OOIL(00316)2024-04-24 08:45Financial Performance - Revenue decreased by 58% to 19.820 billion in 2022[4] - Operating profit dropped by 86% to 10.079 billion in 2022[4] - Cash and bank balances declined by 40% to 11.214 billion in 2022[4] - Total assets decreased by 22% to 20.035 billion in 2022[4] - Net cash generated from operating activities fell by 95% to 11.253 billion in 2022[4] - OOIL recorded a profit attributable to shareholders of 9.965 billion in 2022[33] - OOIL's total container shipping volume increased by 2.9% in 2023, while total revenue decreased by 59.6% compared to 2022[40] - OOCL's total container volume increased by 2.9% year-over-year in 2023, while total revenue decreased by 59.6%[42] - Pacific route container volume grew by 6.6% in 2023, but revenue dropped by 63.2%[42] - Asia/Europe route container volume increased by 1.1%, while revenue declined by 67.5%[43] - Atlantic route container volume rose by 7.2%, with revenue decreasing by 41.0%[43] - Intra-Asia/Australasia route container volume grew by 1.2%, but revenue fell by 52.7%[43] - Revenue from container transportation and logistics decreased by 8.673 billion (86%) in 2023 compared to 2022[75] - The company's total operating income decreased by 8.597 billion (86%) in 2023 compared to 2022[75] - Financial expenses decreased by 50.053 million (81%) in 2023 compared to 2022[75] - Container shipping and logistics business accounted for over 99% of the company's total revenue in 2023, with a cargo volume of 7,338,117 TEUs, an increase of 3% year-over-year[77] - Average revenue per TEU in the container shipping and logistics business decreased by 61% to 2,619 in 2022[77] - Operating income in the Asia/Australia/Africa region decreased by 61% to 678,518 thousand in 2023, despite an 11% increase in cargo volume on certain routes[77][80] - Operating income in the Europe region decreased by 49% to 7,173,150 thousand in 2023, driven by reductions in cargo handling, logistics, and fuel costs[77][83] - Administrative and operating expenses decreased by 58% to 546,537 thousand in 2023, mainly due to higher bank interest income[77][85] - The company's investment property "Wall Street Plaza" recorded a fair value loss of 16,964 thousand in 2022[86][90] - Rental income from "Wall Street Plaza" increased by 24,808 thousand in 2023, with an occupancy rate of 77% at the end of the year[86][87] - Other items recorded a favorable change of 29%, mainly due to reduced leasehold improvements at Wall Street Plaza[91] - Financial expenses for 2023 were 33 million compared to the previous year[91] - Share of profits from joint ventures and associates was 6.4 million from 2022[92] - Pre-tax profit for the year was 10.028 billion in 2022, reflecting lower freight rates in the container shipping and logistics market[93] - EBIT decreased to 10.089 billion in 2022, with EBIT margin dropping from 50.9% to 16.9%[94] - Capital expenditures decreased by 12% to 5.608 billion in 2023, while right-of-use assets decreased by 26% to 6.722 billion in 2023, mainly due to dividend payments and purchases of property, plant, and equipment[101] - Investment properties were valued at 270 million in 2022[99] - Accounts receivable and other assets decreased by 951 million at the end of 2023, primarily due to a reduction in freight rates[103] - Accounts payable and other liabilities decreased by 642 million compared to 2022, with 1.44 billion, with 484 million in floating-rate debt, and an average debt cost of 4.3%[105] - Net cash outflow in 2023 was 5.56 billion in 2022, with operating cash inflow decreasing by 8.33 billion to 9.46 billion at the end of 2022[109] - The company held 519 million in debt due for repayment in 2024[110] - Total current assets at the end of 2023 were 2.37 billion[110] - The net cash to equity ratio decreased from 0.68 in 2022 to 0.47 in 2023 due to net cash outflow[106] - Shareholder equity decreased by 11.21 billion at the end of 2023, with a return on equity ratio dropping from 86.26% in 2022 to 11.10% in 2023[107] Fleet and Operations - The company launched the OOCL Account in January 2023, integrating multiple e-commerce platforms for more efficient cargo management[7] - OOCL Spain, the company's first 24,188 TEU container ship, was named in February 2023, marking a significant milestone in fleet capacity[9] - OOCL Piraeus, the second 24,188 TEU container ship, was named in May 2023, further enhancing the company's fleet capabilities[16] - OOCL Turkiye, a new vessel with a capacity of 24,188 TEU, was welcomed at NACKS shipyard on June 6[17] - OOCL International launched the new China-Indonesia 2 (CIS2) route to enhance the network between China, Indonesia, and the Philippines[18] - OOCL Logistics introduced the CargoEasy digital platform on August 1, offering real-time quotes, seamless booking, and cargo tracking[20] - OOCL Felixstowe, another 24,188 TEU vessel, was added to the fleet on August 8, optimizing the fleet structure[21] - OOCL launched the Turkey-Spain-Morocco (TSM) route to improve intra-Europe services, connecting Greece, Turkey, Spain, and Morocco[22] - OOCL Zeebrugge, the fifth in a series of twelve 24,188 TEU eco-friendly vessels, was welcomed on September 6[23] - OOCL introduced the "Emissions Monitor" tool to track emissions and ensure compliance with IMO CII regulations[24] - OOCL completed its first biofuel bunkering in Singapore, using a blend of UCOME and VLSFO[26] - OOCL launched two new China-Cambodia-Thailand routes (CCT1 and CCT2) to strengthen intra-Asia service coverage[28] - The company has taken delivery of 7 new container ships with a capacity of 24,188 TEUs each, enhancing fleet modernization and cost efficiency[36] - OOCL's fleet capacity reached 964,964 TEUs as of December 31, 2023, with 121 vessels in total[44] - The company received 6 new vessels with a total capacity of 24,188 TEUs in 2023, with 6 more expected in 2024[44] - OOCL's average vessel age is 12.69 years, with an average capacity of 10,094 TEUs per vessel[44] - The company received 6 new vessels with a capacity of 24,188 TEUs in 2023, with additional vessels expected to be delivered between 2024 and 2028[96] Sustainability and Environmental Initiatives - OOCL introduced the "Emissions Monitor" tool to track emissions and ensure compliance with IMO CII regulations[24] - OOCL completed its first biofuel bunkering in Singapore, using a blend of UCOME and VLSFO[26] - OOCL's CO2 emissions have decreased by over 45% since 2008 through fuel-saving measures[63] - OOCL's new emission monitoring platform provides real-time CO2 emission calculations for confirmed bookings[62] - OOCL's vessels have reduced nitrogen oxide emissions by 30% using advanced fuel injection pistons[63] - OOCL achieved a 95% compliance rate in designated slow-speed zones under the "Protecting Blue Whales and Blue Skies" program[63] - OOCL's sustainability report data received limited assurance from Lloyd's Register Quality Assurance[61] - OOCL was included in the FTSE Russell Social Responsibility Index Series for ESG excellence[61] - OOCL was re-included in the Dow Jones Sustainability Asia-Pacific Index in December 2023[61] - OOCL ranked in the top 1% of S&P Global ESG scores among Chinese companies in 2023[61] - OOCL was added to the Hang Seng Sustainability Index and Hang Seng ESG 50 Index[62] - The company has successfully reduced paper usage by creating a paperless office environment and implementing "Save, Reuse, and Recycle" activities across its global offices[64] - The company's refrigerated containers use non-CFC refrigerants and are among the most energy-efficient in the industry, with energy-saving generators further enhancing efficiency[64] - The company launched a carbon emissions calculator in collaboration with Hong Kong Polytechnic University, verified by the American Bureau of Shipping, to help customers calculate CO2 emissions across their supply chains[57] - The company's "Ship Slowdown" program reduced nitrogen oxide emissions by an estimated 550 tons annually in the ports of Long Beach and Los Angeles[59] - The company's new ships are equipped with International Maritime Organization (IMO)-approved ballast water treatment systems to minimize environmental impact[59] - The company received the "Hong Kong Green Organization Certification" and was awarded the "Environmental Excellence Award" for its environmental protection efforts[59] - The company implemented a policy to refuse shipments of shark, whale, dolphin, and related products, as well as hunting trophies, to support global efforts against endangered species trade[59] - The company's ships docking in the U.S. have been certified as "21st Century Quality Ships" by the U.S. Coast Guard, with some vessels achieving the additional E-Zero designation for exemplary environmental compliance[60] - OOCL adopts B24 biofuel, a blend of UCOME and VLSFO, to reduce carbon emissions[62] Technology and Innovation - OOCL Logistics introduced the CargoEasy digital platform on August 1, offering real-time quotes, seamless booking, and cargo tracking[20] - The company's electronic bill of lading platform IQAX processed over 100,000 electronic bills of lading by December 2023[36] - The company implemented blockchain technology through the Global Shipping Business Network (GSBN) platform, with over 50,000 bills of lading processed among 500 shippers in 2023[50] - The company utilized AI to optimize space allocation, improve service capabilities, and enhance global container repositioning, with pilot programs launched in Europe by the end of 2023[51] - A new carbon emission calculation engine was introduced, integrating Google Maps for distance measurement and AI-powered fuel utilization prediction for more accurate carbon emission estimates[51] - The supplier invoice management system was operational in 16 terminals in 2023, automating invoice reconciliation and reducing processing costs[52] - The AI-enabled OneMNR solution achieved a monthly auto-approval rate of approximately 27% for domestic container maintenance and repair cost estimates[52] - The company adopted Microsoft Office Copilot and AI-assisted large language models (LLM) to automate tasks and enhance productivity[52] - The company implemented AIOps in its IT operations, enhancing real-time data stream monitoring and analysis, and improving system stability by preventing IT service issues and expediting troubleshooting[53] - The company processed over 100,000 electronic bills of lading (eBL) in 2023 through its IQAX platform, covering both container and bulk cargo shipments[53] Corporate Governance and Leadership - Yang Zhijian, aged 59, has been the CEO of Orient Overseas Container Line (OOCL) since January 1, 2020, and has over 30 years of experience in the shipping industry, specializing in container transportation, logistics, and bulk shipping[114] - Dong Lijun, aged 59, served as the CEO and Senior Managing Director of OOCL from July 1, 2012, to August 2, 2018, and as Co-CEO from August 3, 2018, to December 31, 2019[115] - Gu Jinshan, aged 62, was appointed as a Non-Executive Director of the company on December 5, 2023, and has extensive experience in infrastructure and urban development[116] - Wang Dan, aged 54, has been a Non-Executive Director since August 3, 2018, and currently serves as the Deputy General Manager of Silk Road Fund[117] - Yip Shing Chi, aged 70, has been a Non-Executive Director since August 3, 2018, and has over 40 years of experience in the shipping industry, currently serving as the Group Managing Director of Hutchison Port Holdings[118] - Chow Yiu Wah, aged 76, has been an Independent Non-Executive Director since January 2, 2015, and previously served as an Executive Director from December 1, 2003, to June 30, 2012[119] - Mr. Ye Jianping has been appointed as the CEO of OOCL since August 2020, with extensive experience in the company spanning 29 years[125] - Mr. Ye holds a Master's degree in Business Administration from Oklahoma City University and a diploma in accounting from Shanghai Lixin University of Accounting and Finance[125] - Mr. Ye has held various positions within the company, including Director of Asia-Europe Trade Zone and Intra-Asia Trade Zone, and CEO of OOCL Logistics[125] - Mr. Ye was transferred back to Hong Kong from Shanghai in 2004 and has since taken on multiple leadership roles within the company[125] - Mr. Ye is responsible for the Executive Office, Corporate Human Resources, Marine Operations Center, Slot and Cargo Allocation Center, and Fleet Management Department[125] - The company has issued 660,373,297 ordinary shares as of December 31, 2023, with a par value of $0.10 per share[136] - Shareholders holding company shares account for 2.6465% of total shareholders, representing 99.7764% of the total ordinary shares[140] - Individual shareholders account for 97.3535% of total shareholders, holding 0.2236% of the total ordinary shares[140] - Shareholding distribution shows that 99.7623% of the company's shares are held by 2 shareholders with holdings of 1,000,001 shares or more[141] - The top 10 largest ordinary shareholders hold a combined 99.7623% of the company's shares, with HKSCC Nominees Limited holding 51.9440% and Faulkner Global Holdings Limited holding 47.8182%[142] - Faulkner Global Holdings Limited holds a total of 469,344,972 shares, representing 71.07% of the company's issued shares, with 153,565,927 shares (23.2544%) registered under HKSCC Nominees Limited[142] - The company has adopted a customized Corporate Governance Code, which includes principles from the Hong Kong Stock Exchange's Corporate Governance Code and follows local and international best practices[143] - The Board of Directors consists of 3 executive directors, 4 non-executive directors, and 5 independent non-executive directors, all with extensive corporate and strategic planning experience[144][145] - The company has established effective mechanisms to ensure the independence of the Board of Directors, with all independent non-executive directors being financially independent from the group[148] - The company has arranged Directors and Officers Liability Insurance since 1992 to cover liabilities arising from the group's corporate activities[149] - The Board of Directors sets and promotes the company's core values of being people-oriented, customer-focused, quality-driven,