-on-year increase of 1,825.3% and 1,158.3%. During the Period, ten cross-border waterway passenger transportation routes commenced operation, including the three newly opened routes of "Shenzhen Airport Ferry Terminal-China Ferry Terminal", "Guangzhou Pazhou-China Ferry Terminal" and "Guangzhou Pazhou-Hong Kong International Airport". The Group continued to deepen cooperation with airlines, travel agencies and other industries, and strengthened business marketing and promotion to achieve an orderly recovery of cross-border passenger transportation business, with passenger load factor of some routes returning to pre-pandemic levels. CKPT,sticking around the airport strategy, continued to increase the layout of airport projects and extend businesses around the airport, gradually enhancing its competitive advantage.

Rapidly Expanding Local Business while Receiving Compliments on Services
Regarding local ferry services, along with the full resumption of people travelling between Hong Kong and China, the Group's local ferry business recorded a total number of passengers of 6,333,000 during the Period, representing a year-on-year increase of 23.4%. Regarding the water cultural tourism business, the effect of market cultivation demonstrated in Oriental Pearl Cruise Company Limited through its ongoing product innovation and service optimisation. During the Period, a cumulative passenger flow of 21,000 passengers was recorded, representing a significant increase of 261.4% year-on-year. The cruise ship "Oriental Pearl" also accomplished a reception for senior officials of the Chinese government in a high-quality manner, which was awarded a letter of praise by the Hong Kong Development Bureau. As to the fuel supply business, Sun Kong Petroleum Company Limited continued to promote business transformation, and achieved "double growth" in both diesel and engine oil sales. Furthermore, it successfully won the bid for the HKSAR Government's bunkering project, and successfully reached a cooperation of the lubricating oil supply chain agency project.

Outlook
In the second half of the year, with the normalisation of cross-border passenger and cargo flows after the normal traveller clearance, the HKSAR Government will implement further measures to stimulate the local economy and improve people's livelihood while enhancing Hong Kong's competitiveness. Additionally, the comparative advantages of the Greater Bay Area will be fully utilised. The Group will firmly grasp the strategic opportunities brought by the National "14th Five-Year Plan", the Guangdong-Hong Kong-Macao Greater Bay Area development, as well as the "Belt and Road" initiative, build on the livelihood of the people in Hong Kong, integrate the resources in the Bay Area, plan for the layout of ASEAN, and promote the development of enterprises in a high-quality manner. The Group will promote high-quality enterprise development in the following areas:

Firstly, the Group will promote the integration of its main businesses and enhance operational and management capabilities. The Group will professionalise the cross-border waterway passenger transportation business across Guangdong-Hong Kong, and steadily promote the integrated operation of cross-border passenger transport. The Group will also enhance the local ferry and cultural tourism sectors in the long run, and build a professional passenger transport operation platform that is more resilient and synergistic. The Group will actively shape five platforms, namely port operation, integrated logistics, warehousing logistics, construction logistics and new business development, to enhance the coordination and synergy of internal and external logistics resources, strengthen the linkage between cargo terminals and navigation, consolidate the advantages of resources, and explore the market potential to build a more active and competitive professional logistics operation platform.

Secondly, the Group will build up its strategic advantages in logistics to enhance its market influence. The Group will utilise its advantages in professional construction logistics platform and actively participate in the construction projects of Hong Kong's "Northern Metropolis" and "Kau Yi Chau Artificial Islands", and vigorously expand the construction logistics and building materials supply businesses. To coordinate the layout of integrated storage centre, the Group will vigorously develop its modern logistics businesses including air freight logistics, supply chain logistics, cold chain logistics and duty-free product storage, facilitating its logistics business to extend into high-end industrial chain. Moreover, the Group will accelerate the establishment of logistics business network in the ASEAN region and capture emerging market share to create a profit growth driver under the "One Belt, One Road" initiative.

Thirdly, the Group will promote the transformation of its waterway passenger transportation to enhance the sustainability of the enterprise. The Group will strive to launch more high-quality routes by focusing on cultivating core routes including the expansion of Pazhou, Shenzhen, Zhongshan and other route networks. The Group will strive to integrate its business into the Hong Kong airport business circle, optimise airport passenger routes while actively bidding for more high-quality service projects of the Hong Kong International Airport. Moreover, the Group will improve the "sea-land-air intermodal" service chain continuously, and strive to become a comprehensive service provider for the Hong Kong International Airport.

Fourthly, the Group will strengthen the expansion of its local business to enhance its regional penetration. The Group will actively seize the opportunity of winning bunkering projects of the HKSAR Government and further expand the market share by providing high-quality bunkering services to the government. The Group will continue to explore the potential of the local ferry market, enhance its business control and industry influence and further consolidate its advantages in the ferry business. Moreover, the Group will deepen the cooperation between the cross-border passenger transport and fuel supply businesses, aiming to achieve cost reduction and efficiency enhancement as well as synergistic enhancement. The Group will focus on developing the "Oriental Pearl" Victoria Harbour Tour project by stepping up its efforts in brand promotion through multiple channels, enhancing the resources utilisation rate for the passenger transportation business of cultural tourism, and expanding business channels such as advertising and sponsoring campaigns, recurring consumption and value-added services, with a view to continuously strengthening the water cultural tourism industry.

About Chu Kong Shipping Enterprises (Group) Company Limited
Chu Kong Shipping is a listed company incorporated in Hong Kong held by Chu Kong Shipping Enterprises (Holdings) Company Limited and subject to Guangdong Provincial Port & Shipping Group Company Limited. Chu Kong Shipping operates and manages the largest high-speed passenger fleet and network of waterway passenger transport in Guangdong, Hong Kong Macau which is based in Hong Kong and covered cities in the Guangdong-Hong Kong-Macao Greater Bay Area namely Guangzhou, Shenzhen, Shunde, Zhongshan, Dongguan, Macau and so on. CKSG operates the local ferry services in Hong Kong, providing services on five main inner harbour and outlying island ferry routes, and developing the Victoria Harbour water cultural tourism projects simultaneously. Chu Kong Shipping is also one of the largest operators of inland terminal and logistics service in the PRD. Based in Hong Kong, Chu Kong Shipping builds up a network covering multiple cities in the PRD, including Zhaoqing, Qingyuan, Foshan, Guangzhou and Jiangmen etc., providing the operation of inland cargo terminals, integrated logistics, international forwarding and solutions to logistic supply chain and so on.

For more information, please visit: https://www.cksd.com/


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HONG KONG, Jul 28, 2023 – (ACN Newswire) – Recently, Huatai Securities issued a research report pointed out that the recovery of offshore demand and the shortage in the supply side come at the same time. In light of this, offshore drilling platforms have become scarce in the industry chain. CIMC Group, having strategically laid out its offshore equipment business fifteen years ago, has emerged as the major player in deepwater platform design and construction in China. Its offshore oil drilling platforms have been successfully deployed worldwide in major offshore oil and gas production areas, showcasing an extensive product range.

Huatai Securities has initiated coverage of CIMC Group for the first time and accorded it a "Overweight" rating. Huatai's expectations for CIMC Group's 2023-2026 PE ratio lie in the range of 23-26 times, corresponding to a target price of RMB 7.6. Taking into account the average H and A-share PE ratios from 2023 to the present at 67%, along with a Hong Kong dollar exchange rate of 0.91, the corresponding H-share 2023 PE ratio is projected at 17.7x, resulting in a corresponding H-share target price of HKD 5.63.

The report also highlights that many new container ships are expected to be delivered in 2023-2024, along with a high volume of old containers reaching the replacement stage. As a leading container producer, CIMC Group's renewal demand will provide sustained support to the industry. Concurrently, the global offshore market is gradually entering an upswing in the business cycle, leading to a significant increase in the Group's new order intake. As of March 2023, CIMC Group's new effective offshore orders have surged by 77% YoY, amounting to USD 2.56 billion, while the value of its accumulated orders in hand has grown by 122% YoY, reaching USD 3.9 billion.

Meanwhile, the Ministry of Industry and Information Technology recently issued the Fifth Batch of specialized, refinement, differential and innovation ("SRDI") "Little Giants" Enterprises. Four subsidiaries under CIMC Group (000039.SZ/02039.HK) have been selected as national-level SRDI "little giants" enterprises, recognizing their leading key technologies and outstanding product innovation capabilities. With this recent recognition, CIMC Group now boasts a total of 13 subsidiaries awarded with this honor. As a global leader in logistics and energy industry manufacturing, CIMC Group maintains a wide business layout and sustains diversified development.

About China International Marine Containers (Group) Co., Ltd.
The CIMC Group is a world leading equipment and solution provider in logistics and energy industries, and its industry cluster mainly covers logistics and energy fields, strengthening its position as a global market leader. In the logistics field, the Group still adheres to taking container manufacturing business as its core business, based on which to develop road transportation vehicles business, airport facilities and logistics equipment/fire safety and rescue equipment business and to a lesser extent, logistics services business and recycled load business providing products and services in professional field of logistics; in the energy field, the Group is principally engaged in energy/chemical/liquid food equipment business and offshore engineering business; meanwhile, the Group also continuously develops emerging industries and has finance and asset management business that serves the Group itself. As a diversified multinational industrial group that shoulders the mission of global serving, CIMC has 3 listed companies and over 300 member enterprises in Asia, North America, Europe, Australia and others, and extensive customers and sales networks covering more than 100 countries and regions. During the year, the Group recorded a revenue of RMB141.54 billion, with gross profit margin remained at 15.28% and net profit attributable to shareholders of the Company after deducting non-recurring profit or loss of RMB4.28 billion. The Group was recognized by Fortune as one of the "China's Most Admired Companies 2022", and was ranked 84th in the Fortune 500 China 2022, an increase of 35 places over the previous year. For more information, please visit http://www.cimc.com.


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