Thursday, April 15, 2021
 
Columnist
Martin Hennecke
 
BINHAI TEDA
HKEx Stock Code : 08348 
 
Corporate Profile
Principally engaged in the provision of comprehensive logistics services, mainly including supply chain solutions and materials procurement businesses and related services.

Business Review - For the year ended December 31, 2012

The principal businesses of the Group are logistics and supply chain services for transportation of finished automobiles and their components, logistics and supply chain services for electronic components, materials procurement and related logistics services and other services such as bonded warehouse, container yard, supervision, agency and transportation services. The major customers of the Group included Tong Fang Global (Tianjin) Logistics Co., Ltd. (同方環球(天津)物流有限公司), Tangshan Donghua Steel Group Co.,Ltd. (唐山市東華鋼鐵企業集團有限公司), Tianjin Tongguang Group Digitial Communication Co., Ltd. (天津通廣集團數字通訊有限公司), Zhonghai Jiaye International Trading Company Limited(中海嘉燁國際貿易有限公司), Tangshan Fengtian District Donggang Commercial and Trading Company Limited (唐山市豐南區東鋼商貿有限公司) and Toyota Tsusho (Tianjin) Co., Ltd. (豐田通商(天津)有限公司).

During the reporting period, affected by the unstable political relationships between China and Japan, the operating result of logistics and supply chain services for transportation of finished automobile and components decreased significantly compared to the corresponding period last year; logistics and supply chain services for electronic components recorded a stable increasing, with its operating scale and profits recorded different range of increasing as compared to the corresponding period last year; affected by the slowdown in China's economy and the Company's business transformation, materials procurement declined compared to the corresponding period of last year, with its principal operating income and operating profits both decreased by different levels; other services such as bonded warehouse, container yard, supervision, agency and transportation services maintained a good development momentum with further expansion of business scale.

The Group's logistics infrastructure construction and operation made smooth progress. The refrigeration storage project of Tedahang Cold Chain Logistics Co., Ltd (泰達行(天津)冷鏈物流公司), a controllingsubsidiary of the Group, was completed in the year.

In consolidating the traditional logistics businesses, the Group has actively expanded new areas of the logistics businesses, made use of synergy of its internal resources and acquired quality infrastructure logistics resources to achieve steady but yet rapid growth.

Logistics and Supply Chain Services for Transportation of Finished Automobile and Components

During the reporting period, the import volume of Toyota Motor and domestic automobile production were significantly affected by the unstable political relationships between China and Japan. As a result, the import volume of Japanese car decreased by 80% in fourth quarter and the domestic automobile production decreased by over 50% as compared to the corresponding period last year, which affected the operating result of logistics and supply chain services for transportation of finished automobile and components of the Group. The net profit decreased by 45% as compared to the corresponding period last year.

Logistics and Supply Chain Services for Electronic Components

During the reporting period, the electronic components logistics service recorded a stable increasing and realized an operating income of RMB560,260,000, representing an increase of RMB27,686,000 or 5% as compared to last year.

Materials Procurement and Related Services

During the reporting period, affected by the slowdown in China's economy and the Company's business transformation, the materials procurement business declined compared to last year, with a principal operating income of RMB701,026,000, representing a decrease of RMB295,337,000 or 30% as compared to last year.

Warehouse, Supervision, Agency and Other Incomes

During the reporting period, other services such as bonded warehouse, container yard, supervision, agency and transportation services maintained a good development momentum with further expansion of business scale. This segment recorded an operating income of RMB49,968,000, representing an increase of RMB9,164,000 or 22% as compared to the corresponding period of last year.

Business Outlook - For the year ended December 31, 2012

In 2012, with the influence of macroeconomic situation and China-Japan relationship, there was a significant fall in the logistics and supply chain services for transportation of finished automobile and components and automobile import business compared with the same period of the last year. The China-Japan relationship will be still unstable in 2013, which was expected to influence the operation of the Group continuously.

The logistics and supply chain services of electronic components is not impacted by China-Japan relationship temporarily, but the cost increase rather quickly, the more and more fierce market competition bringing the company some pressure.

From the aspect of the overall situation of Tianjin Port, the number of the import automobile shows a download trend, which also influences the related automobile import logistics business of Tianjin Fengtian Logistics Co., Ltd, a subsidiary of the company, Tianjin Port International automobile Logistics Co, Ltd., a indirectly held company of the company, and Tianjin Tianxin Automobile Inspection Services Co., Ltd.

In addition, though the Tianjin Port Cold Chain Logistics Center project of Tedahang Cold Chain Logistics Co., Ltd., a subsidiary of the company, was completed, because of being in the initial operation stage and thus unable to bring any benefit in the short time, the operation pressure is still rather heavy.

In 2013, the domestic economic development will still face a lot challenges, but it's expected to be fundamentally stable , and Tianjin and Binhai New Areas will still have a good development opportunity. The company came up with a work thinking of “Defining strategic positioning , integrating critical resources, expending systematic operation, enhancing comprehensive capability” ,made full use of the advantages of itself and the development opportunity of Tianjin, strove for superior resources, innovated operation and business mode, paid more attention to integration, strengthened the internal management, enhanced the cooperation and operation capability, so as to improve the overall operation capability and resist the influence of the unfavorable factors.

At the same time, the procurement and logistics business will come across a good development opportunity, and it's estimated that the business volume will increase significantly. The logistics of domestic consumption goods and cold chain is expected to keep the trend of enhancement, and the cold chain business exploring of the company will come across a good development prospect with the gradual playing of function of Tianjin Port Cold Chain Center project. Meanwhile, the Company has done a lot of preparatory work for the logistics of consumption goods, with a hope that the new business area can be explored.

In 2013, the opportunities and challenges will coexist, though the Company faces the influences of several unfavorable factors, by keeping on adjusting the business structure and exploring new business areas, it still has enough confidence for the future development.

Source: Tianjin Binhai Teda (08348) Annual Results Announcement
Chairman ZHANG Jian Issued Capital (shares) 98M
Par Value RMB 1 Market Capitalisation (HKD) 162M
 
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