Singamas announces 2012 results
World- leading container manufacturer and logistics services provider Singamas Container Holdings Limited has today announced its annual results for the year ended 31 December 2012. The Group recorded a consolidated revenue of US$1,536,608,000 for the year under review, a decline of 15.5% over 2011. Consolid ated net profit attributable to owners of the Company was US$60,346,000 (2011: US$138,641,000). Basic earnings per share amounted to US2.49 cents (2011: US5.74 cents). Singamas proposes to pay a final dividend of HK2 cents per ordinary sh are (2011: HK5 cents). Together with the interim dividend of HK4 cent s per ordinary share (2011: HK9 cents), total dividend for the year would be HK6 cents per ordinary share (2011: HK 14 cents). The dividend payout ratio for the year re mains stable at around 31%.
Mr. Chang Yun Chung, Chairman of Singamas , said, “We managed to realise a number of achievements over the past year de spite the weak market. Operations remain highly streamlined and cost-effective. The new manuf acturing plant in Qidong/Nantong n ear Shanghai is progressing smoothly towards full productivity, and will be excellen tly placed for the eventual market upturn.” Mr. Chang continued, “Taking a conservative viewpoint , we expect a strengthening of trading volume in the second half of 2013. However, we ha ve observed signs sugge sting an even earlier pick-up is possible. The Group is cautiously optimis tic that demand will begin to return to normal by the second quarter of 2013, and gradua lly strengthen during the year.”
Manufacturing revenue amounted to US$1,506,200,000 (2011: US$1,782,022,000), accounting for 98% of the Group’s total revenue for the year, same as year 2011. Profit before taxation and non-controlling interests was US$96,687,000, against US$198,980,000 in 2011. The Group produced 600,102 twenty-foot equivalent units (“TEUs”) during the year (2011: 648,014 TEUs), while sales volume was 571,634 TEUs (2011: 672,382 TEUs).
Dry freight containers continued to dominat e the Group’s manufacturing output. The revenue contributions from dry freight containers an d specialised containers were 70.7% and 29.3% respectively. In line with the fall in the cost of raw materials, the average sel ling price (“ASP”) also fell in 2012. The price of a 20-foot dry frei ght container averaged US$2,452, co mpared with US$2,667 for 2011. Although the average prices of raw materials fell in 2012, they are e xpected to steadily increase in 2013. This, in turn, would lead to a gradual pick-up in the ASP. In order to streamline the Group’s operations, the Group disposed of its 100% equity interest in Foshan Shunde Singamas Tank Container Co., Lt d., which is based in Shunde, Guangdong Province and exclusively engaged in the manufacture of tank containers. After the completion of the transaction in February 2013, orders from new a nd existing customers have been transferred to Shanghai Pacific Interna tional Container Co., Ltd., the Group’s another tank manufacturing plant in Shanghai. The proceeds generated from this dispos al have further streng thened the Group’s cash position. The new Qidong facility has continued to move forw ard. Phase 1 of the plant was completed during the year 2012, and trial production of both dry freight containers a nd some specialised containers began in July. Phase 2, which is mainly engaged in the production of refrig erated containers, was completed after the Chinese New Year break in 2013. Since the Group’s exis ting production line for refrigerated containers in Shanghai has already reached full capacity, the new capacity provided by Qidong strengthens the Group’s ability to sati sfy strong demand from the Shanghai area.
Due to the overall industry dow nturn and the resultant lower fi gures for handling and storage, segment revenue slipped to US$30,408,000 (2011: US$35,696,000), profit before taxation and non-controlling interests increased to US $6,192,000 (2011: US$5,756,000), wh ich included a gain on disposal of a depot located in Shanghai amounted to US$2,833,000 . The Group’s logistics operations handled around 2,990,000 TEUs in 2 012 (2011: around 3,475,000 TEUs), while average daily container storage stood at 94,000 TEUs (2011: 99,000 TEUs). During the year, the Group also disp osed of one portion of its logist ics capacity, Foshan Shunde Leliu Wharf & Container Co., Ltd., which is engaged in the provision of container terminal services in Shunde. As the container traffic in Shunde/Pearl Rive r Delta area has been decreasing in recent years, this disposal was a strategic m ove aimed at streamlining the Gr oup’s logistics operations. The transaction was completed in February 2013.