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Main Takeaway from SIPG Annual Financial Report 2020

The release date:2021-04-02 viewed: The shop name:AAA

According to SIPG annual financial report for 2020, the group in 2020 reports to achieve operating income of 26.119 billion yuan, 27.65% less than the last fiscal year, and to achieve net profit attributable to shareholders 8.307 billion yuan, 8.33% less than the same period last year. Total assets reached 155.925 billion yuan, up 9.67% year on year. Basic EPS is 0.3585 yuan, 8.33% less than the same period last year. ROE is 9.80%, a y-o-y decrease of 1.67%, but maintains a high level in the global port industry.

During the report period, the container throughput of SIPG's home port reached a new high of 43.50 million TEU, a y-o-y increase of 0.5%, ranking first in the world in container throughput for 11 consecutive years. In the meanwhile, the company repeatedly refreshed a number of records in monthly container throughput, the volume of which in October totaled 4.20 million TEU, a historic high for a single month. In 2020, the container throughput of Yangshan Port exceeded 20 million TEUs for the first time, reaching 20.22 million TEU, an increase of 2.1% year-on-year, accounting for 46.5% of the total container throughput. Yangshan Phase IV fully-automated container terminal handled over 4 million TEU, reaching 4.20 million TEU. The annual throughput of domestic trade containers exceeded 4.3 million TEU. The company's water-water transshipment business continues to grow. In 2020, water-water transshipment completed 22.45 million TEU, a year-on-year growth of 7.4%, registering a share of 51.6% of the total throughput, which highlighted the role of Yangshan hub port. SIPG total cargo throughput in 2020 reached 510 million tons, down 5.2% year on year, of which the bulk cargo throughput of the company recorded 75.649 million tons, down 34.3% year on year due to the closure of its ore terminal business.

The container sector achieved operating revenue of 13.345 billion yuan, a y-o-y decrease of 1.44%, and the gross profit margin of 47.07%, a y-o-y decrease of 4.31%. Bulk and break-bulk realized operating revenue of 1.271 billion yuan, down 25.35% year on year, and the gross margin was 13.78%, an increase of 2.02% year on year. The port logistics achieved an operating income of 7.314 billion yuan, 63.67% lower than the same period last year, and the gross profit margin 23.87%, 15.96 % higher than the same period last year. The operating revenue of the port service sector reached 2.262 billion yuan, down 3.59% year on year, and the gross profit margin was 43.17%, increasing by 4.32% year on year.

In a year when global trade was hit by the pandemic, the ports industry suffered too, but the company’s investments in the two banks delivered a steady long-term return on investment. In 2020, the company holds 4.13% of the shares of China Postal Savings Bank and 8.3% of the shares of Bank of Shanghai respectively, and the investment income from the two investments is 4.384 billion yuan, accounting for 52.76% of the annual net profit of SIPG.

The report suggests that in the long run, a new global economic and financial landscape takes into shape during the Covid-19 pandemic. Such adverse effects as from the hampered globalization and the sprawl of trade protectionism, SINO-US trade friction are expected to be improved in the new U.S. presidency. 

Looking into the future, the port industry faces both opportunities and challenges against the backdrop of ongoing developments both domestically and abroad, to name a few, acceleration of Yangtze river delta port integration process, new competition and cooperation pattern between global ports and terminals, gradually reinvigorating shipping business, iteration speed-up of the global scientific and technological progress, faster pace in innovation development, transformation and upgrading, and improved requirements for environmental protection.

During the 14th Five-Year Plan period, SIPG will strive to maintain the first place in terms of container throughput and to take lead in comprehensive service level, operation capabilities and technology applications in the world. The company will actively infuse its development into the integrated development of the regional ports, consolidate its leading position, build Shanghai into a world-class shipping hub, and promote the building of Shanghai international shipping center. SIPG will be steadfastly committed to further serving and supporting the domestic and international dual-cycle economic development strategy and to delivering high-quality sustainable growth for its shareholders and employees as well as opportunities for them to create more values.

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