LOGO 2013 INTERIM RESULTS CORPORATE PRESENTATION ( H Share:02866 / A Share: )
Financial Highlights Agenda Business Review Future Prospect 2
Operating Environment 3 In the first half of 2013, the recovery of world economy and international trade is weak and slow. World Economy
New capacity Operating Environment Source : Alphaliner 4 Shipping market was sluggish due to imbalance between supply and demand.
Operating Environment Source : Shanghai Shipping Exchange 5 Freight rate showed a downward trend in the first half and began to rebound entering into third quarter. CCFI INDEX
LOGO Financial Highlights 6
Financial Highlights for 1H2013 FOR THE SIX MONTHS ENDED 30 JUNE H2013 ( RMB000 ) 1H2012 ( RMB 000 ) CHANGE Revenue 15,850,676 15,309,8353.5% Operating costs16,625,78016,191, % Net loss(1,254,470)(1,252,839) 0.1% Loss attributable to owners of the parent (1,258,077)(1,280,985) (1.8%) Basic loss per share(0.11) - Gross profit margin(4.9%)(5.8%) (15.5%) Gearing ratio47%37.1% 26.7% 7
Container Volume & Revenue Volume by Trade Lanes Revenue by Trade Lanes ( TEU ) 1H20131H2012Change Transpacific640,131637,2260.5% Europe/Med722,023678,9796.3% Asia Pacific878,629766, % China Domestic1,623,4991,841, % Others33,00034, % Total3,897,2823,959, % ( RMB000 ) 1H20131H2012Change Transpacific4,738,6304,719,3990.4% Europe/Med3,795,9454,045, % Asia Pacific2,827,4572,755,3142.6% China Domestic2,769,7072,891, % Others1,718,937898, % Total15,850,67615,309,8353.5% 8
Revenue Distribution 1H2012 Transpacific 31% Euro/Med 26% Asia Pacific 18% Domestic 19% Others 6% 1H2013 Revenue Breakdown by Trade Lanes Transpacific 30% Euro/Med 24% Asia Pacific 18% Domestic 17% Others 11% 9
LOGO Business Review 10
30 JUNE JUNE 2012 Total Capacity No. of Ships Above 4,000TEU 619,768TEU % 616,318TEU % Fleet Capacity of the Company 11
Measures Implemented Strictly control costs and expenses 15% fixed costs port charges fuel costs container Management costs fixed costs 6% 12
Measures Implemented Refine cost control to lower operating cost fuel cost Container management port charges terminal handing optimize container structure expedite container turnaround large vessel & stable volume enhance negotiation power for lower rate super slow-steaming Lock in fuel price appropriately 13
Measures Implemented Strengthening market sales Stabilize freight rate Strengthening market sales Stabilize freight rate Set up feedback mechanism to strengthen its ability to predict the market Promote rate stabilization and recovery plans of shipping routes appropriately Develop the market of back-haul cargo and equipment containers promote operating profit 14
development in emerging markets and improvement of global network deployment of service capacity in a flexible manner to optimize the efficiency of shipping routes increase of market expansion and promotion of the “Big Client and Big Cooperation” strategy Reinforcement of the extended services and provision of value-added services Measures Implemented 15
LOGO Future Prospect 16
Market situation of Q3 Demand showed the trend of a seasonal increase Loading factor maintained at a comparatively high level Freight rate rebounded since July Economic environment remains complicated and ever-changing Global macro-economy demonstrated general improvements Uncertainties and instabilities remain Market situation of Q3 Demand showed the trend of a seasonal increase Loading factor maintained at a comparatively high level Freight rate rebounded since July Economic environment remains complicated and ever-changing Global macro-economy demonstrated general improvements Uncertainties and instabilities remain Market Prospect 17
Market Prospect Source : Alphaliner 18
Company Strategy 19 Expand the cooperation scale, deepen the depth of cooperation and construct a cooperative network. Put future service distribution and fleet programming into external cooperation strategy. Promote the upgrade of trade lanes, diversify trade lane services, reduce operational risks and strengthen the ability to overcome market volatility. Promote the “Large Cooperation” strategy
increase the proportion of high value cargoes improve the overseas network and develop backhaul cargoes explore new region cultivate new market 以 meet customer demands build a stable, long-lasting, win-win relationship Company Strategy Strengthen market sales Strengthen market sales Explore new opportunities Explore new opportunities Optimize cargo source structure Optimize cargo source structure Explore the market Explore the market and improve the structure of cargo source 20
Innovate service and enhance quality The Group will strive to innovate its services and attract and maintain clients with its high quality service. It will satisfy client’s need of personalized and extended services, create value for the customers and enhance their loyalty. Company Strategy 21
Company Strategy Increase freight rate Adjust capacity deployment Explore market opportunities 22 Follow market changes and timely adjust the deployment of trade lanes and capacity Promote operating profit
Company Strategy Expand extended services Enhance integrated logistics services Expand extended services Enhance integrated logistics services - Improve industry structure Counter market volatility - Optimize logistics supply chain Maximum efficiency of resources - Improve service network in Yangtze River region Develop extended service 23
Company Strategy (‘000 TEU) >4,000 TEU <4,000 TEU 87.5% 2013 : 4 X 4,700TEU 1 X 10,000TEU 2014 : 7 X 10,000TEU 3 X 18,400TEU 2015 : 2 X 18,400TEU 2013 : 4 X 4,700TEU 1 X 10,000TEU 2014 : 7 X 10,000TEU 3 X 18,400TEU 2015 : 2 X 18,400TEU Optimize fleet structure Enhance core competitiveness Optimize fleet structure Enhance core competitiveness New deliveries Fleet structure 24
the Group is adhering to the balanced development between corporate profits and social benefits, paying great attention to consolidation of corporate, customer and society values and carrying out corporate responsibility the Group is adhering to the balanced development between corporate profits and social benefits, paying great attention to consolidation of corporate, customer and society values and carrying out corporate responsibility Company Strategy 25
LOGO Adapt to new situations Meet new challenges Seek new development ( H Share:02866 / A Share: )