COSCO SHIPPING International (Singapore) Co. Ltd. is committed to providing timely and transparent disclosures to enable the investment community to make reasonable assessments about our Group's performance.

Investor
Relations

Corporate Information

COSCO SHIPPING International (Singapore) Co., Ltd. (“COSCO SHIPPING” or the “Company” and together with its subsidiaries, the “Group”) aims to become the best-integrated logistics service provider in South and Southeast Asia. The Company is also involved in dry bulk shipping, ship repair and marine engineering, as well as property management.

Chairman and President's Statement

(*extracted from Annual Report 2022)


Dear Shareholders,

The world economic growth inevitably witnessed a deceleration in 2022, under the pressures of elevated inflation, the Russia-Ukraine conflict and COVID-19 pandemic. As published in the World Economic Outlook in January 2023 by the International Monetary Fund, the global growth in 2022 is estimated at 3.4% compared with 5.9% in 2021.

As a matter of course, it was ineludible for the economic growth in Singapore to have endured similar impact in 2022. Singapore Ministry of Trade and Industry announced in a press release on 13 February 2023 that the Singapore economy expanded by 3.6 per cent, moderating from the 8.9 per cent growth in 2021.

Against such backdrop, the Group has recorded a revenue of $185.6 million in FY2022, a decrease of 6% compared to FY2021. The Group's financial results for FY2022 were a􀁙 ected by a non-cash impairment of goodwill in connection with the Group's investment in Cogent Holdings Pte. Ltd. (formerly known as Cogent Holdings Limited), which was acquired by the Group for $490 million in 2018. The Group recognised goodwill of $99 million arising from the aforesaid acquisition. In accordance with the Singapore Financial Reporting Standards (International), the management of the Company performed an annual impairment assessment on the goodwill and concluded that an impairment was required for FY2022.

The Group has recorded a net loss attributable to equity holders of $88.6 million in FY2022 as compared to a net profit of $30.1 million in FY2021. The net loss was mainly due to impairment of goodwill, lower profit margins, lower government grants and higher interest expenses, partly of set by an increase of profits of associated companies and increase in interest income. The Group's net asset value per share for FY2022 was 21.84 cents.

Operation Of The Group

Despite onerous conditions, the overall operation of the Group in 2022 has demonstrated stability. In the logistics business, Cogent Holdings strived to increase revenue and control costs in 2022 through various channels in the face of reduced pandemic-related subsidies and increased costs of utilities, fuel and interest. Revenues from logistics activities increased by 5% to $152.6 million mainly due to higher contribution from transportation and warehousing. Cogent Holdings' various businesses in Singapore and Malaysia, including warehousing, trailers, depots, commercial centers and agency services, developed steadily. In the ship repair and survey business, the Company's subsidiary, COSCO SHIPPING Marine Engineering (Singapore) Pte. Ltd., capitalized on the favorable opportunity of the rebound of the Singapore regional market and strived to provide more and better value-added services to shipowners, achieving 48% surge in operating income. In the property management business, Grandstand Commercial Centre, managed by Cogent Holdings, has maintained a high occupancy rate, and Harington Property has successfully renewed its lease agreement for the office space in Suntec City, achieving a significant increase in rental margins.

In 2022, our associate company, COSCO SHIPPING Bulk (Southeast Asia) Pte Ltd, strived to overcome challenges in a bulk market where freight rates were lower than in 2021, and with the backing of both shareholders, managed to capture the high points of the market in signing charter parties and achieve earnings that exceeded the market average. Another partially owned associate company, PT Ocean Global Shipping Logistics, actively launched endto- end business, set up a customs clearance team and built a complete service chain from customs clearance, warehousing, towing to distribution. These two associate companies also made positive contributions to the Company's eficiency in FY2022.

Major Projects Completed

Equity Acquisition in Malaysia

Pursuant to the completion of the first equity acquisition in 2020, Cogent Holdings concluded the second equity acquisition of four logistics companies in Malaysia in September 2022, resulting in Gems Logistics Sdn. Bhd., Dolphin Shipping Agency Sdn. Bhd., and East West Freight Services Sdn. Bhd. becoming wholly-owned subsidiaries of SH Cogent Logistics Pte Ltd while its shareholdings in Guper Integrated Logistics Sdn. Bhd., increased to 97.56%. This equity acquisition is conducive to Cogent Holdings to continue promote the restructuring and integration of its logistics business in Malaysia and to lay a better foundation for its future business development in Malaysia.

Construction of Jurong Island Chemical Logistics Facility

With regards to the Jurong Island Chemical Logistics Facility ("JICLF"), SH Cogent has fulfilled the required compliances set out in the letter of intent issued by the Singapore Economic Development Board ("EDB") for the first phase of the development of JICLF. The Group has thus submitted an application to EDB and JTC Corporation for the Direct Allocation of Industrial Land of an additional 2.5 hectares of approximately 62,500 square meters of corresponding built-in area to develop the second phase of the JICLF.

Innovative Business Model and Integration of Business Structure

In 2022, Cogent Holdings strived to promote customized end-to-end supply chain solutions. With the combined efforts of all business units and the support of sister companies, a total of 11 new end-to-end full-service customers were added in Singapore and Malaysia. The management of Cogent Holdings has integrated and optimized the internal structure of the company and consolidated the customer service work of independently operated land transportation, warehousing, and container depot segments to further optimize the management and enhance the scale effect.

Completion of New Plant Construction Project

After continuous efforts, the new plant and office building construction project of COSCO SHIPPING Marine Engineering (Singapore) Pte. Ltd. was completed at the end of 2022 and has obtained the temporary occupation permit from relevant authorities to commence production.

Future Economic Outlook

According to the World Economic Outlook report released by the International Monetary Fund in January 2023, global economic growth is expected to decline to 2.9% in 2023 from 3.4% in 2022.

The main reasons for the slowdown in global economic growth are that in􀁘 ation remains high, the resurgence of the Covid-19 pandemic remains a risk and geopolitical instability. Economic trends in the world's major economies are expected to continue to diverge in 2023.

According to the Asian Development Bank's Asian Development Outlook Supplement report released in December 2022, economic growth in Southeast Asia is expected to be around 4.7% in 2023 due to a lack of global demand. Intra-regional trade volumes in Southeast Asia have continued to grow since the Regional Comprehensive Economic Partnership Agreement came into effect in January 2022. It is expected that industries from China and other regions will continue to move to Southeast Asia in 2023, and Southeast Asian countries will continue to benefit from this trend.

Future Business Outlook

Development Goals and Directions

The Company's vision for growth is to become the best integrated logistics services company in the South and Southeast Asia region. Through its Cogent business platform, the Company is evaluating potential acquisition and investment opportunities. In addition to the existing logistics network in Singapore and Malaysia, the Company is studying the construction or acquisition of additional logistics infrastructure such as warehouses, trailer fleets and depots in Malaysia, Thailand and other parts of Southeast Asia to lay a better foundation for the Company's future growth.

Digital Supply Chain Project

In recent years, with the development of the digital economy and the emergence of new modes of e-commerce, the traditional supply chain is gradually transforming into digital supply chain. COSCO SHIPPING Holdings Co., Ltd. is well versed and has vast expertise in the construction of digital supply chain. In March 2023, the Company and Supply Fortune Limited, a subsidiary of COSCO SHIPPING Holdings Co., Ltd., signed a joint venture agreement, in which both parties are to set up a joint venture company in Singapore to, inter alia, invest in the construction of supply chain infrastructure in the Southeast Asia region. Upon the establishment of the joint venture, the logistics business unit of the Company will have the advantage of being backed by the resources of COSCO SHIPPING Holdings Co., Ltd to further develop the supply chain market in Southeast Asia and increase the proportion of end-to-end business in the region. The establishment of the joint venture company aims to provide customers with more diversified supply chain products and solutions, and enhance COSCO SHIPPING International Singapore's salient role in logistics infrastructure resources and operation management in the Southeast Asia region, opening up a broader ambit for the Company's future business development.

Other Business Units

In the new year, COSCO SHIPPING Marine Engineering (Singapore) Pte. Ltd. aspires to seek opportunities in the completion of new plants and office buildings and strive to develop new businesses. The real estate business will seek to seize on favorable conditions from any market rebound and pursue improved revenue.

As for our associate companies, COSCO SHIPPING Bulk (Southeast Asia) Pte Ltd, with the support of COSCO SHIPPING Bulk Co. Ltd, will continue its efforts to sign charter parties at favourable market rates. PT Ocean Global Shipping Logistics will strive to continue providing quality services in depot renovation and end-to-end business.

Dear shareholders, in 2023, COSCO SHIPPING International Singapore endeavours to work hard to drive the sustainable development of the businesses. In terms of digital transformation, the digitalization of Cogent Holdings has taken shape and the initial construction of an integrated information platform has made progress. The Company will continue to push forward with its digital transformation efforts and strive to achieve greater progress. At the same time, the Company also wants to achieve green and low-carbon sustainable development through continuous energy saving and emission reduction and will continue to make efforts in this regard.

In conclusion, I would like to thank all employees for their immense contributions to the Company in the past year. I would also like to thank the Shareholders and all parties concerned for their long-term support to the Company. We will continue to work hard to achieve better operating results in the new year, create greater value for our Shareholders and realize the long-term sustainable development of the Company.

Zhu Jian Dong
Chairman and President

Please read our General Disclaimer & Warning carefully. Use of this Website constitutes acceptance of the Terms of Website Use. Copyright © 2024. ListedCompany.com. All Rights Reserved.

Cosco Group :
Our subsidiary :
Copyright © 2018 COSCO SHIPPING International (Singapore) Co., Ltd . All Rights Reserved.
Designed by InfiniteSparks.