Declared Dividend • Jun 08
Dividend of CN¥0.015 announced Shareholders will receive a dividend of CN¥0.015. Ex-date: 10th July 2026 Payment date: 31st July 2026 Dividend yield will be 4.0%, which is lower than the industry average of 7.5%. Sustainability & Growth Dividend is covered by earnings (32% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 1.6% per year over the past 7 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to decline by 65% to shift the payout ratio to a potentially unsustainable range, which is more than the 9.9% EPS decline seen over the last 5 years. Announcement • Jun 05
COSCO SHIPPING Development Co., Ltd., Annual General Meeting, Jun 30, 2026 COSCO SHIPPING Development Co., Ltd., Annual General Meeting, Jun 30, 2026, at 13:30 China Standard Time. Reported Earnings • May 01
First quarter 2026 earnings released: EPS: CN¥0.031 (vs CN¥0.036 in 1Q 2025) First quarter 2026 results: EPS: CN¥0.031 (down from CN¥0.036 in 1Q 2025). Revenue: CN¥5.99b (up 11% from 1Q 2025). Net income: CN¥413.2m (down 14% from 1Q 2025). Profit margin: 6.9% (down from 8.9% in 1Q 2025). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Announcement • Apr 02
COSCO Shipping Development Co., Ltd. Proposes Final Cash Dividend for the Year Ended 31 December 2025 COSCO SHIPPING Development Co., Ltd. at its AGM, to be held, proposed the payment of a final dividend of RMB 0.015 per ordinary share (inclusive of applicable tax) for the year ended 31 December 2025 (2024: RMB 0.019). The final cash dividend for 2025 is approximately RMB 197,437,000 (inclusive of applicable taxes) (2024: RMB 253,382,000). The proposed dividend has not been recognized as a liability in the consolidated financial statements for the year ended 31 December 2025, but will be reflected as an appropriation of retained profits for the year ending 31 December 2026. Reported Earnings • Mar 31
Full year 2025 earnings released: EPS: CN¥0.12 (vs CN¥0.13 in FY 2024) Full year 2025 results: EPS: CN¥0.12 (down from CN¥0.13 in FY 2024). Revenue: CN¥25.2b (down 8.8% from FY 2024). Net income: CN¥1.61b (down 4.5% from FY 2024). Profit margin: 6.4% (up from 6.1% in FY 2024). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 23% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Announcement • Mar 30
COSCO SHIPPING Development Co., Ltd. to Report Q1, 2026 Results on Apr 30, 2026 COSCO SHIPPING Development Co., Ltd. announced that they will report Q1, 2026 results on Apr 30, 2026 Valuation Update With 7 Day Price Move • Mar 03
Investor sentiment improves as stock rises 32% After last week's 32% share price gain to HK$1.52, the stock trades at a trailing P/E ratio of 10.4x. Average trailing P/E is 12x in the Trade Distributors industry in Hong Kong. Total returns to shareholders of 72% over the past three years. Announcement • Feb 14
COSCO SHIPPING Development Co., Ltd. Appoints Zheng Xiaozhe as Member of the Investment Strategy Committee, Effective 13 February 2026 COSCO SHIPPING Development Co., Ltd. announced that Mr. Zheng Xiaozhe, a non-executive Director, has been appointed as a member of the investment strategy committee of the Board with effect from February 13, 2026. Announcement • Dec 26
COSCO SHIPPING Development Co., Ltd. to Report Fiscal Year 2025 Results on Mar 31, 2026 COSCO SHIPPING Development Co., Ltd. announced that they will report fiscal year 2025 results on Mar 31, 2026 Reported Earnings • Oct 31
Third quarter 2025 earnings released: EPS: CN¥0.032 (vs CN¥0.036 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.032 (down from CN¥0.036 in 3Q 2024). Revenue: CN¥7.31b (down 9.9% from 3Q 2024). Net income: CN¥420.4m (down 13% from 3Q 2024). Profit margin: 5.8% (down from 6.0% in 3Q 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 34% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Board Change • Oct 15
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Non-Executive Director Daqi Wu was the last independent director to join the board, commencing their role in 2024. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Announcement • Oct 14
COSCO SHIPPING Development Co., Ltd. Approves the Appointment of Wang Kunhui as an Executive Director COSCO SHIPPING Development Co., Ltd. at the EGM held on 13 October 2025, approved the appointment of Mr. Wang Kunhui as an executive Director. Announcement • Sep 30
COSCO SHIPPING Development Co., Ltd. to Report Q3, 2025 Results on Oct 31, 2025 COSCO SHIPPING Development Co., Ltd. announced that they will report Q3, 2025 results on Oct 31, 2025 Upcoming Dividend • Jul 02
Upcoming dividend of HK$0.021 per share Eligible shareholders must have bought the stock before 09 July 2025. Payment date: 31 July 2025. Payout ratio is a comfortable 30% but the company is not cash flow positive. Trailing yield: 3.8%. Lower than top quartile of Hong Kong dividend payers (7.3%). Lower than average of industry peers (5.2%). Announcement • Jun 30
COSCO SHIPPING Development Co., Ltd. to Report First Half, 2025 Results on Aug 30, 2025 COSCO SHIPPING Development Co., Ltd. announced that they will report first half, 2025 results on Aug 30, 2025 Declared Dividend • Jun 06
Dividend of CN¥0.019 announced Shareholders will receive a dividend of CN¥0.019. Ex-date: 9th July 2025 Payment date: 31st July 2025 Dividend yield will be 4.0%, which is lower than the industry average of 7.5%. Sustainability & Growth Dividend is covered by earnings (30% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 2.4% per year over the past 6 years. However, payments have been volatile during that time. Earnings per share has grown by 4.2% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Jun 04
COSCO SHIPPING Development Co., Ltd., Annual General Meeting, Jun 26, 2025 COSCO SHIPPING Development Co., Ltd., Annual General Meeting, Jun 26, 2025, at 13:30 China Standard Time. Location: 3rd floor, ocean hotel, no. 1171 dong da ming road, hongkou district, shanghai China Valuation Update With 7 Day Price Move • May 14
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to HK$1.09, the stock trades at a trailing P/E ratio of 7.8x. Average trailing P/E is 12x in the Trade Distributors industry in Hong Kong. Total returns to shareholders of 2.5% over the past three years. Reported Earnings • May 01
First quarter 2025 earnings released: EPS: CN¥0.036 (vs CN¥0.033 in 1Q 2024) First quarter 2025 results: EPS: CN¥0.036 (up from CN¥0.033 in 1Q 2024). Revenue: CN¥5.42b (up 9.7% from 1Q 2024). Net income: CN¥480.5m (up 7.6% from 1Q 2024). Profit margin: 8.9% (down from 9.0% in 1Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 59% per year but the company’s share price has only fallen by 18% per year, which means it has not declined as severely as earnings. Announcement • Apr 10
COSCO SHIPPING Development Co., Ltd. Provides Preliminary Earnings Guidance for the Three Months Ended 31 March 2025 COSCO SHIPPING Development Co., Ltd. provided preliminary earnings guidance for the three months ended 31 March 2025. The Board informed the Shareholders and potential investors that the Company expects (i) the net profit attributable to the owners of the Company for the three months ended 31 March 2025 to be approximately RMB480 million, representing an increase of approximately 7.38% as compared to the corresponding figure of approximately RMB 447 million for the three months ended 31 March 2024, and an increase of approximately 57.38% as compared to the corresponding figure of approximately RMB 305 million for the three months ended 31 December 2024; and (ii) the net profit attributable to the owners of the Company after deduction of non-recurring profit or loss for the three months ended 31 March 2025 to be approximately RMB 466 million, representing an increase of approximately 102.61% as compared to the corresponding figure of approximately RMB 230 million for the three months ended 31 March 2024, and an increase of approximately 74.53% as compared to the corresponding figure of approximately RMB 267 million for the three months ended 31 December 2024. Based on the Accounting Standards for Business Enterprises of the People's Republic of China, the total profit, the net profit attributable to the owners of the Company and the net profit attributable to the owners of the Company after deduction of non-recurring profit or loss for the three months ended 31 March 2024 were approximately RMB 494 million, RMB 447 million and RMB 230 million, respectively. The earnings per share for the three months ended 31 March 2024 was RMB 0.0330. The Board considers that the expected increase in the net profit attributable to the owners of the Company and the net profit attributable to the owners of the Company after deduction of non- recurring profit or loss for the three months ended 31 March 2025 is mainly due to the following reasons: Since the beginning of this year, global trade has shown a complex and volatile trends, with moderate growth in market demand. The Company has adhered to reform and innovation, centering on the theme of "stronger, better and bigger, and realizing high-quality development", focusing on cultivating shipping genes, effectively integrating scientific and technological resources, researching and developing high-value-added products, and promoting the development of intellectualization and low-carbonization of container manufacturing. The Company effectively realized the unique advantages of leasing-manufacturing synergy, and the scale of container leasing has stepped up to a new level. The ship leasing business of the Company has been effectively expanded, with improvements in both quality and efficiency. The Company's industrial-financial service capabilities have significantly enhanced, leading to a strong start for the Company's production and operation in the first quarter of 2025. Announcement • Apr 09
COSCO SHIPPING Development Co., Ltd. (SEHK:2866) announces an Equity Buyback for 80,000,000 shares. COSCO SHIPPING Development Co., Ltd. (SEHK:2866) announces a share repurchase program. Under the program, the company will repurchase up to 80,000,000 Class A shares. The shares will be repurchased at CNY 3.53 per share. The purpose of program is maintaining the company’s value and shareholders’ interest. The repurchases will be funded from company's own funds or self-raised funds. The program is valid till June 26, 2025. Reported Earnings • Mar 30
Full year 2024 earnings released: EPS: CN¥0.13 (vs CN¥0.10 in FY 2023) Full year 2024 results: EPS: CN¥0.13 (up from CN¥0.10 in FY 2023). Revenue: CN¥27.6b (up 76% from FY 2023). Net income: CN¥1.69b (up 20% from FY 2023). Profit margin: 6.1% (down from 9.0% in FY 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 48 percentage points per year, which is a significant difference in performance. Announcement • Mar 28
COSCO SHIPPING Development Co., Ltd. to Report Q1, 2025 Results on Apr 30, 2025 COSCO SHIPPING Development Co., Ltd. announced that they will report Q1, 2025 results on Apr 30, 2025 New Risk • Feb 21
New major risk - Revenue and earnings growth Earnings have declined by 3.0% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.8x net interest cover). Earnings have declined by 3.0% per year over the past 5 years. Minor Risk Paying a dividend despite having no free cash flows. Announcement • Dec 27
COSCO SHIPPING Development Co., Ltd. to Report Fiscal Year 2024 Results on Mar 29, 2025 COSCO SHIPPING Development Co., Ltd. announced that they will report fiscal year 2024 results on Mar 29, 2025 Announcement • Oct 31
COSCO SHIPPING Development Co., Ltd. Announces Change of Composition of Board Committees The board of directors of COSCO SHIPPING Development Co., Ltd. (the Company) announced that (i) Ms. Zhang Xueyan, a non-executive Director, has been appointed as a member of the audit committee of the Board (the Audit Committee) and a member of the investment strategy committee of the Board with effect from 30 October 2024; and (ii) Mr. Wu Daqi, an independent non-executive Director, has been appointed as the chairman of the risk and compliance management committee of the Board and a member of the remuneration committee of the Board with effect from 30 October 2024. Following the appointment of Ms. Zhang Xueyan as a member of the Audit Committee, the Audit Committee comprises three members, and therefore the Company has complied with the requirements under Rule 3.21 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited with regard to the minimum number of members of the audit committee. Board Change • Oct 26
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Non-Executive Director Daqi Wu was the last independent director to join the board, commencing their role in 2024. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Announcement • Oct 24
COSCO SHIPPING Development Co., Ltd. Announces Executive Changes COSCO SHIPPING Development Co., Ltd. announced that (i) Ms. Zhang Xueyan has been appointed as a non- executive Director, and the term of office shall commence from the conclusion of the EGM and expire on the date on which the term of office of the seventh session of the Board of the Company expires; and (ii) Mr. Wu Daqi has been appointed as an independent non-executive Director, and the term of office shall commence from the conclusion of the EGM and expire on the date on which the term of office of the seventh session of the Board expires. Ms. Zhang Weihua has resigned as an independent non-executive Director, the chairman of the risk and compliance management committee of the Board and a member of the remuneration committee of the Board with effect from the conclusion of the EGM. The Board announced that Mr. Zuo Zhenyong has been elected as a Shareholder representative Supervisor, the term of office shall commence from the conclusion of the EGM and expire on the date on which the term of office of the seventh session of the Supervisory Committee expires. Ms. Zhu Mei will cease to be a Shareholder representative Supervisor with effect from the conclusion of the EGM. Announcement • Oct 21
COSCO SHIPPING Development Co., Ltd. (SEHK:2866) announces an Equity Buyback for 80,000,000 shares, representing 0.59% for CNY 287.2 million. COSCO SHIPPING Development Co., Ltd. (SEHK:2866) announces a share repurchase program. Under the program, the company will repurchase up to 80,000,000 Class A shares, representing 0.59% of its share capital for CNY 287.2 million. The shares will be repurchased at CNY 3.59 per share. The purpose of the program is to enhance the investors’ confidence and to reduce registered share capital of the company. The repurchased shares will be cancelled. The program will be funded from loan and company's own funds. The program is subject to approval from Shareholders' General Meeting. The program will be valid for 6 months from the approval of General Meeting or it will expire at the earliest of the conclusion of the 2024 annual general meeting of the Company; or on the date the General Mandate to Repurchase A Shares being revoked or amended by special resolution at any general meeting or H Share or A Share class meetings of the Company. As of September 30, 2024, the company had 13,575,938,612 shares, of which 9,899,938,612 were A shares and 3,676,000,000 were H shares. Upcoming Dividend • Oct 01
Upcoming dividend of HK$0.021 per share Eligible shareholders must have bought the stock before 08 October 2024. Payment date: 28 October 2024. Payout ratio is a comfortable 57% but the company is not cash flow positive. Trailing yield: 4.0%. Lower than top quartile of Hong Kong dividend payers (7.9%). Lower than average of industry peers (4.9%). Announcement • Sep 30
COSCO SHIPPING Development Co., Ltd. to Report Q3, 2024 Results on Oct 31, 2024 COSCO SHIPPING Development Co., Ltd. announced that they will report Q3, 2024 results on Oct 31, 2024 Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to HK$1.04, the stock trades at a trailing P/E ratio of 10.6x. Average forward P/E is 10x in the Trade Distributors industry in Hong Kong. Total loss to shareholders of 3.9% over the past three years. Announcement • Sep 29
Cosco Shipping Development Co., Ltd. Announces Board Resignations The board of directors of COSCO SHIPPING Development Co., Ltd. announced that the Board received a written resignation from Mr. Huang Jian (Mr. Huang), a non-executive Director, on 29 September 2024. Mr. Huang has tendered his resignation as a non-executive Director, a member of the investment strategy committee (the "Investment Strategy Committee") of the Board and a member of the audit committee (the "Audit Committee") of the Board of the Company due to adjustment of work arrangements with effect from 29 September 2024. Following his resignation, Mr. Huang will cease to hold any position in the Company and all of its subsidiaries. Mr. Huang confirmed that he has no disagreement with the Board and there are no other matters relating to his resignation that need to be brought to the attention of the shareholders (the "Shareholders") and creditors of the Company or The Stock Exchange of Hong Kong Limited. The supervisory committee of the Company (the "Supervisory Committee") received a written resignation from Ms. Zhu Mei, a shareholder representative supervisor of the Company (the "Supervisor"), on 29 September 2024. Ms. Zhu has tendered her resignation as a shareholder representative Supervisor due to reaching her retirement age. Prior to the effective date of her proposed resignation, Ms. Zhu shall continue to perform her duties as a shareholder representative Supervisor. Following her resignation, Ms. Zhu will cease to hold any position in the Company and all of its subsidiaries. Ms. Zhu confirmed that she has no disagreement with the Board and the Supervisory Committee and there are no other matters in relation to her resignation that need to be brought to the attention of the Shareholders and creditors of the Company or the Stock Exchange. Reported Earnings • Aug 31
Second quarter 2024 earnings released: EPS: CN¥0.033 (vs CN¥0.052 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.033 (down from CN¥0.052 in 2Q 2023). Revenue: CN¥6.82b (up 213% from 2Q 2023). Net income: CN¥448.8m (down 36% from 2Q 2023). Profit margin: 6.6% (down from 32% in 2Q 2023). Revenue is forecast to grow 2.0% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Trade Distributors industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 54% per year but the company’s share price has only fallen by 17% per year, which means it has not declined as severely as earnings. Board Change • Jul 24
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Non Executive Director Andy Chan was the last independent director to join the board, commencing their role in 2023. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Jul 17
COSCO SHIPPING Development Co., Ltd. Announces Board and Committee Changes The board of directors of COSCO SHIPPING Development Co., Ltd. announced that Mr. Lu Jianzhong, having served as an independent non-executive Director for six consecutive years, has recently tendered his resignation as an independent non-executive Director, the chairman of the audit committee of the Board and a member of the risk and compliance management committee of the Board, pursuant to the Administrative Measures for Independent Directors of Listed Companies promulgated by the China Securities Regulatory Commission which stipulates the consecutive term of an independent director serving in the same listed company shall not exceed six years. Upon his resignation taking effect, Mr. Lu will no longer hold any position in the Company and all its subsidiaries. On 16 July 2024, the Board has approved that Mr. Shao Ruiqing, an independent non-executive Director, has been appointed as the chairman of the Audit Committee and a member of the Risk and Compliance Management Committee with effect from 16 July 2024. Following the aforementioned Board approval of the change of composition of Board committees, the resignation of Mr. Lu as an independent non-executive Director, the chairman of the Audit Committee and a member of the Risk and Compliance Management Committee has taken effect on the same date. Upcoming Dividend • Jul 03
Upcoming dividend of HK$0.035 per share Eligible shareholders must have bought the stock before 08 July 2024. Payment date: 30 July 2024. Payout ratio is a comfortable 30% but the company is not cash flow positive. Trailing yield: 3.0%. Lower than top quartile of Hong Kong dividend payers (8.0%). Lower than average of industry peers (5.0%). Declared Dividend • Jun 08
Dividend of CN¥0.032 announced Shareholders will receive a dividend of CN¥0.032. Ex-date: 8th July 2024 Payment date: 30th July 2024 Dividend yield will be 2.8%, which is lower than the industry average of 7.5%. Sustainability & Growth Dividend is covered by earnings (30% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has decreased over the past 56 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to decline by 67% to shift the payout ratio to a potentially unsustainable range, which is more than the 5.9% EPS decline seen over the last 5 years. Announcement • Jun 08
COSCO SHIPPING Development Co., Ltd., Annual General Meeting, Jun 28, 2024 COSCO SHIPPING Development Co., Ltd., Annual General Meeting, Jun 28, 2024, at 13:30 China Standard Time. Location: 3rd floor, ocean hotel, no. 1171 dong da ming road, hongkou district, shanghai China Reported Earnings • Apr 30
First quarter 2024 earnings released: EPS: CN¥0.033 (vs CN¥0.029 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.033 (up from CN¥0.029 in 1Q 2023). Revenue: CN¥4.94b (up 39% from 1Q 2023). Net income: CN¥446.7m (up 12% from 1Q 2023). Profit margin: 9.0% (down from 11% in 1Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 38% per year but the company’s share price has only fallen by 17% per year, which means it has not declined as severely as earnings. Announcement • Apr 30
COSCO SHIPPING Development Co., Ltd. Announces Board and Committee Appointments The board of directors of COSCO SHIPPING Development Co., Ltd. announced that Mr. Zhang Mingwen, an executive Director, has been appointed as the chairman of the seventh session of the Board, with effect from 29 April 2024. Subsequent to the appointment of Mr. Zhang as the Chairman, Mr. Zhang has also been appointed as the chairman of the executive committee of the Board, the chairman of the investment and strategy committee of the Board and a member of the nomination committee of the Board, each with effect from 29 April 2024. Board Change • Apr 20
Less than half of directors are independent Following the recent departure of a director, there are only 4 independent directors on the board. The company's board is composed of: 4 independent directors. 5 non-independent directors. Independent Non Executive Director Andy Chan was the last independent director to join the board, commencing their role in 2023. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Mar 30
Full year 2023 earnings released: EPS: CN¥0.10 (vs CN¥0.29 in FY 2022) Full year 2023 results: EPS: CN¥0.10 (down from CN¥0.29 in FY 2022). Revenue: CN¥15.7b (down 39% from FY 2022). Net income: CN¥1.41b (down 64% from FY 2022). Profit margin: 9.0% (down from 15% in FY 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has only fallen by 16% per year, which means it has not declined as severely as earnings. Announcement • Dec 29
COSCO SHIPPING Development Co., Ltd. to Report Fiscal Year 2023 Results on Mar 29, 2024 COSCO SHIPPING Development Co., Ltd. announced that they will report fiscal year 2023 results on Mar 29, 2024 Announcement • Nov 22
COSCO SHIPPING Development Co., Ltd. Announces Resignation of Liu Chong as Chairman and Executive Director The board of directors of COSCO SHIPPING Development Co., Ltd. announced that the Board recently received the written resignation from Mr. LIU Chong (Mr. Liu). Mr. Liu has tendered his resignation as the chairman of the Board of the company (Chairman), an executive Director, the legal representative of the Company and the chairman of the Executive Committee, the chairman of the Investment Strategy Committee and a member of the Nomination Committee of the Board with effect from 20 November 2023 due to his being unable to devote sufficient time to perform duties by reason of personal affairs. Mr. Liu will no longer hold any position in the Company and all its subsidiaries upon his resignation. To ensure the smooth progress of relevant works of the Board, in accordance with the relevant requirements of the Articles of Association, as elected by all the Directors, Mr. Zhang Mingwen, an executive Director and general manager of the Company, will perform the duties of the Chairman and the legal representative of the Company during the vacancy of the Chairman, whose term of acting duties shall commence on the date of election and end on the date of election of the new Chairman and the legal representative by the Company. New Risk • Oct 31
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 8.2% Last year net profit margin: 15% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.3x net interest cover). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (8.2% net profit margin). Announcement • Sep 30
COSCO SHIPPING Development Co., Ltd. to Report Q3, 2023 Results on Oct 31, 2023 COSCO SHIPPING Development Co., Ltd. announced that they will report Q3, 2023 results on Oct 31, 2023 Reported Earnings • Aug 31
Second quarter 2023 earnings released: EPS: CN¥0.052 (vs CN¥0.096 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.052 (down from CN¥0.096 in 2Q 2022). Revenue: CN¥2.18b (down 69% from 2Q 2022). Net income: CN¥702.8m (down 47% from 2Q 2022). Profit margin: 32% (up from 19% in 2Q 2022). Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Announcement • Jul 15
COSCO SHIPPING Development Co., Ltd. Provides Earnings Guidance for the Second Quarter and Six Months Ended June 30, 2023 COSCO SHIPPING Development Co., Ltd. provided earnings guidance for the second quarter and six months ended June 30, 2023. For the second quarter, Company expects to record a net profit attributable to the Shareholders in the range of RMB 600 million to RMB 800 million, representing an increase of approximately 50% to 100% quarter-over-quarter.For the six months, Company expects to record a net profit attributable to the Shareholders in the range of RMB 1.0 billion to RMB 1.2 billion, representing a decrease of RMB 1.49 billion to RMB 1.69 billion, or a decrease of approximately 55.4% to 62.8%, over the same period last year. Upcoming Dividend • Jun 29
Upcoming dividend of CN¥0.087 per share at 9.8% yield Eligible shareholders must have bought the stock before 06 July 2023. Payment date: 28 July 2023. Payout ratio is a comfortable 40% but the company is paying out more than the cash it is generating. Trailing yield: 9.8%. Within top quartile of Hong Kong dividend payers (7.7%). Higher than average of industry peers (6.6%). Announcement • Jun 28
COSCO SHIPPING Development Co., Ltd. to Report First Half, 2023 Results on Aug 31, 2023 COSCO SHIPPING Development Co., Ltd. announced that they will report first half, 2023 results on Aug 31, 2023 Reported Earnings • Apr 29
First quarter 2023 earnings released: EPS: CN¥0.029 (vs CN¥0.10 in 1Q 2022) First quarter 2023 results: EPS: CN¥0.029 (down from CN¥0.10 in 1Q 2022). Revenue: CN¥3.56b (down 43% from 1Q 2022). Net income: CN¥398.0m (down 71% from 1Q 2022). Profit margin: 11% (down from 22% in 1Q 2022). Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Mar 24
Now 21% undervalued Over the last 90 days, the stock is up 4.8%. The fair value is estimated to be HK$1.38, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 35% over the last 3 years. Earnings per share has grown by 49%. Buying Opportunity • Mar 07
Now 21% undervalued The stock has been flat over the last 90 days. The fair value is estimated to be HK$1.35, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 35% over the last 3 years. Earnings per share has grown by 49%. Buying Opportunity • Feb 02
Now 20% undervalued Over the last 90 days, the stock is up 15%. The fair value is estimated to be HK$1.38, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 35% over the last 3 years. Earnings per share has grown by 49%. Board Change • Nov 16
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 1 was an independent director. The company's board is composed of: 4 independent directors. 5 non-independent directors. Independent Non-Executive Director Ruiqing Shao was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Reported Earnings • Oct 30
Third quarter 2022 earnings released: EPS: CN¥0.079 (vs CN¥0.22 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.079 (down from CN¥0.22 in 3Q 2021). Revenue: CN¥5.79b (down 50% from 3Q 2021). Net income: CN¥1.03b (down 60% from 3Q 2021). Profit margin: 18% (down from 22% in 3Q 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 49% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Reported Earnings • Sep 02
Second quarter 2022 earnings released: EPS: CN¥0.096 (vs CN¥0.13 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.096 (down from CN¥0.13 in 2Q 2021). Revenue: CN¥7.01b (down 23% from 2Q 2021). Net income: CN¥1.31b (down 18% from 2Q 2021). Profit margin: 19% (up from 18% in 2Q 2021). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 55% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jul 28
Investor sentiment deteriorated over the past week After last week's 17% share price decline to HK$1.31, the stock trades at a trailing P/E ratio of 2.3x. Average trailing P/E is 6x in the Trade Distributors industry in Hong Kong. Total returns to shareholders of 86% over the past three years. Upcoming Dividend • Jul 21
Upcoming dividend of HK$0.26 per share Eligible shareholders must have bought the stock before 28 July 2022. Payment date: 18 August 2022. Payout ratio is a comfortable 43% but the company is not cash flow positive. Trailing yield: 17%. Within top quartile of Hong Kong dividend payers (8.0%). Higher than average of industry peers (9.3%). Board Change • Jul 13
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 1 was an independent director. The company's board is composed of: 4 independent directors. 5 non-independent directors. Independent Non-Executive Director Ruiqing Shao was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. 
