Growth, Digital Innovation, and Green Development
In the first three quarters of 2024, cargo volumes in major global markets grew moderately, while container market capacity remained strained due to ongoing disruptions in the Red Sea region. As a result, the global supply chain continued to face challenges. However, in Q3 2024, with the European and American trunk route markets entering peak season, COSCO SHIPPING Holdings saw a boost in both cargo volume and shipping rates in its container business.
In response to the complex and volatile global economic and trade environment, COSCO SHIPPING Holdings has been proactively advancing its full-chain services, digitalization, and green development. The company is accelerating the development of new, high-quality productive forces to support sustainable growth and address external uncertainties, ultimately creating new sources of growth. The company’s operating results reflect this strategy, showcasing significant progress.
In response to the complex and volatile global economic and trade environment, COSCO SHIPPING Holdings has been proactively advancing its full-chain services, digitalization, and green development. The company is accelerating the development of new, high-quality productive forces to support sustainable growth and address external uncertainties, ultimately creating new sources of growth. The company’s operating results reflect this strategy, showcasing significant progress.
Growth, Digital Innovation, and Green Development
Overall Performance: For the first three quarters of 2024, COSCO SHIPPING Holdings reported operating revenue of RMB 174.74 billion, a 29.8% increase year-on-year. EBIT surged 63.72% to RMB 54.41 billion, while net profit rose by 66.69% to RMB 43.35 billion. Net profit attributable to shareholders for the period amounted to RMB 38.12 billion, a 72.73% increase compared to the previous year. In Q3 alone, net profit attributable to shareholders reached RMB 21.25 billion, marking a staggering 285.70% year-on-year increase.
Third-Quarter Performance: In Q3 2024, COSCO SHIPPING Holdings achieved operating revenue of RMB 73.51 billion, a 72.00% increase year-on-year. EBIT climbed by 248.93% to RMB 29.76 billion, and net profit jumped by 281.12% to RMB 24.09 billion. Net profit attributable to shareholders for Q3 was RMB 21.25 billion, reflecting an impressive 285.70% year-on-year growth.
Shipping and Terminal Growth: For the first three quarters, the company’s core shipping business saw significant growth. Shipping volume reached 19.04 million TEUs, a 9.07% increase year-on-year. Revenue from container shipping business rose by 30.57% to RMB 168.84 billion. The total throughput for the terminal business was 107.27 million TEUs, up 7.08%, and terminal revenue increased by 6.49% to RMB 7.94 billion.
Digital Supply Chain: COSCO SHIPPING Holdings’ digital supply chain business emerged as a new growth driver, with revenue from non-ocean shipping supply chain services reaching RMB 30.71 billion, a 19.66% increase year-on-year.
Third-Quarter Performance: In Q3 2024, COSCO SHIPPING Holdings achieved operating revenue of RMB 73.51 billion, a 72.00% increase year-on-year. EBIT climbed by 248.93% to RMB 29.76 billion, and net profit jumped by 281.12% to RMB 24.09 billion. Net profit attributable to shareholders for Q3 was RMB 21.25 billion, reflecting an impressive 285.70% year-on-year growth.
Shipping and Terminal Growth: For the first three quarters, the company’s core shipping business saw significant growth. Shipping volume reached 19.04 million TEUs, a 9.07% increase year-on-year. Revenue from container shipping business rose by 30.57% to RMB 168.84 billion. The total throughput for the terminal business was 107.27 million TEUs, up 7.08%, and terminal revenue increased by 6.49% to RMB 7.94 billion.
Digital Supply Chain: COSCO SHIPPING Holdings’ digital supply chain business emerged as a new growth driver, with revenue from non-ocean shipping supply chain services reaching RMB 30.71 billion, a 19.66% increase year-on-year.
Financial Resilience and Shareholder Value
Optimized Financial Structure: As of September 30, 2024, the company’s gearing ratio decreased to 44.53%, down approximately 3 percentage points from the previous year, reflecting further optimization of its financial structure and enhanced resilience against market volatility.
Share Repurchase Plan: On October 20, COSCO SHIPPING Holdings announced an A-shares repurchase plan, with an estimated value of RMB 1-2 billion, to boost investor confidence and maintain valuation. A similar H-shares repurchase plan will be implemented under the general mandate.
Dividend Distribution: As of October 25, the company had completed its interim cash dividend payouts for A-shares and H-shares, totaling approximately RMB 8.3 billion (tax included), rewarding shareholders with nearly half of its net profit attributable to shareholders for the first half of 2024.
Share Repurchase Plan: On October 20, COSCO SHIPPING Holdings announced an A-shares repurchase plan, with an estimated value of RMB 1-2 billion, to boost investor confidence and maintain valuation. A similar H-shares repurchase plan will be implemented under the general mandate.
Dividend Distribution: As of October 25, the company had completed its interim cash dividend payouts for A-shares and H-shares, totaling approximately RMB 8.3 billion (tax included), rewarding shareholders with nearly half of its net profit attributable to shareholders for the first half of 2024.
Strategic Focus on Digitalization, Green Development, and Full-Chain Services
Since the start of 2024, COSCO SHIPPING Holdings has focused on becoming a “global digital supply chain operation and investment platform,” with a primary focus on container shipping. The company is integrating advanced technologies such as artificial intelligence, blockchain, IoT, and green, low-carbon technologies into its operations. This digital transformation is aimed at fostering new productive forces in the shipping and logistics sector and accelerating the transition toward a smarter, greener global supply chain.
Full-Chain Services and Ecosystem Expansion: COSCO SHIPPING Holdings has made significant strides in building a comprehensive global digital supply chain ecosystem. The company has established 8 investment platforms and 9 operation platforms across North America, Europe, Southeast Asia, South America, and Africa. Key infrastructure projects, including major ports in Piraeus, Abu Dhabi, Zeebrugge, and Chancay, are progressing well. The company now operates 436 shipping routes, manages 371 berths in 39 ports worldwide, and runs 589 sea-rail trade routes.
Technological Integration: The company has advanced the integration of emerging technologies into its operations. AI, IoT, blockchain, and 5G are being applied across various areas, including supply chain control towers, intelligent warehouses, and customer services. New platforms for cargo space management, freight rate management, and instant cargo booking are also being introduced to enhance service offerings and customer satisfaction.
Growth in Strategic Cargo Segments: COSCO SHIPPING Holdings saw significant growth in handling cargo related to photovoltaics, lithium batteries, automobiles, and cross-border e-commerce, with year-on-year increases of 31%, 20%, 17%, and 60%, respectively.
Digital Trade and Paperless Innovation: The company is also advancing digital trade processes through its involvement in the Global Shipping Business Network (GSBN), promoting paperless trade and e-bills of lading. This initiative has already processed over 300,000 e-bills of lading, reducing import release times from 1-2 days to just a few hours.
Full-Chain Services and Ecosystem Expansion: COSCO SHIPPING Holdings has made significant strides in building a comprehensive global digital supply chain ecosystem. The company has established 8 investment platforms and 9 operation platforms across North America, Europe, Southeast Asia, South America, and Africa. Key infrastructure projects, including major ports in Piraeus, Abu Dhabi, Zeebrugge, and Chancay, are progressing well. The company now operates 436 shipping routes, manages 371 berths in 39 ports worldwide, and runs 589 sea-rail trade routes.
Technological Integration: The company has advanced the integration of emerging technologies into its operations. AI, IoT, blockchain, and 5G are being applied across various areas, including supply chain control towers, intelligent warehouses, and customer services. New platforms for cargo space management, freight rate management, and instant cargo booking are also being introduced to enhance service offerings and customer satisfaction.
Growth in Strategic Cargo Segments: COSCO SHIPPING Holdings saw significant growth in handling cargo related to photovoltaics, lithium batteries, automobiles, and cross-border e-commerce, with year-on-year increases of 31%, 20%, 17%, and 60%, respectively.
Digital Trade and Paperless Innovation: The company is also advancing digital trade processes through its involvement in the Global Shipping Business Network (GSBN), promoting paperless trade and e-bills of lading. This initiative has already processed over 300,000 e-bills of lading, reducing import release times from 1-2 days to just a few hours.
Commitment to Green Development
COSCO SHIPPING Holdings continues to prioritize green and sustainable development in its shipping operations.
Green Fleet and Methanol Dual-Fuel Vessels: The company has invested in the construction of methanol dual-fuel container vessels, including some of the world’s largest 24,000 TEU ships. It has also retrofitted existing vessels to meet the requirements of a green shipping corridor between Shanghai and Los Angeles.
Green Ports and Energy Efficiency: COSCO SHIPPING Holdings has successfully launched an energy efficiency management platform across all its nine domestic terminals and made progress with biofuel bunkering and photovoltaic energy projects, including China’s largest port-based building-integrated photovoltaic project at Guangzhou Nansha II Terminal.
Green Fleet and Methanol Dual-Fuel Vessels: The company has invested in the construction of methanol dual-fuel container vessels, including some of the world’s largest 24,000 TEU ships. It has also retrofitted existing vessels to meet the requirements of a green shipping corridor between Shanghai and Los Angeles.
Green Ports and Energy Efficiency: COSCO SHIPPING Holdings has successfully launched an energy efficiency management platform across all its nine domestic terminals and made progress with biofuel bunkering and photovoltaic energy projects, including China’s largest port-based building-integrated photovoltaic project at Guangzhou Nansha II Terminal.
Outlook
Looking ahead, COSCO SHIPPING Holdings faces a range of challenges, including rising geopolitical tensions, global supply chain restructuring, and stricter environmental regulations. However, opportunities also lie ahead with the expected recovery in global commodity trade, moderate demand growth, and increased collaboration within the industrial chain.
With this in mind, COSCO SHIPPING Holdings will continue to focus on its mission to become a world-class shipping technology enterprise. The company will maintain its commitment to building a global, digital, full-chain, and green shipping service system, delivering enhanced services to customers and creating greater value for shareholders.
With this in mind, COSCO SHIPPING Holdings will continue to focus on its mission to become a world-class shipping technology enterprise. The company will maintain its commitment to building a global, digital, full-chain, and green shipping service system, delivering enhanced services to customers and creating greater value for shareholders.