The volume and price of CIMC's container business have risen, and the performance has achieved a substantial increase.
A few days ago, CIMC, the world's largest container manufacturer, released its 2021 third quarter performance report.
The report shows that operating income in the first three quarters of 2021 was 118.242 billion yuan, a year-on-year increase of 85.94%; the net profit attributable to shareholders of the parent company was 8.799 billion yuan, a year-on-year increase of 1161.42%. Among them, the operating income in the third quarter was 45.57 billion yuan, a year-on-year increase of 86.5%; the net profit attributable to shareholders of the parent company was 4.501 billion yuan, a year-on-year increase of 411.35%.
In 2021, the global economy will show an accelerated recovery trend, international trade will remain at a relatively high level, and China's import and export trade will also achieve rapid growth. Customs statistics show that in the first three quarters, the total value of China's import and export of goods was 28.33 trillion yuan, a year-on-year increase of 22.7%. Among them, exports were 15.55 trillion yuan, a year-on-year increase of 22.7%; imports were 12.78 trillion yuan, a year-on-year increase of 22.6%.
The market's demand for containers continues to be strong, and the volume and price of CIMC's container manufacturing business have risen, and the performance has achieved a substantial increase.
CIMC said that in the first three quarters of 2021, global merchandise trade showed a strong growth momentum, and the container shipping demand market showed sustained and rapid growth. At the same time, under the epidemic situation, the normal congestion faced by global ports and supply chains has caused a tight space and container usage in the container shipping market.
In order to alleviate this problem and guarantee China's export container demand, CIMC's container manufacturing business has done its utmost to ensure the supply of new containers by increasing resource input, improving production efficiency, and fully releasing production capacity. At the same time, affected by factors such as continued strong container demand and rising commodity prices, the price of new containers has also increased.
In the first three quarters of 2021, the operating income of CIMC's container manufacturing business achieved a significant year-on-year increase. The cumulative sales of dry cargo containers reached 1,908,500 TEU, an increase of approximately 220.81%; the cumulative sales of reefer containers was 130,000 TEU, an increase of approximately 54.58%.
Previously, the senior officials of CIMC had predicted that the container industry would not maintain a high boom and there would be a callback, but the magnitude would not be too great. The epidemic will end, and the circulation of empty containers will return to normal by then, but it is still difficult to make accurate judgments when it ends. However, there will be an inflection point for container demand, and this adjustment process may be a smooth curve.
This is mainly due to the current annual growth in global trade, the increasing base of demand for container transportation, and the increase in the number of container replacements each year.
Since the outbreak of the epidemic, there has been a strong demand in the container shipping market. Most shipping companies have stopped or reduced the pace of eliminating old containers, and some old containers have been in service overdue. With the end of the epidemic, these old containers will be eliminated.
At present, there are more than 40 million containers in the world, and the annual elimination rate of old containers is 5%, which is about 2 million. By then, more than 4 million old containers will be eliminated and replaced with new ones.