For the six months ended 30 June 2019 (H1 2019), Sinotrans’ revenue amounted to CNY37,721m*, representing an increase of 3.4% from CNY36,494m for the corresponding period in 2018. This was driven by an increase of business in its Freight Forwarding segment.
Revenue from the group’s Freight Forwarding segment increased by 8.85% to CNY23,893m, for H1 2019, from CNY21,950m for the corresponding period in 2018. In H1 2019, the volume of sea freight increased by 2.9% year-on-year to 6.3m TEUs. Cargo tonnage handled by the air freight forwarding service decreased by 13.7% year-on-year to 235,100 tonnes. This was mainly due to the boost in air freight volumes generated by the re-stocking cycle which ended after H1 2018. The number of containers handled by the shipping agency rose by 5.5% to 13.0m TEUs. Segment profit totalled CNY653m, which represents an increase of 4.0% year-on-year.
Revenue from the group’s Logistics segment amounted to CNY9,763m for H1 2019, representing a decrease of 1.8% from CNY9,945m for the corresponding period in 2018. Business volumes handled by the group’s Logistics Service decreased by 8.3% year-on-year to 25.4m tonnes. This was mainly due to a decline in contract logistics projects. However, segment profit amounted to CNY429m, representing an increase of 9.0% from CNY394m for the corresponding period in 2018. According to the company, this was enabled by adjusting business and customer structures.
Revenue from the group’s Storage and Terminal Services segment amounted to CNY1,152m for H1 2019, representing a decrease of 3.9% year-over-year. The number of containers handled in the group’s warehouses and yards increased by 2.5% to 4.4m TEUs and the number of containers handled through terminals decreased by 6.1% to 1.8m TEUs. Segment profit amounted to CNY208m, representing a decrease of 2.3% year-on-year.
Revenue from Other Services (mainly shipping, trucking and express services) amounted to CNY2,912m, representing a decrease of 14.3% year-over-year. Segment profit from the group’s Other Services segment amounted to CNY41m for H1 2019, representing a decrease of 80.8% for the corresponding period in 2018.
The group’s total operating profit was CNY1,331m for H1 2019, representing a decrease of 8.1% from CNY1449m for the corresponding period in 2018. Operating profit as a percentage of total revenue decreased to 3.5%.
*$ = CNY6.83 / € = CNY7.70
Source: Sinotrans
