Securities code: Cosco Shipping Holdings Co.Ltd(601919) securities abbreviation: Cosco Shipping Holdings Co.Ltd(601919) Announcement No.: 2022010
Cosco Shipping Holdings Co.Ltd(601919)
Announcement of annual profit distribution plan in 2021
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
Important content tips:
Distribution ratio per share: Cosco Shipping Holdings Co.Ltd(601919) (hereinafter referred to as " Cosco Shipping Holdings Co.Ltd(601919) " and "the company", together with its subsidiaries, collectively referred to as "the group") all shareholders (A shares and H shares) distributed a total cash dividend of 13.932 billion yuan, with a cash dividend of 0.87 yuan per share (including tax).
The profit distribution is based on the total share capital registered on the equity distribution registration date, and the specific date will be specified in the equity distribution implementation announcement.
If the total share capital of the company changes before the equity registration date of equity distribution, it is proposed to maintain the distribution proportion per share unchanged, adjust the total distribution accordingly, and make a separate announcement on the specific adjustment.
1、 Contents of profit distribution plan
The company realized a net profit of 89.296 billion yuan attributable to shareholders of Listed Companies in 2021. According to the actual dividend situation of subordinate companies, after making up the losses of previous years and withdrawing the statutory reserve fund, the distributable profit of the parent company in the current year is 27.78 billion yuan. The 15th meeting of the 6th board of directors held on March 30, 2022 deliberated and approved the company's profit distribution plan for 2021: cash dividend of 0.87 yuan per share (including tax). Based on the total share capital of 16014125710 shares of the company by the end of 2021, a total cash dividend of 13.932 billion yuan was distributed, which is 15.6% of the net profit attributable to shareholders of the listed company realized by the company in 2021 and 50.15% of the distributable profit of the parent company in 2021. If the total share capital of the company changes from the beginning of 2022 to the date of equity distribution, the total amount of distribution shall be adjusted based on the total number of shares registered on the date of equity registration. The plan shall be implemented after being approved by the general meeting of shareholders of the company.
2、 Description of cash dividend proportion of this year
(I) industry situation and characteristics of the company
From the development trend of the industry, international container shipping companies are gradually extending transportation services to both ends of the shipping section, and continue to enhance their ability to provide global customers with comprehensive logistics and transportation services through promoting the end-to-end and digital construction of shipping. At the same time, climate change continues to raise global attention to green and low-carbon supply chains. Technological innovation marked by digital, green and intelligent has become an important support for industrial transformation and upgrading.
(II) development stage of the company and its own business model
The company mainly carries out international and Chinese maritime container cargo transportation and related businesses with containers as the carrier through the container fleet of COSCO Shipping, a wholly-owned subsidiary, and Dongfang International, a holding subsidiary. Through holding COSCO Shipping Port, carry out terminal investment, operation and management business, and realize the synergy between container shipping fleet and terminal. The international container shipping market has the characteristics of fully competitive market. In order to maintain the company's core market competitiveness and improve the company's ability to serve global customers, industrial chain and supply chain, the company still needs to further consolidate and optimize the global container shipping network and service outlets; As well as the terminal operation and management capacity distributed along the coast of China and major overseas hub ports in the world.
(III) profitability and capital demand of the company
As the flagship listed company of the main shipping industry controlled by COSCO Shipping Group, the company participated in the increasingly fierce competition in the international container shipping market. In 2021, the company made every effort to ensure global transportation services through measures such as ensuring transportation capacity, ensuring container supply and providing services, grasped the market opportunity of short supply, achieved excellent business performance, effectively improved the company's assets and financial status, and better served global customers for the company, It has laid the foundation for high-quality sustainable development.
In order to consolidate the company's competitive position as the first echelon of international container shipping companies, comply with the development trend of the industry and the increasing demands of customers for low-carbon and environmental protection transportation services, the company still needs to increase investment.
(IV) explanation of relevant reasons for the company's profit distribution plan
The container shipping industry in which the company is located belongs to a cyclical industry with full global competition, which is characterized by large-scale basic investment and long investment return cycle. Under the influence of covid-19 epidemic, global inflation, geopolitical conflict and many other factors, the instability of the global supply chain has increased significantly. In order to better serve global trade activities and ensure the stability of global customers' industrial chain and supply chain, the company needs to accumulate appropriate retained earnings to deal with future uncertainty. At the same time, the future competition will still focus on the global container shipping market. As the flagship listed company of the main shipping industry, it also needs to accumulate appropriate retained earnings for potential investment in global supply chain layout, promoting the transformation of fleet structure to green and low-carbon, and shipping digital construction. The company's profit distribution plan for 2021 takes into account the company's long-term sustainable development and shareholder return.
(V) the exact purpose of retained undistributed profits of the listed company and the expected income
In the future, the company will continue to focus on the high-quality development of its main business, consolidate the industry leading position and efficiency creation ability of the container shipping sector, accelerate the layout and optimize the global supply chain system, improve the end-to-end logistics network, layout the global land extension service resources, focus on the transformation of low-carbon and environmental protection, increase the construction of digital shipping, accelerate the wider application of information and digital systems such as gsbn and iris-4, and promote the existing business to "wisdom +" "Smart +" transformation. Better realize the synergistic benefits of container shipping fleet and terminal operation, provide better services and experience for global customers, strive to maintain the continuous and stable performance of the company, and strive to create greater value for shareholders. 3、 Decision making procedures performed by the company
(I) convening, deliberation and voting of the board meeting
At the 15th meeting of the 6th board of directors held on March 30, 2022, the company unanimously passed the proposal on the company's profit distribution plan in 2021 and agreed to submit the profit distribution plan to the 2021 shareholders' meeting for deliberation.
(II) opinions of independent directors
The company's profit distribution plan for 2021 fully considers the company's development strategy and actual capital needs, and complies with the provisions of the articles of association and the company's shareholder return plan for the next three years (20202022). The plan takes into account the sustainable development of the company and the reasonable return to shareholders, which is conducive to ensuring the capital needs of the company's daily operation and related projects, obtaining greater value for shareholders and ensuring the steady development of the company, without damaging the interests of the company and its shareholders, especially small and medium-sized shareholders. The independent directors agreed to the profit distribution plan and agreed to submit it to the general meeting of shareholders for deliberation.
(III) opinions of the board of supervisors
At the 8th meeting of the 6th board of supervisors, the company unanimously passed the proposal on the company's profit distribution plan for 2021, and issued the following audit opinions: the company's profit distribution plan for 2021 complies with the provisions of relevant laws and regulations and the articles of association, and the decision-making procedures are legal and standardized, which is conducive to promoting the sustainable development of the company and safeguarding the long-term interests of shareholders. The board of supervisors agreed to the profit distribution plan and agreed to submit it to the general meeting of shareholders for deliberation.
4、 Relevant risk tips
This profit distribution plan fully considers the company's industry characteristics, development stage, business model, future capital demand and other factors, and will not have a significant impact on the company's operating cash flow, nor will it affect the company's normal operation and long-term development.
The profit distribution plan needs to be submitted to the company's 2021 annual general meeting for deliberation and approval. Please pay attention to the investment risks.
It is hereby announced.
Cosco Shipping Holdings Co.Ltd(601919) board of directors March 30, 2022
