CIMC’s revenue of RMB35.6 billion and net profit attributable to the parent company of RMB1.7 billion for the first quarter hit the first-quarter record highs
On the evening of 27 April, CIMC Group published its result report for the first quarter of 2022. The report shows that from January to March, CIMC’s revenue was RMB35.559 billion, representing a year-on-year increase of 23.19%; net profit attributable to the parent company was RMB1.706 billion, representing a year-on-year increase of 13.20%. The revenue and net profit attributable to the parent company of CIMC for the first quarter of 2022 both hit the first-quarter record highs.
Steady development of all principal businesses: The container business remained highly profitable
In the first quarter of 2022, the production volume, sales volume, revenue and net profit of CIMC Group’s container manufacturing business were at historic highs. The total sales volume of dry containers was 353,900 TEUs, which was approximately 25.62% higher than the average for the first quarters of the past three years.
In addition, CIMC performed brilliantly in terms of road transportation vehicles, airport facilities and logistics equipment, fire safety and rescue equipment, logistics services, recycled load and other businesses in the logistics industry in the first quarter. The overseas semi-trailer sales volume and revenue of CIMC Vehicles significantly increased by 44.65% and 55.56% year on year respectively. The PCA units of the airport facilities and logistics equipment business and the fire safety and rescue equipment business of CIMC Group were used in many airports in mainland China. A large number of its electric air duct type air conditioners were installed in civil aviation airports in China for the first time, and dozens of orders for the equipment were placed by airports at home and abroad, which showed the wide recognition in the industry. Due to the year-on-year increase in the national total imports and exports in the first quarter and the improvement in its logistics service network, CIMC logistics services business maintained rapid growth in business volume and revenue in the first quarter of 2022.
From January to March, CIMC’s recycled load business continued to grow rapidly and increased its investment in the new energy industry. The newly planned production base of the business is under construction, and the phase I production base is expected to be put into operation in the second quarter, which will greatly increase the production capacity and output value.
Accelerated development of clean energy: Hydrogen energy business increased by 80% year on year, and offshore wind power orders in hand exceeded US$0.8 billion
In the first quarter of 2022, the revenue of CIMC Enric Holdings Limited (“CIMC Enric”), operator of the energy, chemical and liquid food business of CIMC, increased steadily by 24.9% year on year.
Among the clean energy businesses of CIMC Enric, the growth rate of the hydrogen energy business was the most remarkable, with the year-on-year increase of 80.5% in revenue for the first quarter. As at the end of March 2022, the orders of CIMC Enric in hand amounted to approximately RMB15.5 billion, representing a year-on-year increase of 34%. In the first quarter, new orders amounted to RMB4.8 billion, representing a year-on-year increase of 23.2%. From January to March, CIMC Offshore Engineering business had new effective orders of US$0.494 billion, representing a year-on-year increase of 54.4%, including US$0.188 billion for offshore wind power and clean energy and US$0.249 billion for ro-ro ships; the total value of orders in hand was US$2.2 billion, representing a year-on-year increase of 120%, while the value of orders for offshore wind power was approximately US$0.85 billion, accounting for 39%.
Highlights of business innovation: Satisfactory achievement in cold chain and container businesses
In the first quarter of 2022, with regard to the cold chain equipment of CIMC, due to the strong demand for refrigerated trucks in North America, sufficient orders were placed for refrigerated trucks, and the production capacity increased steadily. In March, the number of refrigerated trucks shipped hit a record high.
In terms of cold chain logistics services, CIMC continued to expand its professional services for medicine and fresh food. In terms of modular construction, in the first quarter of 2022, CIMC successively undertook the construction of a number of medical supporting facilities and quarantine site expansion projects in Xinyang, Henan, Hong Kong and Jiangmen, Guangdong.
Against the backdrop of the serious impact of the new outbreak caused by the “omicron” variant strain in regions, many subsidiaries of CIMC gave full play to their business and product advantages and supported the fight against the outbreak in regions in various forms.
For example, during the outbreak in Hong Kong and Shenzhen, CIMC provided containers and other logistics equipment in Shenzhen and other regions in a timely manner to ensure the logistics transportation and materials supply in Shenzhen and Hong Kong. In the fight against the outbreak, CIMC demonstrated its performance of corporate social responsibilities.
Meanwhile, the construction of mobile cabin hospitals and quarantine facilities caused a huge steel demand gap in Hong Kong in a short time, while CIMC Wetrans (the logistics services segment of CIMC) urgently undertook the task of transporting and supplying 14,000 tons of hot rolling materials through its sound global logistics service network.
At the beginning of the outbreak in Shanghai, there were problems of vegetable shortage and poor circulation in some areas. The recycled load business of CIMC produced urgently and allocated more than 60,000 pieces of recycled vegetable turnover baskets to Shanghai and surrounding areas to help stabilize the vegetable basket supply chain for the local people.