Sinotrans reports modest growth in 2014 results

Sinotrans has reported its financial results for 2014. It reported revenue of RMB45.66bn, up by 0.6% compared 2013’s result. The company also recorded operating profit of RMB1.22bn, representing growth of 6.4% year-on-year. Accordingly Sinotrans’ margin stood at 2.68%.

Revenue growth saw strong contributions from the Logistics and Storage and Terminal Services segment, which grew by 9.7% and 4.6% respectively year-on-year. The company’s other services segment also contributed 7.6% growth over the year. However these results were partially offset by the Freight Forwarding business which declined by 1.4% compared to 2013’s result, in spite of volume increases. This was especially significant because the forwarding business makes up 77.6% of company revenue, even after this year’s results.

The company stated that sustained growth was based on promoting resources consolidation, improving network layout, strengthening business synergies, restructuring operations, innovation and expanding financing channels. However the company also stated that the sluggish global economy and shifts from investment to consumption driven growth in China have had a negative impact.