Shanghai International Port Group has posted moderate improvements in both throughput and net profits from a year earlier, according to an unaudited 2012 earnings briefing.
Container volumes rose 2.5% to 32.5 million teu in 2012, but total cargo throughput leveled off 2011 level at 502 million tonnes.
“The company made concerted efforts to overcome the adversaries of global economic slowdown, achieving the annual operation target, maintaining a stable increase in operational quality and a wholesome financial position,” Shanghai Port said in the statement.
Some analysts downsized the port’s box-throughput growth target from 6% to 1% on 2012 first-half earnings, due to weak external demand, especially from Europe.
The company saw net profits strengthen 4.2% to Rmb4.9 billion (US$773 million) from the last period, with revenue jumping 32% to Rmb28.7 billion. New value-added tax policies and growing throughput are the main drivers in the surge in revenue.
The tax reform by the Chinese government helps companies avoid double taxation. It widens the scope of VAT and abolishes the turnover tax in some businesses, including the transport and logistics industries.
Shangahi Port Group’s official annual result is scheduled for March 27, according to the Shanghai bourse.