COSCO International Announces 2010 Annual Results

HONG KONG, March 24, 2011 /PRNewswire-Asia/ -- COSCO International Holdings Limited ("COSCO International" or the "Company") (stock code: 00517) and its subsidiaries ("the Group") are pleased to announce its audited consolidated results for the twelve months ended 31st December 2010.

Results and Business Highlights

• Profit attributable to the equity holders of the Company was HK$1,268,600,000, an increase of 50%. Excluding the (1) share of profit of SOLHL, (2) one-off gain recognised on disposal of entire 16.85% interest in SOLHL; and (3) net loss/ gain on deemed disposal of partial interests in SOLHL due to issue of new shares, profit attributable to the equity holders increased by 18% to HK$287,144,000 on the same basis.
• Basic earnings per share increased by 49% to 83.97 HK cents.
• Revenue increased by 432% to HK$8,666,901,000. As a result of global economic recovery and reactivation of international trade, the Group's core shipping services businesses achieved revenue growth of varying degrees with significant rebound in both the sales volume and revenue of container coatings. Furthermore, the newly established trading and supply of marine fuel and related products business also made substantial revenue contribution to the Group. Segment revenue from shipping services increased significantly by 628% to HK$8,078,336,000, profit before income tax from shipping services increased by 26% to HK$409,909,000 as compared to the previous year.
• The board of directors of the Company proposed a final dividend of 3 HK cents per share and a special dividend of 35 HK cents per share. Together with the interim dividend of 2 HK cents per share, the total dividend for the year 2010 was 40 HK cents.  
• Completion of the disposal of entire 16.85% equity interests in SOLHL, being a non-core business, provides the Group with abundant capital so as to focus itself on the development of its core business of shipping services.
• In the aspect of expansion of supply network of marine equipment and spare parts to overseas and China Mainland, the Group established Shin Chung Lin Corporation in Japan, completed the acquisition of Xing Yuan (Singapore) Pte. Ltd. and expanded the business scope of Yuantong Marine Trade (Shanghai) Co. Limited. The Group successfully established an Asia Pacific based equipment supply network covering Hong Kong, Singapore, Japan and China Mainland, thereby grounding a solid foundation for future growth of the shipping services segment revenue and profit.

Outlook

Global economy is expected to stay on the way of recovery in 2011, but there will be uncertainties. China is one of the key drivers for the global economy and 2011 is the first year for the implementation of the "Twelfth Five-year Plan". China's economy is expected grow stable and solid with the implementation of the macroeconomic policies that highlight "structure adjustment, growth continuation and inflation containment". China's imports and exports are expected to grow steadily. The world shipping market is expected to remain positive in 2011 while shipping companies will develop in a volatile market environment. For the shipbuilding industry, the global new builds order book is still large. Contracts on new builds are expected to remain stable.

"Year 2011 is challenging to COSCO International. The Group will continue to implement its strategic positioning and address the challenges and opportunities. We will leverage on the economic trend and mobilise resources of the existing business segments to develop innovative, value-added and tailor-made solutions and services for all clients. The Group is dedicated to a steady growth of business and profitability. In addition, the Group will capitalise on the strong financial position to speed up its study in seeking suitable internal and external projects of COSCO Group, including its discussion with COSCO Group in relation to the possible acquisition of supply of bunker oil and other businesses. Through business re-organisation and mergers and acquisitions, the Group will expand its scope of core business of shipping services and further strengthen its core competitiveness, so as to become a large-scale, specialised and integrated shipping services provider, creating the best returns for all shareholders," Mr. Zhang Fusheng, Chairman of COSCO International, said.

Editorial Note

The 2010 Annual Results announcement is available on the website of the SEHK (www.hkexnews.hk) and the Company's website (www.coscointl.com). A webcast replay of the 2010 annual results analyst presentation will be available at the Company's website after 10:00pm, 24th March 2011.

Company Background

COSCO International Holdings Limited (Stock Code: 00517) has been listed on the main board of the SEHK since February, 1992. COSCO International is mainly engaged in the provision of shipping related services and products, which include ship trading agency, marine insurance brokerage, supply of marine equipment and spare parts, production and sale of coatings and trading and supply of marine fuel and related products. It aims to become a specialised and leading shipping services provider. Its businesses and service network cover China Mainland & Hong Kong, Singapore, Japan, and other major fueling ports worldwide. COSCO International is a listed company owned by COSCO (Hong Kong) Group Limited, which is a wholly-owned subsidiary of China Ocean Shipping (Group) Company ("COSCO"). COSCO is one of the most recognised multinational conglomerates in the world, which focuses mainly on shipping and logistics businesses as well as other shipping related businesses.