Dear Shareholders and investors,
In 2024, the container shipping market saw moderate growth in cargo volumes driven by a gradual recovery of global trade. However, the ongoing turmoil in the Red Sea, the profound transformations in the structure of industry alliances and the accelerated integration of ports, shipping and trade, have collectively created a complex and volatile market environment. In face of these challenges, COSCO SHIPPING Holdings actively seized market opportunities, endeavored to promote digital supply chain and green and low-carbon transitions, ultimately delivered impressive operating performance. On behalf of the board of directors of COSCO SHIPPING Holdings, I would like to express our sincere gratitude and great respect to our Shareholders, customers, partners and all employees for their continued support!
Rewarding Shareholders by delivering outstanding operating performance
Throughout the Reporting Period, the Group, on the basis of HKFRS, recorded operating revenue of RMB233.859 billion, representing an increase of 33.29% as compared to the last year; earnings before interests and taxes (EBIT) of RMB70.145 billion, representing an increase of 91.27% as compared to the last year; net profit of RMB55.593 billion, representing an increase of 95.77% as compared to the last year; net profits attributable to equity holders of the Company of RMB49.172 billion, representing an increase of 106.09% as compared to the last year. The return on equity (ROE) was 22.63%, representing an increase of 10.83 percentage points as compared to the last year; basic earnings per share was RMB3.08, representing 108.11% growth as compared to the last year, which demonstrated that the value creation capabilities of the Company were significantly enhanced. As of the end of the Reporting Period, the gearing ratio decreased by approximately 4.69 percentage points to 42.70% as compared to the beginning of the Reporting Period, and the net cash inflow from operating activities was RMB69.313 billion, representing an increase of 206.91% as compared to the last year.
Taking into account the aforementioned outstanding performance, the Board recommended the payment of a final cash dividend for 2024 of RMB1.03 per Share (tax inclusive) to all Shareholders. Together with the interim cash dividends of RMB0.52 per Share (tax inclusive) for 2024 already distributed to the Shareholders, the total cash dividends distributed for 2024 accounted for approximately 50% of the net profit attributable to equity holders of the Company.
Meanwhile, the Group repurchased A Shares and H Shares during the Reporting Period. As of 21 March 2025, an aggregate of 92.31 million of A Shares and 208 million of H Shares had been repurchased, and the total amount paid was approximately RMB3.557 billion, striving to reward the Shareholders through effective market capitalization management.
Expanding new development layout through global channel construction
The key pathway for the Group to further strengthening its competitive edges in the global shipping network is to accelerate the development of an integrated and balanced global rail-sea intermodal network and to optimize and upgrade the structure and scale of the fleet in a steady manner.
During the Reporting Period, the Group took delivery of 12 new vessels with a combined capacity of 230,000 TEUs. They included several advanced and environmentally friendly 24,000 TEU mega vessels, 16,000 TEU Panamax vessels and 14,000 TEU Latamax vessels. As at the end of the Reporting Period, the aggregate capacity of the Group’s self-operated fleet exceeded 3.3 million TEUs.
With steady growth in total fleet capacity, the Group carried out continuing efforts to increase the density of its network through active collaboration with partners. The Company operated 429 international routes, and called at 629 ports spread across approximately 145 countries and regions in the world. Additionally, by launching and upgrading new services in emerging markets, the Group’s cargo volume achieved rapid growth in Central and South America, Africa and Southeast Asia.
In an ever-changing market environment, the Group and OCEAN Alliance partners have agreed to extend the collaboration until 2032, and together launched the DAY8 and DAY9 products, which ensures the stability of global supply chains with higherfrequency, wider-coverage and better-quality services and sends a positive signal of sound operation to the market.
The Group continued to deepen the integration between its operating segments, both container shipping business and port business. It attached great importance to the inauguration of the CSP Chancay Terminal in Peru, launched the fastest shipping services in both ways between the CSP Chancay Terminal and the ports in China as well as launched new digital supply chain products of Chancay series. Meanwhile, the Group integrated the move to enhance the service capability of Abu Dhabi Port into the process of deeply engaging in the construction of Hainan Free Trade Port and launched direct services between the sister ports of Yangpu Port and Abu Dhabi Port. COSCO SHIPPING Ports (a subsidiary of the Group) completed the closing for Egypt’s Ain Sokhna Container Terminal, signed an investment agreement for Laem chabang Terminal and further enhanced the service capability of its ports such as Piraeus Terminal. The development of a number of integrated operational models for key hub ports takes shape, which facilitates the Group to deepen and strengthen its global presence.
Igniting fresh vitality to business ecosystem through full-chain digital-intelligent development
The Group insisted on strengthening the cohesion and co-development with external parties. Through ongoing resource inputs and digital transformation, it is committed to building a safe, resilient and efficient global supply chain system.
During the Reporting Period, the Group successfully developed and extensively used various application tools such as supply chain control towers, intelligent warehousing, intelligent trailers and intelligent customer service system, making progress in the application of supply chain visualization and intelligent customer services and accelerating the upgrade of traditional shipping services to digital supply chain products. Focusing on new business models, the Group released logistics solutions for multiple industries, including vehicle, home appliances and cross-border e-commerce. These solutions played a key role in enhancing the efficiency of the entire industry chain, which demonstrates the Group’s commitment to continuously creating value for its customers.
The Group rolled out innovative channel products such as “China’s New International Land-Sea Trade Corridor + China-Europe Railway”, “Trans-Caspian Multimodal Transport” and “Sea-rail Express + DIAMOND Line”. Besides, the Group introduced a series of customized supply chain bundle products, including “Customer-Defined Services”, “Global Talent Pegasus” and “Talent Thomas”. A combination of full-chain digital supply chain products, which comprise 38 products and cover over 90 countries and regions, were developed to further support the flourishing development of global trade. In 2024, revenue from supply chain revenue other than ocean shipping amounted to RMB40.939 billion, representing 18.09% growth as compared to the last year.
As for the industry ecosystem development, the Group successfully hosted the Global Supply Chain Partner Summit and the Convention between Carriers and Ports for Ocean Alliance. Leveraging the GSBN digital platform, the Group issued over 380,000 electronic bills of lading. In addition, the Group’s self-developed MY Reefer platform Smart PTI expanded coverage to Australia and various countries in Southeast Asia. Through the joint efforts of upstream and downstream partners, a more dynamic and thriving industrial chain and supply chain ecosystem were persistently expanded and strengthened.
Leading sustainable development through green and low-carbon transitions
As a shipping enterprise with a strong sense of social responsibility, the Group aligned itself with the new trends and requirements arising from green and environmentally-friendly development. It leveraged technological innovation as a driving force to lead green and low-carbon growth determinedly.
In terms of construction of its green fleets, in 2024, the Group signed an order for the construction of a total of 12 units of 14,000 TEU class methanol dual-fuel container vessels. Together with previous orders and vessel retrofit projects, the Group will have 32 units of methanol dual-fuel container vessels with a total capacity of 590,000 TEU after delivery, and the proportion of new energy vessels will be further increased. At the beginning of 2025, our first methanol dual-fuel container vessel was designated the name of COSCO Shipping Yangpu (中遠海運洋浦).
In terms of the practical use of biofuels, the Group implemented the largest domestic single – vessel biofuel refueling work to date, which further facilitated the transition of its fleet towards green shipping and the construction of “Green Shipping Corridor”. Moreover, the Group issued Hi-ECO Green Shipping Certificates based on GSBN blockchain verification to more customers. This initiative further promotes green transportation practices, better meets customers’ needs for environmentally friendly transport, and moves us closer to fulfilling our carbon reduction commitments under the “Well-to-WAKE” initiative.
In terms of smart and green terminal development, COSCO SHIPPING Ports (a subsidiary of the Group) made a number of achievements, including the commissioning of energy efficiency management platform at all of its controlling ports, the launch of the largest single-port distributed photovoltaic installation project CSP Guangzhou Nansha Port Terminal, and the naming of Xiamen Ocean Gate Terminal as the “Asia-Pacific Green Port” for three times. These accomplishments mark COSCO SHIPPING Ports’ accelerated transformation from a green low-carbon practitioner to a leader in green shipping.
Leveraging capital as the link to achieve co-created value and shared success
The Group adheres to the principle of high-quality sustainable development. With an aim to strengthening core competitiveness, the Group made use of capital investment as the link to deepen the cooperation with upstream and downstream enterprises in the supply chain.
During the Reporting Period, the Group completed equity investments in Midea Group and SAIC Anji Logistics, and made strategic equity investment in Yantian Port. Additionally, COSCO SHIPPING Lines (a wholly-owned subsidiary of the Company) increased its shareholdings in COSCO SHIPPING Logistics & Supply Chain Management to 19%. The aforementioned equity cooperation has deepened the strategic collaboration between upstream and downstream enterprises in the industrial chain and supply chain, and to some extent, has helped stabilizing the Group’s overall performance. In December 2024, the Group was newly added in a multiple of indexes for dividends, such as the CSI Dividend Index, SSE Dividend Index, SSE State-owned Enterprises Dividend Index, CSI Central State-owned Enterprises Dividend 50 Index, Central-SOEs Shareholder Return Index and CSI State-owned Enterprises Dividend Index, reflecting the capital market’s recognition of its sustainable returns.
Looking ahead, the conditions in container shipping industry will remain complex and volatile. On one hand, greater influence of the global geopolitical landscape, the uncertainties in the Red Sea, and greater impacts of policies relating to trading and tariff greater impacts of geopolitical issues, will bring profound changes in global cargo flow patterns. On the other hand, the resilient global economy, the rise of emerging markets and regional economic integration will create new opportunities for container shipping market.
Against this backdrop, the Group will emphasize the approach to meeting global customers’ needs. Guided by its positioning as “a global digital supply chain operation and investment platform with a primary focus on container shipping”, the Group will take a more forward-looking and systematic approach to accelerating global and scale development. It will also expedite the development of digital supply chain and green and low-carbon transition in order to create the certainty through high-quality development to ride out uncertainties with an aim to deliver more superior services for the customers and create greater value for our shareholders.
Wan Min
Chairman of the Board
21 March 2025
