CKSD Announces 2010 Interim Results
Surges in Consolidated Revenue and Net Profit to Non-Restated Figures of the Same Period Last Year
Accelerates Strategic Acquisition to Develop into a Well-Rounded Logistics Services Provider
HONG KONG, Sept. 1 /PRNewswire-Asia/ --
Financial Highlights (Unaudited):
For six months ended 30 June
HK$ Million 2009 2010 Change
Consolidated revenue 421.03 520.86 23.7%
Consolidated revenue
(have not been restated) 367.59 520.86 41.7%
Gross profit 99.24 114.23 15.1%
Profit attributable to equity
holders of the Company 61.59 68.19 10.7%
Profit attributable to equity
holders of the Company
(have not been restated) 41.64 68.19 63.8%
Basic earnings per share HK6.84cents HK7.58cents 10.8%
Interim dividend per share HK0.5 cents HK2cents 300%
Chu Kong Shipping Development Co, Ltd ("CKSD" or the "Company") (Stock code: 560), a leading comprehensive logistics services provider in the Guangdong-Hong Kong-Macau Region, today announced its unaudited interim results for the six months ended 30 June 2010.
In the first half year, the Company's consolidated revenue reached approximately HK$520.86million, 23.7% higher than the same period of 2009. If it is compared to the non-restated consolidated revenue of the same period 2009, it represents a growth of 41.7%. Profit attributable to equity holders of the Company amounted to HK$68.19million, a 10.8% increase to the same period last year or 63.8% up as compared to the non-restated figures of the same period 2009. Basic earnings per share amounted to HK7.58 cents. The Board proposed an interim dividend of HK2cents per share.
Cargo Transportation Business
The operational environment of the logistics industry in Guangdong and Hong Kong improved during the reporting period. Consequently, CKSD's container transport volume grew by 22.9% over the same period last year to 423,000 TEUs, and container handling volume increased by 6.6% to 299,000 TEUs. Transport volume of break bulk cargo increased significantly by 29.1% to 205,000 revenue tons, with handling volume rising by a substantial 34% to 527,000 revenue tons.
During the first half of 2010, several of the Company's investments performed satisfactorily. Chu Kong Transhipment & Logistics Company Limited ("CKTL"), a wholly-owned subsidiary, extended cooperative ties with large shipping companies, and via a Connected Carrier Agreement, was able to access more cargo sources. As a result, total cargo transportation volume handled by CKTL rose noticeably. Moreover, its market share in over thirty Category 2 ports, which have business dealings with the Company, increased by 1.5 percentage points to 20.8% as compared with that of 2009 year-end (market share in 2009: 19.3%). The foreign trade container volume handled by Chu Kong Cargo Terminals (Gaoming) Co., Ltd. achieved a year-on-year increase of 52.4% and profit growth of 154.0%. As for Foshan Nankong Terminal Co., Ltd., its profit grew by 127.6%. Benefiting from effective cost control measures, Chu Kong Air-Sea Union Transportation Company Limited and Zhaoqing Chu Kong Logistics (Sihui) Co., Ltd. both returned to profitability. Zhaoqing New Port Co., Ltd., for which the Company increased its shareholding in April, completed port inspections and commenced foreign trade business in July.
Passenger Transportation Business
In May of this year, the Company obtained approval from independent shareholders to acquire Chu Kong Passenger Transport Company Limited ("CKPT"), a wholly-owned subsidiary of CKSD's parent company, Chu Kong Shipping Enterprises (Holdings) Company Limited ("CKSE"), for a consideration of approximately HK$480.61 million. The transfer of equity interest was completed and revenue generated by CKPT for the first half of 2010 was booked.
It is worth noting that Sky Pier, operated by Hong Kong International Airport Ferry Terminal, was changed from a temporary terminal to a permanent one, resulting in a change in operation and fee structure, providing more comprehensive facilities and services. Meanwhile, a newly constructed passenger train linking directly between SkyPier and airport terminal can facilitate more transit passengers to use the terminal. As a result of above-mentioned upgrade of facilities, the franchise fee of SkyPier will increase significantly during the contract term of the coming three years, resulting in an extraordinarily high increase in operating cost. Meanwhile, The Group are able to offset the cost impact by a sharp increase in revenue due to the number of transit visitors to Sky Pier rose compared with the same time last year Hong Kong International Airport Ferry Terminal realized a profit after tax of HK$6,245,000, the same level achieved in the last corresponding period. With the route linking the Macau Taipa Temporary Ferry Terminal with the Hong Kong international Airport Ferry Terminal having commenced operation since 8 May, the Company believes that the number of transit passengers will continue to grow. Including incomes from the new investments in Zhongshan-Hong Kong Passenger Shipping and Foshan Shunde Shungang Passenger Transportation, CKPT's total investment gain amounted to HK$11,450,000.
CKSD aims to step up efforts to attract visitors from Hunan and Hubei to use Wuhan-Guangzhou express rail and its high-speed ferry to transport and travel. At present, an increasing number of Mainland tourists visiting Hong Kong are using this express method. Moreover, starting from July 2010, CKPT will become the agent for four new transport routes between Macau and Hong Kong and the Pearl River Delta region, operated by Cotai Jet. Able of achieving a higher profit margin, the passenger transportation business will bolster the Company's cash flow and overall profitability, as well as enhance all of its financial indicators in the long term.
Latest Strategic Cooperation and Acquisition Initiatives
Apart from acquiring the passenger transportation business, CKSD has also acquired assets and introduced strategic partners for its cargo transport operation. In July 2010, the Company entered into a cooperative framework agreement with China Merchants Holdings (International) Company Limited to build an integrated service system supported by Category 2 ports in the Pearl River Delta. In August, the Company acquired 75% equity interest in Civet (Zhuhai) Logistics Company Limited to operate the Civet Port in Zhuhai in order to make best use of the inland river terminal network, thereby allowing it to enlarge its market share in Zhuhai. Also in August, GPNHCL, the ultimate controlling shareholder of the Company, signed a cooperative framework agreement with COSCON to jointly develop the market for barge transport, transport network and port resources services. From such an arrangement, the Company can gradually extend its routes to five continents: Europe, America, Asia, Africa and Australia. It is expected that cooperation with COSCON will contribute to CKSD achieving double-digit growth in both inland rivers transport volume and throughput achieved at terminals within the Pearl River Delta.
Dr. Hua Honglin, Chairman of CKSD, said, "In the first half of 2010, we have completed many important strategic initiatives to diversify our business, further expand our market share in the transportation business in the Pearl River Delta, and enhance CKSD's customer and profit base. With the global economy gradually stabilizing and the Asian Games in Guangzhou commencing in November, the Company, being a leading integrated transportation services supplier in Guangdong-Hong Kong-Macau region, is set to benefit from a surge in logistics and passenger flow in the region. We will continue to integrate internal resources, raise operational efficiency and promote strategic cooperation, with the ultimate goal of developing the Company into a premier transportation services provider that offers value-added services to customers and generate satisfactory returns to shareholders."
About Chu Kong Shipping Development Co., Ltd.
Chu Kong Shipping Development Co., Ltd., listed on The Stock Exchange of Hong Kong Limited in 1997, is the only Hong Kong-listed company under the umbrella of Guangdong Province Navigation Holdings Company Limited. It provides comprehensive logistics services and operates high-speed ferry business within Guangdong-Hong Kong-Macau Region, as well as invests and manages river cargo terminals in Mainland China. With well-established marketing, terminal, transportation and information networks in the Pearl River Delta and profound industry experience, the Company is committed to providing comprehensive services in river transportation, stepping toward its goal to become a leading comprehensive transportation services provider.
For Enquiries:
Strategic Financial Relations (China) Limited
Marcus Keung
Tel: +852-2114-4967
Email: [email protected]
Winnie Kwong
Tel: +852-2864-4839
Email: [email protected]
Krista Chen
Tel: +852-2864-4837
Email: [email protected]
Vivienne Leung
Tel: +852-2864-4846
Email: [email protected]
SOURCE Chu Kong Shipping Development Co., Ltd.
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