COSCO SHIPPING Development Announces 2022 Annual Results Focuses on New Ecology and Embraces New Changes

HONG KONG / ACCESSWIRE / March 30, 2023 / COSCO SHIPPING Development Co., Ltd. ("COSCO SHIPPING Development" or the "Company") (SSE:601866)(HKEX:2866) is pleased to announce the results for the twelve months ended 31 December 2022 (the "Reporting Period") today. In 2022, the Company recorded operating revenue of RMB25.465 billion, net profit attributable to owners of the parent company recorded RMB3.923 billion, and the basic earnings per share amounted to RMB0.29. The Company plans to distribute a cash dividend of RMB0.087 per share to all shareholders.

In 2022, the evolution of the world economic changes has accelerated, the global economic development was generally slowing down, and the overall economic operation of China remained stable. Under the environment where challenges and opportunities coexist, the shipping market gradually returned to normal and transform and develop towards digital intelligence and low carbon. The Company has solidly pushed forward to improve quality and efficiency and stabilize growth, promoted reform and innovation for new development, achieving stability in economic benefits amid market fluctuations.

Promoted the integration of industry and finance to create value through industrial chain collaboration

In 2022, the Company's shipping leasing business achieved an operating income of RMB7.844 billion, including RMB2.408 billion from the vessel leasing business. The Company continuous strengthened the coordinated linkage of industrial chains on the integration of "leasing and manufacturing, and leasing and shipping",deeply tapped into market potential and strengthened judgment on market segments. The Company promoted innovation in leasing models and achieved vessel leasing business expansion in market segments. The container leasing business recorded revenue of RMB5.436 billion.The Company always adhered to the "key customer strategy" and advanced diversified leasing services. The Company expanded its business in the field of reefer containers and special containers and achieved new breakthroughs in business sectors. Meanwhile, the Company enhanced the capabilities on global containers trade and boosted the improvement of the overall operational efficiency through the establishment of the customer-centric digital operation system.

The container manufacturing business achieved an operating income of RMB20.711 billion. With the orientation of customer demand, the Company constantly improved the product layout, actively promoted product R&D and deployed green and environmental protection sectors to advance the expansion of application scenarios of containers. In 2022, the Company and COSCO SHIPPING Specialized Carriers jointly developed and produced special collapsible frames for commercial vehicles and vigorously demonstrated its professional advantages in "customized production + oriented services." The Company's marine container-type power batteries have obtained the recognition on the overall design by China Classification Society and passed on-site inspections.

The investment management business achieved an Investment income of RMB1.784 billion. The Company focused on the principal business of shipping logistics, integrated resources in industrial chains and empowered the development of the principal business through "an industry-finance-investment integrated business."

Layout of the track of scientific and technological innovation, digital and intelligent transformation showed significant results

The Company actively layout the track of scientific and technological innovation, improved the top design on scientific and technological innovation and digital transformation and Special Plan, which specified key projects and set out development targets and orientations. In respect of the container leasing business, the Company actively promoted the deep integration of digital technology with production and operation and the coordination of users' services with industries. Based on the digital capabilities of the iFlorens independently designed and developed and the containers trade platform, the Company developed a new business scenario with digital technology empowering business and e-commerce improving customer experience, achieving new breakthroughs in online orders on the platform and sales volume of e-commerce. The Company applied for participating in the first "Professional Competition on Innovation in Digital Scenarios of SOEs" hosted by the State-owned Assets Supervision and Administration Commission (SASAC) and has successfully qualified for the finals. In respect of the container manufacturing business, the Company vigorously promoted the construction of "digital factories" and facilitated green and intelligent development. It recorded results in the updating and upgrading of green and intelligent products and technological equipment. In 2022, the Company applied 184 new patents. As of the end of 2022, the Company had 457 patents.

Implemented the "carbon peaking and carbon neutrality" strategies and launched a new project of electric container vessels

Focusing on the positioning of "ecological priority and green development" in the Yangtze River Economic Belt, the Company has actively promoted the project of electric container vessels , and the construction of two 700TEU electric container vessels of the Company was successively commenced. The project is an important measure for the Company to actively practice national "carbon peaking and carbon neutrality" strategies and develop demonstration for green and zero-carbon shipping and won the "Green Growth" Award at the United Nations Industrial Development Organization (UNIDO) Global Call 2022. It was released at the 2023 Pudong New Area Conference on High-quality Development of Core Area of International Shipping Center as one of annual 10 innovation cases in international shipping in Pudong New Area. In addition, the Company organized the establishment of the China Electric Ship Innovation Alliance to integrate advantageous resources in all links of green shipping industrial chains, jointly promote a green shipping system on the coordinated development of relevant ancillary industries and better facilitate the implementation of carbon peaking and carbon neutrality strategies in the shipping industry.

Strengthened ESG Management and Built the Foundation for Sustainable Development

The Company continued to improve the ESG governance and integrated the special strategic planning on ESG into the "14th Five-year" development plan of the Company to promote the comprehensive implementation of the ESG concept in an orderly manner. In 2022, the Company obtained various recognitions over its ESG management. The analysis on risks and opportunities related to climate change in the Sustainability Report of the Company was displayed by the Hong Kong Stock Exchange as an excellent case in TCFD trainings and was awarded the "GoldenBee Excellent CSR Report 2022 - Environmental Protection Disclosure Award" and the prize of the "2022 ESG Golden Bull Award - Pioneer in Governance".

The Company is committed to creating value for stakeholders, placed an emphasis in creating reasonable returns to investors, maintained the implementation of proactive and steady dividend distribution plans. The Company has declared dividend distribution in cash to its shareholders for four consecutive years and shared development results with its shareholders.The Company practiced social and public welfare programs, participated in practices on pairing assistance and contributed to rural revitalization.

Embrace New Changes and Create a New Future

In 2023, the global economic situation will remain complex and severe, the shipping market presents a cyclical dynamic trend, and the Company's main business sectors will also usher in a new trend of development. Challenges and opportunities coexist, with strong support foundation and resilience. The Company will be devoted to the re-upgrading of service capabilities of industry and finance. In respect of the shipping lease business, the Company will explore market demand in the green and low-carbon transformation of vessels and shipping equipment, promote innovation in business models. In respect of the container leasing business, the Company will continuously improve the global network, bolster the market influence of container leasing and sales businesses and continuously boost the value creation capability. The Company will further promote digital empowerment and build the service ecosystem on customer-centric digital supply chains. For the container manufacturing segment, the Company will strengthen the synergy of container leasing and manufacturing industrial chains and develop leasing, manufacturing and marketing "complexes". The Company will actively market exploitation for special containers and develop special containers with the characteristics of the Company. Meanwhile, the Company will vigorously advance the establishment of the ecosystem on digital and intelligent containers and accumulate strong development power. For investment and management segment, the Company will continue to optimize investment portfolios. The Company will strengthen the integration of industry and finance and provide intelligence and capital injection services for the "digitalised, networked and intelligent" development of the shipping logistics industry, in an effort to boost industry upgrading.

The new sailing starts, new trends stimulate new momentum, and new opportunities drive new development. COSCO SHIPPING Development will be rooted in the integration of industry and finance, base on digital intelligence empowerment, and focuse on value creation. With the goal of accelerating the construction of world-class enterprises, the Company will focuses on new ecology, embraces new changes, and jointly creates a new future.

About COSCO SHIPPING Development Co., Ltd.

COSCO SHIPPING Development Company Limited (2866.HK), a company affiliated to China COSCO Shipping Corporation Limited, specializes in the provision of supply chain integrated financial services. Formerly known as China Shipping Container Lines Company Limited, it was established in 1997 with headquarters in Shanghai, the PRC, and is listed both in Hong Kong and Shanghai. With a focus on integrated logistics industry, the Company will develop container manufacturing, container leasing and shipping leasing business as the core business, with a view to pursuing industry-finance integrated development underpinned by investment. With market-oriented approaches, professional strengths and an international vision, the Company aspires to grow into an excellent world-class financial operator in the shipping industry with COSCO SHIPPING characteristics.

Investor and Media Enquiries
Jack Liu / Mei Ning
PRChina Limited
Tel: (852) 2522-1838
Email: zyliu@prchina.com.hk / nmei@prchina.com.hk

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SOURCE: COSCO International Holdings Ltd.