forward-looking statement · 2017. 8. 2. · freight forwarding sea freight forwarding containers...

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Forward-Looking Statement Disclaimer

This presentation and subsequent discussions may contain forward-looking

statements that involve risks and uncertainties. These statements are generally

indicated by the use of forward-looking terminology such as believe, expect,

anticipate, estimate, plan, project, target, may, will or may be expressed to be

results of actions that may or are expected to occur in the future. You should not

place undue reliance on these forward-looking statements, which reflect our

belief only as of the date of this presentation. These forward-looking statements

are based on our own information and on information from other sources we

believe to be reliable. Our actual results may be materially less favorable than

those expressed or implied by these forward-looking statements which could

depress the market price of our shares.

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Contents

2015 Interim Results Macro Economy and Industries

Highlights of 1H2015

Business Review

Financial Review

Prospects Challenges and Opportunities

Development Strategies

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MACRO ECONOMY AND INDUSTRIES

4

(%) 0.7%

-12.0%

-12%

-10%

-8%

-6%

-4%

-2%

0%

2%

1H2014 1H2015

CCFI

Macro Economy and Industries

2.02 1.88

1.2%

-6.9% -10%

-5%

0%

5%

10%

-4

-2

0

2

4

1H2014 1H2015

Total Value of Import and Export (trillion USD)

Import and Export Growth Rate of China

(%) (trillion USD)

9,670

10,260

5.7%

6.1%

2%

4%

6%

8%

10%

9,200

9,400

9,600

9,800

10,000

10,200

10,400

1H2014 1H2015 Container Throughput Growth of China (in ten thousand TEUs)

Container Throughput Growth Rate of China

(%) (in ten thousand TEUs)

(%)

7.6% 7.0%

0%

2%

4%

6%

8%

10%

1H2014 1H2015

GDP Gowth Rate of China

5 5

HIGHLIGHTS OF 1H2015

6

Achievements

6

Accelerated the innovation, transformation and restructuring of freight forwarding and related business

Logistics business has driven an all-round development of business through providing a model solutions

Accelerated the depth of development of e-commerce related business

Continued to facilitate the construction of its business network and channels

Deepened the logistics resources consolidation

Promoted synergies among businesses and conducted a regional integrated operation trial

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Financial Highlights

(RMB million) 1H2015

(Unaudited)

1H2014 (Unaudited) (Restated)

Change

Revenue – from continuing operations 22,919.0 21,421.2 7.0%

Operating Profit – from continuing operations 1,135.6 641.0 77.2%

Profit after Income Tax 1,089.0 762.8 42.8%

Profit Attributable to Owners of the Company 875.4 670.8 30.5%

EPS *(RMB yuan)

– from continuing and discontinuing operations 0.19 0.16 20.4%

Major Financial Indicators

*As the Company allotted and issued an aggregate of 357.481 million new H shares in July, 2014, when calculating the EPS, the number of shares for 1H2015 is 4.606 billion while that of 1H2014 was 4.209 billion.

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Operational Highlights

1H2015 (Unaudited)


Change

Freight Forwarding

Sea Freight Forwarding Containers (in ten thousand TEUs) 464.1 454.7 2.1%

Air Freight Forwarding Cargo (in million kilograms) 268.1 232.0 15.6%

Shipping Agency Containers (in ten thousand TEUs)

Bulk Cargo (in million tonnes)

805.4 103.6

773.0 107.9

4.2% -4.0%

Logistics (in million tonnes) 7.0 6.5 7.7%

Storage and Terminal Services

Warehouse Operation Containers (in ten thousand TEUs)

Bulk Cargo (in million tonnes) 374.5

5.1 421.9

7.3 -11.2% -30.1%

Terminal Throughput Containers (in ten thousand TEUs)

Bulk Cargo (in million tonnes) 176.6

0.6 168.0

1.2 5.1%

-50.0%

Other Services

Trucking Containers (in ten thousand TEUs) 52.1 45.1 15.5% Shipping - from continuing operations Containers (in ten thousand TEUs) 108.2 93.9 15.2% Express Services Documents and Packages (in ten thousand units) 84.0 86.5 -2.9%

Volume

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BUSINESS REVIEW

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Freight Forwarding

1H2015 (Unaudited)


Change

Sea Freight Forwarding Containers (in ten thousand TEUs) 464.1 454.7 2.1% Air Freight Forwarding Cargo (in million kilograms) 268.1 232.0 15.6% Shipping Agency Containers (in ten thousand TEUs)

Bulk Cargo (in million tonnes) 805.4 103.6

773.0 107.9

4.2% -4.0%


(Unaudited)


Change

External Revenue 17,527.8 16,533.7 6.0%

Segment Results 381.0 389.1 -2.1%

Volume

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Logistics

1H2015 (Unaudited)


Change

Logistics (in million tonnes) 7.0 6.5 7.7%


(Unaudited)


Change

External Revenue 3,453.6 3,028.9 14.0%

Segment Results 190.1 182.5 4.2%

Volume

12

Storage and Terminal Services

1H2015 (Unaudited)


Change

Warehouse Operation Containers (in ten thousand TEUs) Bulk Cargo (in million tonnes)

374.5 5.1

421.9 7.3

-11.2% -30.1%

Terminal Throughput Containers (in ten thousand TEUs) Bulk Cargo (in million tonnes)

176.6 0.6

168.0 1.2

5.1% -50.0%


(Unaudited)


Change

External Revenue 962.9 1,005.1 -4.2%

Segment Results 203.6 202.2 0.7%

Volume

13

Other Services

* Express Services Joint Ventures – Packages (in ten thousand units) – Investment Income (RMB million)

1,075

456.0

1,010

341.6

6.4%

33.4%

1H2015 (Unaudited)


Change

Trucking Containers (in ten thousand TEUs) 52.1 45.1 15.5% Shipping - from continuing operations Containers (in ten thousand TEUs) 108.2 93.9 15.2% Express Services Documents and Packages (in ten thousand units) 84.0 86.5 -2.9%


(Unaudited)


Change

External Revenue 974.8 853.4 14.2%

Segment Results 31.0 2.1 1,377.8%

Volume

14 14

FINANCIAL REVIEW

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Revenue and Segment Results – from continuing operations


(Unaudited)


Change

Freight Forwarding 17,527.8 16,533.7 6.0%

Logistics 3,453.6 3,028.9 14.0%

Storage and Terminal Services 962.9 1,005.1 -4.2%

Other Services 974.8 853.4 14.2%

Revenue


(Unaudited)


Change

Freight Forwarding 381.0 389.1 -2.1%

Logistics 190.1 182.5 4.2%

Storage and Terminal Services 203.6 202.2 0.7%

Other Services 31.0 2.1 1,377.8%

Segment Results

76.5%

15.1%

4.2%

4.2%

23.6%

25.3%

3.8%

Revenue Contribution

in 1H2015

47.3%

Segment Results

Contribution in 1H2015

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Cost Structure – from continuing operations


(Unaudited)


Change

Transportation and Related Charges 20,042.9 18,576.4 7.9%

Staff Costs 1,532.3 1,441.0 6.3%

Depreciation and Amortization 306.4 291.1 5.3%

Office and Related Expenses 214.1 220.0 -2.7%

Other Gains and Losses, Net 401.4 (78.8) 609.2%

Other Operating Expenses 202.8 210.9 -3.8%

Income Tax Expense 469.9 223.7 110.1%

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Statement of Financial Position

(RMB million) As at

30 Jun 2015 (Unaudited)

As at 31 Dec 2014

(Audited) Change

Cash and Cash Equivalents 5,012.2 5,332.1 -6.0%

Current Assets 18,233.4 16,675.2 9.3%

Total Assets 36,361.5 32,709.3 11.2%

Current Liabilities 13,844.8 13,113.5 5.6%

Total Liabilities 17,461.9 16,404.2 6.4%

Non-controlling Interests 3,688.3 2,882.6 27.9%

Equity Attributable to Owners of the Company

15,211.4 13,422.5 13.3%

Total Assets Less Current Liabilities 22,516.7 19,595.8 14.9%

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Statement of Cash Flows


(Unaudited)


Change

Net Cash Generated from Operating Activities 499.0 557.3 -10.5%

Net Cash (Used in) /Generated from Investing Activities

(1,522.4) 184.7 -924.4%

Capital Expenditure 762.8 489.8 55.7%

Net Cash Generated from Financing Activities 708.1 288.0 145.9%

Exchange (Losses)/Gains on Cash and Cash Equivalents

(4.6) 5.6 -182.0%

Net (Decrease)/Increase in Cash and Cash Equivalents

(319.9) 1,035.6 -130.9%

Cash and Cash Equivalents as at 30 June

5,012.2 6,422.2 -22.0%

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PROSPECTS

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Challenges and Opportunities

Complex and changing global economic environment

Economic growth pressure faced by China

The shipping market remains weak

China’s economic structural adjustment and transformation of development mode will make society value quality and highly effective logistics services. The demand and operational models of logistics will undergo substantial change and generate new growth opportunities.

The implementation of the “One Belt One Road,” national strategy complemented by synergetic development of Beijing, Tianjin and Hebei province and the Yangtze River Economic Belt will create new growth drivers

Quick development of cross-border e-commerce business

Overall logistics market environment in the second half will be stable and favourable

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Development Strategies

Accelerates the innovative development of business segments and expands the “One Belt One Road” projects

Drives the construction of trucking and other land transport platforms

Completes planning for construction of overseas network and channels

Implements strategies to control costs and enhance efficiency to improve operational efficiency of assets, increase profitability and operations quality

Extends consolidation of logistics resources

Further strengthens reforms and enhances business and management innovation to realise business growth

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Securities and Legal Affairs Dept Sinotrans Limited

Tel : +8610 5229 6667 Fax : +8610 5229 6655 Email : [email protected] Website : www.sinotrans.com

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