On the evening of March 28, COSCO SHIPPING Development (601866.SH/02866.HK) disclosed its annual report for 2023. According to the report, the Company achieved total operating revenue of RMB15.685 billion, net profit attributable to shareholders of the listed company of RMB1.409 billion and basic earnings per share of RMB0.1041 in 2023.

Deepening the integration of industry and finance to build the cornerstone of value creation

In 2023, affected by multiple factors such as sluggish global trade, geopolitical tensions and the continually tightened monetary policies in major economies, there was a weak growth momentum of the world economy, and the shipping market showed a cyclical fluctuation. At the same time, the low-carbon and digital transformation of the shipping industry injected new opportunities into the market fraught with uncertainties. Facing the challenging and complicated international conditions and market challenges, COSCO SHIPPING Development focused on its main responsibilities and principal businesses, leveraged the synergy between industry and finance, accelerated the leadership of technological innovation, and took a solid step towards high-quality development goals.

According to the report, in 2023, the Company's container manufacturing business achieved operating revenue of RMB10.567 billion. Driven by technological innovation and oriented towards customer demands, the Company proactively expanded innovative application scenarios of containers and promoted the construction and transformation of digital factories. The container leasing business achieved operating revenue of RMB4.959 billion. The Company gave full play to the synergy between leasing and manufacturing, diversified business structures and models, and effectively expanded reefer container and special container leasing business to explore more mutually beneficial cooperation opportunities. Shipping leasing business achieved operating revenue of RMB2.473 billion. The Company strengthened industrial chain synergy, continuously improved its "one-stop" service capability, and steadily promoted the 700 TEU electric container vessel demonstration project, ready to start a new green and low-carbon voyage. The investment management business focused on the principal business of shipping logistics, promoted the development of new shipping technologies, new industries and green shipping through the integration of industry and finance, and facilitated the upgrading of industrial structures.

Focusing on technological innovation to drive the transformation of development momentum

The Company strengthened empowerment and collaboration in the field of technology, driving industry innovation with technological innovation and expanding diverse markets based on customer demands. By developing new technologies, creating new products and offering new services, the Company expanded the application scenarios of containers. It has developed and manufactured a variety of innovative containers such as automobile frame folding containers, new energy storage containers and agricultural planting containers, thereby enhancing its capacity of "container +" customized products. In 2023, revenue from the Company's special containers manufacturing business increased by over 500% year-on-year, and received orders for nearly 1,000 energy storage containers from leading new energy customers. The Company continued to increase vestment in research and development, with the total investment in research and development exceeding RMB215 million for the year, obtaining 122 authorized patents.

Deepening digital transformation to unlock industry transformation potential

The Company focused on the major track of digital intelligence to promote business transformation and upgrade through digitalization and intelligence. In respect of the container manufacturing business, the Company drove efficient, low-carbon, and refined development through intelligent manufacturing. The Company's subsidiary Shanghai Universal Logistics comprehensively advanced the construction of digital factories. The "process digital design" scenario of DFIC Qidong was awarded the Excellent Intelligent Manufacturing Scenario in 2023 by the Ministry of Industry and Information Technology. DFIC Jinzhou was awarded the Intelligent Plant of Liaoning Province in 2023. Shanghai Universal Logistics Technology was accredited as a high-tech enterprise, fully enhancing the intelligence level and production management efficiency of the entire container manufacturing process. In respect of the container leasing business, the integrated digital supply chain service ecosystem for container manufacturing, leasing and usage was further improved. The iFlorens digital operation platform built by the Company's subsidiary Florens International won the second prize in the first "Professional Competition on Innovation in Digital Scenarios of SOEs" hosted by the SASAC for its digital disposal scenario of decommissioned containers, empowering industry transformation through digitization and unlocking the potential for quality improvement and efficiency enhancement.

Anchored in green and low-carbon transformation to set sail for a green voyage

The Company further clarified the strategic plan for four areas: green production, green business, green assets and green finance, and promoted green and low-carbon transformation and development in all aspects. The two 700TEU pure battery-powered container vessels project won the title of "Top Ten National Key Projects of Central SOEs". The Company took the lead in establishing the China Electric Vessel Innovation Alliance to carry out scientific research such as iterative upgrading of marine containerized batteries and construction of charging and exchanging stations, and actively participated in the development and promotion of relevant industry standards and policies. Shanghai Universal Logistics, a subsidiary of the Company, intensively developed green container manufacturing and continuously improved its production technology. DFIC Qingdao and DFIC Lianyungang were awarded the title of "National Green Factory" in 2023 by the Ministry of Industry and Information Technology following DFIC Ningbo and DFIC Jinzhou. In addition, the Company effectively integrated and used green financial tools, successfully securing China's first business transformation finance loan in the water transportation industry to tap the value of green and low-carbon transformation.

Strengthening corporate governance to achieve market value realization

With value creation as the orientation, the Company strengthened corporate governance and standardized operation, striving to continuously improve the quality of the listed company. The Company was awarded A-class rating for information disclosure by Shanghai Stock Exchange for the ninth consecutive year, and won the 25th Golden Bull Award for Listed Companies-Golden Information Disclosure Award in the "2023 Forum on High-quality Development of China's Listed Companies" hosted by Xinhua News Agency and China Securities Journal. The Company is committed to creating value for investors, and has implemented stable dividend plans for five consecutive years. It was selected as a constituent of the first batch of "CSI Guoxin Central SOEs Shareholder Return Index" and "CSI Guoxin Hong Kong Stock Connect Central SOEs Dividend Index" for its stable dividend payout level. The Board proposed to pay a dividend of RMB0.32 per 10 shares for the year 2023 to share the fruits of development with investors.

Practicing ESG governance to fulfill social responsibilities

The Company has steadily improved its ESG governance and information disclosure level. Thanks to its continuous efforts in the ESG field, the Company was successfully listed in the first issue of Sustainability Yearbook 2023 (China Edition) published by S&P Global and honored as the "Industry's Most Improved Company"; received the "Golden Bee 2023 Outstanding CSR Report – Evergreen Award"; was selected as one of the "Wind Top 100 Best ESG Practices of China Listed Company in 2023"; and won the "Outstanding Contribution Award for Green and Low Carbon of Listed Companies" in the 17th Listed Companies Value Evaluation in China.

In 2024, the global economic and trade landscape is complex and volatile, giving rise to uncertainties in the shipping market. Nevertheless, the shipping industry is increasingly hard pressed to transition towards green, low-carbon, and digital operations. COSCO SHIPPING Development will focus on integrating industry and finance, navigate the new market landscape, harness momentum from digital and intelligent innovation, and chart a new course amidst green transformation, thereby securing future success through value accumulation.