CIMC saw sharp performance rebound: the growth rate of revenue and net profit returned to positive in the first 3Qs
On the evening of October 27, CIMC released its third quarter performance report for 2020. The report shows that from January to September 2020, CIMC realized operating income of 63.592 billion yuan, up 3.13% year on year. Net profit attributable to shareholders and other equity holders of the parent company was 698 million yuan, up 9.62% year on year.
Data show that after three quarters of efforts, the short-term losses in the first quarter caused by COVID-19 and other Black Swan incidents at the beginning of the year have been fully made up, and profits have been made in the second and third quarters for two consecutive quarters. In particular, in the third quarter, the report shows that the revenue was increased by nearly 30% and profits increased by more than 20 times compared with the same period of last year. Thanks to this, CIMC achieved a strong correction in various data in the first three quarters, with net profit increasing by nearly 10% compared with the same period of last year.
Both total revenue and net profit turn positive
Judging from the report of Q3, the revenue from July to September in the third quarter exceeded 24.1 billion yuan, up 27% from the same period last year, and the net profit attributable to the parent company in a single quarter exceeded 880 million yuan, up 2123.72% from the same period last year. Thanks to this, the total revenue and overall profit of CIMC from January to September have increased steadily compared with the same period last year, and the total profit has gradually turned positive.
Main business saw inflection points
As for the specific business, all sectors of CIMC have performed well, with multiple inflection points in its main business.
Relevant industry research institutions said that the profits of the container business were mainly affected by factors such as the prosperity of the shipping industry, trade demand, renewal demand, container price, capacity utilization rate, etc. The inflection point in profit for the second quarter of 2020 has now emerged, and the second half of 2020 will continue to increase rapidly, with the recovery better than expected.
The semi-trailer business of road transport vehicle business in the domestic market benefited from the government's accelerated control of "overload and over-limit" transportation and the effective implementation of the national standards for the second generation of semi-trailers. In the first three quarters, the overall revenue and gross profit margin increased significantly. Although the overseas market of semi-trailer business is continuously affected by the COVID-19 epidemic, the overseas orders rebounded significantly in the third quarter.
The clean energy, chemical and environmental protection and liquid food business of CIMC Enric Holdings Co., Ltd. (hereinafter referred to as "CIMC Enric"), the main business entity of energy, chemical and liquid food business, has seen overall steady growth, with orders in hand reaching about 10.5 billion yuan by the end of September. In the third quarter, CIMC's clean energy, environmental protection and liquid food businesses were improved to varying degrees month on month. The overall income was stable. The environmental protection business that were heavily affected by global trade will be benefited with the recovery of trade.
In the marine engineering business sector, from January to September, CIMC Raffles Offshore Engineering Pte Ltd (hereinafter referred to as "CIMC Raffles") gained US $210 million in effective orders, with a cumulative value of US $780 million of orders in hands, of which non-oil and gas orders accounted for about 74%, showing a sustained growth trend. The delivery of Bohai Hengtong, Asia's biggest multiple-purpose ro-ro ship manufactured by CIMC Raffles, is a representative project of the Company in planning business transformation under the sluggish oil and gas platform market.
Since the domestic epidemic situation slowed down, airport, businesses including firefighting and automated logistics system have stepped up to catch up with the production and installation progress delayed by the COVID-19 epidemic. They have tried their best to support the timely delivery of overseas projects and strive to realize the delivery acceptance and sales confirmation of most projects as scheduled in the second half of the year.
With the epidemic situation under control, the logistics service business has gradually stabilized and the Company continues to increase investment in the network layout of multimodal transport channels, core resource control and market development.
CIMC City introduced strategic investors for the second time.
In the first three quarters, CIMC mainly developed its city-industry business in two key areas: Guangdong-Hong Kong-Macao Greater Bay Area and the Yangtze River Delta, with a total of 5.625 billion yuan worth contracts being signed. In August, CIMC increased its capital and shares, introducing strategic investors for the second time and enter into contract with them. After all transactions are finally completed, the shareholding ratio of CIMC Shenfa, a subsidiary of CIMC, in CIMC City will drop to about 45.92%, and CIMC City will become an associated company of CIMC.
In the first three quarters, the financial company and financial leasing company in the Group's financial sector took various measures simultaneously. In the special period, they strengthened financial services and support to the industry, effectively met the capital needs of enterprises, optimized the risk control system and ensured asset safety. In August, the finance company completed its first future foreign exchange settlement, marking the official realization of its foreign exchange derivatives business, which will help improve the Group's foreign exchange risk management capability and reduce the Group's foreign exchange transaction costs. The marine engineering asset business is generally stable, and the 9 signed leases under implementation are all in normal performance.
With the effective control of the COVID-19 epidemic in China, the automobile, chemical, rubber, multimodal transport and other industries began to recover in the third quarter. The asset investment of unit vehicle business set up by the Group this year is increasing, and the planning and layout are being carried out in advance to serve the core customers of the above industries in depth and thus achieve greater breakthroughs.