COSCO Shipping International Announces 2019 Financial Results Container Coatings Sales Increase

March 23, COSCO Shipping International (00517HK) announces its 2019 financial resultsFull-year sales revenue was HK$3,265.7 million, down 65.7% YoY, gross profit was HK$555 million, down 1.93% YoY, and gross margin was 17%, up 11.1 percentage points Year-on-YearNet profit was HK$331 million, up 15.5 per cent year-on-yearEarnings per share of 21.57 cents, with a final dividend of 9.5 cents per share, together with interim dividend, were 16.5 cents, with a dividend ratio of 76%revenue fromcore shipping services fell 72% to HK$2,480 million, representing 76% of the Group's revenue (2018: 92%)decline was due to a decline in revenue from the Marine Fuels trading business as a result of the Group's aggressive contraction of its marine fuel trading business, taking into account risk factorsRevenue from the General Trade Division increased by 2% to HK$785.9 million, representing 24% of the Group's revenue (2018: 8%)Group's profit stake in the joint venture increased by 392% to HK$48.798 million
the project consisted mainly of HK$41.252 million (2018: HK$7.20 million) of profit at COSCO Jotun and HK$602.80 million (2018: HK$202.20 million) in the relevant paint divisionDuring the year, the Company's equity holders' profit-to-profit share increased by 16% to HK$330.6 million, mainly due to a substantial increase in profits payable to COSCO Jotun and Lian Yue, as well as an increase in financial receiptsreported that COSCO Shipping International's 2019 sales revenue from its paint business was HK$1,024 million, up 4% YoY; operating profit was HK$77.10 million, down 134.89% YoY; and the share of the company's profit was HK$47.28 millionHong Kong dollar, up 412.69 per cent year-on-year, and pre-tax profit of HK$490.680, up 344 per cent year-on-year, mainly due to a significant increase in profits due to COSCO Jotun, and after-tax profit of HK$3.8652 million, up 596.06 per cent year-on-yearcontainercoatingsside
with the Group's market recognition in water-based coatings gradually increased, container coatings business sales and market share continued to grow, and the Group's strict control of production costs, gross margin improved During the year, sales of container coatings up 30% from 2018 to 24,772 tons heavy anti-corrosion coatings
the Group has made breakthroughs in expanding port facilities, bridges and other businesses During the year, Shenzhen to Zhongshan cross-river channel sink pipe tunnel part of the paint and other projects smoothly shipped, driving the overall business volume increased During the year, sales of industrial heavy anti-corrosion coatings containing workshop primers were 17,655 tons, up 2% YoY ship coatings
COSCO Jotun's new shipbuilding coating sales were 4.505 million liters, up 1% YoY, while sales of repair and maintenance coatings were 25.1440 million liters, up 10% YoY COSCO's marine paint sales were 701.940 million litres (about 94,762 tons), up 4% year-on-year During the year, the Group's profit attributable to COSCO Jotun was HK$41.252million, an increase of 473% Year-on-Year, mainly due to a significant improvement in gross margin over 2018 In addition, COSCO Hasten strengthened the procurement management of raw materials, effectively strengthening the overall profitability and stability according to data disclosed by Jotun, according to the , COSCO's Qingdao company's 2019 sales revenue of 1,944.3 million Norwegian kroner, or about 1,538.5 million yuan, up 19.32% YoY, and net profit of -10.37 million Norwegian kroner, compared with 109.8 million Norwegian kroner in the previous year COSCO's Hong Kong company's 2019 sales revenue was NOK 1,051.9 million, or approximately RMB832.3 million, up 10.78% YoY, while net profit was NOK 87.45 million, compared with NOK 116.6 million in the previous year The combined sales of the two joint ventures amounted to RMB2,370.8 million Company completed the subscription of 33% of changshu Nespressin in the third quarter of 2018 mainly engaged in research and development, production and sales of biochemical products, conducive to the Extension of the Group's coatings and related products industry chain In 2018, the Group's share of Changshu's agnostic profit was HK$602.80 million (2018: HK$202.20 million) COSCO Shipping International said that since the beginning of 2020, the widespread spread of the new coronavirus, the community in all walks of life to create an unstable and challenging situation The Group has assessed the overall impact of the situation on the Group's business and has taken all possible and effective measures to limit and control its impact The Group will continue to monitor changes in the situation and respond and adjust measures in a timely manner in the future COSCO Shipping International said: container coatings, the Group will uphold innovation, continue to optimize the formulation of water-based coatings products, accelerate the pace of market expansion, strive to achieve market share, and strive to optimize the process, improve the efficiency of the box paint and gross margin industrial heavy anti-corrosion coatings, the Group prepared for the development of water-based industrial paint, to support the development of the water-based industrial paint market, and will continue to develop a diverse supplier chain, to stabilize the gross margin level ship coatings, new shipbuilding market delivery is weak, the supply of marine coatings is expected to decrease in 2020 compared to 2019 The Group is committed to achieving a balance between project profitability and market share, and will invest in the development of new businesses, product upgrades, and the development of better, more advanced and more environmentally friendly marine coatings to further consolidate its position in the market