2005 Annual Performance Publicity by China Shipping Container Lines

On April 19, 2006, China Shipping Container Lines (CSCL) held 2005 Annual Performance Publicity as of Dec. 31, 2005. It is a fact the Company keeps a good performance and wide attraction to various walks of life. President Li Kelin, Mr. Huang Xiaowen, Director cum General-Manager and other principals related attended the press conference and investment promotion meeting held in JW Marriott Hotel, Hong Kong. There are nearly 100 Fund managers of about 40 Funds corporations and investment analysts from Europe, Asia and U.S.A attended the investment promotion meeting, there were nearly 60 representatives of home and abroad media agencies present in the press conference and thus generate a heated response!
In reviewing of the last year s performance, China Shipping Container Lines (CSCL) harvested an income up to RMB 28.37 billion Yuan, a 26.9% increase compared to the same time in the previous year. Whereas, there reduced a profit rate (before income tax) up to 8.2% compared to the same time in the previous year due to increase of operation cost as oil price rise etc., consequently, the profit hit approximately RMB 4.31 billion Yuan. And thus the payable profit to the stockholder amounted to RMB 3.58 billion Yuan with a reduction by 10.7%, objectively a relative good level.
To tightly hold the business opportunity brought by 2005 shipping market and take a pressing hitchhike with China s strong economy development, China Shipping Container Lines set successive records in business operation in the background of rising operation costs. Thus the Company tried to enlarge her shipping capacity substantially up to 350,000 TEU via optimization of fleet structure and improvement of core competition, consequently 76.7% of her fleet member are over 4000 TEU and a young ship age of 1.95 year-old. Meanwhile, the Company adopts a flexible source allocation policy and strict cost control measures to successfully keep operation benefits and economic benefits. Against an ever-increasing oil price, China Shipping Container Lines launched a series of control measures over fuel input, namely, fixing some oil price, precise control of vessel oil stock and selection of cheap refuel port or stations and economical sailing speed on the pretext of service guarantee.
The present nearly 100 investors and 60 journalists expressed their concern over the Company s operation and inquired a lot in the promotion meeting on the Company s future development strategy, capital payout etc. they also expressed their support and confidence over the Company s recent excellent performance and development plan.
China Shipping Container Lines shall apply strict cost control over fuel cost, equipment control and transshipping operation in the future. The Company will explore profitable intra-country shipping industry and strengthen line cooperation and slot exchange to enlarge her service networks and reduce operation cost; to study state policy related and optimize line layout and thus seek for a more effective application of the Company s source.
There are more to be concerned- the management of China Shipping Container Lines deems that it is time to explore container-related business operation with the enlargement of the scale of the Company business, China Shipping Container Lines will introduce car-carrier shipping business in light with factual operation needs and the development of the shipping industry, at present, China Shipping Group-father company of China Shipping Container Lines has owned 6 car-carrier vessels with a total 30,000CEU shipping capacity, there estimated totally 15-20 car-carrier vessels in 2010 with a total 65,000-80,000CEU capacity. The Company will also stake more on port and logistics industry and their study in combination with the future development to enlarge our service portfolio and seek for marginal benefit.