Shenzhen-based logistics and energy equipment juggernaut, China International Marine Containers Group (CIMC Group), has reported a sharp performance rebound for the third quarter of 2020.
CIMC’s operating income from January to September 2020 was 63.592 billion CNY (approx. €8.2 billion), up 3.13 per cent year-on-year.
Net profit attributable to shareholders and other equity holders of the parent company was 698 million CNY (approx. €89.5 million), up 9.62 per cent year-on-year.
CIMC claims it has made up for its short-term losses in Q1 2020 caused by Covid-19 and other incidents at the beginning of the year based on profits generated in Q2 and Q3 2020.
Revenue for Q3 2020 increased by almost 30 per cent and profits increased by more than 20 times compared with the same period last year while net profit increased by nearly 10 per cent.
Total revenue and overall profit of CIMC from January to September increased steadily compared with the same period last year and total profit has gradually turned positive.
Revenue from July to September in Q3 exceeded 24.1 billion CNY (approx. €3.0 billion) which was up 27 per cent compared to last year. Net profit attributable to the parent company in Q3 exceeded 880 million CNY (approx. €102.6 million), 2123.72 per cent.
All CIMC business units reportedly performed well.
The container business was affected by prosperity of the shipping trade, trade demand, renewal demand, container price, capacity utilisation and other variables. CIMC estimates this segment will recover better than expected.
Meanwhile, the semi-trailer road transport business benefitted, in the domestic market, from the Government’s accelerated control of ‘overload and over-limit’ transportation and the effective implementation of the national standards for the second generation of trailers. Overall revenue and gross profit margin increased significantly in the first three quarters of 2020. Overseas orders also rebounded in Q3 amid Covid-19.
CIMC’s clean energy, chemical and environmental protection and liquid food business (CIMC Enric) and its marine engineering contingent (CIMC Raffles) has experienced steady growth under sluggish conditions.
In the first three quarters of 2020, CIMC has also developed its city-industry business in Guangdong-Hong Kong-Macao Greater Bay Area and the Yangtze River Delta, with a total of 5.625 billion CNY (approx. €721.2 million) worth of contracts being signed.
“With the effective control of the Covid-19 epidemic in China, the automobile, chemical, rubber, multimodal transport and other industries began to recover in the third quarter,” CIMC said in a statement. “The asset investment of unit vehicle business set up by the Group this year is increasing, and the planning and layout are being carried out in advance to serve the core customers of the above industries in depth and thus achieve greater breakthroughs.”
Earlier this year, CIMC Vehicles released its 1H 2020 financial results.