Thursday, 31 March 2016, 12:43 HKT/SGT

Profit increase reach to 5% and Annual Dividend maintain growth

HONG KONG, Mar 31, 2016 - (ACN Newswire) - Chu Kong Shipping Enterprises (Group) Company Limited ("CKS" or the "Company") (HK stock code: 560), one of China's largest passenger and cargo shipping service providers in the Pearl River Delta Region covering Guangdong Province, Hong Kong and Macau, is pleased to announce the annual results of the Company and its subsidiaries (the "Group") for the twelve months ended 31 December 2015 (the "Reporting Period").

For the year ended 31st December 2015, the Group recorded a consolidated revenue of HK$1,922,280,000, up by 5.1% as compared with the corresponding period last year. Profit attributable to equity holders of the Company was HK$232,362,000, up by 5.0% as compared with the corresponding period last year.

In 2015, the economic growth momentum of China slow down as it faced more complicated domestic and foreign environments. In experiencing the pressure from grim macroeconomic situation, continuous downturn in shipping market and changes in Hong Kong social environment, the Group actively responded with aggressive positive spirit to achieve its operation and production targets satisfactorily with various key business indicators showing signs of growth.

Terminal and Logistic Business
Regarding the freight business, the Group continued to promote professionalized operation, capitalized on its core competitiveness advantage and successfully achieved steady growth of its major businesses. During the year, the container transportation volume recorded 1,378,000 TEU, representing a year-on-year increase of 5.6%, the break bulk cargo transportation volume achieved 354,000 tons, representing an increase of 3.7% year-on-year. For cargo handling and storage businesses, terminal logistics resources were optimized continuously that volume growths were recorded in all major terminals, and the container handling volume recorded 1,366,000 TEU, representing a year-on-year increase of 4.7%. Affected by the trend of containerization and diversion of cargo, break bulk cargo handling volume recorded 1,376,000 tons, experienced a year-on-year decrease of 14.7%. The volume of container hauling and trucking increased by 3.5% year-on-year.

The group promoted its professional operation and re-structured the cargo sources to achieve differentiation competition. Through optimizing the cargo sources structure, both its volume and price were up in many terminals. Chu Kong Transshipment & Logistics Company Limited ("CKTL") recorded a significant increase in gross profit through upgrading its warehouses, introducing high value cargoes such as duty free liquor & tobacco and aircraft engineering parts. In addition, the Group actively explored the overseas markets. In March 2015, the newly established freight forwarder company in Malaysia commenced its operation and created a new layout of regional cooperation and business linkage with the freight forwarder company in Singapore. In reporting period, the Group coordinated the resources of CKTL and Nansha Logistics Park, attracted cross-border e-commerce business by its two logistics paths "Hong Kong-Nansha Water-way Express" and "Green Fast Land-way Express"; made Qingyuan Port as the only diverging points of renewable resources cargoes in Nansha and set up the "Qingyuan to Nansha" express service. Besides, the Group actively set up cross-border e-commerce business in Nansha, seized opportunities, explored business opportunities, actively solidified the Nansha strategy, cooperated to propel the construction of Nansha Logistics Park project, as well kicked off the "Internet +" e-commerce platform strategy at the same time, and carried out in-depth combination through the interaction of online and offline. At the same time, the Group developed an innovative mechanism to promote diversified-ownership reform. It facilitated the pilot enterprises for diversified-ownership reform in Gaoming Port. Civet Port in Zhuhai introduced strategic partners through capital injection, upgraded its warehouses, enlarged container yard to enhance its competitiveness.

Passenger Transportation Business
Water-way high-speed passenger transportation has reached a new peak in its total profit contributions. During the year, the total number of passengers for agency services of Chu Kong Passenger Transport Company Limited ("CKPT") was 6,607,000, representing a slightly decrease of 2.7% year-on-year. The number of passengers for terminal services recorded 7,514,000, representing a year-on-year decrease of 4.0%. By benefited from the increase in investment income due to lower oil prices, the overall profit contribution by passenger transportation business continued to grow, amount to HK$132,542,000 during the year, representing a year-on-year increase of 9.6%.

The group adjusted its route resources and increased overall efficiency. Lianhuashan Port had successfully restored the airport route and added extra flights. At the same time, it continued to implement "land-and-water union transportation" strategy and stabilised the customer base in Jiangmen, Doumen, Gaoming, Heshan and other regions. The Group cultivated local markets in an in-depth manner, including application of the operation of the Victoria Harbour Tour, enhancing the cooperation with Connect Media in advertising business and conducting tourist shuttle services with Ngong Ping 360. A number of tickets promotion activities were conducted in Hong Kong-Macau routes via Facebook, WeChat and mobile apps. At the same time, through means such as cooperation with airlines, travel agencies and Macau Government Tourist Office and participation in overseas tourism exhibitions, it developed its overseas customer base, increased sales channels and consolidated cooperative relationships. The Group's e-commerce platform "HEMA-WANG" project was progressing smoothly. With on-line tour as a breakthrough, through mass funding lottery drawing, customers are being attracted. The Group will take advantage of the e-commerce platform "HEMA-WANG" to improve the service standard and as well keep maintaining sound operation of Fortune Ferry business. At this stage, as the main management body of "Victoria Harbor Tour", passenger transportation segment of Chu Kong Shipping is developing high-end travel market of Hong Kong harbor under the assistance of the parent company, by arranging enjoying the scenery on both sides of the harbor, engaging in birthday wedding market, business, convention banquets, advertising and other segments market. It is more likely to become a very unique and competitive member of Hong Kong convention and exhibition catering industry, so as to continuously improve the level of "Victoria Harbor Tour" apart from being a developer of pure sightseeing activities.

In the future, passenger transportation segment will focus on structural adjustment and foster new projects as the starting point. Currently, the listed Company is facilitating the ship owners to renew the transport capacity of new material-made high-speed ferry in a faster pace. Moreover, the future development of passenger transportation sector will emphasize "going out" strategy by strengthening management output and expanding the business scope to the United States, Southeast Asia and other places, so as to promote enterprise development led by new projects.

In May 2015, the Company succeeded in completing the placing of 180,000,000 shares, and raised a total of approximately HK$460,000,000. This successful capital raising had enlarged the size of the Company, enriched its capital for development, improved the awareness of the Company and benefited the improvement of the long-term competitiveness of the Company. The Group will consistently and actively facilitate its project development and consolidate the core competitiveness of its passenger and freight business, so as to generate long-term returns for its shareholders.

Mr. Xiong Gebing, Chairman and Managing Director of CKS, said, "the Group will take transformation and upgrading as well as reform and innovation as its base, using projects as leverage, market as the guide and customers as the focus, attaching great importance to benefits and efficiency, reinforcing synergy, integrate resources, developing innovative products, deepening reform, perfecting procedures and improving services, to continue improving its corporate core competitiveness and promote the Group's sustained development in order to leap forward to a new era."

Topic: Press release summary Sectors: Daily Finance, Daily News
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