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CIMC revenue surges in first half

By Zhong Nan and Ren Xiaojin | China Daily | Updated: 2017-08-30 08:19

CIMC revenue surges in first half

A cargo ship unloads a container at Lianyungang port in Jiangsu province. [Geng Yuhe/for China Daily]

China International Marine Containers (Group) Ltd, the country's largest transportation equipment producer by revenue, enjoyed net profit of 800 million yuan ($121.31 million) in the first half of this year, thanks to the rebound of the global container markets.

The group's revenue surged 41.81 percent year-on-year in the first half, totaling 33.4 billion yuan, according to its fiscal report on the January-June period, released on Monday night.

The report said two businesses of CIMC-containers and heavy trucks-have become the pillar of the group's six-month performance. They secured 105 percent and 38 percent growth, respectively, year-on-year.

Even though containers accounted for less than a third of CIMC's business, it remained the largest source of the group's revenue and profits while the global shipping business is making a gradual comeback.

CIMC maintains the world's biggest container manufacturer and seller with 10.05 billion yuan in sales being made over the past six months, including 535,700 of dry TEU (20-foot equivalent unit) containers and TEU 35,100 cold chain containers, more than doubling the number from the same period of 2016. The net profit has reached 680 million yuan.

"Demand for container shipping continues to improve on a global scale. Both the United States and the European Union have seen strong demand for north-south trade in the Atlantic basin and improving conditions in intra-Asian trading lanes," said Dong Liwan, a shipbuilding professor at Shanghai Maritime University.

Dong said shipping companies from Denmark, Germany and France had already started to purchase containers with more environment-friendly water paint to meet international regulations, and temperature-controlled and liquid cargo containers as many markets are also in the process of consumption upgrades since the second half of 2016.

CIMC predicted that international trade would stay strong in the second half of 2017, and global demand for containers would keep heating up. Accordingly, the group will further expand its production capacity by setting up a new container plant in Dongguan, Guangdong province. It is expected to be operational in the first half of 2018.

Both home and overseas markets have noted a strong uptick in CIMC's revenue, with a 75 percent increase in China and 56 percent abroad year-on-year.

The group's logistics business has also enjoyed stable growth with its first half revenue and profit totaling 3.75 billion yuan and 57.3 million yuan, respectively.

Supported by 25 manufacturing facilities throughout the world, CIMC sold and shipped a total of 81,500 units of trucks including dump and sanitation trucks, container and tank vehicles to both domestic and international markets in the first half, up 39.9 percent from same period a year earlier.

"It is worth mentioning that the group's vehicle sector has seen promising prospects from the global market, including North America, Europe, Asia and Australia," said Mai Boliang, president of CIMC.

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