Chu Kong Shipping Development profit up 7.5% to HK$73mn

The company teams up with large shipping companies to optimize port business model.

Chu Kong Shipping Development Co, Ltd (“CKSD”), a leading comprehensive logistics services provider in the Guangdong-Hong Kong-Macau Region, on Wednesday announced its unaudited interim results for the six months ended 30 June 2011.

In the first half-year of 2011, the Company’s consolidated revenue reached approximately HK$628.83 million, 20.73% higher than the same period of 2010. Profit attributable to shareholders of the Company amounted to HK$73.28 million, a 7.5% increase over the same period last year.

The operational environment of the logistics industry in Guangdong and Hong Kong improved during the reporting period. Consequently, CKSD’s container transport volume grew by 18.5% over the same period last year to 501 thousand TEUs, and container handling volume increased by 45.1% to 433 thousand TEUs. Transport volume of break bulk cargo increased significantly by 44.7% to 763 thousand revenue tons. Through stronger cooperation, the cargo source of

Connected Carrier Agreement (“CCA”) from major shipping companies increased significantly, which became the key factor driving the overall container transportation volume. During the period, further collaboration with Maersk achieved the projected results, and the development of the empty container shipment business at Machong achieved progress. Driven by the economic recovery in the Pearl River Delta, profits attributable to most of the jointly controlled entities of the Group recorded some increases. These entities include Foshan New Port Ltd., Sanshui Sangang Containers Wharf Co., Ltd and Chu Kong Cargo Terminals (Beicun) Co., Ltd, according to a Chu Kong Shipping report.

Mr Liu Weiqing, Chairman of CKSD, said, “In the first half of 2011, in view of the Euro and US debt crisis and the slowdown in China’s economic growth, our company’s cargo and passenger transportation businesses still recorded significant growth. In the second half of 2011, the Company will continue to promote the professional operation, actively strength the cooperation with large shipping companies, optimise the port business model, and further implement the port development strategies for both domestic and foreign trade. Meanwhile, the Group will strive to maintain its operating margins by use of fuel surcharges and adjust fares in a timely fashion. We will continue to integrate internal resources, raise operational efficiency and promote strategic cooperation, with the ultimate goal of developing the Company into a premier transportation services provider that offers value-added services to customers and generates satisfactory returns to shareholders”.