COSCO International announced its 2010 results. The overall gross profit margin decreased from 26% in 2009 to 8%, which was mainly due to the decrease in the gross profit margin of the coatings business, the lower gross profit margin of the shipping fuel and other products business, and the revenue from these two businesses. The proportion has risen sharply.
Revenue increased by 432% to 8.667 billion yuan, of which, the shipping service segment revenue increased significantly by 628% to 8.078 billion yuan, and the profit before the income tax segment increased by 26% to 410 million yuan. Driven by the surge in overall revenue, operating profit rose by 57% to 294 million yuan.
Profit attributable to equity holders amounted to RMB1.2686 billion, an increase of 50%. Excluding Sino-Ocean Land's profit contribution of RMB 437 million; One-off gain of RMB 546 million confirmed from the sale of 16.85% equity of Sino-Ocean Land; and Sino-Ocean Land’s net loss/earnings deemed to be a partial disposal of Sino-Ocean Land’s equity due to additional shares As a result, profit attributable to equity holders increased by 18% to RMB 287 million on the same basis.
As of December 31, 2010, the total bank borrowings increased significantly from RMB 11.725 million to RMB 207 million. This was mainly due to the recovery of the coating business during the year and the significant increase in the asphalt business, in order to cope with the related demand and low utilization. In the interest rate environment, the overall level of borrowing has been appropriately raised. The gearing ratio is calculated by dividing total borrowings by total assets by 2.2% and by 0.2% in 2009.