THE world's biggest container maker, China.International Marine Containers(CIMC), posted a63 per cent decline in first half operating profit year on year to CNY1.64 billion (US$226 million), drawn on revenues of CNY10.7 billion, up 22 per cent.
CIMC's main business activity is the manufacture of containers, which contributed nearly 23 per cent of revenue for the period, and nearly 30 per cent of the gross profit.
In a statement along with the filing,CIMC's management said its energy and offshore engineering arms helped balance the reduced logistics demand.
"In the first half of 2023 the growth momentum of global economy and trade weakened. However, with the accelerated recovery of the global container market, prosperous demand for energy consumption and improving the market environment for offshore marine engineering,the group fully utilised its global leading position in the logistics field, diversified layout in the energy sector, and diversified financing channels to accelerate the cultivation of specialisation, expertise, and innovation' in businesses," the CIMC statement said.
CIMC added that its business remained equally split between domestic and overseas, with 51.6 per cent of operations within China's borders. CIMC described this as "optimal market distribution".
The company explained:"In the container manufacturing business, as the growth momentum of the global economy and trade slowed down and the demand in the container shipping market weakened, the production and sales volume of the container manufacturing business declined from the same period last year."
"In particular, the accumulated sales volume of dry containers reached 263,100 TEU(same period in 2022:675,000 TEU), representing a decrease of 61.02 per cent year on year.The accumulated sales volume of reefer containers reached 51,500 TEU (same period in 2022:68,400 TEU), representing a decrease of 24.7 per cent."
