ANNUAL REPORT 2020.Pdf
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(Incorporated in the Cayman Islands with limited liability) Stock Code: 1308 2020 年報 2020 ANNUAL REPORT Annual R epo rt 2020 (於開曼群島註冊成立的有限公司) 股份代號:1308 年報 Contents 2020 2 Corporate Profile 3 Corporate Information 5 Financial and Operating Highlights 7 Major Milestones in 2020 10 Chairman’s Statement 12 Management Discussion and Analysis 23 Directors and Senior Management 27 Report of the Board of Directors 47 Corporate Governance Report 57 Independent Auditor’s Report 62 Consolidated Statement of Profit or Loss and Other Comprehensive Income 64 Consolidated Statement of Financial Position 66 Consolidated Statement of Changes in Equity 68 Consolidated Statement of Cash Flows 71 Notes to Financial Statements 158 Five Year Financial Summary Corporate Profile SITC International Holdings Company Limited (the “Company” or “SITC” or “we”) is an Asia’s leading shipping logistics company that provides integrated transportation and logistics solutions. As at 31 December 2020, we ranked the 18th among international container shipping companies in terms of shipping capacity. We focus exclusively on servicing the Asia trade market, which is the largest in the world and one of the fastest growing market in terms of shipping volume, according to Drewry Maritime Services (Asia) Pte Ltd, an independent industry consultant. The following map illustrates the Asia container shipping routes (including trade lanes operated through joint services and container slot exchange arrangements) and shipping logistics service network of the Group as of 31 December 2020: Qinhuangdao Tianjin Dalian JAPAN Incheon Yantai Seoul Sendai Ulsan Weifang Weihai Pyeongtaek Tokyo Shidao SOUTH KOREA Qingdao Daesan Busan OsakaNagoya Kawasaki Rizhao Kobe Yokohama Lianyungang Shimizu KwangyangMoji Toyohashi Yokkaichi Zhangjiagang Tokuyama Sakaisenboku Chongqing Nanjing Nantong Hakata Matsuyama Suzhou Taicang Wuhan Kunshan Shanghai S IC Hangzhou JiaxingZhapu OF CHINA Nanchang Ningbo Yiwu Shaoxing Wenzhou Nanning GuangzhouQuanzhou Xiamen Keelung Dongguan Taipei Nansha Taichung Zhongshan Qinzhou Shekou Shenzhen Kaohsiung Chittagong Fangcheng Hanoi HONG KONG TAIWAN Haiphong THE PHILIPPINES Danang THAILAND Chulai Subic Quy Nhon Manila Bangkok CAMBODIA Laem Chabang VIETNAM Batangas Phnom Penh Sihanoukville Shipping logistics Ho Chi Minh Cebu service network Port Cagayan De Oro Davao Penang Kota Kinabalu General Santos Port Kelang Muara Kuantan Pasir Gudang Bintulu Singapore Kuching Balikpapan Semarang Makassar Jakarta Indonesia Surabaya Our business can be segregated into two main business segments: container shipping and logistics segment and dry bulk and others segment. Our container shipping and logistics segment principally covers integrated logistics services such as the provision of container transportation, freight forwarding, shipping agency, depot and warehousing, etc. Our dry bulk and others segment principally covers the provision of dry bulk vessel leasing, land leasing and air-freight forwarding services. 2 SITC International Holdings Company Limited Corporate Information DIRECTORS Sustainable Development Committee YANG Xianxiang (Chairman) Executive Directors LIU Kecheng YANG Shaopeng (Chairman) XUE Mingyuan YANG Xianxiang (Vice-Chairman and Chief Executive Officer) LAI Zhiyong LIU Kecheng XUE Mingyuan Risk Management Committee LAI Zhiyong TSE Siu Ngan (Chairman) YANG Xianxiang Non-Executive Director LIU Ka Ying, Rebecca YANG Xin HU Mantian (Mandy) Independent Non-Executive Directors REGISTERED OFFICE LIU Ka Ying, Rebecca TSE Siu Ngan Cricket Square HU Mantian (Mandy) Hutchins Drive P.O. Box 2681 BOARD COMMITTEES Grand Cayman KY1-1111 Cayman Islands Audit Committee LIU Ka Ying, Rebecca (Chairman) CORPORATE HEADQUARTER TSE Siu Ngan HU Mantian (Mandy) 21/F, World Trade Centre 280 Gloucester Road Remuneration Committee Causeway Bay TSE Siu Ngan (Chairman) Hong Kong YANG Xianxiang LIU Ka Ying, Rebecca AUTHORIZED REPRESENTATIVES Nomination Committee LIU Kecheng YANG Shaopeng (Chairman) XUE Peng TSE Siu Ngan HU Mantian (Mandy) COMPANY SECRETARIES Disclosure Committee XUE Peng (FCS, FCIS(PE)) YANG Xianxiang (Chairman) LIU Kecheng PRINCIPAL SHARE REGISTRAR AND TRANSFER XUE Mingyuan OFICE LAI Zhiyong SMP Partners (Cayman) Limited Royal Bank House – 3rd Floor, 24 Shedden Road, P.O. Box 1586 Grand Cayman KY1-1110 Cayman Islands ANNUAL REPORT 2020 3 Corporate Information HONG KONG SHARE REGISTRAR AND TRANSFER LEGAL ADVISORS OFFICE As to Hong Kong law: Computershare Hong Kong Investor Services Limited Sidley Austin Shops 1712-1716 Level 39, Two International Finance Centre 17th Floor, Hopewell Centre 8 Finance Street 183 Queen’s Road East Central Wan Chai Hong Kong Hong Kong As to Cayman Islands law: PLACE OF LISTING Conyers Dill & Pearman Cricket Square The Stock Exchange of Hong Kong Limited (the “Stock Exchange”) Hutchins Drive P.O. Box 2681 NAME OF STOCK Grand Cayman KY1-1111 Cayman Islands SITC International Holdings Company Limited (“SITC”) WEBSITE STOCK CODE www.sitc.com 01308 PRINCIPAL BANKERS (by alphabetical order) ANZ Bank Bank of China Bank of China (Hong Kong) Limited China Merchants Bank Citibank, N.A Standard Chartered Bank (Hong Kong) Limited Sumitomo Mitsui Banking Corporation The Hongkong and Shanghai Banking Corporation Limited AUDITORS Ernst & Young 4 SITC International Holdings Company Limited Financial and Operating Highlights 2020 2019 Change Results Turnover US$’000 1,685,167 1,553,718 8.5% Profit attributable to shareholders of the Company US$’000 351,624 219,977 59.8% Basic earnings per share US cents 13.22 8.29 59.5% Profit margin % 21.0 14.3 6.7 pt. Net cash flows from operating activities US$’000 501,386 329,673 52.1% Financial Position Equity attributable to shareholders of the Company US$’000 1,184,487 1,010,243 17.2% Net current assets US$’000 305,245 122,230 149.7% Interest bearing bank borrowings US$’000 428,893 282,012 52.1% Financial Ratio Return on equity (note 1) % 31.9 21.5 10.4 pt. Return on assets (note 2) % 18.7 13.4 5.3 pt. Assets turnover ratio (note 3) times 0.89 0.94 (0.05) Gearing ratio (note 4) % 21 18 3 pt. Operating Statistics Number of container vessels operated as at year end vessels 90 82 8 Container shipping volume - Container shipping and supporting logistics TEU 2,614,203 2,483,278 130,925 Note 1 Return on equity is calculated by using the profit for the year and the average balance of total equity as at beginning of year and end of year. Note 2 Return on assets is calculated by using the profit of the year and the average balance of total assets as at beginning of year and end of year. Note 3 Assets turnover ratio is calculated by using the turnover and the average balance of total assets as at beginning of year and end of year. Note 4 Gearing ratio is calculated by using net debt divided by the adjusted capital plus net debt. Net debt includes bank borrowings, lease liabilities, trade and other payables and accruals, less cash and cash equivalents. Adjusted capital includes equity attributable to owners of the parent less the hedging reserve. ANNUAL REPORT 2020 5 Financial and Operating Highlights US$’000 Profit attributable to shareholders of the Company US$’000 Net cash flows from operating activities 400,000 550,000 500,000 350,000 450,000 501,386 351,624 300,000 400,000 250,000 350,000 300,000 200,000 329,673 219,977 250,000 150,000 200,000 100,000 150,000 100,000 50,000 50,000 0 0 2020 2019 2020 2019 Vessels Number of container vessels operated as at year end TEU Container shipping volume 90 2,800,000 80 90 2,400,000 2,614,203 82 2,483,278 70 2,000,000 60 50 1,600,000 40 1,200,000 30 800,000 20 400,000 10 0 0 2020 2019 2020 2019 6 SITC International Holdings Company Limited Major Milestones in 2020 On 19 January 2020, our vessel “SITC SURABAYA” successfully On 10 March 2020, M/V “SITC CAGAYAN” was successfully delivered rescued 10 Burmese crew members of the ship “LIAN FENG18” in to SITC from Yangzijiang Shipbuilding. distress amid difficulties such as strong winds and high waves and severe cold weather in the waters of Zhangzhou, Fujian Province, On 10 March 2020, the Qinghai international intermodal train, which under the command of the Maritime Safety Administration, as well as was carried by SITC, first launched of 2020. The Qinghai International the joint efforts of the Company and all the crew members. Intermodal Train with railway containers smoothly departed from Chongqing Central Railway Station, marking the realization of On 22 January 2020, SITC-DINHVU Logistics Co., Ltd. received the normalized operation of the international intermodal train for China’s official letter 153/QD-TCHQ issued by the General Administration West-Bound Passage by the world’s largest circular economy. of Customs of Vietnam and obtained the “Bonded Warehouse Qualification”. Obtaining the bonded warehouse qualification of On 17 March 2020, M/V “SITC MAKASSAR” was successfully Vietnam Customs indicates that SITC-DINHVU possesses all the delivered to SITC from Yangzijiang Shipbuilding. customs qualifications including CFS Customs Supervised Warehouse, Bonded Warehouse and Centralized Customs Clearance. From 13 to 14 April 2020, SITC Shipping Management (Shanghai) Co., Ltd. successfully passed the DOC annual audit of CCS. On 27 January 2020, in order to support Wuhan’s fight against the new pneumonia and pay tribute to all the doctors and nurses on the front On 3 May 2020, the maiden voyage ceremony of SITC Southeast Asia line of pandemic prevention and control, SITC Line Wuhan, entrusted – Qingdao Cold Chain Express was successfully held at Shandong by SITC, donated RMB1 million to Wuhan Charity Federation. Port Qingdao Qianwan Container Terminal. This new route would replace the former railway transportation from Vietnam to China and On 27 January 2020, Jiangxi 3L Medical Products Group Co., Ltd. take only 5-day-waterway to transport quality fruits to Qingdao. It urgently imported 5,585,000 medical masks for infection prevention has therefore provided a low-cost and highly efficient thoroughfare and control against the novel coronavirus pneumonia in Jiangxi for cold chain logistics.