After an annual 2021 financial year that gave the company a record economic performance, in 2022 the financial performance of Sinotrans, the Chinese logistics company of Hong Kong's China Merchants Group (CMG), posted a sharp decline. of revenues, while profits reached new all-time highs thanks mainly to the positive trend in the first half followed by a second half of the year less brilliant.
In particular, last year revenues amounted to 108.8 billion yuan (15.8 billion), with a -12.5% percent decline on the 2021 percent that was caused by the reduction in the volume of business generated by the maritime shipments operated by the company and e-commerce activities. In 2022, in fact, the turnover produced by shipping by sea was 49.7 billion yuan, with a significant contraction of -26.7% percent on the previous annual financial year, while the turnover of air shipments grew slightly by 0.9% percent to 8.0 billion yuan and more supported was the increase in the turnover of shipments by rail at 9.4 billion yuan (+ 42.7%). Other logistics assets generated revenues of 27.4 billion (+ 13.5%), while the e-commerce segment filed 2022 with a turnover of 11.9 billion yuan (-16.7%). The Chinese logistics company specified that the turnover in segments of the shipping and e-commerce activities were determined by the increase in fuel costs and the diversification of the transport guidelines caused by the Russia-Ukraine conflict and that the e-commerce sector has also suffered from factors such as tax reform in the European Union and the contraction of demand coming from foreign markets.
Sinotrans closed down 2022 with a record operating profit of 5.2 billion yuan (+ 6.9%) and with a record net profit of 4.2 billion (+ 7.8%).