COSCO Shipping Holdings (601919) 2025 Annual Report Brief Analysis: Net Income Declined 37.13% YoY

According to publicly available data from Securities Star, COSCO SHIPPING Holdings (601919) recently released its 2025 annual report. The financial statements show that COSCO SHIPPING Holdings’ net profit decreased by 37.13% year-over-year. As of the end of this reporting period, the company’s total operating revenue was 219.504 billion yuan, down 6.14% year-over-year, and net profit attributable to shareholders was 30.868 billion yuan, a decline of 37.13%. Looking at quarterly data, in the fourth quarter, total operating revenue was 51.905 billion yuan, down 12.21% year-over-year, and net profit attributable to shareholders was 3.799 billion yuan, a decrease of 65.39%.

These figures exceeded most analysts’ expectations. Previously, analysts generally forecasted a net profit of around 28.364 billion yuan for 2025.

The various data indicators in this financial report are not very encouraging. Among them, gross profit margin is 20.05%, down 32.13% year-over-year; net profit margin is 16.05%, down 32.25% year-over-year; total selling, administrative, and financial expenses amount to 6.585 billion yuan, accounting for 3.0% of revenue, an increase of 21.3% year-over-year. Net asset per share is 14.99 yuan, up 1.99%; operating cash flow per share is 2.94 yuan, down 32.29%; earnings per share is 1.99 yuan, a decrease of 35.39%.

The explanations for significant changes in financial items in the financial statements are as follows:

1. Accounts receivable notes decreased by 43.61%, due to a reduction in the balance of bank acceptance notes held by the group that have not yet matured.
2. Non-current assets due within one year increased by 426.7%, because some bond investments will mature within a year and have been reclassified from “Debt Investments” to this item.
3. Other current assets increased by 58.22%, due to an increase in deductible input taxes and EU carbon emission allowances purchased but not yet used for settlement.
4. Debt investments decreased by 65.29%, as some bond investments will mature within a year and have been reclassified from this item to “Non-current assets due within one year.”
5. Other non-current financial assets decreased by 89.45%, because the convertible bonds of the associate company Beibu Gulf Port Co., Ltd., reported in this item at the end of last year, were converted during this reporting period and reclassified to “Long-term Equity Investments” according to accounting standards.
6. Construction in progress decreased by 35.97%, as related dock and shipbuilding projects were completed and reclassified to “Fixed Assets.”
7. Notes payable decreased by 74.9%, due to a reduction in the balance of bank acceptance notes issued by the group that have not yet matured as of the end of 2025.
8. Taxes payable decreased by 39.99%, due to a reduction in accrued but unpaid corporate income taxes.
9. Non-current liabilities due within one year increased by 39.87%, because the balance of long-term borrowings and lease liabilities due within one year increased.
10. Financial expenses increased by 33.46%, due to a decrease in interest income and net gains from exchange rate differences during the reporting period.
11. Net cash flow from operating activities decreased by 34.29%, mainly because the company’s container shipping business performance declined year-over-year.
12. Net cash flow from investing activities increased by 5.91%, as cash payments for shipbuilding, port construction, and equity investments decreased.
13. Net cash flow from financing activities decreased by 27.37%, mainly because cash paid for dividend distributions, share repurchases, and debt repayments changed.

Securities Star’s valuation analysis tools show:

• Business Evaluation: The company’s return on invested capital (ROIC) last year was 9.12%, indicating an average capital return. The net profit margin last year was 16.05%, suggesting high added value for its products or services after all costs. Historically, over the past ten years, the median ROIC was 8.58%, indicating an average investment return, with the worst year being 2016 at -6.48%, reflecting poor investment returns. The company’s historical financial performance has been relatively good, with 18 annual reports since listing, and four years of losses. Without factors like backdoor listings, value investors generally avoid such companies.
• Debt-paying ability: The company’s cash assets are very healthy.
• Financing and dividends: The company estimates a dividend yield of 4.63%.
• Business breakdown: Over the past three years (2023/2024/2025), the net return on operating assets was 28.7%, 43.5%, and 23.1%, respectively. Net operating profits were 28.397 billion, 55.395 billion, and 35.228 billion yuan, respectively. Net operating assets were 98.942 billion, 127.485 billion, and 152.262 billion yuan, respectively.

The company’s net working capital to revenue ratio over the past three years (2023/2024/2025) was -0.43, -0.3, and -0.28, respectively. The working capital (funds invested by the company in its operations) was -75.758 billion, -69.913 billion, and -61.366 billion yuan, with revenues of 175.453 billion, 233.859 billion, and 219.504 billion yuan.

The largest holder of COSCO SHIPPING Holdings is Huatai-PineBridge Shanghai Dividend ETF, with a scale of 19.265 billion yuan, a latest net value of 3.3 (as of March 20), down 0.16% from the previous trading day, and an increase of 12.77% over the past year. The current fund managers are Liu Jun and Li Qian.

The above content is compiled from publicly available information by Securities Star, generated by AI algorithms (Wang Xin Suan Bei 310104345710301240019), and does not constitute investment advice.