CIMC rev­enue surges in first half

China Daily European Weekly - - Business - By ZHONG NAN REN XIAOJIN Con­tact the writ­ers at zhong­nan@chi­nadaily.com.cn

China In­ter­na­tional Marine Con­tain­ers (Group) Ltd, the coun­try’s largest trans­porta­tion equip­ment pro­ducer by rev­enue, en­joyed net profit of 800 mil­lion yuan ($121.3 mil­lion; 101.5 mil­lion eu­ros; £94 mil­lion) in the first half of this year, thanks to the re­bound of the global con­tainer mar­kets.

The group’s rev­enue surged by 41.8 per­cent year-on-year in the first half, to­tal­ing 33.4 bil­lion yuan, ac­cord­ing to its fis­cal re­port on the Jan­uaryJune pe­riod, re­leased on Aug 28.

The re­port said two busi­nesses of CIMC — con­tain­ers and heavy trucks — have be­come the pil­lar of the group’s six-month per­for­mance. They se­cured 105 per­cent and 38 per­cent growth, re­spec­tively, year-onyear.

Even though con­tain­ers ac­counted for less than a third of CIMC’s busi­ness, they re­mained the largest source of the group’s rev­enue and prof­its while the global ship­ping busi­ness is mak­ing a grad­ual come­back.

CIMC re­mains the world’s big­gest con­tainer man­u­fac­turer and seller, with 10.1 bil­lion yuan in sales in the past six months, in­clud­ing 535,700 dry 20-foot equiv­a­lent unit con­tain­ers and 35,100 cold chain TEU con­tain­ers, more than dou­bling the num­ber from the same pe­riod in 2016. The net profit has reached 680 mil­lion yuan.

“De­mand for con­tainer ship­ping con­tin­ues to im­prove on a global scale. Both the United States and the Euro­pean Union have seen strong de­mand for north-south trade in the At­lantic basin and im­prov­ing con­di­tions in in­tra-Asian trad­ing lanes,” says Dong Li­wan, a ship­build­ing pro­fes­sor at Shang­hai Mar­itime Uni­ver­sity.

Dong says ship­ping com­pa­nies from Den­mark, Ger­many and France have al­ready started to pur­chase con­tain­ers with more en­vi­ron­men­tally friendly wa­ter paint to meet in­ter­na­tional reg­u­la­tions, as well as tem­per­a­ture-con­trolled and liq­uid cargo con­tain­ers, as many mar­kets have been un­der­go­ing con­sump­tion up­grades since the sec­ond half of 2016.

CIMC pre­dicted that in­ter­na­tional trade would stay strong in the sec­ond half of 2017 and global de­mand for con­tain­ers would keep heat­ing up. Ac­cord­ingly, the group will fur­ther ex­pand its pro­duc­tion ca­pac­ity by set­ting up a new con­tainer plant in Dong­guan, Guang­dong prov­ince. It is ex­pected to be op­er­a­tional in the first half of 2018.

Both home and over­seas mar­kets have noted a strong uptick in CIMC’s rev­enue, with a 75 per­cent in­crease in China and 56 per­cent abroad yearon-year.

The group’s lo­gis­tics busi­ness has also seen sta­ble growth, with its firsthalf rev­enue and profit to­tal­ing 3.75 bil­lion yuan and 57.3 mil­lion yuan, re­spec­tively.

Sup­ported by 25 man­u­fac­tur­ing fa­cil­i­ties through­out the world, CIMC sold and shipped a to­tal of 81,500 trucks, in­clud­ing dump and san­i­ta­tion trucks, con­tainer and tank ve­hi­cles to do­mes­tic and in­ter­na­tional mar­kets in the first half, up by 39.9 per­cent from the same pe­riod a year ear­lier.

“It is worth men­tion­ing that the group’s ve­hi­cle sec­tor has seen promis­ing prospects from the global mar­ket, in­clud­ing North Amer­ica, Europe, Asia and Aus­tralia,” says Mai Bo­liang, pres­i­dent of CIMC.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.