Sinotrans profit drops 27pc to US$79m on 12pc more turnover
Sinotrans Limited reported 2006 profit attributable to shareholders this week that amounted to CNY618.8 million (US$79.95 million), a drop of 27.7 per cent from CNY827.7 million the group earned in 2005.
Total turnover reached an "historic high", rising from CNY28.79 billion in 2005 to CNY32.22 billion in 2006, an increase of 12.75 per cent, said a statement from the mainland-based Hong Kong-listed company.
Turnover of its freight forwarding operation, the company's core business, increased 15.8 per cent to CNY24.12 billion.
"Since the listing of Sinotrans Limited in 2003, our turnover has been growing continually, which recorded CNY32.22 billion last year. This demonstrates our accomplishment in fortifying our leading position as the largest integrated logistic services provider in China," said Sinotrans chairman Zhao Huxiang.
Sinotrans said it has developed its weaker sea, air, rail and road freight operations this year and had optimised the mix of traditional businesses to enhance efficiency and reinforce marketing to build up a major clientele.
Despite the sharp decrease in freight rates resulting from an imbalance in supply and demand, Mr. Zhao said: "We believe the rapid and strong development of China's economy is to continue, and GDP will grow approximately 8 per cent. The logistics transportation market in which the company operates is expected to expand, despite intensifying market competition.
"Moreover, external factors like oil price fluctuation at its high levels may result in possible slowdown of growth of some economies. The future will present us a favourable environment for the development of the company," he said.
Total turnover reached an "historic high", rising from CNY28.79 billion in 2005 to CNY32.22 billion in 2006, an increase of 12.75 per cent, said a statement from the mainland-based Hong Kong-listed company.
Turnover of its freight forwarding operation, the company's core business, increased 15.8 per cent to CNY24.12 billion.
"Since the listing of Sinotrans Limited in 2003, our turnover has been growing continually, which recorded CNY32.22 billion last year. This demonstrates our accomplishment in fortifying our leading position as the largest integrated logistic services provider in China," said Sinotrans chairman Zhao Huxiang.
Sinotrans said it has developed its weaker sea, air, rail and road freight operations this year and had optimised the mix of traditional businesses to enhance efficiency and reinforce marketing to build up a major clientele.
Despite the sharp decrease in freight rates resulting from an imbalance in supply and demand, Mr. Zhao said: "We believe the rapid and strong development of China's economy is to continue, and GDP will grow approximately 8 per cent. The logistics transportation market in which the company operates is expected to expand, despite intensifying market competition.
"Moreover, external factors like oil price fluctuation at its high levels may result in possible slowdown of growth of some economies. The future will present us a favourable environment for the development of the company," he said.
