CSCL announced its interim results for the six months ended 30 June 2009. The Chairman of CSCL, Mr. Li Shaode, the managing director, Mr. Huang Xiaowen and other management attended the press releasing and the results presentation held in the Shangri-La Hotel in Hong Kong.

Adversely affected by the financial crisis, the consumption of the world’s major economies plummeted rapidly, the world trade shrank and in addition, the newly added shipping capacity adversely affected various trade lanes. As a result, the international container transportation market was adversely affected.

For the first half of 2009, the Group recorded a revenue of RMB8,929,434,000,representing a decrease of 51.5% over that of the same period last year. Shipping volume of the Group reached 3,183,635TEU, representing a decrease of 11.4% over that of the same period in 2008. Net loss attributable to equity holders of the Company for the Period amounted to RMB3,417,974,000. Basic loss per share amounted to RMB0.29.

During the Period, the Group adopted various stringent cost control measures to lower the costs. The total costs of services for the first half of the year were RMB12,074,234,000, representing a decrease of approximately 29.8% as compared with the same period last year. Container costs decreased by 35.2% as compared with the same period last year. This was mainly due to the Group’s increasing efforts in container management, such as using the Group’s ability to allocate its resources in a flexible manner, repositioning containers back to the Far East from Europe and the U.S where storage cost was higher, and further enforcing termination of container leases. Port charges and stevedore charges decreased by 32.3% as compared with the same period last year. This was achieved through various measures adopted by the Group, such as cutting back transhipment lanes, reducing port calling, transhipment loading and unloading, as well as negotiating actively with port operators to reduce the relevant expenses.

The second half of the year is generally the traditional peak season of the shipping industry. For the period from July to August, the cargo volume and freight rates of each trade lane enjoyed a different degree of rebound. Nevertheless, the trend of the global economy and the shipping market are still uncertain. Given the current market situation and recent performance of surrounding economies as well as the successive launch of various policies which aim at developing Shanghai as a financial and shipping center, the Group believes that along with the economic recovery, the liner industry will gradually get out from the trough.

In view of the economic crisis, the Group will respond imperturbably and will also adopt the following measures to tackle the future changes in the market:
(1) The Group will increase its utilisation rate of shipping capacity, enhance its cooperation strategy, improve shipping capacity of domestic trade lanes, optimise international trade lanes and allocation of shipping capacity.
(2) The Group will strengthen its sales and marketing and innovate new marketing model.
(3) The Group will grasp the market trend and adjust freight rates to follow the market in a timely manner.
(4) The Group will explore cost control potential.
(5) Reinforce internal control management and increase the integrated ability to prevent and control risk.
(6) Optimise fleet structure. The Group will actively adjust its fleet structure and tackle the crisis through various methods.

Source: CSCL


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