CIMC's revenue exceeded 100 billion last year, and container orders remain full in the first half of this year

China Energy Storage Network: “Because the tense situation in the global supply chain has not fundamentally improved, CIMC’s container orders for the first and second quarters are still full.” said Mai Boliang, Chairman and CEO of CIMC Group.

On the afternoon of March 29, CIMC held a 2021 performance briefing at its headquarters in Shenzhen. In 2021, CIMC's revenue exceeded 100 billion yuan for the first time, reaching 163.7 billion yuan, a year-on-year increase of 74%, a record high. Net profit attributable to the parent company reached 6.665 billion yuan, a year-on-year increase of 25%. Both the development speed and asset quality have been significantly improved. CIMC's container segment achieved operating income of 65.967 billion yuan, contributing about 40% of the company's revenue.

Container manufacturing is the core business of CIMC, which can produce a full range of container products with independent intellectual property rights. In 2021, CIMC's container segment achieved operating income of 65.967 billion yuan, a year-on-year increase of 197.64%, and net profit of 11.327 billion yuan, a year-on-year increase of 469.94%.

In 2021, the global economy and commodity trade have recovered strongly. In addition, global ports and inland transportation are still operating inefficiently due to the epidemic, making "one container hard to come by" the main theme of the container market. CIMC Group has made every effort to increase production when containers are in short supply, helping China to "stabilize foreign trade" and ensure the demand for export containers. The production and sales of containers hit a record high, and its market share has also increased.

Mai Boliang said that the container market last year was not the norm in the industry. Due to the high base in 2021, global container shipments and prices are expected to fall back this year, but will still exceed the industry's previous normal levels. However, he revealed that CIMC Group's container orders in the first and second quarters were still full.

Benefiting from the strong growth of its container business, CIMC Group achieved revenue of 163.7 billion yuan in 2021, which was another significant increase on the basis of the historical peak of 94.2 billion yuan in revenue in 2020, and the growth rate was the highest in the past decade.

"There is no doubt that CIMC will be among the world's top 500 companies," said Mai Boliang with full confidence. According to reports, the minimum revenue scale of the Fortune Global 500 in 2020 and 2021 is more than US$25.3 billion (about RMB 161 billion) and more than US$24 billion (RMB 152.7 billion), respectively.

Mai Boliang pointed out that after the revenue exceeded 100 billion, CIMC will develop more qualitatively on a higher platform. In the past year, all major business sectors and directly-managed enterprises of the group have contributed to the "quality growth". CIMC's strategy of focusing on its core businesses has also achieved significant results. The six major sectors of containers, vehicles, energy and chemicals, Tianda, offshore engineering, and logistics contributed more than 90% of the total revenue last year.

The annual report shows that the vehicle segment had revenue of 27.648 billion yuan, a new record high, and achieved a net profit of 988 million yuan. The energy, chemical and food equipment segment had revenue of 19.528 billion yuan, a year-on-year increase of 46.92%, and a net profit of 885 million yuan, a year-on-year increase of 145.57%. Tianda Holdings, which mainly operates airport and logistics equipment, fire and rescue equipment, had operating income of 6.842 billion yuan and a net profit of 193 million yuan. The logistics service segment had revenue of 29.471 billion yuan, a year-on-year increase of 177%, and a net profit of 542 million yuan, both of which set a record high. As a newly established business unit of about 2 years, CIMC Recycling Vehicles achieved revenue of more than 6 billion yuan, a year-on-year increase of 98%, and a net profit of 577 million yuan, a year-on-year increase of 512%, breaking historical records year after year. After excluding the impact of impairment, the offshore sector also achieved a significant reduction in losses.

Based on last year's excellent performance, CIMC plans to distribute a full-year cash dividend of RMB 0.69 per share to shareholders, with an estimated cash dividend of approximately RMB 2.48 billion, accounting for 38.22% of the adjusted net profit attributable to the parent company, which is at a historical high level. At the same time, CIMC also proposed to issue 5 additional shares for every 10 shares held by all shareholders from the capital reserve. In addition, CIMC also announced a core staff shareholding plan (draft), with a duration of 10 years, reflecting the management's firm confidence in the long-term development of CIMC.