HONG KONG, April 28, 2022 /PRNewswire/ -- CIMC Group (000039.SZ/02039.HK), a world leading equipment and solution provider in the logistic and energy industries, today announced the unaudited consolidated results for the first-quarter ended March 31, 2022.
Overview of Quarterly Financial Results: Continued improvement in overall financial performance
Segment Business Review: Steady development of various segments
Container Manufacturing
In 1Q22，the repeated wave of domestic epidemics together with other factors such as Spring Festival holiday, caused a range of impacts on container sector. But China foreign trade exports continued to expand. In the reporting period, the overall performance of container manufacturing segment remained strong in terms of sales volumes and profitability compared to historic levels. The Group's quarterly accumulated sales volume of ordinary dry containers decreased by 21.5% to 0.35 million TEUs, but was 25.62% higher than the average sales volume in the 1Q of past three years. The sales volume of reefer containers decreased by 29.63% to 0.03 million TEUs.
Favorable market conditions expected to remain through 2022 compared with historical periods, held by various shipping researchers such as Clarkson. The effective capacity loss of the containership sector caused by the disruption and congestion of overseas supply chains under the impacts of COVID-19 may continue to exist. Superimposed on a large number of over-aged containers to be eliminated and replaced, the outlook of container sector is expected to remain positive with domestic epidemic being controlled gradually.
Road Transportation Vehicles
Affected by multiple factors such as the epidemic, high inventory of heavy-duty trucks under China V, and rise in fuel prices, the sales volumes and revenue of semi-trailer and specialty vehicles declined. However, benefiting from strong demand recovery and higher freight rates, the overseas sales volume and revenue of semi-trailers increased significantly.
Energy/ Chemical/ Liquid Food Equipment
During 1Q22, the revenue of energy, chemical and liquid food equipment business realized a YOY increase of 24.9%. Affected by the outbreak of Covid-19 in China, revenue of clean energy segment was basically flat from a year prior. The revenue of chemical environment segment obtained significant growth since the rebound in global trade and recovery of chemical industry. The liquid food segment has also showed a growing trend with projects progressed as planned.
Offshore Engineering Equipment
Benefiting from the trend of carbon reduction, the offshore engineering business recorded a year-on-year increase in new orders and orders on hand. In 1Q22, oil prices experienced a soaring trend and remained exceptionally strong, which was beneficial for Group to grasp relevant orders. The offshore engineering platform successfully obtained one drilling lease during the reporting period.
Logistics Services Business
The growth of foreign trade became the driver of increases of volume and revenue of group's multimodal transport business in 1Q22. In February 2022, CIMC Group announced spin-off and domestic initial public offering of A shares of CIMC Wetrans; in March 2022, SIPG and Yinshan Capital were introduced as strategic shareholders.
Recycled Load Business
The recycled load business continued to maintain rapid growth. On the one hand, increase investment in production capacity in the new energy industry; on the other hand, focus on the rental and operation business of recycling load. The scale of recycled load business in the rubber industry has hit a recorded high, and operations in various industries such as home appliances, photovoltaics and fresh food have been successively progressed. In April 2022, CIMC Transpack secured funds from strategic investors, with a pre-investment valuation of around RMB 3 billion.
Airport Facilities Equipment
The Group's ground air-conditioning units of the airport equipment aircraft have been successfully stationed in various airports in the Mainland. The electric air duct units have been stationed in domestic civil aviation airports for the first time on a large scale, and obtained dozens of orders for airports at home and abroad, widely recognized by the industry.
Innovative Business
Cold Chain Equipment Business：Continue to increase strategic investment layout. The Group currently possesses a competitive advantage in the field of reefer containers, refrigerated vans and mobile cold storage, with the sales volume of reefer containers and refrigerated vans ranking at the forefront. In terms of equipment, domestic sales declined slightly due to the impact of Covid-19 in 1Q22, while overseas orders were full. In terms of service, the Group continued to expand the fresh food and medical fields, open up the Mohan channel in Thailand, and reach a new cooperation with Qilu Pharmaceutical
Integrated Container Equipment Business：The Group maintained rapid growth in integrated container equipment business, further improved product system integration capabilities, and deepened cooperation with leading customers in the industry. Meanwhile, the Group actively expanded businesses such as wind power equipment, power generation equipment and new energy equipment.
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