东方海外国际(00316) - 2023 - 中期财报

Financial Performance - The company recorded a profit attributable to shareholders of $1.129 billion for the first six months of 2023, compared to$5.664 billion in the same period in 2022[3] - Revenue for the first half of 2023 was $4.54 billion, a significant decrease from$11.06 billion in the same period of 2022[49] - Gross profit for the first half of 2023 was $902.8 million, compared to$6.12 billion in the first half of 2022[49] - Operating profit for the first half of 2023 was $1.13 billion, down from$5.75 billion in the same period of 2022[49] - Net profit attributable to shareholders for the first half of 2023 was $1.13 billion, compared to$5.66 billion in the first half of 2022[49] - Basic and diluted earnings per share for the first half of 2023 were $1.71, down from$8.58 in the same period of 2022[49] - Net profit for the first half of 2023 was $1,129,397 thousand, a significant decrease from$5,664,112 thousand in the same period of 2022[50] - Total comprehensive income for the first half of 2023 was $1,110,293 thousand, compared to$5,633,841 thousand in the first half of 2022[50] - Revenue from container transportation and logistics decreased to $4,528,025K in 2023 from$11,049,611K in 2022, representing a significant year-over-year decline[68] - Total revenue for the company in 2023 was $4,540,681K, compared to$11,061,132K in 2022, indicating a substantial drop in overall performance[68] - Operating profit for container transportation and logistics was $1,137,904K in 2023, down from$5,742,786K in 2022, reflecting a sharp decrease in profitability[70][71] - The company reported a net profit of $1,129,397K in 2023, a significant drop from$5,664,112K in 2022, indicating a challenging financial period[70][71] - Operating profit for 2023 increased to $285,414 thousand from$49,218 thousand in 2022, driven by higher bank interest income[77] - The company's net interest expense decreased to $15,732 thousand in 2023 from$28,124 thousand in 2022, reflecting lower interest costs[79] - Total tax expenses for 2023 amounted to $5,212 thousand, with Hong Kong profits tax at$8,145 thousand and non-Hong Kong taxes at $1,187 thousand[80] - Basic and diluted earnings per share for 2023 were$1.71, down from $8.58 in 2022, due to a significant drop in net profit[82] Dividends and Shareholder Returns - The company declared an interim dividend of$0.69 per ordinary share and a special dividend of $0.17 per ordinary share for 2023[3] - The company declared an interim dividend of$0.69 per share and a special dividend of $0.17 per share for the six months ended June 30, 2023[24] - The company declared an interim dividend of$0.69 per share and a special dividend of $0.17 per share for 2023, compared to$3.43 and $2.57 respectively in 2022[83] - The company paid a final dividend of$1,723,574 thousand and a second special dividend of $1,287,728 thousand for the 2022 fiscal year[56] Cash Flow and Financial Position - The net cash to equity ratio stood at 0.53 as of June 30, 2023, compared to 0.63 in the same period in 2022 and 0.26 in 2021[4] - The company reduced its existing financing scale by$2.1 billion since June 30, 2020, and avoided additional financing costs by using its own funds to pay for new ship progress payments[4] - OOCL's cash and bank balances totaled $7.8 billion as of June 30, 2023, with net cash of$6.2 billion[18] - Cash and bank balances decreased to $7,823,896 thousand as of June 30, 2023, from$11,213,902 thousand at the end of 2022[52] - Operating cash flow for the first half of 2023 was $548,319 thousand, a significant decrease from$6,243,073 thousand in the same period of 2022[55] - Cash and cash equivalents decreased to $3,726,456 thousand as of June 30, 2023, from$8,266,910 thousand at the end of 2022[55] - Shareholders' equity decreased from $13,435,998 thousand as of January 1, 2023, to$11,534,380 thousand as of June 30, 2023, primarily due to dividend payments[56] - Total comprehensive income for the first half of 2023 was $1,109,569 thousand, compared to$5,633,486 thousand in the same period of 2022[56] - The company's financial assets measured at fair value totaled $14,263 thousand as of June 30, 2023, with$14,229 thousand classified as Level 1 and $34 thousand as Level 3[63] - Level 3 financial instruments, consisting of unlisted equity securities, remained unchanged at$34 thousand from January 1, 2023, to June 30, 2023[65] - The fair value of amortized cost investments was $61,254K as of June 30, 2023, slightly lower than the$86,158K as of December 31, 2022[66] - Trade receivables net of impairment decreased to $309,578 thousand in 2023 from$438,276 thousand in 2022, with a significant reduction in overdue receivables[86][87] - The total reserves decreased from $13,369,961 thousand as of January 1, 2023, to$11,468,343 thousand as of June 30, 2023, primarily due to a reduction in retained earnings[89] - Lease liabilities decreased from $2,080,120 thousand as of December 31, 2022, to$1,660,265 thousand as of June 30, 2023, with non-current liabilities dropping to $1,062,822 thousand[90] - Accounts payable to third parties decreased slightly from$156,028 thousand as of December 31, 2022, to $154,876 thousand as of June 30, 2023[92] - Accrued expenses significantly decreased from$2,483,714 thousand as of December 31, 2022, to $1,710,705 thousand as of June 30, 2023[93] - Capital commitments for property, plant, and equipment decreased from$4,093,204 thousand as of December 31, 2022, to $3,751,623 thousand as of June 30, 2023, with$3,747,887 thousand allocated to vessels under construction[94] - Total lease commitments decreased marginally from $384,401 thousand as of December 31, 2022, to$383,755 thousand as of June 30, 2023, with the majority allocated to vessels and equipment[95] Market and Operational Performance - The company's freight rates have generally returned to pre-pandemic levels, with some routes even higher than pre-pandemic levels[3] - The company's effective capacity has been released due to the easing of congestion at existing choke points, although new congestion points occasionally emerge[3] - OOCL's total container shipping volume decreased by 1% in H1 2023 compared to H1 2022, with total revenue dropping by 60% and average revenue per TEU decreasing by 60%[9] - Pacific route cargo volume decreased by 2% in H1 2023, with revenue down by 67% and average revenue per TEU dropping by 66%[10] - Asia/Europe route cargo volume increased slightly by 0.4% in H1 2023, but revenue decreased by 68% and average revenue per TEU dropped by 68%[11] - Atlantic route cargo volume increased by 20% in H1 2023 due to increased capacity, with revenue decreasing by 18% and average revenue per TEU dropping by 32%[12] - Intra-Asia/Australia route cargo volume decreased by 4% in H1 2023, with revenue down by 53% and average revenue per TEU dropping by 51%[13] - The Asia region contributed $3,073,899K in revenue in 2023, down from$9,110,712K in 2022, highlighting a significant decline in the largest market[75] - The Europe region generated $888,269K in revenue in 2023, down from$1,316,312K in 2022, showing a decline in this key market[75] Environmental and Sustainability Efforts - The company is committed to environmental protection and sustainability, with its sustainability report independently verified by Lloyd's Register Quality Assurance Limited[22] - The company has been recognized for its environmental efforts, including achieving the highest level in the Green Flag Program at the Ports of Long Beach and Los Angeles[23] - The company participates in the "Protecting Blue Whales and Blue Skies" program to reduce air pollution and protect marine life in the San Francisco Bay and Southern California regions[23] - The company has been included in the Dow Jones Sustainability Index and the S&P Global Sustainability Yearbook (China Edition) 2023, ranking in the top 1% of ESG scores in the industry[23] Corporate Governance and Compliance - The company has implemented a Business Continuity Plan (BCP) in all operational regions to ensure business integrity during natural disasters or severe events[23] - The company's global data processing center maintains ISO 27001 certification, ensuring international standards for information security management[21] - The company has adopted a self-defined corporate governance code that complies with the Hong Kong Stock Exchange's Corporate Governance Code, except for two recommended best practices[38] - The company's senior management remuneration is disclosed in ranges rather than on an individual basis, and quarterly operational results are published instead of quarterly financial results[38] - All directors confirmed full compliance with the company's securities trading code and the Hong Kong Stock Exchange's Model Code during the first half of 2023[39] Related Party Transactions - The company is controlled by COSCO Shipping, a state-owned enterprise in China, and engages in significant related party transactions with COSCO Shipping and its affiliates[96][97] - Container transportation revenue from COSCO Shipping Group and its affiliates decreased to $48.8 million in 2023 from$228.5 million in 2022[98] - Information technology service revenue dropped to $14.4 million in 2023 from$16.8 million in 2022[98] - Fuel purchase expenses increased to $154 million in 2023 from$145 million in 2022[98] - Container transportation revenue from joint ventures decreased to $92,000 in 2023 from$108,000 in 2022[99] - Container transportation revenue from other related parties increased to $1.4 million in 2023 from$205,000 in 2022[100] - Terminal expenses from other related parties surged to $74.7 million in 2023 from$21.8 million in 2022[100] - 70% of the company's bank balances were held in state-owned banks as of June 30, 2023, down from 90% as of December 31, 2022[101] - Container transportation revenue from COSCO Shipping affiliates and joint ventures was $17.9 million in 2023, down from$80.3 million in 2022[101] - Terminal expenses from COSCO Shipping affiliates and joint ventures increased to $82.8 million in 2023 from$73.6 million in 2022[101] - Fuel purchases from COSCO Shipping joint ventures decreased to $88.4 million in 2023 from$102 million in 2022[101] Capital Expenditures and Investments - Property, plant, and equipment increased to $5,213,173 thousand as of June 30, 2023, up from$4,696,239 thousand at the end of 2022[52] - Non-current assets increased by $506,418K in 2023, compared to$490,492K in 2022, indicating continued investment in long-term assets[75] - Capital expenditures for property, plant, and equipment increased to $467,833 thousand in 2023 from$128,290 thousand in 2022[84] - Two new vessels were delivered to the company in 2023, compared to none in 2022[85] - The company estimated a contractual provision of $895 million as of June 30, 2023, due to uncertainties in meeting the minimum volume commitment for the Long Beach Container Terminal[91] Shareholder and Ownership Structure - The company's issued share capital as of June 30, 2023, consists of 660,373,297 ordinary shares[26] - Faulkner Global Holdings Limited holds a 71.07$609 per ton, a 17% decrease compared to $729 per ton in H1 2022[14] Employee and Workforce - The company employs 11,385 full-time employees globally as of June 30, 2023, with competitive compensation and benefits[20]