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CIMC revenue surges in first half

By Zhong Nan and Ren Xiaojin | China Daily Europe | Updated: 2017-09-01 09:18
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China International Marine Containers (Group) Ltd, the country's largest transportation equipment producer by revenue, enjoyed net profit of 800 million yuan ($121.3 million; 101.5 million euros; 94 million) in the first half of this year, thanks to the rebound of the global container markets.

The group's revenue surged by 41.8 percent year-on-year in the first half, totaling 33.4 billion yuan, according to its fiscal report on the January-June period, released on Aug 28.

The report said two businesses of CIMC - containers and heavy trucks - have become the pillar of the group's six-month performance. They secured 105 percent and 38 percent growth, respectively, year-on-year.

Even though containers accounted for less than a third of CIMC's business, they remained the largest source of the group's revenue and profits while the global shipping business is making a gradual comeback.

CIMC remains the world's biggest container manufacturer and seller, with 10.1 billion yuan in sales in the past six months, including 535,700 dry 20-foot equivalent unit containers and 35,100 cold chain TEU containers, more than doubling the number from the same period in 2016. The net profit has reached 680 million yuan.

"Demand for container shipping continues to improve on a global scale. Both the United States and the European Union have seen strong demand for north-south trade in the Atlantic basin and improving conditions in intra-Asian trading lanes," says Dong Liwan, a shipbuilding professor at Shanghai Maritime University.

Dong says shipping companies from Denmark, Germany and France have already started to purchase containers with more environmentally friendly water paint to meet international regulations, as well as temperature-controlled and liquid cargo containers, as many markets have been undergoing consumption upgrades since the second half of 2016.

CIMC predicted that international trade would stay strong in the second half of 2017 and global demand for containers would keep heating up. Accordingly, the group will further expand its production capacity by setting up a new container plant in Dongguan, Guangdong province. It is expected to be operational in the first half of 2018.

Both home and overseas markets have noted a strong uptick in CIMC's revenue, with a 75 percent increase in China and 56 percent abroad year-on-year.

The group's logistics business has also seen stable growth, with its first-half revenue and profit totaling 3.75 billion yuan and 57.3 million yuan, respectively.

Supported by 25 manufacturing facilities throughout the world, CIMC sold and shipped a total of 81,500 trucks, including dump and sanitation trucks, container and tank vehicles to domestic and international markets in the first half, up by 39.9 percent from the same period a year earlier.

"It is worth mentioning that the group's vehicle sector has seen promising prospects from the global market, including North America, Europe, Asia and Australia," says Mai Boliang, president of CIMC.

Contact the writers at [email protected]

(China Daily European Weekly 09/01/2017 page27)

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