(Scm-news.info, Sept 19, 2006) - Sinotrans Limited, the leading logistics company in China, has announced its interim results for the six months ended 30 June 2006. Total turnover generated from continuing operations increased 11.9% to RMB14.78 billion (€1.45bn). The core businesses of the company ¨C freight forwarding, express services and shipping agency saw continuous growth, with turnover increasing 11.8%, 31.2% and 5.4% respectively.

Business volumes of respective core operations during the period under review observed

growth: container volume of the ocean freight forwarding increased by 11.9%, volume of the air freight forwarding by 23.2 %, volume of express services by 35.1%, volume of the containers handled by shipping agency by 6.9%, and volume of marine transportation by 14.9%. As there was a marked growth in the warehouse and terminal and trucking service segments, the terminal throughput of ports, terminal depots operation and trucking increased by 50.5%, 38.1% and 68.8% respectively on a period-on-period basis.

However total operating profit from continuing operations was down 25.0% to RMB490.6 million (€48.1m). ¡°During the first half this year, exports growth in China obviously slowed down and fell by 7.5%. As a result of the severe imbalance between supply and demand, shipping freight rates slid significantly. At the same time, costs of fuel and charter continued to increase. The traditional operation mode and the present cost structure have presented us with great challenges. Despite fierce competition, we have accomplished continuous business growth and retained our market shares, both are pivotal to our forthcoming strategy adjustment,¡± said Chairman Mr Zhao Huxiang.

Source:Scm-news.info
tag:China