() The operating comments of the Board of Directors in 2023 are as follows:
I. Discussion and analysis of business conditions
In 2023, all the ship and shore employees of the company closely focused on the working idea of "practicing the blueprint goal with value creation, taking the road of reform with integrity and innovation, setting sail again for a new journey and making contributions for 40 years" determined at the beginning of the year, and made overall plans to promote business management and safety production. In 2023, the company completed a container transportation volume of 2,134,500 TEUs, with an annual operating income of 5,266,128,800 yuan and a net profit of 742,544,400 yuan.
(A) with precision and efficiency as the core, to promote the construction of key projects.
First, the reform project landed smoothly. In the context of the implementation of the comprehensive registration system, the company officially landed on the main board of the Shanghai Stock Exchange on December 5, which made another important milestone in the company’s development. Second, digital intelligence shipping was effectively promoted. The company and Shanghai Ship Research and Design Institute successfully held the signing ceremony of 12 intelligent ship construction projects, which became a powerful starting point to enhance the company’s ship management level. With the help of intelligent management and control system, a good situation of ship-shore linkage and information sharing was formed. The third is the orderly implementation of capacity renewal. The first ship of four 1,900TEU Bangkok-type ships ordered by the company was successfully named and delivered, and successfully made its maiden voyage in Shanghai Port on October 12th. This ship was put into operation on Southeast Asian routes, which not only enriched the company’s capacity structure and scale, but also provided capacity guarantee for building quality services on Southeast Asian routes. By the end of the reporting period, the company had operated 48 ships, including 24 self-owned ships and 24 chartered ships, with a total capacity of 45,100 TEU. According to the data of international authoritative research institute Aphainer, the total capacity of the company ranks 7th in Chinese mainland container liner company and 34th in the world container liner company. During the year, the construction of 10,000TEU new containers was completed, and the service capacity of the company’s overall container team was improved. The fourth is to set up a network to advance in depth. The company continues to improve its overseas network setting and accelerate the pace of "going out" development. During the reporting period, the company set up a new self-operated outlet in Japan to further consolidate the service guarantee and market collection function for superior routes; In line with the layout of Southeast Asian routes,Self-operated outlets in Thailand and Vietnam have been set up successively, which not only extends the service tentacles, but also penetrates the concept of quality service into the Southeast Asian market. At the same time, with the help of the existing Manqiang shipping platform, the company has increased its self-operated function as an agent. By the end of the reporting period, the company has set up 14 domestic outlets including Shanghai, Qingdao, Dalian and Xiamen, and 13 overseas sales and service outlets involving Hong Kong, China, Taiwan, China, Japan and Viet Nam.
(B) to activate kinetic energy as the goal, and strive to improve the ability of operating efficiency.
First, the traditional route is stable and efficient. In terms of routes in Northeast Asia, the overall export quasi-shift rate of China-Japan routes maintained a leading position in the market, and the service capacity of boutique routes was further stabilized. In addition, the company officially launched the HDS(HotDeiveryService) fast delivery service in Dalian Port to meet the high-end service demand in the northern market, and the differentiated service capability was further highlighted. In terms of cross-strait routes, the company maintains a stable market share by adopting active market strategies; Through route optimization, the port services of Ningbo and Lianyungang ports have been increased. In 2023, the market share of the company’s Shanghai-Japan line market and cross-strait routes in Shanghai continued to be the first in the market. Second, the route expansion has progressed steadily. On the one hand, the company has opened up the South Korea-Indonesia route, simultaneously planned the extension of the boutique route structure, and jointly established the Haiphong Silk Road Express with Shanghai Port and trunk shipping company, and the products of this route won the award of "TOP30 Innovation Case of Port and Shipping Logistics Industry in 2023"; The company also launched Thai-Vietnamese Silk Road Express and added Cambodian port service to further deepen the influence of the company’s brand building in Southeast Asia and its customer service capabilities. The company’s two "Belt and Road" routes, Haiphong Silk Road Express and Taiyue Silk Road Express, have become the named routes of "Silk Road Shipping". On the other hand, the company has made great efforts to expand the Southeast Asian market, seek business innovation, and strive to tap the potential in special boxes and transit boxes, and achieved good results. The third is the extension of shipping logistics services, and the whole chain guarantees the main business operation. The company continues to develop products and promote business around water, iron and public logistics.Transport services such as rail transit and water transit have been steadily advanced. In terms of whole-process logistics, through the integrated utilization and optimized allocation of various resources in the shipping industry chain, relying on multi-platform and multi-type intermodal transport resources, the company strives to smooth the efficient connection of logistics transshipment modes, while providing supporting services for the main business sector, it promotes the steady increase of logistics extension containers, and further strengthens the company’s end-to-end logistics transportation capacity.
(3) With the aim of low-carbon and environmental protection, thoroughly implement the concept of green ships.
Combined with the monitoring and management of IMODCS energy consumption data and the coming into force of EEXI/CII Convention, we continued to do a good job in monitoring the carbon emission intensity (CII) of ships, and cooperated with Shanghai Ship Research and Design Institute to build a monitoring and early warning platform for CII of ships, which achieved good results. The new 1,900TEU series ships are equipped with shore power facilities and intelligent ship systems, which have been optimized and upgraded in terms of environmental protection, safe operation and intelligent management and control. The new ships delivered have obtained the i-SHIP intelligent ship logo issued by China Classification Society and obtained a high CII rating.
(D) Take risk management and control as the essence, and comprehensively build a risk management system.
Continue to carry out the economic responsibility audit of leaders of member units at home and abroad; Start the special inspection of the company’s related transactions, large capital transactions and other important matters for the first time; Carry out special risk assessment to achieve zero risk declaration; Follow up the risk prevention and control of major projects, important businesses and key nodes; Pay attention to the accounts receivable of enterprises.
(E) Building a harmonious home culture and promoting the high-quality development of enterprises.
First, in the process of deepening enterprise reform and development, we will unswervingly fulfill the political, economic and social responsibilities of state-owned enterprises, stimulate the pride of employees, and cultivate their spirit. The second is to strictly control the selection and employment of people politically and honestly, consolidate the construction of talent team, and help the company to draw a new chapter and develop with high quality. Hierarchical and echelon talent team construction has entered the specific implementation stage, relying on the talent training plan to carry out attachment training. Simultaneously improve the talent evaluation mechanism and strengthen the incentive and restraint mechanism. The third is to unite the strength of forging ahead and build a harmonious home. Insist on safeguarding the rights and interests of workers, win their trust, unite their strength, take the initiative to listen to their voices, focus on solving the practical problems that the workers are most concerned about, the most direct and the most realistic, and enhance their happiness.
Ii. the industry in which the company is located during the reporting period.
(A) the international container shipping market
From the performance of the whole year of 2023, the demand growth of the international container shipping market is relatively weak. According to Carksons data, it is expected to increase by 0.4% year-on-year. However, the growth rate of the international container fleet continues to be high, and it is expected to increase by 8.2% year-on-year. The effective transportation capacity of different routes has shown a rapid increase. Affected by this, the average export container comprehensive freight index (CCFI) of China decreased by 66.4% year-on-year. Affected by the Panama Canal congestion and the Red Sea crisis, the container shipping freight rebounded slightly at the end of the year.
In recent years, the international container shipping market has developed rapidly as a whole. According to Carksons data, from 2002 to 2023, the total freight volume of international container shipping increased from 73.43 million TEU to 201.05 million TEU, with a compound annual growth rate of 4.91%. In 2023, the freight volume of the East-West route, the North-South route and the Asian route was 81.12 million TEU, 33.9 million TEU and 62.04 million TEU respectively, accounting for 40.35%, 16.86% and 30.86% of the total freight volume in the world respectively. In terms of freight volume growth, from 2002 to 2023, the annual growth rates of freight volume of east-west routes, north-south routes and Asian routes were 4.09%, 4.21% and 6.78% respectively. The intra-Asian routes are the fastest growing segments in the international container shipping market, so the proportion of freight volume is also increasing. Influenced by macro-economy, transportation cost, market supply and demand, the international container shipping price shows the characteristics of periodic fluctuation.
(B) The overall situation of the Asian container shipping market
In 2023, the Asian container shipping market is under pressure as a whole, and the market trends in different regions are slightly different. According to Carksons data, the intra-Asian container shipping trade volume decreased by 1.6% year-on-year. The pattern of container shipping market in Northeast Asia is relatively stable, and the competition in container shipping market in Southeast Asia is more intense, and the freight rate is relatively volatile. Affected by the slow recovery of demand, the callback of main route capacity and the acceleration of ship turnover, the freight rate of container routes from China to Southeast Asia dropped significantly. According to the Shanghai Export Container Freight Index (SCFI), the freight index from Shanghai to Southeast Asia (Singapore) dropped by 79.23% year-on-year. At the end of the year, due to the Red Sea crisis and the congestion of the Panama Canal, the freight rates of main routes in Asia showed an upward trend.
Generally speaking, Asia is still the fastest growing sub-region in the international container shipping industry. From 2002 to 2023, the annual growth rate of container transportation freight volume is expected to be 6.78%, which is significantly higher than the east-west route’s 4.09%, the north-south route’s 4.21% and the world average’s 4.91%. ASEAN has become a highland for global economic growth. According to the forecast of the Asian Development Bank, the economic growth rate of Southeast Asia is expected to be 4.3% in 2023, among which Indonesia, Vietnam, Malaysia and Cambodia have performed well. With the continuous improvement of infrastructure such as ports, waterways and roads in Southeast Asia in the future, RCEP is expected to promote the overall scale growth of intra-regional trade in Asia and effectively stimulate shipping demand.
Iii. Business of the Company during the reporting period
Jinjiang Shipping is a comprehensive shipping company, mainly engaged in international and domestic maritime container transportation business, and has been deeply involved in Northeast Asia, Southeast Asia and domestic routes for many years. Adhering to the brand strategy, supported by the high accuracy rate of ships and relying on the special services such as HDS(HotDeiveryService), the company has built a number of boutique routes such as Shanghai Japan, Taicang Japan, Qingdao Japan and Dalian Japan, and realized the layout of "two centers" between China and Japan and "two-way radiation" among major ports in China and Southeast Asia. By the end of the reporting period, the company had operated 48 ships, including 24 self-owned ships and 24 chartered ships, with a total capacity of 45,100 TEU. According to the data of international authoritative research institute Aphainer, the total capacity of the company ranks 7th in Chinese mainland container liner company and 34th in the world container liner company. From 2020 to 2023, the market share of the company’s Shanghai-Japan route and Shanghai cross-strait route ranked first in the industry. On the basis of improving and strengthening the marine container transportation business, the company has thoroughly implemented the development strategy of "one main body and two wings", steadily expanded the value chain of the shipping industry, and actively built a comprehensive logistics service system to provide customers with diversified, differentiated and personalized services. The company upholds the core values of "community of honor, interests and destiny", follows the business philosophy of "customer first, honest management and excellent service", and inherits the corporate mission of "creating green shipping and enjoying convenient logistics". The company always focuses on its main business and constantly optimizes its business upgrade.Strive to seek management breakthroughs, fully develop corporate culture, continue to promote brand building, and strive to become a regional excellent shipping enterprise with container transportation as its core. The company enjoys a high reputation and influence in the industry, and has won the titles of "Shanghai Famous Trademark" and "Shanghai Famous Brand" for many years, and won many awards such as "Shanghai May 1st Labor Award" and "Safety and Integrity Company" of China Maritime Safety Administration. The company was awarded "National 5A-level Logistics Enterprise" and successively won the honors of China Freight Industry Award, Top Ten Container Liner Companies with Comprehensive Service, Best Container Liner Company with Window Service and Carrier Innovation Award.
Iv. analysis of core competitiveness during the reporting period
(A) superior location advantages
Headquartered in Shanghai, the company mainly arranges international routes and domestic routes around Shanghai Port, with high route density and natural geographical development advantages. Shanghai is one of the regions with the fastest economic development, the highest degree of openness and the strongest innovation ability in China, the largest economic center city in China, the core city of the Yangtze River Delta urban agglomeration and an important international financial center city. Relying on the advantages of superior geographical location, developed economic hinterland and outstanding port scale, from 2020 to 2023, Shanghai ranked third in the comprehensive strength ranking of international shipping center cities, second only to Singapore and London. In order to further enhance the energy level of Shanghai International Shipping Center, the Shanghai Municipal People’s Government has compiled the 14th Five-Year Plan for the Construction of Shanghai International Shipping Center. From 2021 to 2025, Shanghai will exert the radiation effect of the shipping industry, strengthen the global shipping resource allocation capacity, promote the high-quality integrated development of port and shipping, and comprehensively enhance the soft power of shipping development, thus creating a more internationally competitive business environment for shipping enterprises. The company will have the opportunity to enjoy more location policy dividends. At the beginning of its establishment, the company undertook the heavy responsibility of revitalizing the local state-owned shipping industry in Shanghai, and realized the gathering of local state-owned shipping resources in Shanghai through the reform of state-owned assets and state-owned enterprises.
(B) the advantages of focused shipping network system
1. Liner routes focus on core markets.
The company’s liner routes mainly focus on the core market, and the route network reaches the domestic coastal areas, cross-strait areas, Northeast Asia, Southeast Asia and other major Asian offshore areas, and the route network and route schedule are stable and reliable. By December 31st, 2023, the company had operated 29 routes, supported by the high accuracy rate of ships and relying on the special services such as HDS(HotDeiveryService), and built a number of excellent routes such as Shanghai Japan, Taicang Japan, Qingdao Japan and Dalian Japan, and realized the layout of "two centers" between China and Japan and "two-way radiation" among major ports in China and Southeast Asia. At the same time, the company’s Shanghai-Japan route and Shanghai cross-strait route have higher schedule density, and its market share ranks first in the industry.
2. Supporting service outlets provide protection.
The company took the development step of "going out" earlier, and with the business development, the pace of setting up network at home and abroad was further accelerated. By the end of the reporting period, the company has set up 14 domestic outlets in Shanghai, Qingdao, Dalian, Tianjin, Xiamen, Wuhan, Nantong, Taicang, Chongqing, Wenzhou, Guangzhou, Lianyungang, Ningbo and Shenzhen, and 13 outlets in Hong Kong, China, Taiwan, China, Japan, South Korea, Vietnam, Thailand, the Philippines, India, Singapore, Malaysia, Brazil, Cambodia and Indonesia.
3. Integrated logistics extends the service chain
Focusing on the main business of container transportation, the company actively expands and extends the shipping logistics service chain, builds an industrial layout in which the whole process resources and business are linked with each other, and actively responds to the strategic layout of the country for promoting multimodal transport and adjusting the transportation structure. Taking the logistics center as the platform, the company integrates the company’s multimodal transport business, gathers the resources of each module and concentrates its efforts, and has successively launched logistics projects such as sea-rail combined transport and ICT (Inland Container Hub), providing customers with diversified, personalized and efficient logistics solutions by constantly developing and updating sites; Provide customers with door-to-door logistics and transportation services, and realize the synchronous improvement of logistics box volume in the whole process.
(C) service innovation and brand image advantages
The company adheres to the development concept of "customer first, honest management and excellent service", provides personalized and customized services based on customer needs, pursues excellent service quality, and reflects its core competitiveness and brand influence with high-quality services. By building a multi-level service model of boutique routes, HDS and SuperHDS, the company focused on customers’ needs for high-quality shipping segmentation, provided efficient maritime transportation solutions, and constantly improved its service capabilities to create greater value for customers, thus enhancing its brand influence in the market. According to the differentiated needs of customers, the company provides customers with special box transportation services such as clothes hangers and freezers, as well as special goods transportation services. The related special services further enhance customer satisfaction and improve the company’s market recognition.
The company has won the titles of "Shanghai Famous Trademark" and "Shanghai Famous Brand" for many years, and successively won the honors of "China Freight Industry Award", "Top Ten Container Liner Companies with Comprehensive Services", "Best Container Liner Company with Window Service" and "Carrier Innovation Award" in the industry.
(D) Advantages of advanced digital information management system
The company promotes the application of intelligent ship digital operation support system (DOSS system) in existing ships and new shipbuilding, which provides strong kinetic energy for the safe and stable operation of ships and helps the route service to a higher level. At the same time, relying on the global shipping business network (GSBN) data platform, we will further promote the expansion of blockchain technology innovation application scenarios and help enterprises accelerate digital transformation. The blockchain paperless bill exchange service of electronic bills of lading can be completed by launching one-click online at multiple ports. In addition, in the application of the Internet of Things, the company further promoted the development of refrigerated containers based on the Internet of Things, and configured the intelligent monitoring terminal equipment IBOX for refrigerated containers, which realized the visualization of the whole process of refrigerated container transportation and effectively ensured the safety and controllability of cargo transportation.
(E) Organizational structure and advantages of human resources
The company is committed to the modernization of the governance system, has an organizational structure that can adapt to the company’s business planning, and can provide a strong organizational guarantee for the realization of the company’s strategic goals and sustainable development. The company has continuously optimized its organizational structure and established an efficient and intensive document center to simultaneously improve its management and control capabilities and efficiency; At the same time, the company simultaneously promoted the financial sharing center and commercial audit center, and built a standardized data platform through the sharing concept of "high efficiency, unity and compatibility" to improve management efficiency and effectiveness. By constantly optimizing the organizational structure, the company builds a crew with appropriate scale, optimized structure and excellent quality, and improves the training mechanism of business and management talents, so as to achieve the goal of improving core competitiveness through optimizing the organizational structure and human resources in different dimensions.
(VI) Advantages of corporate culture and business philosophy
The company actively practices and constantly promotes the construction of corporate culture, firmly establishes the business philosophy of "customer first, honest management and excellent service" in its work, adheres to the core values of "community of honor, interests and destiny" in practice, and inherits and carries forward the corporate culture concept with shipping characteristics in the development of corporate vision, which strives to become a regional excellent shipping enterprise with container transportation as its core. The company’s corporate culture and business philosophy provide continuous endogenous power for enterprise development. At the same time, in order to promote the high-quality and sustainable development of enterprises, the company consistently adheres to the business philosophy of green development, and takes "creating green shipping and enjoying convenient logistics" as its corporate mission, and actively practices corporate social responsibility under the current "double carbon" background.
V. Main operations during the reporting period
In 2023, the company achieved an operating income of 5,266,128,800 yuan, a year-on-year decrease of 23.01%; The net profit returned to the mother was 742,544,400 yuan, down 59.36% year-on-year, mainly due to the slowdown of global economic growth in 2023 and the changes in supply and demand in the container shipping market, which led to the decline in container transportation prices. The average value of China Export Container Freight Composite Index (CCFI), which is closely related to the company’s main business, decreased by 66.43% year-on-year. In the case of high performance base in the same period of last year, the company’s shipping business income decreased year-on-year, resulting in a decrease in the company’s current performance compared with the same period of last year.
VI. The Company’s Discussion and Analysis on the Company’s Future Development
(A) the industry pattern and trends
1. Green and low carbon promote the transformation of container shipping industry.
In order to further promote the international maritime greenhouse gas emission reduction strategy, the 80th session of the Maritime Environmental Protection Committee of the International Maritime Organization (IMO) (MEPC80) in 2023 set the latest greenhouse gas emission reduction target for ships. By 2030, the total annual greenhouse gas emissions from international shipping will be reduced by at least 20% compared with 2008, and strive to reduce by 30%; By 2040, the total annual greenhouse gas emissions from international shipping will be reduced by at least 70% compared with 2008, and efforts will be made to reduce it by 80%; Reach the peak of international greenhouse gas (GHG) emissions by sea as soon as possible, and achieve zero net emissions around 2050. From the policy point of view, IMO’s short-term emission reduction measures were formally implemented at the beginning of the year, the revision of international and regional laws and regulations was further improved, and the influence of the EU carbon emissions trading system ETS was increasingly apparent; From the market point of view, the demand for replacement of alternative fuel ships has increased, and some shipping companies at home and abroad have started the new trend of building clean fuel-powered ships such as LNG and green methanol.
2. Digitalization injects into the development of container shipping industry ()
Under the background of digital economy, satellite communication, 5G network, big data, blockchain, cloud computing, AI and other technologies and applications have accelerated their popularization, which has promoted the digital transformation and upgrading of the container shipping industry. On the one hand, in line with the trend of digitalization and intelligence in the shipping field, the traditional container shipping business is facing the accelerated integration of "offline" and "online" business and the digital upgrade of customer service; On the other hand, continuous breakthroughs have been made in smart ports, digital ports, and smart logistics, which have driven the demand for digital upgrading of the whole container process and supply chain; In addition, the exploration of digital empowerment paths such as blockchain bills of lading at the front of containers is accelerated, which provides a new direction for the future digital transformation of containers. With the development and test of unmanned autonomous intelligent ships and the continuous improvement of fully automatic shipping technology, shipping wisdom can effectively improve the energy efficiency, safety and reliability of shipping, and reduce the operating costs of enterprises while improving the systematicness, accuracy and stability of shipping company management.
3. High-energy port hub will provide strong support for optimizing container shipping service capacity.
Port is the basic and pivotal facility of container shipping industry, and it is an important link in supply chain and industrial chain. A high-energy port hub can give full play to the service and support functions of the port. China attaches great importance to the construction of high-energy ports. The Ministry of Transport pointed out in the 14th Five-Year Development Plan of Water Transport that it will focus on international hub seaports and major ports, optimize the allocation of stock resources, expand the incremental supply of high quality, build high-energy port hubs, build a world-class port group, and strengthen the functions of international hub seaports, which will effectively enhance the connectivity of international hub seaports and improve the service capacity and radiation range of the shipping logistics chain. As an important fulcrum for China to build a high-energy port hub, Shanghai Port has made great efforts to promote the construction of Yangshan Phase IV automatic terminal and the reconstruction of container terminal in Luojing Port Area. With the empowerment of intelligence and informationization, it has greatly improved the port efficiency and shortened the stay time of goods in Hong Kong, providing strong support for comprehensively improving the shipping logistics service and support capabilities. At the same time, Shanghai Port will further strengthen the innovation drive, upgrade its energy level, and strive to build a world-class hub port; Strengthen the resource allocation capacity of international shipping hubs, and provide empty container services for shipping companies and customers in the region through the Northeast Asia Empty Container Dispatching Center, effectively improving the comprehensive service level of port shipping.
4. Multimodal transport will further optimize the comprehensive service capacity of container shipping supply chain.
Multi-modal transport is a kind of goods transport service that relies on the effective connection of two or more modes of transport and provides a whole-process integrated organization. It has the characteristics of long industrial chain, high resource utilization rate and good comprehensive benefits, and is of positive significance for promoting the logistics industry to reduce costs and increase efficiency, the green and low-carbon development of transportation and improving the modern comprehensive transportation system. With the promotion of integrated planning and construction of China’s port hub, the future port, other modes of transportation and logistics stations and other infrastructure will be planned and managed in a unified way. Improve the efficiency of port multimodal transport and the comprehensive service level of shipping logistics by coordinating the functions of intermodal transport, port, bonded and logistics. At the same time, relying on the development of multimodal transport and logistics integration, we can provide customers with various logistics services such as transportation, freight forwarding, warehousing and distribution, and the trend of integrated logistics services is becoming increasingly obvious.
(II) Company development strategy
Adhering to the development vision of becoming a "regional excellent shipping enterprise with container transportation as the core", the company adheres to the differentiated development model, and on the basis of improving and strengthening the marine container transportation business, it deeply implements the development strategy of "one master and two wings", steadily expands the value chain of the shipping industry, actively builds a comprehensive logistics service system, provides customers with diversified, differentiated and personalized services, and practices "creating green shipping and enjoying convenient logistics" through a steady and sustainable business model. In the future, the company will continue to focus on key business areas and seek high-quality innovation and development on the basis of giving full play to its existing advantages. Focusing on the main shipping industry, the company will further improve the international and domestic maritime container transportation business, firmly consolidate the brand effect of the company in the field of quality shipping services, strive to expand the value creation boundary of shipping logistics services, refine and enhance the management and professional service capabilities, and steadily build a high-quality shipping highland with excellent service, excellent management and excellent benefits.
(3) Business plan
In 2024, the company will adhere to the general tone of steady progress, start a new journey and a new starting point for the development of public companies in an all-round way, deeply understand the operation trend of the shipping market and the development law of the capital market, make overall plans for the domestic and international shipping markets, and pay close attention to it; We should not only look at the overall strategic situation and firmly implement the "14th Five-Year Plan", but also devote ourselves to developing a new bureau and take various measures to foster new development momentum and promote the company to achieve high-quality sustainable development.
The company’s business plan for 2024: the container transportation volume is 2.42 million TEU.
The main work measures to be taken to achieve the above objectives are planned:
1. Focus on the construction of three dimensions and deepen the driving force of reform.
First, the business dimension. On the one hand, according to the development requirements of listed companies and the company’s "Tenth Five-Year Plan" development plan, we plan and implement the business construction and development plan, stabilize the ballast stone of Northeast Asia route operation, make good use of the booster of Southeast Asia route operation, and lay a good combination of emerging regional route operation to enhance the company’s sustainable profitability. On the other hand, in combination with the scale of funds raised, we should coordinate the basic requirements of maximizing the interests of enterprises and refining the project construction, and implement fundraising projects in an orderly manner. We should carefully prepare for the application of green, low-carbon and intelligent technologies in new shipbuilding projects, and fully combine the renewal of old ships, market conditions and business needs to start the implementation of new ships and containers and intelligent ship transformation projects. Second, the institutional dimension, we should continue to optimize the construction of internal control system; Relying on perfect system norms, we should pay close attention to the key links of standardized governance of listed companies, and focus on all-round compliance control of corporate governance, related party transactions, information disclosure and other matters. Third, the dimension of talent construction. It is necessary to organize and implement the training plan for talents with management training and hierarchical and echelon training. At the same time, it is necessary to build a wide platform, explore the learning mode of employees’ foreign exchange, and activate the endogenous motivation of enterprises.
2. Focus on the main business operation and make precise efforts.
In the aspect of traditional airline operation, we will enhance the operational advantages of differentiated airline services. Northeast Asian routes should continue to implement brand strategy and enhance differentiated service capabilities; It is necessary to deepen the "dual-brand" integrated operation measures abroad and strive to improve the quality and efficiency of operations; It is necessary to strive for international transit of goods and provide support for the full completion of the target of container volume on the route. Cross-strait routes should focus on improving the loading rate, strengthening customer visits and market development, and maintaining a stable market share and container volume.
In terms of new route development, it is necessary to continuously enrich the "Silk Road Series" route products, promote the full release of brand effects in Southeast Asian routes, and create a highland of operational benefits for Southeast Asian routes from point to area; Plan the joint development of many regional routes, strengthen the circular design of routes connecting the three major navigation areas of Northeast Asia, East Asia and Southeast Asia, and realize the benign situation of complementary advantages, resource sharing and multi-linkage; We will steadily explore new areas and ports, make efforts to extend the service tentacles of routes, further enrich the layout of South Asia, expand the market cargo collection sector, expand hinterland resources, and promote the continuous improvement of route operation richness.
In terms of the cultivation of shipping format, we should continue to deepen the operation mode of "shipping+e-commerce", accelerate the construction and improvement of e-commerce online platform, and form new kinetic energy to promote the development of airline operations; At the same time, it is necessary to plan the promotion of e-commerce and product development at all ports.
3. Improve shipping logistics and gather together.
It is necessary to give full play to the efficiency of the resource gathering platform, integrate all kinds of resource elements in the logistics sector, further extend the main service chain based on the resource advantages of coordinated development, focus on improving end-to-end service capabilities, and actively explore and create logistics extension products that are integrated and promoted by "shipping+logistics", effectively increase customer stickiness and form new competitive advantages and profit growth points. The logistics extension business should be stably exported, and the hinterland at both ends of the route at home and abroad should be further extended to ensure the positive growth of transport containers. Port agents should follow up the route expansion in time, do a good job in the layout of self-operated outlets, fully stimulate the functions of their respective outlets, further explore the market frontier, strengthen market research and information collection, and help route management and logistics product development.
4. Focus on safe production and release development vitality.
It is necessary to do targeted inspection and guidance, and constantly improve the external inspection results of ships; It is necessary to continue to strengthen on-site safety inspections during important periods and major activities, and grasp the hidden dangers and rectification; We should continue to organize the rolling internal audit and external annual audit of the comprehensive management system. It is necessary to dynamically pay attention to the navigation of ships in new routes and new areas; It is necessary to strengthen the operational skills and management level of the crew at all levels on the ship’s electromechanical equipment, and make full use of the ship management function of the intelligent ship system to empower the management level.
5. Focus on management improvement and strengthen comprehensive strength.
Financial management: we should further promote the construction of the fund management system in accordance with the overall requirements of "visibility, control, flexibility and good use". Benchmark the financial control requirements of public companies, establish and improve financial functions and post settings at all levels, and constantly consolidate key links such as financial reporting, capital operation and tax management; It is necessary to promote the comprehensive operation of the financial sharing center. Internal control and risk management: we should continue to organize various audits and do a good job in the second half of the audit rectification; It is necessary to deeply participate in the company’s key projects and key processes, and implement the ideas of compliance management and risk control throughout the business.
6. Enhance the vitality of corporate culture, cultivate advantages and promote development.
First, we will continue to build a talent platform, enhance the sense of team honor and personal belonging in various ways, and further strengthen the responsibility and sense of ownership of the employees who contribute their talents to the high-quality development of the company. Second, we will continue to promote practical projects related to employees’ physical and mental health, enrich employees’ cultural life, carry forward healthy and enterprising team spirit, continuously improve employees’ satisfaction, and promote enterprise cohesion and centripetal force.
(4) Possible risks
1. Macroeconomic fluctuation risk
The demand of container shipping industry and the prosperity of the industry are highly correlated with the macroeconomic cycle. The fluctuation of world macro-economy and the change of global trade demand will have an impact on the downstream customer demand of the company, and then on the company’s operating conditions. The uncertainty of macroeconomic trend brings risks to the company’s future development. If there are periodic fluctuations in the macro economy in the short term in the future, the global import and export trade demand will change adversely, which may have an adverse impact on the company’s business development.
2. Risks caused by market competition
The company’s business is mainly container shipping, and there are many enterprises in the industry, including international shipping giants, large state-owned shipping enterprise groups and other small and medium-sized shipping enterprises. The market competition is becoming increasingly fierce. Although the company has established a stable and diversified customer base based on service quality, it will still face competition from competitors in the same industry in terms of route layout, transportation capacity and freight rate, and service quality.
3. Periodic risks of container shipping industry
Container shipping industry is a typical cyclical industry, which will be affected by macroeconomic cycle and industrial economic cycle fluctuations. In the future, if the industry economic cycle shows a downward or downturn trend, it will affect the demand and price level of container logistics, and then have a negative impact on the company’s performance.
4. Shipping safety risks
During the operation of the company’s container shipping business, there may be risks of damage or loss of containers and loaded goods due to natural disasters, force majeure or human negligence. In the event of a safety accident, the company may face risks such as compensation to relevant parties and damage to transportation tools. The company has purchased corresponding property insurance for its means of transportation according to the industry practice. If the accident compensation expenditure exceeds the insurance compensation amount, it will lead to the increase of the company’s cost and affect the company’s operating performance.
