Forward-Looking StatementFreight Forwarding 2014 2013 (Restated) Change Sea Freight Forwarding...
Transcript of Forward-Looking StatementFreight Forwarding 2014 2013 (Restated) Change Sea Freight Forwarding...
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Forward-Looking Statement Disclaimer
This presentation and subsequent discussions may contain forward-looking
statements that involve risks and uncertainties. These statements are generally
indicated by the use of forward-looking terminology such as believe, expect,
anticipate, estimate, plan, project, target, may, will or may be expressed to be
results of actions that may or are expected to occur in the future. You should not
place undue reliance on these forward-looking statements, which reflect our
belief only as of the date of this presentation. These forward-looking statements
are based on our own information and on information from other sources we
believe to be reliable. Our actual results may be materially less favorable than
those expressed or implied by these forward-looking statements which could
depress the market price of our shares.
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Contents
2014 Annual Results Macro Economy and Industries
Highlights
Business Review
Financial Review
Prospects Challenges and Opportunities
Development Strategies
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MACRO ECONOMY AND INDUSTRIES
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(%)
-7.6%
0.4%
-8%
-6%
-4%
-2%
0%
2%
2013 2014
CCFI
Macro Economy and Industries
4.2 4.3
7.6% 3.4%
0%
2%
4%
6%
8%
10%
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2013 2014
Total Value of Import and Export (trillion USD)
Import and Export Growth Rate of China
(%) (trillion USD)
190
202
7.2%
6.1%
2%
4%
6%
8%
10%
180
185
190
195
200
205
2013 2014(estimate)
Container Throughput Growth of China (in million TEUs)
Container Throughput Growth Rate of China
(%) (in million TEUs)
(%)
7.7% 7.4%
0%
2%
4%
6%
8%
10%
2013 2014
GDP Gowth Rate of China
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HIGHLIGHTS
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Achievements
Sustained growth based on our six core strategies: promoting resources consolidation, improving network layout, strengthening business synergies, restructuring operations, accelerating the innovation process and expanding financing channels.
In 2014, the Group achieved positive results in the following areas:
Progress in operations structural adjustment, resources consolidation and entrusted management;
Advances in business collaboration and the performance of integrated operations;
Progress in business innovation;
Refined network layout and focused strategic investment;
Optimized the capital structure.
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Resources Consolidation Progress
The Company is negotiating with Sinotrans & CSC Group with respect to appropriate reorganization of assets / businesses to reduce potential competition.
On 10 February 2014, the Company and Sinotrans & CSC Group entered into the Entrusted Management Agreement, pursuant to which the Company agreed to provide the Entrusted Management Services to Sinotrans & CSC Group in two phases, in return for fixed management fees.
On 25 March 2014, the Company announced the disposal of its certain marine transportation business.
On 8 July 2014, the Company entered into the Framework Acquisition Agreement with Sinotrans & CSC Group under which the Company conditionally agreed to acquire the Target Shares from Sinotrans & CSC Group or its subsidiaries.
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As the platform for Sinotrans & CSC Group’s logistics business, the Company will continue to negotiate with Sinotrans & CSC Group regarding appropriate asset and/or business reorganization opportunities, which may culminate in further transactions with announcements to be made as and when appropriate.
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Financial Highlights
[* The relevant data of marine transportation which has been disposed is calculated into the discontinuing operations. ]
(RMB million) 2014 2013 (Restated)
Change
Revenue – from continuing operations
45,659.8
45,402.4
0.6%
Operating Profit – from continuing operations
1,223.2
1,150.0
6.4%
Profit after Income Tax 1,515.5 1,212.8 25.0%
Profit Attributable to Equity Holders 1,231.4 904.0 36.2%
EPS (RMB yuan)
– from continuing and discontinuing operations
0.28
0.21
31.4%
Major Financial Indicators
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Operational Highlights
2014 2013 (Restated)
Change
Freight Forwarding
Sea Freight Forwarding Containers (in ten thousand TEUs)
928.5 883.5 5.1%
Air Freight Forwarding Cargo (in million kilograms)
481.9 399.4 20.7%
Shipping Agency Containers (in ten thousand TEUs)
Bulk Cargo (in million tonnes)
1,602.1
206.1
1,480.3
209.4
8.2%
-1.6%
Logistics (in million tonnes) 14.2 12.4 14.5%
Storage and Terminal Services
Warehouse Operation Containers (in ten thousand TEUs)
Bulk Cargo (in million tonnes)
899.0
14.0 859.7
14.4
4.6%
-2.8% Terminal Throughput Containers (in ten thousand TEUs)
Bulk Cargo (in million tonnes) 362.3
2.2 342.1
2.3
5.9%
-4.3%
Other Services
Trucking Containers (in ten thousand TEUs)
88.6 81.1 9.2%
Shipping - from continuing operations Containers (in ten thousand TEUs)
Shipping - from discontinuing operations Containers (in ten thousand TEUs)
205.8
73.5
183.6
130.6
12.1%
-43.7%
Express Services Documents and Packages (in ten thousand units)
202.0
179.0
12.8%
Volume
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BUSINESS REVIEW
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Business Segments Restructure
Started from 1H 2014, the operating segments of the Company were adjusted as follows:
Separated “Logistic Service” from “Freight Forwarding”
Combined “Shipping Agency” with “Freight Forwarding”
Re-identified continuing operation of “Marine Transportation” as “Shipping Business” and classified to “Other Services"
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Freight Forwarding
2014 2013 (Restated)
Change
Sea Freight Forwarding Containers (in ten thousand TEUs)
928.5 883.5 5.1%
Air Freight Forwarding Cargo (in million kilograms)
481.9 399.4 20.7%
Shipping Agency Containers (in ten thousand TEUs)
Bulk Cargo (in million tonnes)
1,602.1
206.1
1,480.3
209.4
8.2%
-1.6%
(RMB million) 2014 2013 (Restated)
Change
External Revenue 35,456.7 35,967.2 -1.4%
Segment Results 713.4 712.2 0.2%
Volume
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Logistics
2014 2013 (Restated)
Change
Logistics (in million tonnes) 14.2 12.4 14.5%
(RMB million) 2014 2013 (Restated)
Change
External Revenue 6,243.9 5,689.8 9.7%
Segment Results 298.1 270.8 10.1%
Volume
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Storage and Terminal Services
2014 2013 (Restated)
Change
Warehouse Operation Containers (in ten thousand TEUs) Bulk Cargo (in million tonnes)
899.0
14.0
859.7
14.4
4.6%
-2.8%
Terminal Throughput Containers (in ten thousand TEUs) Bulk Cargo (in million tonnes)
362.3
2.2
342.1
2.3
5.9%
-4.3%
(RMB million) 2014 2013 (Restated)
Change
External Revenue 2,098.7 2,015.7 4.1%
Segment Results 375.0 396.5 -5.4%
Volume
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Other Services
* Shipping - from discontinuing operations – Containers (in ten thousand TEUs) * Express Services
Joint Ventures – Packages (in ten thousand units) – Investment Income (RMB million)
73.5
2,154
743.6
130.6
1,973
660.4
-43.7%
9.2%
12.6%
2014 2013 (Restated)
Change
Trucking Containers (in ten thousand TEUs)
88.6 81.1 9.2%
Shipping - from continuing operations Containers (in ten thousand TEUs)
205.8 183.6 12.1%
Express Services Documents and Packages (in ten thousand units)
202.0 179.0 12.8%
(RMB million) 2014 2013 (Restated)
Change
External Revenue 1,860.5 1,729.7 7.6%
Segment Results 12.4 32.5 -62.0%
Volume
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FINANCIAL REVIEW
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Revenue and Segment Results – from continuing operations
(RMB million) 2014 2013 (Restated)
Change
Freight Forwarding 35,456.7 35,967.2 -1.4%
Logistics 6,243.9 5,689.8 9.7%
Storage and Terminal Services 2,098.7 2,015.7 4.1%
Other Services 1,860.5 1,729.7 7.6%
Revenue
(RMB million) 2014 2013 (Restated)
Change
Freight Forwarding 713.4 712.2 0.2%
Logistics 298.1 270.8 10.1%
Storage and Terminal Services 375.0 396.5 -5.4%
Other Services 12.4 32.5 -62.0%
Segment Results
77.6%
13.7%
4.6% 4.1%
21.3%
26.8%
0.9%
Revenue Contribution
in 2014
51.0%
Segment Results
Contribution in 2014
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Cost Structure – from continuing operations
(RMB million) 2014 2013 (Restated)
Change Cost Structure (%)
Transportation and Related Charges 39,890.3 39,822.8 0.2% 89.36%
Staff Costs 3,080.0 2,869.4 7.3% 6.90%
Depreciation and Amortization 588.1 563.8 4.3% 1.32%
Office and Related Expenses 492.9 541.2 -8.9% 1.10%
Other Losses, Net 13.1 90.0 -85.5% 0.03%
Other Operating Expenses 492.0 427.1 15.2% 1.10%
Business Tax and Other Surcharges 83.9 101.0 -16.9% 0.19%
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Statement of Financial Position
(RMB million) 2014 2013 (Restated)
Change
Cash and Cash Equivalents 5,332.1 5,386.6 -1.0%
Current Assets 16,675.2 15,544.3 7.3%
Total Assets 32,709.3 30,950.8 5.7%
Current Liabilities 13,113.5 12,336.0 6.3%
Total Liabilities 16,404.2 16,898.8 -2.9%
Non-controlling Interests 2,882.6 2,515.9 14.6%
Equity Attributable to Owners of the Company
13,422.5 11,536.0 16.4%
Total Assets Less Current Liabilities 19,595.8 18,614.8 5.3%
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Statement of Cash Flows
(RMB million) 2014 2013 (Restated)
Change
Net Cash from Operating Activities 1,107.6 1,491.3 -25.7%
Net Cash Used in Investing Activities (249.5) (1,365.8) -81.7%
Capital Expenditure (1,314.7) (1,907.7) -31.1%
Net Cash Used in Financing Activities (918.7) (504.3) 82.2%
Exchange Gains/(Losses) on Cash and Cash Equivalents
6.1 (35.8) -117.0%
Net Decrease in Cash and Cash Equivalents
(54.5) (414.6) -86.9%
Cash and Cash Equivalents as at 31 December
5,332.1 5,386.6 -1.0%
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PROSPECTS
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Challenges and Opportunities
Slow recovery with complications in the world economy; limited pick-up in external demand
Continuous adjustments in industrial structure; shift from investment-driven to consumption-driven economic growth; increasing downward pressure on the economy
Expected looser macro-economic policies, proactive fiscal policies, possible continued decrease of interest rates and required reserve ratio
Support from the government to the logistics industry
Increase of overall demand in logistics and shipping markets and sharp downward trend of oil prices
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Development Strategies
Further enhance the quality of operation;
Strengthen the consolidation of logistics resources and promote trial regional integrated operations;
Innovate business models and promote synergies among logistics, freight forwarding related business and e-commerce related services;
Strengthen the operational capability of the integrated networks and methodically promote the construction of the five channels: overseas channel, rail and land bridge transport channel, trucking channel, air transport channel and shipping channel;
Strengthen operation safety practices and risk management.
Facing the “New Normal” in domestic economic growth, the Group will persist in reforming its structure and operations, promoting innovation and formulating strategies for the future, in order to achieve sustainable and quality growth.
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Securities and Legal Affairs Dept Sinotrans Limited
Tel : +8610 5229 6667 Fax : +8610 5229 6655 Email : [email protected] Website : www.sinotrans.com
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