CIMC achieves revenue of 61.66 billion yuan in the first 9 months[ return ]

On October 28, CIMC released the Q3 2019 earnings report. Negatively impacted by significant uncertainties such as trade frictions and economic and trade slump across the world, the growth of world’s container trade and China’s export slowed down. In this context, CIMC maintained steady growth in the first 9 months. The revenue of the whole Group was 61.66 billion yuan, and the net profit attributable to shareholders of the parent company was 636 million yuan.

The report reveals that most major business segments continued the growth momentum. Among them, the Offshore Segment and Industry & City Business achieved significant increase; the energy, chemical and liquid food equipment business, the airport facilities, firefighting trucks and automatic logistics equipment business, and the logistics service maintained steady growth.

In the first 9 months, the container shipping demand declined as the 2018 trade frictions led to the overdraft of exports scheduled to take place this year, and the declining demands and continued trade frictions generated widespread pessimism on global market and suppressed customers’ urges for purchasing new containers. In the mist of business gloom, the Container Segment’s business revenue dropped year-on-year to 15.707 billion yuan, and its output and sales volume continued to rank first in the world.  

In the first 9 months, the road transportation vehicles business (mainly operated by CIMC Vehicles) maintained steady business growth. On domestic market, positively impacted by further and stricter control of oversize and overload transportation and the intensified efforts of infrastructure construction, CIMC Vehicles tremendously increased the business of upper structure kits for special-purpose vehicles; on North American market, positively impacted by the growth of sales volume of dry van semitrailers and refrigerated semitrailers and the rise of exchange rate between Chinese Yuan and the U.S. dollar, CIMC Vehicles improved the overall business revenue and gross profit margin; on European market, positively impacted by the development of new products and new markets, CIMC Vehicles raised the overall business revenue.

In the first 9 months, the energy, chemical and liquid food equipment business (mainly operated by CIMC Enric) achieved business revenue of 10.667 billion yuan, up 8.27% year-on-year. Thanks to the adjustment of national energy structure, the support of environmental protection policies and the cost-effectiveness of natural gas in the long run, the clean energy business saw greater market demands, and the chemical and environmental protection business and the liquid food equipment business moved forward in a healthy and sustainable manner.

In the first 9 months, the new demands emerged and improved on global offshore engineering equipment market though the global economic growth slowed down, the actual demands from crude oil increased at a lower rate than expected, the crude oil provision situation was complicated and volatile, and the companies across the world sought to reduce the number of unsold equipment. In this context, the offshore engineering business (mainly operated by CIMC Raffles) continued to improve its business by replacing the old growth drivers with new ones, taking advantage of market recovery opportunities and making brave attempt to secure different types of orders. It achieved business revenue of 2.624 billion yuan, up 82.6% year-on-year. In particular, the worth of newly increased shipbuilding orders was US$ 334 million, and the value of newly increased leasing contracts was US$ 415 million, and a large number of significant projects were under smooth implementation.

In the first 9 months, the airport facilities, firefighting trucks and automatic logistics equipment business (mainly operated by CIMC-TianDa) delivered exceptional performance and achieved business revenue of 3.965 billion yuan, up 40.4% year-on-year. In particular, CIMC-TianDa secured an 180 million yuan order from Shenzhen Airport, and the world’s first unmanned intelligent jet boarding bridges developed and manufactured by the company were put into formal operation at Netherlands’ Schiphol Airport; CIMC-TianDa completed the acquisition of Shanghai Jindun and Shenyang Jietong, basically extending its firefighting truck business nationwide; CIMC-TianDa is currently working to meet the market demands for modular firefighting stations; CIMC-TianDa won the bid for the construction of mechanical and intelligent parking garages at Shenzhen Futian Xiasha Bus Terminals.

In the first 9 months, the heavy-duty trucks business developed and implemented a series of effective measures to promote the sales performance. However, negatively impacted by the dealers’ failure to fulfill the sales targets in 2018 and intensified efforts to reduce truck stock in 2019, the sales of new trucks did not get sufficient human and financial resources support, and the heavy-duty trucks business revenue dropped year-on-year to 1.549 billion yuan.   

In the first 9 months, CIMC Logistics took a number of pragmatic measures against challenges brought by the drop in global imports and exports, focused on the growth of core businesses, further improved business quality, actively expanded network layout, and continuously improved efficiency and profit-making ability. Its business revenue amounted to 6.523 billion yuan, up 3.49% year-on-year. 

In the first 9 months, CIMC Industry & City achieved revenue of 674 million yuan, up 198.23% year-on-year. The increase mainly came from its efforts to improve the presence at Guangdong-Hong Kong-Macau Greater Bay Area with Shenzhen as the core and the presence at Yangtze River Delta with Shanghai-Yangzhou as the core.

In the first 9 months, the Finance Segment actively supported the Group’s industrial structure optimization and competence improvement, and achieved the business revenue of 1.44 billion yuan. In particular, the financial company and the financing leasing company under the segment further improved the Group’s fund utilization efficiency and comprehensive industrial competitiveness and ensured the Group’s safe and healthy business operations by developing and innovating financial solutions to serve and coordinate with industries.