The three major shipping enterprises are thirsty for money: COSCO plans to issue bonds overseas. Shipping enterprises are supplementing their own funds through various channels to survive the "cold winter" of shipping without any signs of recovery
on November 19, COSCO (01919, HK; 601919, SH) announced in the Hong Kong stock exchange that it planned to issue bonds overseas; Yesterday (November 20), China Shipping Development (01138, HK; 600026, SH) also announced that the 2.5 billion yuan corporate bonds to be issued would be listed today; Yesterday, CSCL announced that it sold some of its own containers at a price of US $358.6 million, with a net profit of US $112million. However, it needs to rent these containers back at a rent of US $221.3 million for four years, with obvious intention of obtaining short-term funds
there is no sign of warming in the cold winter of the shipping industry. According to the three quarterly reports released by China's three major listed shipping companies, in addition to the net profit loss in the first three quarters, the operating cash flow of the three companies was also poor. Industry analysts told the daily economy that under the situation that the industry downturn is difficult to improve in the short term, major shipping enterprises have raised funds through various channels to escort the stable long-term development strategy. At present, issuing bonds seems to be the main way of financing
in an interview with the daily economy, a relevant person of CSCL said that the main purpose of selling containers is to increase the company's cash flow and improve its financial situation. It can also achieve net profit to turn losses and avoid being "sold by ST"
poor performance financing quenches thirst
China Shipping Development announced yesterday that the RMB 2.5 billion bonds to be issued will be listed and traded on the Shanghai Stock Exchange today, and will be underwritten by the joint lead underwriters Guotai Junan Securities Co., Ltd. and China International Finance Co., Ltd. in the form of balance underwriting
on November 19, COSCO also announced its plan to issue bonds overseas at the Hong Kong stock exchange. Whether the position of BOC is appropriate and whether HSBC will be the initial subscriber of the bonds, the amount, terms and conditions of the bonds to be issued will be further determined
analysts pointed out that although bond financing is not the only way for shipping enterprises to obtain funds, it seems to be an effective measure that can be widely adopted by shipping enterprises at present
"at present, it may only be through bond issuance", a senior researcher in the shipping industry told the daily economy yesterday, "the financing methods are mainly equity financing and bond financing, but equity financing is obviously something that shipping enterprises are unwilling to take: on the one hand, the stock price is low, and enterprises are unwilling to" sell at a low price "; on the other hand, it is not good to protect the peace, security and stability shipping market in the South China Sea, and investors lack enthusiasm."
according to the three quarterly reports, the net cash flow from operating activities of COSCO, China shipping container shipping and China Shipping Development in the first three quarters was negative, about -5.353 billion yuan, -444 million yuan and -8.799 million yuan respectively
"the current market is not good, so we will certainly try our best to add more chips to ourselves." A COSCO insider told a few days ago that COSCO's issuance of bonds overseas may be intended to reserve more grain for shipping in the "winter"
"at present, the difficulties faced by the shipping industry are far more than expected, the operating conditions of enterprises are not ideal, there are signs of capital shortage in major shipping enterprises, and the large debt burden will become an important factor hindering their long-term development." Caijianming, a researcher in the transportation industry of CIC consultant, said, "it is unknown when shipping will recover. The purpose of shipping enterprises to collect heavy capital is very clear: they try to provide good support for the subsequent issuance of this production line to Changzhou cubic Energy Technology Co., Ltd. through the collection of funds. After all," having food in hand and not worrying "is also applicable to shipping enterprises."
in addition to issuing bonds for financing, selling assets is also a helpless measure for some shipping enterprises to increase funds. Chongqing Gree air conditioner
a shipping industry official said that the decline of the shipping industry is difficult to improve in the short term. Major shipping enterprises have raised funds through various measures to protect the long-term development strategy
after COSCO planned to transfer 29.7% of the equity of Shanghai Orient COSCO Logistics Co., Ltd. with RMB 562million in Shanghai Stock Exchange at the beginning of November, China shipping container shipping yesterday announced that the company's affiliated China shipping container transportation (Hong Kong) Co., Ltd. (hereinafter referred to as "container shipping Hong Kong") and China shipping container transportation (Asia) Co., Ltd. (hereinafter referred to as "container shipping Asia") planned to sell 210481teu of their own containers (3-6 years old), The sale price totaled US $358.6 million (about RMB 2.236 billion)
CSCL said that since this batch of assets were purchased at a low price 3~6 years ago, it can realize a large appreciation according to the current market price evaluation. The transaction can improve the company's cash flow and financial situation. It is estimated that the net profit from the transaction will be US $112million (about 698million yuan)
for example, relevant persons from shipbuilding, construction, large-diameter welding and boiler China shipping container terminal told the daily economy yesterday that the above transactions can not only increase the company's cash flow and improve its financial situation, but also increase the net profit to turn losses into profits and avoid being St. According to the third quarterly report, the net profit of China Shipping consolidated transportation in the first three quarters was about -290million yuan
Shenyin Wanguo commented yesterday that considering the sale of container assets by CSCL, the company raised its 2012 profit forecast to 297million yuan (the original forecast was a loss of 402million yuan)
although CSCL can help the company achieve performance turnaround by selling assets, it also needs to pay a price
CSCL announced yesterday that in order to ensure the orderly production and operation of the company's containers, the containers disposed of in this transaction will be leaseback in Hong Kong and Asia according to the company's container retention plan. The lease term is 4 years, and the total rent is about US $221.3 million (about RMB 1393.5 million). This is more than $100million more than the $112million net profit of the transaction
the above-mentioned China Shipping Container Lines admit to the fact that the cost of leasing may be higher than the cost of self owned containers, but the sale and leaseback has obtained the required funds on the premise of continuously retaining and using the original container assets
"it was a long-term cost advantage to buy it when it was cheap before," a senior researcher of shipping said, "selling it now is equivalent to accumulating the long-term cost advantage."