On the evening of March 29, China International Marine Containers Co., Ltd (hereinafter referred to as "CIMC", stock code: 000039.SZ\2039.HK) officially released its 2020 annual report, disclosing the company's performance in the past year. The report shows that in 2020, CIMC achieved total revenue of 94.159 billion yuan, up 9.72% year on year. The net profit reached 6 billion yuan, of which the net profit attributable to the parent company was 5.350 billion yuan, up 246.88% year on year. The basic earnings per share were RMB1.41, up 281.08% year on year. CIMC announced in the report that the company will pay dividend to shareholders for 2020. The value of each share is RMB 0.28 in cash.
This means that CIMC has continued its record of 27 consecutive years of profits since listing on the A-share market in 1994. At the same time, it is also the 26th cash dividend since the listing, ranking among the top 10 A-share listed companies that has paid dividends the most times, with a cumulative dividend of more than 14 billion yuan.
Revenue and earnings hit record highs and beat expectations
In 2020, the sudden COVID-19 outbreak brought a huge impact on global economic activities. As a globalized transnational group, CIMC has inevitably suffered a great impact. This resulted in a loss of 641 million yuan for CIMC in the first quarter of 2020. Despite the sharp improvement in the second quarter, the first-half results still showed a loss.
As an international group that has been in operation for nearly 40 years, CIMC has experienced many times the fluctuations of the world economy and the ups and downs of the industry. Through strong strategic upgrading and capacity layout adjustment and other measures, it has finally realized a leapfrog development.
In 2020, CIMC acted quickly and decisively. In order to address the impact brought by the epidemic, CIMC quickly established the "Group Decision-Making Committee for Special Period", adopted a series of risk control measures and operational control measures, and resolutely pushed forward the implementation. In this year, CIMC overcame numerous difficulties and stood tests, and finally achieved substantial growth through major measures such as strategic planning optimization, business focus, inefficient asset disposal, and implementation of major strategic themes.
Thanks to various factors such as the control measures implemented by CIMC in the special period and the container market picking up at the end of the third quarter, the performance of CIMC bottomed out and picked up in the middle of the year. The 2020 third-quarter report of CIMC shows that the company's profit has turned positive. By the end of 2020, CIMC's operating cash flow has increased substantially, with both revenue and profit hitting a record high. It also means that CIMC has continued its record of 27 consecutive years of profits since listing on the A-share market. In one of the toughest times in history, CIMC has managed to deliver results for shareholders that exceed expectations.
CIMC continued to expand its major businesses and maintains its leading position in the market. The market share of standard containers and major conventional specific cargo containers in the container sector continued to maintain the first in the world, and the incremental business increased by 53% year-on-year. Special railway containers increased 219% year on year, remaining No.1 in the industry in terms of market share. In the vehicle sector, the company's global sales volume of semi-trailers totaled 131,327 units, up 11.57% year on year, maintaining its global leading position in the industry.
In terms of performance data, the container sector of CIMC achieved an operating income of 22.164 billion yuan in 2020, with a year-on-year growth of 9.92%. Net profit for the year reached 1.987 billion yuan, and net profit margin reached the highest level in recent years.
In 2020, the total annual operating revenue of the vehicle sector of CIMC (with CIMC Vehicle as the operating body) reached 26.499 billion yuan, up 13.56% year on year, hitting a record high. The net profit reached 1.269 billion yuan.
In 2020, CIMC's energy, chemical and liquid food equipment business achieved an operating income of 13.292 billion yuan and a net profit of 360 million yuan. The business (with CIMC Enrico as the operating body) was affected by both the industry cyclicity and the epidemic. The global market capacity of chemical tank containers decreased significantly, and the overall performance declined somewhat, but the main products still maintain the leading position in the industry. Clean energy equipment, one of the top three businesses in the sector, achieved revenue of 7 billion yuan, up 2.7 percent year on year.
For the implementation of the strategy of "focusing on intelligent logistics equipment", CIMC integrated a number of high-quality enterprises mainly engaged in medium and small logistics vehicle business in the group in 2020, and established the unit vehicle business segment, focusing on providing professional integrated solutions for R&D, manufacturing, leasing, operation and packaging of unit logistics vehicles in the fields of automobiles, liquid chemical, rubber and other industries. In 2020, the newly established unit vehicle business of CIMC achieved revenue of 3.036 billion yuan and a net profit of 94 million yuan.
Looking back at 2020: CIMC has formed a multinational industrial cluster focusing on logistics and energy industries
According to the report, CIMC has formed an industry cluster focusing on key equipment and solutions for the logistics and energy industries through business expansion and technology development.
First of all, in the field of logistics, CIMC insists on taking container manufacturing as the core business, road transport vehicle business as the extension, airport, fire engine and automatic logistics equipment business as the expansion, and logistics service business as the support. At the same time, the unit vehicle business has also been developed to jointly provide first-class products and services for the modern transportation logistics.
In the energy industry, on the one hand, CIMC has developed energy, chemical and liquid food equipment business based on land energy. On the other hand, it has attached importance to marine energy and carried out offshore engineering business, including the development of traditional offshore oil and gas and offshore renewable energy.
In 2020, CIMC adhered to the strategic theme of "sound operation and quality growth", focused on logistics and energy industries, optimized business combination, cleaned up inefficient assets, and improved asset income level to pursue high-quality business development. With strengthening scientific and technological innovation, product intellectualization, business model innovation and other measures, the comprehensive competitive strength of the enterprise has been comprehensively improved, and the brand value of CIMC has also been continuously improved, ranking the 118th in the Fortune China Top 500. While accelerating quality growth, CIMC focuses on business opportunities of domestic demand, service and innovation, and witnesses a successful end to the year 2020.
Blueprint for 2021: embark on a new journey of "starting a new undertaking" and achieve sustainable high-quality growth
According to the report, CIMC will adhere to the strategic positioning of "manufacturing + service + finance" in 2021, continue to push forward business transformation and upgrading, insist on the customer-oriented principle, extend from manufacturing to service, focus on the main businesses, and optimize the industrial structure. CIMC will also continue to enhance its global operations capabilities, optimize its businesses and assets, accelerate industrial aggregation and foster industrial chain advantages. In terms of technology upgrading, business model and management mechanism, it will continue to innovate and control risks. Through the efforts of grasping the market changes and arranging emerging industries and innovative businesses, the enterprise will achieve sustainable high-quality growth.
The year 2021 marks the 100th anniversary of the founding of the Communist Party of China. This year is also the beginning year of China's 14th Five-Year Plan and the beginning year of CIMC's new journey of "starting a new undertaking". With Shenzhen Capital becoming a shareholder of CIMC as a new starting point, CIMC is in a critical period of transformation, upgrading and defining new strategic planning.
In 2021, CIMC will seize the historic opportunity of the construction of "dual districts" in Shenzhen, adapt to the new development pattern of "dual circulation" in China, respect the times, maintain a sense of awe to the market, and explore the potential of the domestic market. It will carry forward the Shenzhen spirit of being innovative, pioneering and hard working, resolutely implement the business-oriented development mode, comprehensively improve the performance completion rate, and continue to provide CIMC wisdom and solutions to global clients with proactive thinking and quick actions.
