COSCO International Announces 2012 Annual Results

              COSCO International Announces 2012 Annual Results

Stable Profit Performance in a Challenging Market

(SEHK Stock Code: 00517)

PR Newswire

HONG KONG, March 21, 2013

HONG KONG, March 21, 2013 /PRNewswire/ --

Financial Summary
                                               2012   2011   Change
For the year ended/ as at 31^st Dec
Revenue (HK$ mn)                               10,006 10,656 -6%
Profit attributable to equity holders (HK$ mn) 363    390    -7%
Basic earnings per share (HK cents)            23.98  25.80  -7%
Dividend payout ratio (%)                      33     35     -2pts
Net cash (HK$ mn)                              5,821  5,669  +3%
Net cash per share (HK$)                       3.85   3.75   +3%

Results and Operation Highlights

  oProfit performance in a challenging market environment: Revenue decreased
    by 6% to HK$10 billion as compared to 2011. Profit attributable to equity
    holders of the Company declined by 7% year-on-year to HK$363 million.
  oHealthy operating cash flow and strong cash position: Net cash inflow
    generated from operating activities was HK$255 million in 2012. As at
    31^st December 2012, the Group had net cash of HK$5.8 billion to support
    future development.
  oConsistent dividend payout ratio: Basic earnings per share were 23.98 HK
    cents. The Board has recommended a final dividend of 8 HK cents per share.
    Together with the interim dividend of 2 HK cents per share, total
    dividends for 2012 will be  2  HK cents per share, representing a dividend
    payout ratio of 33%.
  oService network development in Europe: A memorandum was signed on 18^th
    March 2013 regarding an acquisition of the entire issued share capital of
    a subsidiary of COSCO Group in Germany for a consideration of not more
    than EUR1.2 million. The target company is engaged in the trading and
    installation of marine equipment and spare parts for vessels. The proposed
    acquisition will help strengthen COSCO International's presence in Europe
    in order to form a global marine spare parts supply service network and
    solidify its customer and supplier relationships in the region.
  oMarket recognition: On 10^th September 2012, COSCO International was
    selected as a constituent of the Hang Seng Corporate Sustainability
    Benchmark Index.

Business Review

  oIn 2012, the continuous weakness in the shipping market pushed shipping
    companies to adopt the strictest cost control measures and to further
    postpone the new build vessel deliveries. In addition, demand for new
    container boxes slowed down in the second half of 2012. As a result, the
    Group's profit before income tax (PBT) from shipping services declined by
    17% year-on-year to HK$403 million. 
  oPBT from the three traditional shipping services for shipowners (i.e. ship
    trading agency, marine insurance brokerage and supply of marine equipment
    & spare parts) declined by 21% to HK$189 million as compared to the
    previous year. They contributed 40% of the Group's total PBT. COSCO
    International completed preparations for the centralised procurement of
    marine spare parts and marine insurance to be implemented by COSCO fleets
    in the second half of 2012 and has become the sole agent for the provision
    of these shipping services to COSCO fleets since January 2013. This will
    not only further expand the business scale within COSCO Group, but also
    lay a good foundation for the Group to get more favorable terms from
    manufacturers and insurance companies due to greater business volumes and
    to explore more external customers and increase revenue base outside COSCO
    Group.
  oThe coatings segment's PBT reached HK$159 million, accounting for 33% of
    the Group's total PBT and representing a 31% year-on-year decrease. The
    Group's two joint-ventures, namely Jotun COSCO and COSCO Kansai, increased
    their market shares in 2012. In order to further strengthen their leading
    positions in China's marine coatings and container coatings markets, Jotun
    COSCO and COSCO Kansai speeded up the construction of two new plants in
    Qingdao and Shanghai, which are expected to be completed in 2013 and 2014,
    respectively.
  oPBT from marine fuel supply segment was HK$55 million, up 195% as compared
    with 2011. The increase was mainly due to the successful collection of
    outstanding trade receivables from a defaulting customer, which led to a
    reversal of the provision for impairment of trade receivables of
    approximately HK$29.7 million.

Outlook

Mr. Ye Weilong, Chairman of the board of directors of COSCO International,
commented, "COSCO International will continue to work on establishing a global
sales and service network, seeking acquisitions inside and outside COSCO
Group, and exploring the upstream and downstream expansion along the existing
value chain so as to achieve sustainable growth. With the full support from
COSCO Group, COSCO International will continuously develop itself into a
global leading one-stop shipping services provider, offering diversified and
specialised shipping-related services and products to shipowners around the
world, thereby maximising returns to shareholders."

Editorial Note

The announcement of 2012 annual results is available on the website of the
SEHK (www.hkexnews.hk) and the Company's website (www.coscointl.com). A
webcast replay of the 2012 annual results analyst meeting will be available at
the Company's website after 10:00pm, 21^st March 2013.

Company Background

COSCO International Holdings Limited ("COSCO International") is listed on the
main board of The Stock Exchange of Hong Kong Limited. Its stock code is
00517. COSCO International was selected as a constituent of Hang Seng
Corporate Sustainability Benchmark Index in September 2012. In recent years,
COSCO International has focused its strategic business position on the
development of the shipping services business. It aims to become a global
leading one-stop shop service provider focusing on shipping services to
provide professional services to shipowners worldwide. Its core businesses
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. The headquarters of COSCO
International is in Hong Kong and 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 major multinational
conglomerates in the world, which focuses mainly on shipping, logistics, and
ship building and repairing businesses as well as other shipping related
businesses.

For enquiries, please contact:

Investor Relations Department of COSCO International
Yang Ling, General Manager       Candy Cheung, Deputy General Manager

Tel: (852) 2809 7810             Tel: (852) 2809 7706

Fax: (852) 8169 0678             Fax: (852) 8169 0678

Email: yangl@coscointl.com       Email: cheungky@coscointl.com
Tsoi Ching Chung, Manager        Crystal Lu, Officer
Tel: (852) 2809 7828             Tel: (852) 2809 7820
Fax: (852) 8169 0678             Fax: (852) 8169 0678
Email: tsoicc@coscointl.com      Email: lul@coscointl.com
PR China Limited
Henry Chik/ David Shiu/ Camille Xiong

Tel: (852)2522 1838 / 2522 1368/ 2521 2823

Fax: 2521 9955

Email: hchik@prchina.com.hk / dshiu@prchina.com.hk / cxiong@prchina.com.hk

SOURCE COSCO International Holdings Limited

Website: http://www.coscointl.com
Website: http://www.hkexnews.hk
 
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