Friday, March 5, 2021
Martin Hennecke
HKEx Stock Code : 00598 
Corporate Profile
The principal activities are freight forwarding, shipping agency, storage and terminal services, marine transportation, other services (mainly engaged in trucking and express services).

Business Review - For the year ended December 31, 2012

In 2012, against a backdrop of complicated domestic and international economic dynamics, the Group carried forward the work style of ¡§truth-seeking, pragmatic, pioneering and innovative¡¨ to start up a new phase of flourishing development through hard work. The Group proactively acted upon the adversity of external market environment, maintained steady growth of operations and ensured the completion of full-year budget in joint efforts of the staff members of the Group. In 2012, the Group achieved the following results:

¡E We overfulfilled the overall budget for 2012 while making steady progress in the quality of its development;

¡E We steadily promoted resources consolidation while continuously optimizing resources allocation;

¡E We promoted the implementation of integrated sales and marketing strategy with further improvement on customer structure;

¡E We pushed ahead business innovation and optimization and the rapid development of specialized logistic business;

¡E We enhanced synergies among business segments and within networks.

The year 2012 marks the tenth year of listing for the Group. In the past decade, the revenue of the Group quadrupled ahead of schedule, and the business scale stayed at the top in China's logistics market, occupying a leading position among the world-famous logistics enterprises. The core business of the Group gradually developed the core competitiveness of specialization, informationalization and integration. The operating pattern of integrated logistics was a combination of regional and central business segments within integrated network developing in harmony. In terms of regional structure, we gradually broke the confines of administrative division and implemented strategic reorganization according to economic regions so as to establish an operating pattern of regional subsidiaries. We adjusted asset structure from the asset-light strategy when we went public to a balanced asset structure with sufficient resources base. In terms of IT construction, we built our logistics IT system from scratch, hence effectively facilitated the networking and integration of our core businesses. The advancement and implementation of IT system enhanced our refined management capability. With respect of network coverage, we gradually increased the density of national networks and enhanced the capabilities of business synergies and network interaction. We emphasized both self-built network and agent network for overseas networks so as to gradually enhance our overseas presence and influences. With ten years' development, the comprehensive logistics competitiveness of the Group enhanced significantly. In respect of market segment, we have a group of domestic and international famous enterprises as our customer base with a significant increase of the percentage of strategic major customers and direct customers. The Group will uphold the core principle of ¡§development¡¨ in its future operation so as to facilitate the ongoing development of the Group.

Business Outlook - For the year ended December 31, 2012

According to the forecast by World Trade Organization (WTO), world trade will grow by 4.5% in 2013, higher than the growth of 2.5% in 2012. The growth of China's GDP is estimated to be around 7.5% in 2013. However, there are still great uncertainties and negative factors (such as the ¡§fiscal cliff¡¨ and ¡§debt-ceiling crisis¡¨ in US) in world economy that cannot be ignored. The recovery of European and Japanese economy is still a sluggish and arduous process. The world economy is unable to sustain the fast growth in the ¡§Golden Age¡¨ between 2003 and 2007 in short term. The Group will be fully aware of such situation and adopt necessary measures.

In general, the Group is prudently optimistic about the macroeconomic dynamics in 2013. Only through continuous improvement of corporate management level and enhancement of intensive growth momentum in the way of innovation, the Group is able to capture opportunities, withstand risks, overcome difficulties and accomplish the budget tasks. Based on its analysis and judgment on changes in internal and external environment, in 2013, the key ideas of the Group's work will be: To optimize business structure, enhance profitability and achieve development through innovation.

¡E The Group will ensure the achievement of full-year budget. The Group will attain balance and unity among budget achievement, business structure adjustment and profitability enhancement by ensuring budget achievement while adjusting and optimizing business structure and enhancing profitability. As the development of domestic trade logistics business is the focus of business structure adjustment, the Group will improve its business line management and boost the development of domestic trade logistics business. The economy of scale of cargo-space booking platform will be brought into play, and its functions will be enhanced to achieve intensive operation and refined management so as to ensure its sustainable and rapid development. The development of air freight forwarding business will be accelerated.

¡E The Group will optimize the resources consolidation efforts by continuing to accelerate the consolidation of integrated logistics resources while increasing the allocation of internal resources, optimizing and adjusting organizational structure so as to cope with the market competition effectively.

¡E The Group will facilitate the development of specialized logistics business. In the past few years, the Group made considerable progress in developing specialized logistics business, especially in areas such as project and energy logistics, automobile parts logistics, and gained market recognition. The Group will adhere to the advancement of specialization with an aim to gain and maintain its leading market position in logistics with high entrance barrier such as project logistics, energy logistics, contract logistics, chemical products logistics and cold chain logistics in China. Meanwhile, the Group will keep up with the development trends of e-commerce logistics and enhance competitiveness through innovation.

¡E The Group will promote the integrated sales and marketing strategy and increase the percentage of major customers and direct customers, which will, in turn, further optimize customer structure and increase profit margin so as to effectively reduce operation risks. The Group will step up efforts in the exploration of strategic customers, innovating marketing strategy and enhancing the service level.

¡E The Group will perfect the establishment of internal control system by continuing to strengthen it with full coverage of the entire process.

¡E The Group will carry out safe production based on the idea for its work of stressing the key points, deepening implementation of management system and steady promotion of standardization.

The Group will continue to uphold and promote the business philosophy of ¡§truth-seeking and pragmatic, pioneering and innovative¡¨ to start up a new phase of flourishing development and facilitate the healthy and sustainable development of the Group.

Source: Sinotrans (00598) Annual Results Announcement
Chairman Zhao Huxiang Issued Capital (shares) 1,787M
Par Value RMB 1 Market Capitalisation (HKD) 3,003M
Register  Forget Password
Advanced Search
© 2021 The Standard, The Standard Newspapers Publishing Ltd.
Home | Business | Metro | Focus | Opinion | Markets | World | Sports | Entertainment | Monday Money | Property | Macau | Weekend