Shipping

COSCO Corporation (Singapore) Limited 

A 

SINGAPORE 

New 

Dynamic 

COSCO Corporation (Singapore) Limited 

Annual Report 2004 

RCB Reg. No: 196100159G

VISION STATEMENT 

Our vision is to become one of the world leaders in 

shipping and ship repair. We are committed to building a 

value-driven enterprise that maximises quality earnings 

for the growth of the company, provides excellent 

services that satisfy a global customer base, and 

creates sustainable returns for our shareholders. 

Contents 01 Corporate Profile 

02 Building Scale 

04 Increasing Value 

06 Growing Opportunities 

08 COSCO At A Glance 

10 Financial Highlights 

12 Significant Events 

13 Chairman’s Letter 

14 President’s Statement 

18 Operations Review & 

Geographical Footprint 

20 Shipping 

22 Ship Repair and Marine 

Engineering 

26 Shipping Agency 

28 Inside COSCO Corporation 

32 Board of Directors 

34 Board of Directors’ Profile 

36 Management Team 

37 Corporate Structure 

38 Financial Review 

41 Corporate Governance/ 

Investor Relations 

49 Financial Statements

01 

Corporate Profile 

COSCO Corporation (Singapore) 

Limited 

A New Dynamic 

Established in 1993, COSCO Corporation (S) Ltd 

(“COSCO Corporation” or the “Group”) is the 

Singapore Exchange-listed subsidiary of China 

Ocean Shipping (Group) Company (“COSCO 

Group”), one of the top ten major shipping 

conglomerates in the world. COSCO Corporation 

has three core businesses, embracing ship repair 

and marine engineering, dry bulk shipping and 

shipping agency. 

Recent restructuring initiatives have seen 

the company transformed, and engaged on a 

dynamic new growth path. COSCO Corporation 

has successfully positioned itself to be a major 

shipping and shipping related group and one of the 

world leaders in ship repair through its ongoing 

dry bulk shipping fleet expansion and recent 

investments in seven major shipyards in China. 

COSCO Corporation is poised to continue seizing 

growth opportunities, and deliver sustainable 

shareholder returns. The firm Baltic Dry Bulk 

Index (BDI), growth of China trade and expanding 

international market in ship repair will fuel further 

growth for the Group in the new dynamic. 

COSCO Corporation (Singapore) Limited Annual Report 2004

02 

Building Scale 

COSCO Corporation 

(Singapore) Limited 

2 

1 

3 

4 

5 

6 

7Shipyards, 

no. 1 

in China

03 





In a booming market where demand outstrips 

supply, scale enables us to capture more growth. 

We are expanding the size and the scope of our 

operations to provide greater breadth and depth 

in our core business offerings, and broaden our 

earnings base. In our shipping business, we are 

expanding our dry bulk carrier fleet by four ships 

over the next two years, which will increase our 

total fleet capacity to 1,000,000 dwt. 

In ship repair, we will become one of the largest 

ship repair and conversion companies in China, 

and one of the largest worldwide after our recent 

acquisition of 51% of COSCO Shipyard Group 

with its 7 shipyards. Our planned expansion in 

these yards will add another 1 million dwt to 

our capacity and include the largest dry dock 

in China. The scale of these facilities will enable 

us to attract not only more work but higher 

value projects, including oil rigs and 

major ship conversions. 


04 

Increasing Value 



Share price 

Up 

124 % 

in one year

05 





Our fundamental goal is to build shareholder 

value by creating a business which delivers 

sustainable, long-term growth. In this 

respect, the ultimate evidence of our ability 

to create value lies in the performance of our 

share price. In large part as a result of our 

restructuring initiatives, our share price has 

risen an impressive 500% over the last two 

years. This performance reflects the increase 

in top line growth we have created in all our 

core businesses, particularly ship repair and 

engineering. It is also due to improving our 

bottom line performance, by investing in IT 

to create cost efficiencies across the group 

and by deploying our capital as efficiently as 

possible. We are committed to maintaining 

this impressive performance by expanding 

our facilities and services to capture more 

growth, and by increasing the proportion 

of higher-yield contracts in our earnings 

base moving forward. 


06 

Growing Opportunities 



China 

Imports 

Grew40 %

07 





The current health of global trading activity as 

evidenced by the increase in the Baltic Dry Bulk 

Index (BDI) and the high volume of raw material 

imports into China promises a wealth of shipping 

and ship repair opportunities for us in the near 

future. In shipping, the consolidation of the BDI 

at last year’s high average levels combined with 

the increased capacity coming on stream in our 

dry bulk carrier fleet promises robust earnings 

growth through 2005. In ship repair, with the 

ageing nature of the global merchant fleet 

requiring the regular maintenance and repairs 

made mandatory by international shipping 

regulations, we are well positioned to capture a 

major slice of this growing market. To maximise 

our gains, we are augmenting our capacity and 

our capabilities in high value-added areas of 

repair and conversion that command a price 

premium. The growing offshore market, 

for one, will give us a niche opportunity in oil 

rig repair. Our strategic alliances with partners 

such as SembCorp Marine further open up 

new opportunities for us, such as skill upgrades 

through technology transfer, and access to 

new customers. 


08 

At A Glance 



COSCO Corporation (Singapore) Ltd is a major ship repair, shipping and shipping related conglomerate. Headquartered 

in Singapore, COSCO Corporation has three main business units namely, ship repair and marine engineering, dry bulk 

shipping and shipping agency. COSCO Corporation owns major stakes in 7 leading ship repair yards in China, a marine 

engineering yard in Singapore, and an expanding fleet of 13 dry bulk carriers plying their trade between China’s ports and 

the rest of the world. COSCO Corporation is 55.07%-owned by the China Ocean Shipping (Group) Company, the largest 

shipping group and one of the top conglomerates in China. 

Shipping 

COSCO Corporation’s dry bulk shipping 

business is undertaken by its wholly-owned 

subsidiary, COSCO (Singapore) Pte Ltd. COSCO 

(Singapore) owns and operates a fleet of 13 dry 

bulk carriers with a total combined carrying 

capacity of in excess of 700,000 dwt. 

The fleet transports dry bulk cargo such as 

iron ore, coal, steel, cement and fertiliser 

along international routes mostly in a tramping 

capacity, usually from China to key ports in 

the US, Europe, South America and South 

Africa, via Singapore. COSCO (Singapore) also 

charters its ships out to charterers or other 

ship owners. Its customers are mainly large, 

established international shipping companies 

based in Germany, Norway, Denmark, Greece, 

Switzerland, UK, USA and other countries. 

Two 74,000 dwt new dry bulk carriers are slated 

for delivery in FY2005, and two 55,000 dwt 

vessels are due in FY2006. With these four new 

vessels, the total tonnage capacity of COSCO 

Corporation’s fleet will jump 42% to almost 

1,000,000 dwt. 

Ship Repair and 

Marine Engineering 

COSCO Corporation offers ship repairing and 

marine engineering services through COSCO 

Nantong and COSCO Dalian and 90%-owned 

COSCO Marine Engineering (Singapore) Pte Ltd, 

which offers onsite and onboard engineering 

and repairs at its shipyard in Jurong, Singapore. 

On 1 January 2005, the company completed its 

acquisition of COSCO Shipyard Group which 

has seven shipyards strategically located in 

the most important sites along China’s eastern 

seaboard in Nantong, Dalian, Guangzhou, 

Shanghai, Tianjin, Xiamen and Zhoushan. 

COSCO Shipyard Group has, amongst 

others, the two largest cape size floating 

docks and four Panamax size docks in China 

which provide ship repair, ship conversion 

and jumbolisation, new builds, and oil rig 

manufacture and repair services. 

COSCO Shipyard Group will add substantially to 

the future growth of COSCO Corporation. The 

ship repair business is currently undergoing 

a massive expansion programme designed 

to increase COSCO Corporation’s ship repair 

capabilities and capacities. With this, the seven 

shipyards’ total docking capacity stand at 

955,000 dwt. 

Shipping Agency 

70% owned by COSCO Corporation, Costar 

Shipping Pte Ltd solely represents COSCO 

Corporation and the entire COSCO Group 

fleet that calls at Singapore. 

Costar Shipping canvasses for cargo from 

existing and potential clients to ensure that 

the COSCO Group’s vessels transiting through 

Singapore are loaded to maximum tonnage 

capacity. In addition, Costar Shipping provides 

agency services for full container and breakbulks. 

These include document preparation, the 

collection of freight, cargo operation, vessel 

husbanding, customs declaration, 

port authority coordination, administration 

and settlement of cargo claims, transshipment 

management, bunkering services and container 

handling. The agency handles virtually all types 

of containers and provides services to about 

100 to 110 vessels a month. Costar Shipping 

also offers value-added services such as the 

recommendation of trucking, freight forwarding, 

stuffing, container depot, warehousing and 

storage services. Coslink (M) Sdn. Bhd. 

functions as the general shipping agent in 

Malaysia for the COSCO group’s entire fleet of 

ships, and provides the same comprehensive 

range of services as Costar in Singapore.

09 

At A Glance 



No. of dry bulk carriers : 13 

Total fleet capacity : 700,000 dwt 

Services 

: The global transport of dry bulk cargo, 

typically, iron ore, coal, steel, cement, fertiliser 

Strengths 

: Extensive global network, high service 

standards 

Client base 

: Over 90% international, established 

shipping companies. 

Growth plans 

: Four large-capacity vessels slated for 

delivery in FY2005 and FY2006 to increase 

fleet capacity to almost 1,000,000 dwt in 

FY2006 

No. of shipyards : 2 

Total docking capacity : 640,000 dwt 

Services 

: Ship repair, ship conversion and jumbolisation, 

new builds, oil rig manufacture and repair, 

marine engineering 

Locations 

: Nantong and Dalian 

Strengths 

: Strategic locations, high service standards, 

high and increasing capacity and capabilities, 

internationally competitive prices 

Client base 



No. of offices : 2 

Services 

: Document preparation, the collection of 

freight, cargo operation, vessel husbanding, 

customs declaration, port authority 

coordination, administration and settlement 

of cargo claims, transshipment management, 

bunkering services and container handling, 

cargo canvassing, and value-added services 

Strengths 

: Extensive global network, high service 

standards, high and increasing capacity of 

COSCO (Singapore)’s fleet 

Client base 




10 

Financial Highlights 



Profit and Loss Account 2000 2001 2002 2003 2004 

S$`m S$`m S$`m S$`m S$`m 

Turnover 162 152 102 92 116 

Operating Profit before Tax 5 17 2 13 37 

Share of Associate companies - - 4 17 36 

Taxation 4 3 1 5 6 

Profit from Ordinary Activities 10 14 5 25 67 

Minority Interest 1 1 1 1 1 

Profit for the year 9 13 4 24 66 

Profit and Loss Account 2000 2001 2002 2003 2004 

Other Data : 

Earnings per share (cents) 1.7 2.4 0.6 3.2 6.1 

Dividend per share (%) 2.5 3.0 3.5 5.0 10.0 

Dividend per share (cents) 0.5 0.6 0.7 1.0 2.0 

Dividend cover (times) 4.4 4.5 1.1 3.4 3.0 

Net Tangible Assets (cents) 28.5 31.6 28.7 25.17 29.67 

Gearing Ratio (Net of Cash) 1.5 1.7 1.6 0.5 0.2

11 

Financial Highlights 



Net Assets $’m 

After-Tax Profit $’m 

323.5 

66 

162.8 

180.7 

186.9 

273.9 

24 

00 01 02 03 04 

13 

9 

4 

00 01 02 03 04 

Dividends Per Share (cents) and 

Earnings Per Share (cents) 

Turnover $’m 

6.1 

162 

152 

3.2 

102 

92 

116 

2.4 

2.0 

1.7 

1.0 

0.5 0.6 0.6 0.7 

00 01 02 03 04 

00 01 02 03 04 

Dividends Per Share (cents) 

Earnings Per Share (cents) 


12 

Significant Events 



December 

Acquisition of 51% of COSCO Shipyard Group 

Co. Ltd completed. 

November 

Two Panama-incorporated subsidiaries, COS 

Orchid Shipping Inc. and COS Prosperity 

Shipping Inc. were dissolved. 

EGM approved acquisition of 51% of COSCO 

Shipyard Group Co Ltd. 

October 

COSCO Corporation awarded the Gold 

Award, the top prize among 15 companies, for 

entrepreneurship and commitment to good 

enterprise values. The competition was organised 

by Global Entrepolis Singapore as part of its 

inaugural International Brand Summit. 

September 

Entered conditional agreement to sell M.V. 

Sea Swan for US$11,150,000 as part of ongoing 

shipping fleet renewal exercise. 

Entered conditional agreement to acquire 51% of 

COSCO Shipyard Group Co Ltd, owner of 7 major 

shipyards in China, at a cost of RMB578m. 

May 

COSCO Group (China Ocean Shipping Group 

Companies) became a direct controlling 

shareholder of the Company with the transfer 

of 55.07% stake from COSCO Holdings 

(Singapore) Pte Ltd. 

180,757,078 new ordinary shares listed and 

quoted on SGX Mainboard pursuant to 

1-for-5 Bonus Shares issue. 

April 

Increased stake in COSCO Marine Engineering 

Pte Ltd from 60% to 90% 

March 

COSCO Corporation won the honour of becoming 

a blue chip component stock of the Straits Times 

Index (STI), the SGX’s main benchmark index. 

COSCO Corporation met stringent criteria to 

become a constituent of the London benchmark 

FTSE All-World Asia Pacific (Ex-Japan) Index. 

2004

13 

Chairman’s Letter 



From an offshoot of the COSCO Group 10 years 

ago to a growing conglomerate in its own right, 

COSCO Corporation is emerging today as a 

major player in the international shipping and 

ship repair industry. 

The company’s overall performance this financial 

year was very encouraging. The excellent results 

we have achieved to date have demonstrated that 

the company is on target with its restructuring 

initiatives, and that focusing on shipping and 

ship repair is the right strategy to deliver 

sustainable profit growth in the years ahead. 

While economic cycles may change, I believe the competitive strengths 

we possess in both core businesses will enable us to create shareholder 

value on an ongoing basis. 

With the growth of raw materials imports into China and the positive 

global trading environment, the outlook is good, and the investments we 

are making to expand both core businesses over the next two years will 

position us to capture even more growth in the near future. Assuming that 

global economic conditions do not materially change over the next twelve 

months, we can look forward to another year of positive results in FY2005. 

I wish to express my deep appreciation to our parent, the COSCO Group 

for their strong support, and to the management of COSCO Corporation 

for their unstinting efforts in leading the company forward. I would also 

like to thank our Board members for their invaluable contributions, and 

the staff for their hard work over the last year. 

Lastly I would like to extend my gratitude to our loyal shareholders 

for your strong support over the years. Here’s to charting a successful 

future together. 

Captain Wei Jia Fu 

Chairman 

Captain Wei Jia Fu 

Chairman 


14 

President’s Statement 



On behalf of the Board of Directors, I am 

pleased to present to you the Group’s 

annual report for the financial year ended 

31 December 2004. 

The year in review FY2004 was a rewarding 

year for COSCO Corporation in many ways, 

and I am proud of the results we have 

achieved. Given our vision of becoming one 

of the world leaders in ship repair and a major 

regional shipping group, and our promise to 

deliver sustainable income over the long term, 

this year marks the final stage on a journey 

of restructuring which began in 2002. The 

carefully considered restructuring efforts of 

the last two years have finally borne fruit, and 

I believe we have built a solid platform for 

future growth. 

Two milestones in particular, which are connected, stand out. 

The first was the acquisition of a 51% stake in our sister company 

the COSCO Shipyard Group. This move has literally transformed 

the company, pushing us immediately into the premier league of 

the world’s ship repairers, a subject I will return to later. The second 

related milestone was the boosting of our market capitalisation to 

S$1.2 billion, and the consequent inclusion of COSCO Corporation 

shares on the Strait Times Index and the London Financial Times 

Asia Pacific (excluding Japan) Index. A new dynamic is at work, 

and the evidence is plain for all to see. 

Overall performance 

Overall Group performance was excellent in 2004, exceeding 

expectations in several important respects, with profit margins 

having expanded across all businesses. Group turnover increased 

to S$116.3 million in FY2004, or 27% higher than the S$91.9 million 

achieved in 2003. 

Ji Hai Sheng 

President

15 




Net profit rose by 173% to S$66.2 million versus S$24.3 million in 

2003, and was close to 16 times higher than the profit achieved in 

2002 when we embarked on the restructuring exercise. Net profit 

would have been even higher if not for a one-off provision we made 

for the revaluation of our remaining property interests. Likewise 

turnover and profit in all our remaining core businesses continued 

to register strong growth, underpinned by strong fundamentals. 

Since assuming the leadership of the 

company in 2001, my intention has been 

to reshape the Group to focus more on its 

core business of shipping, and to enhance 

its ability to generate what I call “Quality 

Income”... This strategy is what has driven our 

disposal of non-core assets, and to intensify 

our focus on ship repair and dry bulk shipping, 

which will become our future growth drivers. 

Our dry bulk shipping business posted a sterling performance, 

boosted by strong demand and the high freight rates secured on 

the renewals of charter hire contracts. 

Shipping turnover was S$92.2 million or 36.8% up compared to 

the S$67.4 million achieved in 2003. Gross profit likewise rose 62% 

to S$57.5 million on the back of the excellent margins, versus 

S$35.6 million in 2003. 

Due to the late-in-the-year finalisation of our investment in COSCO 

Shipyard Group in FY2004, turnover contributions from our shipyard 

subsidiaries will only be consolidated from the next financial year. 

Consequently, this year’s turnover comprises mainly revenue from 

our shipping business. However, share of profits from the shipyards 

soared 107% to S$36.4 million, exceeding full year forecasts and 

dramatically underscoring the potential in our ship repair business 

for future turnover and profit growth. 

Earnings per share was 6.1 cents compared to 2.7 cents the 

previous year. Net asset value per share increased to 29.7 cents, 

versus 25.2 cents in 2003. 

Dividend and bonus issue 

Bearing in mind another year of record performance and the 

positive outlook of the company, your board has proposed to 

reward shareholders for their support yet again with a first and 

final gross (one tier) dividend of 2 cent per share. This represents 

a payout ratio of approximately 32% of the profits attributable to 

the shareholders. 

Our growth strategy 

Since assuming the leadership of the company in 2001, my intention 

has been to reshape the Group to focus more on its core business 

of shipping, and to enhance its ability to generate what I call “Quality 

Income”. By this I mean higher value-added income where we have 

a niche advantage, and which is less vulnerable to the vagaries 

of economic cycles and market forces. This strategy is what has 

driven our disposal of non-core assets, and to intensify our focus 

on ship repair and dry bulk shipping, which will become our future 

growth drivers. 

China has become one of the major ship repair centres of the world. 

The quality and scope of the work available combined with its low 

cost base mean that this competitive advantage will remain for the 

foreseeable future. COSCO Shipyard Group is the largest shipyard 

company in China, and two out of its seven shipyards are the top 

two ship repair yards in China. All of them are strategically located 

alongside all the major ports on the eastern seaboard. With the 

growth of China trade and the ageing nature of the global merchant 

fleet requiring the regular maintenance and repairs made mandatory 

by international shipping regulations, we are in pole position to 

capture a bigger slice of this market. 

Currently more than 90% of the vessels repaired by the COSCO 

Shipyard Group are foreign owned, and this trend is increasing. 


16 




Of even greater significance, the investments we have planned to 

improve the capabilities and scale of these yards will position us for 

much higher value added work commanding a price premium, such 

as oil rig repairs and ship conversions. In particular, the expansion we 

have planned at Dalian and Zhoushan will beef up current capacity 

overall from 955,000 dwt to 2.2 million dwt, and will augment the 

facilities at Zhoushan with the largest dry dock in China. This 

500,000 dwt dry dock, when completed by the second quarter of 

FY2006, will enable us to handle two VLCCs (Very Large Crude 

Carriers) simultaneously, and oil rigs. 

Underpinning our business endeavours are 

a commitment to the highest quality in our 

products and customer services, the highest 

standards of integrity and transparency in our 

business practices, and the highest sense of 

responsibility to our staff, the community and 

the environment...we benchmark ourselves 

against the best international standards, and 

are building a reputation for delivering on our 

commitments and promises. 

Shipping, our traditional mainstay, will remain a major contributor 

to our total revenue. Although this year saw the disposal of one 

vessel, “MV Sea Swan” from our fleet of 14 dry bulk carriers, we are 

expanding the fleet over the next two years, with two new dry bulk 

carriers planned for delivery in 2005 and two in 2006. These will 

greatly increase our shipping capacity and the income contributions 

from this business unit. 

At present, with the Baltic Dry Bulk Index consolidating near last 

year’s high due to the accelerating rate of trading activity globally, 

and the robust growth in demand for raw materials to support 

China’s expanding infrastructure needs and manufacturing sector, 

the demand for dry bulk shipping vessels is exceeding the supply. 

As most of our dry bulk carriers have been locked into long term 

contracts of one year with an option to renew for another year, our 

shipping income will remain high and stable over the coming year. 

With good market conditions expected to continue, any renewal 

of shipping contracts at the newly increased renewal rates will be 

beneficial to us. 

General financial position 

With all the investments described above, including the acquisition 

of 51% of the COSCO Shipyard Group, capital commitments are 

not expected to increase significantly. In the ship repair arm, the 

investments will be self-financing as the shipyards will fund the 

expansion of their operations and facilities out of their own cashflow 

and bank borrowings. Similarly in the shipping arm, the expansion of 

the dry bulk carrier fleet by four new vessels over the next two years 

will likewise be funded from the shipping unit’s own cashflow and 

bank borrowings. 

The overall increase in Group borrowings, and hence the gearing 

ratio, will therefore remain within a comfortable range, and 

the Group will be able to meet all its obligations. There is no 

requirement or need to raise or issue any share capital. 

Building to last 

We intend to build our growth on foundations that go beyond the 

material. Underpinning our business endeavours are a commitment 

to the highest quality in our products and customer services, the 

highest standards of integrity and transparency in our business 

practices, and the highest sense of responsibility towards our staff, 

the community and the environment. From the best practices we are 

committed to in corporate governance to the stringent operating and 

safety procedures we rigorously apply in our ships and shipyards, we 

benchmark ourselves against the best international standards, and 

are building a reputation for delivering on our commitments 

and promises. 

In terms of our staff team, I consider our people to be the real growth 

drivers of the business. We are therefore putting in place programmes 

both to recruit top talent from the industry and to nurture our existing

17 




talent in both technical and management areas to realise their full 

potential with us. Within the parameters of the heavy industry in 

which we are now major players, we aim to provide the best career 

prospects for their future development, and the safest and healthiest 

environment possible to work in. 

Likewise in our shipping business, growing raw materials imports into 

China will be reflected in firmer freight rates, which will benefit charter 

renewals for the Group’s bulk carriers. The higher renewal rates we 

expect combined with the additional capacity coming on-stream over 

the next two years will add substantially to Group revenue in 2005. 

We also believe in the value of relationships, which is reflected in the 

strategic alliances we have established with industry partners and 

co-investors such as SembCorp Marine Limited, which has a 30% 

stake in COSCO Shipyard Group. It is also evident in the excellent 

relationship and support we enjoy with our parent, the COSCO 

Group. Both these relationships benefit us in terms of industry 

support, technology transfer and networking for enhanced 

business opportunities. 

Prospects and outlook 

With such fundamentals as a springboard, I believe that we are well 

poised for robust growth in the future. We will continue to focus on 

strengthening our two core businesses in shipping and ship repair 

and engineering, through organic growth and strategic acquisitions. 

In conclusion, barring unforeseen circumstances, we expect the 

current positive growth trend to continue in FY 2005. 

Besides strengthening our current 

capabilitties, we will expand them so as to 

broaden our scope of services for a wider 

range of clients. Of key importance is our 

building up of value-added services such as 

oil rig repair, ship conversions and new builds. 

In addition to increasing our opportunities in 

existing markets, we will explore new markets 

with potential for growth, and thus enhance 

value for customers and shareholders alike. 

Besides strengthening our current capabilities, we will expand them 

so as to broaden our scope of services for a wider range of clients. 

Of key importance is our building up of value-added services such 

as oil rig repair, ship conversions and new builds. In addition to 

increasing our opportunities in existing markets, we will explore 

new markets with potential for growth, and thus enhance value for 

customers and shareholders alike. 

In terms of prospects, we expect shipyard contributions from our 

subsidiary companies will remain strong in 2005, and with high 

charter rates, the profit momentum in our dry bulk shipping business 

will also continue to rise. The ship repair sector in China will continue 

to grow owing to the low cost base and the growth of China’s foreign 

trade. We expect more vessels will call at China’s ports needing 

repairs, and with our planned capacity expansions, we will be able to 

capture this growth. 

In appreciation 

On behalf of the management and Board of Directors, I would 

like to record my sincere gratitude to all our stakeholders – our 

shareholders, customers, bankers, business associates, and our loyal 

staff – for your ongoing support. It has been a very rewarding year, 

and it is your commitment that has made our success possible. 

I look forward to your continuing support as we progress together 

in the years ahead. 

Ji Hai Sheng 

President 


18 

Operations Review & Geographical Footprint 



In September 2004, the Company announced its proposed 

acquisition of seven shipyards in China, all strategically 

located along China’s coast in close proximity to the main 

shipping routes. Sited in the Nantong, Dalian, Guangzhou, 

Shanghai, Tianjin, Xiamen and Zhoushan regions, the 

shipyards boost the COSCO Corporation’s leadership 

position in China’s ship repair sector. 

1. Tianjin 

2. Dalian 

3. Nantong 

4. Shanghai 

5. Zhoushan 

6. Xiamen 

7. Guangzhou

19 

Operations Review & Geographical Footprint 



COSCO’s vast shipping network serves an extensive base of 

international clients, which make up over 90% of its shipping 

customers. Its dry bulk shipping fleet transports dry bulk 

cargo in a tramping capacity, often along the main trading 

sea routes from China to major ports in the US, Europe, 

South America and South Africa via Singapore. 

1. Conakry (Guinea) 

2. Lagos (Nigeria) 

3. Hamburg (Germany) 

4. Cape Town (South Africa) 

5. Ventspils (Latvia) 

6. Odessa (Ukraine) 

7. Suez (Canal) 

8. Aqaba (Saudi Arabia) 

9. Novorossivsk (Russia) 

10. Aden (Yemen) 

11. Bombay (India) 

12. Singapore 

13. Bangkok (Thailand) 

14. Kuantan (Malaysia) 

15. Shanghai (China) 

16. Hong Kong 

17. Albany (Australia) 

18. Lianyungang (China) 

19. Taichung (Taiwan) 

20. Onahama (Japan) 

21. Nagoya (Japan) 

22. Tokyo (Japan) 

23. Gladstone (Australia) 

24. Portland (USA) 

25. Los Angeles (USA) 

26. New Orleans (USA) 

27. Panama Canal 

28. Antofagasta (Chile) 

29. Seven Island (Canada) 

30. Puerto Quetzal (Venezuela) 

31. Santos (Brazil) 


20 

Operations Review 



Shipping 

COSCO Corporation’s dry bulk shipping business is undertaken by 

COSCO (Singapore) Pte Ltd, a wholly-owned subsidiary of COSCO 

Corporation. COSCO (Singapore) currently owns and operates a fleet 

of 13 dry bulk carriers with a total combined deadweight tonnage 

capacity of 700,000 dwt, and an average age of 10 years. 

These vessels transport dry bulk cargo such as iron ore, coal, steel, 

cement and fertiliser along international routes for global trade in 

a tramping capacity, or along main shipping routes. These are usually 

from China to the key ports in the US, Europe, South America and 

South Africa, with Singapore as a transshipment stopover.

21 




COSCO (Singapore) also charters ships out 

to chartering operators or other ship owners. 

The bulk of the company’s customers are 

large, established international ship owners 

and operators based in Germany, Norway, 

Denmark, Greece, Switzerland, the UK, 

USA and other countries. With these 

customers COSCO (Singapore) enjoys 

a good reputation and strong business 

relationships forged over many years. 

The year in review 

COSCO (Singapore) continued to deliver 

solid turnover and profit growth in FY2004, 

driven by increasing global trading activity, 

in particular the rising demand for dry bulk 

imports into China such as iron ore, cement, 

coal and grain. As a result, the Baltic Dry 

Bulk Index (BDI), which hit a historic high in 

FY2003, consolidated at around the same 

average level throughout FY2004. 

FY2004 therefore saw a strong increase 

in total revenue at S$92.2 million, or 36.8% 

more than FY2003. Profit before tax (PBT) 

however more than doubled during 

the year, rising to S$51.9 million from 

S$26.5 million in FY2003. This outstanding 

performance was in part due to an increase 

in freight rates during the year in review, 

with COSCO (Singapore) able to renew 8 

charter contracts at the higher charter rates. 

Most of the vessels were locked into one 

year contracts, with an option to renew 

for another year. Another factor was the 

maximum asset utilisation achieved during 

the year, with the good market conditions 

enabling full employment of the fleet’s total 

tonnage capacity. 

Overall, the shipping business remained the 

main contributor to COSCO Corporation’s 

turnover, providing a good and steady flow 

of quality income amounting to 79% of 

COSCO Corporation’s total turnover, and 

70% of profit before tax. 

Delivering operational excellence 

In order to maintain its competitive edge at 

the forefront of the industry, the company 

is committed to sustaining the highest 

levels of quality in service, operations and 

fleet condition. As part of its ongoing fleet 

renewal exercise, COSCO (Singapore) sold 

an ageing vessel, the “M.V. Sea Swan”, 

in December this year. However, the fleet 

is being expanded by four new dry bulk 

carriers, each with a tonnage capacity 

larger than the M.V. Sea Swan. The ships 

are currently being constructed and will be 

delivered over the next two years. The first 

two vessels, each with a capacity of 

74,000 dwt, will be delivered in FY2005, 

with two more 55,000 dwt vessels expected 

in the following year. With their delivery, 

the total tonnage capacity of COSCO 

Corporation’s dry bulk carrier fleet will be 

boosted to a record capacity of almost 

1,000,000 dwt. 

COSCO (Singapore)’s commitment to 

standards of quality are reflected in many 

other ways too. Having received ISO9002 

certification in 1998, the exceptional 

standard of the Company’s operations and 

vessels is also evident in the recent awarding 

of the highly coveted United States Coast 

Guard “Qualship 21: certificate of eligibility” 

to three COSCO (Singapore)’s fleet this year. 

Awarded to COS Cherry, COS Intrepid and 

COS Joy for their high quality practices in 

sustaining marine safety and environmental 

protection, this certification enables marine 

vessels to enter US territorial waters without 

the need for US Coastguard clearance. 

Outlook and prospects 

Given China’s rapid pace of growth and 

development and its resultant accelerating 

demand for dry bulk imports, the good 

market conditions in global trade and 

shipping are expected to improve further in 

FY2005. While the Baltic Dry Bulk Index is 

anticipated to fluctuate a little in the short 

term, the average is expected to remain at 

the current high levels throughout next year, 

which is good news for shipping income. 

Charter renewals are therefore expected to 

be high, with the majority of vessels locked 

into one-plus-one contracts. Furthermore, 

with the anticipated increase in cargo 

volume globally, the additional capacity 

coming on stream over the next two years 

will enable COSCO (Singapore) to capture 

maximum income from the rising demand 

of on-board cargo space. 

In addition to rising cargo volume, significant 

increases in bulk freight rates secured 

on renewals of charter hire contracts are 

expected to benefit COSCO (Singapore) in 

the coming year. 

DRY BULK FLEET 

Name of vessel Capacity Age 

(years) 

Handymax: 

M.V. Sea Phoenix 40,473 dwt 19 

M.V. Cos Fair 46,689 dwt 5 

M.V. Sea Crane 46,040 dwt 19 

M.V. Cos Hero 45,547 dwt 5 

M.V. Cos Bonny 46,864 dwt 8 

M.V. Cos Cherry 46,840 dwt 8 

M.V. Cos Knight 52,341 dwt 2 

M.V. Cos Lucky 52,341 dwt 1 

M.V. Cos Glory 46,680 dwt 5 

Panamax: 

M.V. Jurong Sea 69,203 dwt 21 

M.V. Cos Angel 65,029 dwt 21 

M.V. Cos Intrepid 74,061 dwt 3 

M.V. Cos Joy 74,073 dwt 3 


22 




Ship Repair and 

Marine Engineering 

COSCO Corporation’s ship repair operations began ten years ago with 

the foundation of its subsidiary, COSCO Marine Engineering (Singapore) 

Pte Ltd, which provides 24-hour marine engineering and ship repair 

services in Singapore. COSCO Corporation subsequently increased 

its ship repair capabilities with the acquisition of significant stakes in 

two of the largest shipyards in the COSCO Shipyard Group, COSCO 

(Nantong) Shipyard Co Ltd and COSCO (Dalian) Shipyard Co Ltd in 2002 

and 2003 respectively. This expansion culminated in September 2004, 

when COSCO Corporation announced its proposed acquisition of a 

51% stake in the entire COSCO Shipyard Group.

23 




Established in 1994, COSCO Shipyard 

Group is one of the largest ship repairing 

groups in China, with approximately 18% of 

the China market in 2003. It has seven ship 

yards, of which COSCO (Nantong) Shipyard 

and COSCO (Dalian) Shipyard are the top 

two ship repairing yards in China, in terms 

of earnings. With the acquisition, COSCO 

Corporation’s stakes in the Nantong and 

Dalian shipyards have risen to 75.5% and 

70.60% respectively. All seven shipyards 

are strategically located along China’s busy 

coastline in Nantong, Dalian, Guangzhou, 

Shanghai, Tianjin, Xiamen and Zhoushan. 

Together, they have a total docking capacity 

of 955,000 dwt. 

Currently, COSCO Corporation offers ship 

repair, marine engineering and related 

services, of which ship repair contributes 

about 91% of total earnings. Other services 

include specialised work such as ship 

conversion (including the conversion of 

dry bulk carriers to Ro-Ro vessels) and 

jumbolisation. They also include high valueadded 

services such as oil rig manufacture 

and repair, a sector recently identified as 

having good potential growth. New-builds 

are also undertaken, such as the building of 

four 250 dwt river barges for a US company 

in 2003. 

In addition to the above, through its 

subsidiary COSCO Marine Engineering 

(Singapore), COSCO Corporation offers 

marine engineering services and ship repair 

onsite as well as onboard ships at its 

6,571sqm waterfront shipyard in Jurong. 

Services provided include engine-room 

work, steel work, automation and hydraulic 

system repair, air-conditioning and 

refrigeration work, electrical work, workshop 

machining, precision engineering and the 

supply of spare parts. 

Over the past decade, COSCO Shipyard 

Group has repaired or converted thousands 

of ships from all over the world. The 

shipyards enjoy long-standing relationships 

with some of the most established shipping 

companies worldwide, the majority of 

whom are in the global top ten. International 

clients represent 90% of shipyard turnover, 

including major shipping companies in 

Greece, Germany, Norway, Denmark, 

UK, USA and Japan. The loyalty of these 

customers is testament to the quality of 

service and competitive pricing they receive, 

combined with timely delivery. 


COSCO Corporation’s ship repair business 

performed extremely well during the year 

in review, as expected. Specifically, total 

earnings from the associate ship repair 

and engineering companies increased 

over FY2003. Profit before tax soared 

to S$35.8 million, or 107% higher than 

the S$17 million achieved in FY 2003. 

The income contributed by the ship 

repair and engineering business this year 

represented 3% of COSCO Corporation’s 

total turnover. However, as earnings from 

the newly acquired shipyards will only be 

consolidated and reflected in FY2005, the 

contribution from ship repair will increase 

significantly, as will the turnover of the whole 

Group. It is anticipated that ship repair 

and engineering will contribute to 70-80% 

of COSCO Corporation’s total turnover in 

the future, while the shipping business will 

contribute about 20%. 

In terms of number of ships repaired and 

converted, a total of 499 ships were repaired 

and converted at COSCO Shipyard Group 

shipyards in FY2004. This was an increase 

of 8.9% compared to the 458 ships handled 

in the previous year. Considering the fact 

that the expansion programme is still 

underway and not all the shipyards were fully 

operational during the period of review, the 

total number of ships repaired or converted 

next year is expected to rise significantly. 

Types of vessels repaired or 

converted in FY2004 

Number of ships repaired at COSCO 

Shipyard Group shipyards in 2003 

and 2004 

2003 2004 

COSCO SHIPYARD GROUP 458 499 

COSCO Nantong 141 144 

COSCO Dalian 175 180 


24 




EXPANSION PLAN AND 

CAPACITIES OF SHIPYARDS 

COSCO Nantong 

– 2 floating docks (150,000 dwt, 80,000 dwt), 

3 berths (1.1km total) 

– Total 230,000 dwt 

COSCO Dalian 

– 2 floating docks (180,000 dwt, 

80,000 dwt), 1 dry dock (150,000 dwt), 

6 berths (1.6km total) 


COSCO Guangzhou 

– 1 floating dock (Panamax size, 80,000 dwt), 

1 berth (405m) 


COSCO Shanghai 

– 1 floating dock (30,000 dwt), 

1 berth (235m) 


COSCO Xiamen 

– 1 floating dock (20,000 dwt) 

– 1 dry dock (35,000 dwt) 

– Total 55,000dwt 

COSCO Tianjin 

– 1 workshop 

COSCO Zhoushan 

– 1 dry dock (150,000 dwt) 

– 1 berth (500m) 


Expansion initiatives 

COSCO Corporation is currently engaged 

in an aggressive expansion programme 

aimed at propelling its ship repair business 

to the top of the industry. The company is 

also developing its capabilities in higheryield, 

value-added services such as oil rig 

manufacture and repair, a promising growth 

driver in COSCO Corporation’s future. 

At COSCO (Dalian) Shipyard, work on a 

300,000 dwt floating dock commenced this 

year and is expected to be completed in 

October 2005. This new VLCC dock slated 

for completion in FY2005 will further boost 

the shipyard’s capacity by 31%. At COSCO 

(Zhoushan) Shipyard, work began on two 

additional berths and a 500,000 dwt dry 

dock early this year, which will come on 

stream in second quarter of FY2005 and 

second quarter of FY2006 respectively. 

These will be followed by the building of two 

smaller capacity dry docks in FY2006 and 

2007. By 2007, there will be a total of 

6 berths and four dry docks in Zhoushan. 

Upon completion, the Zhoushan shipyard 

will be the largest in China. Of even greater 

significance, its dry dock capacity will also 

be the greatest in China, with the ability 

to accommodate two VLCCs (“Very Large 

Crude Carriers”) for repair concurrently, and 

oil rigs. This increased capacity combined 

with the ability to undertake oil manufacture 

and repair will propel COSCO Corporation 

to the forefront of the still-underdeveloped 

offshore repair industry in China. It will 

also enable COSCO Corporation to charge 

premium prices, as Zhoushan shipyard 

will be the only shipyard in mainland China 

capable of repairing oil rigs. 

In the meantime, COSCO Corporation’s 

other shipyards under the COSCO Shipyard 

Group are also undergoing upgrading to 

enhance their capacities. This includes 

COSCO (Shanghai) Shipyard Co., Ltd which 

acquired a 30,000 dwt floating dock during 

the year in review. 

When all expansion works are completed 

and the shipyards are fully operational, it is 

expected that earnings from ship repair and 

engineering will grow by an average double 

digit growth per year, and will form the 

largest portion of the COSCO Corporation’s 

total revenue for the foreseeable future. 

Honing operational excellence 

COSCO Corporation’s increasing ship repair 

capabilities and capacities are paired with 

consistently high quality service standards. 

These are maintained through rigorous 

quality control checks and service training, 

as well as the application of the industry’s 

best practices in ensuring operational 

excellence. Additionally, our shipyards’ 

staff’s expertise is regularly upgraded to 

SembCorp Marine’s standards in terms 

of management training and technology 

transfer. All the shipyards’ operating units 

have ISO9000 series accreditation. COSCO 

(Dalian) is the first shipyard in China to have 

been awarded ISO9001 certification for 

quality management across its operations.

25 




COSCO Corporation’s shipyards are 

equipped with top-of-the-line facilities. 

Besides being supported by excellent 

infrastructure, advanced IT systems and 

superb communications networks, the 

shipyards have generous sea frontage 

conducive to berthing operations. In addition 

to the current expansion programme, all 

shipyards undergo regular upgrading and 

enhancement. 

Timing is another attraction factor with 

COSCO Corporation. The strategic location 

of all its seven shipyards, in particular, the 

Zhoushan Shipyard, along China’s bustling 

coastline and the international shipping 

routes places COSCO Corporation’s 

shipyards in prime position to service ships 

requiring repairs and fast turnaround times. 

This gives it a competitive edge over other 

Chinese shipyards. 


The expected increase in global trade 

and shipping activity over the next few 

years as the Chinese economy grows 

promises a positive outlook for the ship 

repair industry in China. Combined with 

the inevitable ageing of the world’s fleet, 

and the increasingly stringent seaworthy 

standards imposed by insurers and 

international maritime industry regulations, 

the opportunity this represents for COSCO 

Corporation’s shipyards is enormous, and 

growing. COSCO Corporation’s increased 

ship repair capabilities and capacities will 

simply allow it to seize the advantage and 

capture more growth. 

China’s share of the global ship repair 

market is approximately 3.8%, of which the 

COSCO Shipyard Group represented 18.5% 

in FY2003. With China’s low cost base and 

its growing reputation for quality work, all 

signs point to a further rise in global market 

share in the coming year, with COSCO 

Shipyard Group in pole position to capture 

an even bigger slice. Beyond organic growth 

however, COSCO Corporation will also be 

sourcing for M&A opportunities to strengthen 

the ship repair business even more. 

The oil rig manufacture and repair business 

is anticipated to become one of the key 

revenue drivers in the future. Three factors 

for this inference are a perceived rising need 

for such specialised services in the future 

with the inevitable deterioration of oil rigs 

around the world, COSCO Corporation’s 

relative lack of major competitors in this field 

in the region, and COSCO Corporation’s 

increasing and as yet unrivalled capacity 

in oil rig manufacture and repair. 

It is therefore anticipated that as the global 

demand for ship and oil rig repair increases 

and China grows to become one of the 

major ship repair hubs of the world, COSCO 

Corporation will benefit from this trend, with 

another year of significant income and profit 

growth expected in FY2005. 

COSCO Corporation’s stakes in 

shipyards as of 31 Dec 2004 

COSCO Nantong 50% 

COSCO Dalian 40% 


26 




Shipping Agency 

Costar Shipping Pte Ltd was established as the sole shipping 

agent of COSCO Corporation and its parent, the COSCO Group, 

in Singapore. Costar Shipping acts on behalf of the entire COSCO 

Group fleet, including all vessels owned and operated by the 

COSCO Group’s various subsidiaries.

27 




Costar Shipping canvasses for cargo from 

both existing and potential clients to ensure 

that the COSCO Group’s vessels transiting 

through Singapore are loaded to maximum 

tonnage capacity. On average, about 

80 percent of the total shipments handled 

by Costar Shipping are transshipment 

consignments. 

In addition to its key role in cargo brokerage 

on behalf of COSCO Group’s vessels, Costar 

Shipping provides a full suite of agency 

services for full container and break-bulks. 

Costar Shipping’s comprehensive range 

of services covers document preparation 

including bills of lading and delivery orders, 

collection of freight, cargo operation, vessel 

husbanding, customs declaration, port 

authority coordination, administration and 

settlement of cargo claims, transshipment 

management, bunkering services and 

container handling. 

The bulk of Costar Shipping’s business is 

the provision of containerisation services 

to COSCO Container Lines’ customers. 

The agency handles virtually any type 

of containers from OOG (out-of-gauge) 

containers and GP or general purpose 

units also called dry containers, to reefer 

containers and hazardous containers (for 

dangerous cargo). Together with COSCO’s 

partner vessels from other carrier 

companies, Costar Shipping provides 

containerisation services of about 100 

to 110 vessels a month. 

In addition, Costar Shipping provides 

value-added services such as trucking, 

freight forwarding, stuffing, container 

depots, warehousing and storage. 


FY2004 was certainly a good year for Costar 

Shipping, with cargo demand outstripping 

supply globally, leading to rising freight 

rates. As a result, Costar Shipping achieved 

a 9% increase in profit to S$2.5 million 

in FY2004 from S$2.3 million in FY2003. 

Revenue remained steady at S$15.7 million 

in FY2004, compared to S$15.8 million 

in FY2003. 

Enhancing competitiveness with IT 

Costar Shipping always seeks to maintain 

its edge in a competitive market through the 

combined offering of attractive costs and 

high-quality, value-added services. In order 

to enhance its customer services, Costar 

Shipping launched a new e-commerce 

online platform during the year. This platform 

enables customers to track their cargo and 

access other customer-specific information 

online, at any time of the day, anywhere in 

the world. 


Costar Shipping’s business objectives are 

aligned with COSCO Corporation’s business 

strategies and corporate vision, and that of 

the parent COSCO Group. Bearing in mind 

that COSCO Group capacity in FY2004 was 

not enough to meet demand, revenue would 

have been even higher if the capacity was 

available. In order to capture this revenue 

growth, in addition to the planned expansion 

of COSCO Corporation’s dry bulk carrier 

fleet over the next two years, COSCO Group 

has also been gradually expanding its fleet 

of container ships by eight more 5,500 TEU 

vessels during the current year. These 

container ships will be phased in by 

second quarter 2005. 

Costar Shipping will therefore be ramping 

up its marketing efforts in FY2005 to 

canvass for more cargo to fill the new 

capacity. Currently, Costar Shipping 

maintains long-term and mutually beneficial 

business relationships with a stable of clients 

consisting of large, international corporations 

in key industries worldwide. The company 

will expand this client base through 

marketing and promotion efforts, and by 

leveraging its network of agents and 

industry partners worldwide. 

With demand for containerised and dry bulk 

cargo in the international shipping industry 

still on the rise, the prospects for FY2005 

look very promising. Global demand for 

capacity is likely to outstrip supply for the 

foreseeable future, which means that the 

current strong freight rates are likely to 

remain firm. Combined with the scheduled 

capacity expansions by COSCO Corporation 

and COSCO Group, and the growing volume 

of trade with China, we expect another year 

of revenue and profit growth for Costar 

Shipping in 2005. 

Coslink (M) Sdn. Bhd. functions as the 

general shipping agent in Malaysia for the 

COSCO Group’s entire fleet of ships, and 

provides the same comprehensive range 

of services as Costar in Singapore. 


28 

Inside COSCO Corporation 



Inside COSCO 

Corporation

29 




HUMAN RESOURCES 

Developing our people 

COSCO Corporation firmly believes that 

in order to realise its aspiration to become 

a world-class shipping and ship repair 

company, it has to attract, nurture and 

retain highly talented and committed 

people. COSCO Corporation seeks to 

continually build up its human capital in four 

fundamental ways – recruitment, training, 

succession planning and motivation. 

The first way is through the recruitment of 

quality staff, and in this respect COSCO 

Corporation seeks to source the kind of 

human talent that will propel the organisation 

forward in the future. Every year, COSCO 

Corporation carries out recruitment drives 

at the top universities in China to source 

for excellent graduates from a range of 

disciplines. In this way the business is 

enriched by the fresh perspectives and 

dynamism of young minds. 

The second is through training and skills 

development, which is imparted through 

a mix of in-house courses, professional 

courses in institutions of technical or higher 

learning, and training from international 

industry partners. 

Internally, regular in-house training courses 

are conducted for all levels of staff, to 

upgrade their skills and knowledge base. 

Prior to their commencement of work 

in shipping and ship repair operations, 

technical workers receive one to three 

months of prerequisite training in their 

areas of specialisation to equip them with 

the required technical skills. To maintain 

a rigorous quality standard across the 

organization, all technical workers are 

required to pass technical examinations 

in order to qualify for a permit that allows 

them to work on the ships. Their skills are 

then upgraded and honed on an ongoing 

basis through further in-house training 

for two weeks to one month each year. In 

addition, appraisals of all staff members 

are conducted every year to facilitate the 

evaluation of individual work performance. 

All staff receive regular upgrading of their 

information technology skills through 

in-house training or system training 

conducted by our vendors. When COSCO 

Group adopted the universal SAP system 

Group-wide this year, we sent several staff 

members to China for a month to learn 

about the new system so that they could 

help both in the implementation of the SAP 

system within COSCO Corporation and in 

the training of its use by all staff. Similarly, 

during the year, management level and 

key operational staff underwent training in 

the use of the IRIS-2 system which was 

introduced recently to better manage our 

electronic data. Likewise our financial staff 

received training from certified accounting 

firm Price Waterhouse Coopers. 

COSCO Corporation also leverages the 

international expertise of its partners to 

introduce new capabilities or train staff in 

a number of areas including engineering, 

management and safety. A prime example 

is COSCO Corporation’s strategic 

collaboration with Singapore’s SembCorp 

Marine to train and nurture key personnel 

in the management of the ship repair and 

engineering business. 

Middle management members are offered 

opportunities to further their knowledge and 

skills in institutions of higher learning such 

as the Nanyang Technological University 

in Singapore. Key senior management 

members are sent to countries with a strong 

maritime tradition such as Norway, in order 

to learn from the best in the industry. 

COSCO Corporation recognizes that the 

future success of the enterprise depends 

largely on the quality of the leadership, 

which in turn is dependent on effective 

succession planning. The individuals at the 

helm of COSCO Corporation are specially 

identified and selected in an ongoing 

succession planning programme. Potential 

leaders are then specifically groomed for top 

management roles via training programmes 

with strategic partners, as well as 

institutions of higher learning. 

Motivating our workforce 

The final way in which COSCO Corporation 

seeks to build the kind of committed 

workforce that will project its future growth, 

is through motivation. A motivated workforce 

is a productive workforce. Thus, besides 

financial incentives, COSCO Corporation has 

several programmes that aim to enhance 

staff loyalty and boost the productivity of 

the workforce. 

One such programme is the “Model 

Employee of the Company” award, open to 

all employees. Every year, model employees 

are selected to receive this award, based on 

their work performances for the year. Among 

other incentives, the selected employees 

are each given a week-long visit to China 

comprising of a visit to the COSCO Group’s 

Beijing headquarters. 

Another incentive is the Employee Share 

Options Plan (ESOP). Introduced in 1994, 

the ESOP is offered to key staff members 

such as senior management members 

and senior staff members as a tool for 

motivation. During the year in review, most 

of the options were exercised, demonstrating 

the high level of commitment there is to the 

company’s well-being. 

Ensuring staff welfare 

COSCO Corporation places the highest 

importance on staff well-being and several 

policies have been put in place to ensure 

that its staff keep in the best of health, 

and safe. 

Health benefits include yearly health checks 

and comprehensive medical insurance 

covering incidentals like dental charges and 

flu vaccinations. All COSCO Corporation’s 

ships carry medical personnel, and the 

shipyards have medical facilities on site. 

In terms of safety, COSCO Corporation 

has a reputation for maintaining the highest 

possible levels of safety throughout its three 

core business units. Safety standards are 

aligned with the industry’s best practices 

such as the International Safety Programme, 

and rigorously applied with stringent checks, 

as our ISO9002 accreditations demonstrate. 

In the ship repair unit, an internal safety 

audit team regularly conducts random spot 

checks at COSCO Corporation’s seven 

shipyards in China to ensure that safety 

standards are kept at high levels at all times. 

In the shipping business, COSCO 

Corporation’s high standards of safety 

recently received recognition through both 

ISO9002 certification and the United States 

Coastguards’ “Qualship 21: certificate of 

eligibility”. Widely considered the most 

rigorous and prestigious award in the 

international shipping industry, the latter was 

awarded to three of COSCO (Singapore)’s 


30 




fleet this year – COS Cherry, COS Intrepid 

and COS Joy – for their high quality 

practices in sustaining marine safety and 

environmental protection. This certification 

enables marine vessels to enter US waters 

without the need for US Coastguard 

clearance, for up to two years. 

INFORMATION TECHNOLOGY 

Along with its parent, the COSCO Group, 

COSCO Corporation is constantly looking 

at ways to leverage modern technology 

to enhance its services and business 

processes. Within the international 

shipping industry, more and more shipping 

transactions are being handled online, as are 

internal administrative functions. COSCO 

Corporation is therefore committed to 

keeping ahead in the new economy through 

the regular upgrading and enhancement of 

its information technology infrastructural 

and support systems. 

In order to enhance and streamline 

Group-wide communication and business 

processes, COSCO Group initiated a 

programme two years ago to introduce 

SAP software systems across the Group. 

This system creates a single integrated 

platform for management information, 

business analysis, financial management, 

human capital management, operations 

and corporate services. 

As part of this Group-wide technology 

enablement process, in FY2004 COSCO 

Corporation upgraded its corporate finance 

management system by integrating it with 

the Group SAP system. During the year, 

it also expanded its communications 

capabilities and business networking 

opportunities through the creation and 

implementation of new and improved 

e-commerce platforms. 

The advanced network now created 

enables seamless information integration, 

management and delivery, a critical 

component in the enabling of smooth 

transportation and logistics operational 

processes for COSCO Corporation and 

the COSCO Group. A main network 

links COSCO Group and its subsidiaries, 

delivering secure digital information across 

the Group. 

Our e-commerce platforms open up a world 

of business opportunities to us, bringing 

us closer to the customer and enabling 

us to conduct business electronically. In 

our shipping agency business unit, Costar 

Shipping introduced IRIS, a user-friendly 

information system enabling our customers 

to obtain real-time tracking information 

about their cargo at their own convenience. 

These information technology systems are 

developed by the COSCO Group’s in-house 

IT department. Staffed by IT professionals, 

the IT department is responsible for the 

maintenance and regular upgrading of all 

IT systems in the COSCO Group and its 

subsidiaries, as well as for the development 

of new, advanced IT support systems and 

functions. COSCO Corporation also has a 

dedicated IT department, responsible for 

the integration, maintenance and ongoing 

upgrading of the Group systems in order to 

improve work productivity internally and 

to provide increasing convenience 

to customers. 

CORPORATE SOCIAL RESPONSIBILITY 

At COSCO Corporation, a sense of 

responsibility to society as a whole is 

enshrined as a core value. We are committed 

to enhancing the welfare of the community 

at large, as well as adopting practices in 

our operations that cause the least possible 

damage to the natural environment. 

Caring for the less fortunate 

In FY2004, as part of our annual charity 

donations, COSCO Corporation donated 

more than S$50,000 in total to a variety of 

charity organisations. These included cash 

donations, fundraising and the sponsorship 

of charity events, and participation in 

charity fundraisers. 

Specifically, during the year, COSCO 

Corporation sponsored and participated 

in the SGX Bull Run. COSCO Corporation 

donated S$25,000 in total in order to support 

the running of the event. A management 

member from COSCO Corporation took part 

in the event, which involved a run to raise a 

donations for ten charity organisations. 

COSCO Corporation also donated money to 

the Community Chest through the Singapore 

Police Force’s charity drive as well as the 

Community Chest in FY2004. 

Protecting the environment 

In order to minimise the environmental 

impact of its shipping and ship repair 

and engineering businesses, COSCO 

Corporation applies rigorous standards 

of environmental safety in its operational 

processes. The US Coastguard “Qualship 

21: certificate of eligibility” and ISO9002 

certification mentioned above in the HR 

section include stringent environmental 

standards as part of the evaluation 

criteria. Above and beyond conformity to 

international environmental standards, the 

award of these certifications demonstrates 

the consistently high standards of pollution 

control and environmental safety achieved 

by COSCO Corporation. 

Nurturing the business community 

Above and beyond its commitment to 

the best international practices of its 

own industry, COSCO Corporation has 

a sense of responsibility to encourage 

and share best practice with the Chinese 

business community in Singapore as a 

whole. Its President, Mr Ji, in his recent 

appointment as the acting Chairman of the 

Chinese Enterprises Association (CEA), 

has undertaken the task of providing 

courses in corporate governance to 

publicly-listed Chinese firms in Singapore. 

Through these courses, Mr Ji hopes to 

encourage greater transparency and good 

corporate governance practices among 

Chinese enterprises so that the interests of 

shareholders would be better protected. 

As a board member of the Singapore 

International Chamber of Commerce, 

Mr Ji also seeks to promote good 

commercial practices by enterprises across 

industries, including COSCO Corporation.

31 




HUMAN RESOURCES 

Staff profile by age group 

Below 25 yrs 24 (12%) 

26-35 yrs 61 (32%) 

36-50 yrs 82 (43%) 

Above 50 yrs 25 (13%) 

Total 192 (100%) 

Staff profile by qualification 

Master’s degree 10 (5%) 

Degree 43 (22%) 

A levels (high school) 95 (50%) 

O levels (middle school) 34 (18%) 

Primary schl (below middle) 10 (5%) 

Total 192 (100%) 


32 

Board of Directors 



Capt. Wei Jia Fu 

Chairman & 

Non-Executive Director 

Ji Hai Sheng 

President & 

Executive Director 

Yao Hong 

Vice President & 

Executive Director 

Li Jian Hong 

Non-Executive 

Director

33 

Board of Directors 



Sun Yue Ying 

Non-Executive 

Director 

Zhou Lian Cheng 


Tom Yee Lat Shing 

Non-Executive & 

Independent Director 

Wang Kai Yuen 



Er Kwong Wah 



irector 


34 

Board of Directors’ Profile 



Capt. Wei Jiafu 

Chairman and Non-Executive Director 

Capt. Wei Jiafu, President and CEO of 

COSCO, has headed the China Ocean 

Shipping (Group) Company (COSCO) since 

November 1998. Prior to that, he was in 

charge of COSCO’s asset operations and 

management as a senior executive in 

many COSCO subsidiaries in China and 

abroad. During his tenure as the President 

of COSCO (Singapore) Ltd, he turned it into 

a public listed company in 1993, marking 

COSCO’s entrance into the international 

capital market. 

With over ten years of seafaring experience 

as a captain and a PhD in ship and ocean 

structural design and manufacture and 

a master’s in shipping, Capt. Wei has 

a wealth of knowledge in international 

shipping management and operations. 

Capt. Wei has won awards for his 

contributions to the international shipping 

industry such as the ‘Economic Booster 

Award’ by the Massachusetts Alliance 

for Economic Development (MAED) in 

November 2004, and ‘Port Pilot Award’ by 

the Port Authority of Long Beach in March 

2004. Capt Wei is also a member of the 

Panama Canal Authority Advisory Board, 

the International Advisory Council of PSA 

Corporation and the China Shipowners’ 

Association, as well as a chairman for 

the China Shipowners Mutual Assurance 

Association, the China Federation of 

Industrial Economics and China Group 

Companies Promotion Association, 

among others. 

Mr Ji Hai Sheng 

President and Executive Director 

Mr Ji has been the President of both 

COSCO Corporation (S) Ltd and COSCO 

Holdings (S) Pte Ltd since November 2000. 

A graduate from the Sichuan Institute of 

Foreign Languages, Mr Ji was employed at 

China Ocean Shipping Company in 1975, 

specialising in Container Operation and 

Management. From 1983 to 1988, he was 

appointed the Company Representative 

in the United States. Subsequently, 

Mr Ji was posted to COSCO Beijing as 

Director of Sino-European (Container 

Service) and Deputy General Manager 

(Freight Service Department). In 1992, 

Mr Ji became the Managing Director of 

COSCO-HIT Terminals (Hong Kong) Ltd 

and Assistant President of COSCO (Hong 

Kong) Group Company. He proceeded to 

become the Deputy Managing Director 

of COSCO Container Lines in Beijing four 

years later. From 1998 to 2000, Mr Ji was 

appointed Managing Director of the Asia 

Pacific Regional Headquarters of COSCO 

Container Lines. 

Mdm Yao Hong 

Vice President and Executive Director 

Mdm Yao has been the Vice President 

of COSCO Holdings (S) Pte Ltd and 

COSCO Corporation since November 

2000. Born in Beijing, Mdm Yao Hong 

graduated from Qingdao Marine College 

with a Bachelor in Shipping Management. 

She additionally holds a Certificate for 

professional and technical competence in 

Business Management from the Ministry of 

Communications. In 1984, Mdm Yao joined 

the COSCO Group as the Section Head 

in the Management Division. Nine years 

later, she became the Section Head of the 

Executive Division in COSCO Group and 

in 1998, was promoted to Assistant 

Division Head. 

Mr Li Jian Hong 


Mr Li was appointed the Executive Vice 

President of COSCO Group in 2000. 

Before that, he was the General Manager 

of Nantong Shipyard, Nantong Steel 

Company, and Nantong Shipping Company, 

and the Chairman of China International 

Marine Containers Co., Ltd. 

In 1995, Mr. Li took charge of the 

establishment of COSCO Industry 

Company and became its General 

Manager. He was also assistant to 

COSCO’s (COSCO Group) President 

and the company’s chief economist. 

Mr. Li has years of expertise in corporate 

operations and management, particularly 

in newbuilding, ship repairing and assets 

operating and management. Mr. Li has 

an MBA from University of East London, 

England, and a Master’s in Economic 

Management from Jilin University, China.

35 

Board of Directors’ Profile 



Mdm Sun Yue Ying 


Mdm Sun joined COSCO Group in 1982, 

and became its Chief Financial Officer in 

December 2000 and a Party Committee 

Member of COSCO Group in April 2004. 

Prior to that, she was the Deputy Director 

of the Financial Department of COSCO 

Tianjin, the Financial Director of COSCO 

Japan ,the General Manager of the 

Finance & Capital Division of the COSCO 

Group, and the Deputy Chief Financial 

Officer of COSCO Group. A 1982 maritime 

accounting graduate from the Shanghai 

Maritime University, Mdm Sun has years 

of professional experience in accounting, 

assets-operating and financing. 

Mr Zhou Lian Cheng 


Mr Zhou has been a Non-Executive 

Director of COSCO Corporation since 

April 2001. He is also a Director and 

Vice President of COSCO (Hong Kong) 

Group Limited, a Director of COSCO 

Pacific Limited and a Director of COSCO 

International Holdings Limited. Prior to that, 

Mr Zhou was the General Manager of China 

Ocean Shipping Agency, Nanjing, and 

the Deputy General Manager of COSCO 

Asia Development Limited and COSCO 

(H.K.) Industry & Trade Holdings Limited. 

A graduate from Dalian Maritime University, 

Mr Zhou has extensive experience in 

corporate management. 

Mr Tom Yee Lat Shing 

Non-Executive & Independent Director 

Mr Yee was appointed to the Board on 

15 December 1993. He is a Non-Executive 

and Independent Director and was last 

re-elected as Director on 24 February 2003. 

He is Chairman of the Company’s Audit 

Committee and member of the Nominating 

and Remuneration Committees. Mr Yee 

is a Certified Public Accountant and 

was a partner of an international public 

accounting firm from 1974 to 1989. He 

has more than 35 years of experience in 

the field of accounting and auditing and 

extensive experience in handling major 

audit assignments of public listed and 

private companies in various industries, 

including insurance, manufacturing and 

retailing. He is currently a consultant. 

Mr Yee also sits on the boards of several 

listed companies, and is a fellow member 

of the Institute of Chartered Accountants in 

Australia, CPA (Australia), CPA (Singapore), 

associate member of the Institute of 

Chartered Secretaries and Administrators, 

and Council Member of CPA (Australia) 

– Singapore Division and the Institute of 

Certified Public Accountants of Singapore. 

Dr Wang Kai Yuen 


Dr Wang was appointed a Non-Executive 

Independent Director in 2001. Dr Wang 

has been a Member of Parliament for the 

Bukit Timah Constituency since 1984. 

Dr Wang was previously the Assistant 

Director for Research at the Institute of 

Systems Science at the National University 

of Singapore which he joined in 1982. 

Subsequently, he was the Director of Xerox 

Singapore Software Centre and Managing 

Director of Fuji Xerox Asia Pacific. In his 

latter capacity, Dr Wang was built up 

the software centre and assisted in the 

establishment of similar software centres 

in UK, India, China, Brazil and Ireland. 

Dr Wang’s directorships include 

ComfortDelgro Group Ltd, Asian Micro 

Holdings Ltd, Nylect Technologies, 

SuperBowl Holdings and Hiap Hoe Ltd. 

Mr Er Kwong Wah 


Mr Er is an Independent Director of five 

public listed companies, including COSCO 

Corporation (Singapore) Ltd. A Colombo 

Plan and Bank of Tokyo Scholar, he 

obtained a first class honours degree in 

Electrical Engineering at the University 

of Toronto, Canada, in 1970 and an MBA 

from the Manchester Business School, 

University of Manchester in 1978. He 

is a Board Member of the National 

Environment Agency, and Chairman of 

its Audit Committee. A former Permanent 

Secretary in the Singapore Civil Service, he 

had served in various ministries before his 

retirement. He is currently the Chairman 

of the Toa Payoh Central Citizens 

Consultative Committee and a member 

of the Bishan-Toa Payoh Town Council. 


36 

Management Team 



Yao Hong 

Li Jian Xiong 

Ji Hai Sheng 

Ye Bin Lin 

Teo Chuan Teck 

Vice President 

Vice President 

President 

Finance Director 

Financial Controller 

Finance Controller

37 

Corporate Structure 




(Singapore) Ltd 

COSCO (Singapore) Pte Ltd 

( 100% ) 

Serene Sky Shipping Inc. 

Greenery Shipping Corporation S.A. 

Dynamism Shipping Corporation S.A. 

Cos Glory Shipping Inc. 

Hanbo Shipping Limited 

Sanbo Shipping Limited 

Cos Knight Shipping Inc. 

Cos Lucky Shipping Inc. 

Cos Orchid Shipping Pte Ltd 

Cos Prosperity Shipping Pte Ltd 

COSCO (Nantong) Shipyard 

Co., Ltd ( 50% ) 

COSCO (Dalian) Shipyard Co., 

Ltd 

( 40% ) 

COSCO Marine Engineering 

(Singapore) Pte Ltd ( 90% ) 

COSCO Engineering Pte Ltd 

COSTAR Shipping Pte Ltd ( 70% ) 

Costar Agencies (M) Sdn. Bhd. 

CNF Shipping Agencies Pte Ltd 

CNF Shipping (M) Sdn. Bhd. 

COSLINK (M) Sdn. Bhd. ( 82.6% ) 

Harington Property Pte Ltd 

( 100% ) 

COSEM Pte Ltd 

( 50% ) 

COSCO Container Depot Pte Ltd 

Marlene International Ltd 

( 100% ) 


38 

Financial Review 



Overview 

In FY2004, COSCO Corporation underwent further expansion to 

extend its focus beyond its traditional shipping business to ship 

repair as another major growth driver for the Company. At the same 

time, the Company continued building up its shipping business in 

order to keep at the forefront of the international shipping industry. 

Overall, FY2004 was an excellent year for bulk shipping, producing 

the best results attained since the Company’s inception. With the 

Baltic Dry Index reaching a historic high and averaging above 4,000 

points throughout the year, COSCO Corporation’s shipping arm 

reaped excellent profits. These will be sustained in the long-term 

by the Company’s adherence to its strategy of locking in profits by 

chartering its dry bulk carrier fleet on a long term basis. This mitigates 

the risk of the Company being adversely affected by the wide swing 

in the conventional shipping cycle. 

Long term stability and growth were additionally ensured by the 

Company’s strengthening of its stake in the ship repair business 

in China, a thriving industry with tremendous potential for growth. 

Previously, the Company owned 50% of the COSCO Nantong 

shipyard and 40% of COSCO Dalian, acquired on 1 February 2002 

and 15 August 2003 respectively. 

In September 2004, the Company signed a sale and purchase 

agreement to acquire 51% of the COSCO Shipyard Group Co Ltd 

to further develop this core business and bring the Company closer 

to realising its aspiration of being the largest ship repair company 

in China and one of the biggest in the world. 

Turnover 

The Company recorded a turnover of S$116.3 million for FY2004. 

This was an increase of 27% or S$24.4 million compared to FY2003 

which recorded S$91.9. This was due to better charter rates. 

Specifically, in the shipping business arm, turnover grew by 36.0% 

from S$67.4 million in FY2003 to S$92.2 million in FY2004 due to 

better charter rates. 

Cash flow from operating activities 

The cash flow generated from the Company’s operating activities 

exceeded that of the previous year. While S$62.8 million was 

generated in FY2003, the cash flow generated in FY2004 was higher 

at S$70.1 million. This was due to the extraordinary cash surplus 

that was derived from the firmer charter hire contracts. 

Cash flow from investing activities 

Both COSCO Nantong and COSCO Dalian shipyards continued to 

do well in FY2004. An increase in the number of ships requiring repair 

as well as the shipyards’ provision of higher value, high-tech repairs 

which enabled them to generate increased revenue resulted in better 

dividends from the two associated companies. 

Dividends 

A dividend of 1 cent per share was approved at the Company’s AGM 

and EGM on 20 April 2004. A special one-time bonus issue of 1 for 

every 5 held was also approved. This was a significant improvement 

in dividend payouts, and reflected the Company’s expansion of its 

capital base to enhance the liquidity of the company’s shares. 

For FY2004, the directors are recommending a first and final dividend 

of 2 cents per share. This represents a payout ratio of approximately 

32% of the profits attributable to the shareholders. 

Net borrowings 

The Company enjoyed a cash surplus as a result of a strong cash 

flow from its shipping business and the dividends income derived 

from its two ship repair associates, COSCO Nantong and COSCO 

Dalian. The Company’s periodic shipping loans were paid down 

according to the repayment schedules in order to trim the Company’s 

borrowings. The sale of an aged dry bulk carrier in the third quarter 

of FY2004 additionally enabled the Company to reduce its 

bank borrowings. 

Issued capital 

The capital issued in the year under review was S$217 million, an 

increase of S$38 million from S$179.6 million employed in FY2003. 

The return on issued capital was 30.5% as compared to 13.5%

39 




attained in FY2003. This improvement in return on capital employed 

is reflective of the Company’s ability to sustain its yield despite its 

expansion in the capital base during the year under review. 

Financial resources 

Besides good financial health, the Company has established good 

relations with both local and global financial institutions. As such, 

the Company enjoys both a good borrowing ability and secured 

credit facilities, available to the Company for the funding of new 

investments and other capital requirements. The Company is 

rigorous in its meeting of payments and honouring of obligations. 

Corporation tax 

In August 2003, the Company was awarded another ten years of tax 

exemption by the International Enterprise Singapore (iE Singapore) 

for its shipping profits under the “Approved International Shipping” 

scheme. Together with the concessionary tax rates enjoyed by 

COSCO Nantong and COSCO Dalian, this has enabled the Company 

to enjoy an effective rate much lower than the statutory corporate 

tax rate of 20%. The Company anticipates that these tax incentives 

will be sustained in the future. 

Redeemable convertible cumulative preference 

shares (RCCPS) 

The Company issued 33 million Redeemable Convertible Cumulative 

Preference Shares (RCCPS) in November 1999. These RCCPS 

were redeemable at the end of the fifth year. By the end of the tenor 

in November 2004, all the RCCPS had been either converted or 

redeemed. During 2004, a total of 256,548 RCCPS were converted 

to 1,282,740 Ordinary Shares at the approved conversion ratio of 

1 RCCPS to 5 Ordinary Shares of 20 cents each. 

Basic earnings per share (EPS) 

FY2004 recorded an EPS of S$6.1 cents. This was a significant 

increase of 125% as compared to S$2.7 in FY2003. This was the 

result of healthy profits from both the chartering of the dry bulk carrier 

fleet and sustainable profits from the ship repair business operated 

by the Company’s associated shipyard companies. The Company 

will continue to strive in the generation of quality earnings from its 

shipping and ship repair businesses in order to deliver strong EPS by 

developing its ship repair business strategically located along China’s 

trading coast. 

Net asset value per share 

In May 2004, the Company also issued a bonus issue of 1 share 

for every 5 held, resulting in an expansion of capital base from 

S$179.6 million to S$217 million The net asset value per share was 

29.67 cents on 1,085,471,000 shares. This was a 17.9% increase 

over a NAV of 25.17 cents per share in 2003. This increase was 

due to the retained profits the Company had built up over the year 

FY2004. 

Gross dividends and dividend cover 

Over the years, from FY2000 to FY2004, the Company’s paid 

dividends has progressively increased from 2.5% to 5% with the 

par value of twenty cent each. 

Despite a higher dividend payout in the last five years, the Company 

also improved on its dividend cover over the last three years from 

1.1 to 3.0 times. This indicates that the Company is able to deliver 

quality earnings and distribute more dividends to the shareholders. 

Although there is no stated dividend payout policy, the Company 

endeavours to pay out as much as it can after taking into account 

the cash flow needed to fund its expansion plans. 

Bonus issue 

In the EGM held on 18 May 2004, the Company’s shareholders 

approved a bonus issue for 1 share for every 5 held. This rewarded 

loyal shareholders and compensated them for the low dividend 

payouts over the past years. 

Shareholders’ funds and net assets 

At the start of FY2004, shareholders’ funds were S$271.2 million. 

This grew to S$321.9 million by the end of FY2004. Similarly, over the 

year under review, the net assets of the Company consolidating from 

S$273.9 million to S$323.6 million. The increase in shareholders’ 

funds and total assets are indicators of the Company’s growth. 

Return on shareholders’ funds 

The Company fared well, yielding a healthy return of 20.56% on 

shareholders’ funds in FY2004. This was a remarkable increase 

as compared to the yield of 8.9% registered in FY2003. 


40 




Simplified group financial position 

The financial position of the company during the year under review 

was stronger than in the previous year. This reflects the Company’s 

effort to divest itself of its non-core businesses and concentrate in 

its shipping and ship repair activities. 

Borrowings 

The total amount of debts owed by the Company as of 31 December 

2004 consisted mainly of long term borrowings of S$135.8 million 

and short term borrowings of S$26.6 million. After deducting cash 

and near cash equivalents of S$94 million, the Company has a net 

debt of S$68.4 million. 

Gearing 

With the strong cash flow and a net cash balance of S$68.4 million, 

the gearing ratio stands at 0.2 times over the shareholders’ fund. 

This is lower than 0.5 times in FY2003. 

Financial resources 

The Group maintained sufficient cash and cash equivalent, internal 

generated cash flow and access to funding resources through 

committed banking facilities. The Company maintained flexibility 

in funding by ensuring that sufficient working capital lines were 

available for its use as and when needed. 

Financial 

Risk management is carried out under policies approved by the 

Board of Directors. The Board approve guidelines for overall risk 

management, including policies covering these areas: 

Foreign currencies rate risk 

The Company monitors its foreign currency exchange risks closely 

and will use derivative financial instruments to hedge their exposure 

when the exposure is significant. 

Interest rate risk 

The Company monitors the interest rates on borrowings closely to 

ensure that the borrowings are maintained at favourable rates, and 

will use derivative financial instruments to hedge the exposure when 

the exposure is significant. 

Credit risk 

The Company has policies in place to ensure that customers are 

of adequate financial standing and have appropriate credit history. 

Prudent liquidity risk management involves maintaining sufficient 

cash and funding through adequate and available credit facilities. 

Due to the dynamic nature of the Company’s businesses, the 

Company maintains flexibility in funding by keeping adequate 

credit facilities secured with established financial institutions. 

RISK MANAGEMENT OPERATION 

The Company takes its operations’ safety measures very seriously. 

The Company ensures that all safety measures are always in 

compliance with ISO standards and audits. Spot checks and 

dialogues at all workplaces are conducted on a regular basis to 

help maintain high standards of safety.

41 

Corporate Governance 



CORPORATE GOVERNANCE STATEMENT 

This statement describes the corporate governance policies 

and practices of Cosco Corporation (Singapore) Limited (the 

“Company”) during the financial year under review. This is in line 

with the Singapore Exchange Securities Trading Limited (“SGX- 

ST”) requirement that issuers describe their corporate governance 

practices with specific reference to the Code of Corporate 

Governance (the “Code”) in their annual reports. 

Cosco Corporation (Singapore) Limited (the “Company”) is 

committed to practising good standards of corporate governance 

within the Company and its subsidiaries (the “Group”). The Group’s 

policies and practices are developed in full compliance with 

statutory and regulatory requirements to enhance transparency and 

accountability as well as to protect the interests of stakeholders. This 

is ensured by various self-regulatory and monitoring mechanisms 

implemented within the Group. 

BOARD MATTERS 

Principle 1: The Board’s conduct of its affairs 

The principal functions of the Board are to guide the corporate 

strategy and direction of the Company; to ensure effective 

management and safeguard the quality and integrity of the 

leadership, and to provide oversight in the proper conduct of the 

Company’s business. 

The Board comprises nine directors of whom two are executive 

directors, four are non-executive and three are non-executive 

independent directors. It also has four alternate directors to represent 

directors who are stationed overseas. The profile of the Directors are 

found on pages 34 and 35 of this Annual Report. 

The roles of Chairman and the President are undertaken by separate 

persons so as to create a clear division of responsibilities and 

maintain an effective oversight. 

The Board meets regularly to review the business strategies of the 

Group, and deliberate upon the tactical decisions of the Company 

and its subsidiaries including acquisitions and disposals. It also 

meets to review and approve the annual budget, the performance of 

the business, and the release of the quarterly and year-end results. . 

Where necessary, additional board meetings are also held on an ad 

hoc basis to address significant issues and transactions. The Board 

also meets to review the internal controls of the company and its 

subsidiaries, the internal and external audit reports, and executive 

directors’ remuneration. The Board members’ attendance at Board 

meetings and Board Committee meetings is shown on page 42. 

Besides attendance at formal meetings, a director’s contribution 

includes the guidance he provides the Management with, as well 

as the strategic relationships he brings to the Group. Changes to 

regulations and accounting standards are monitored closely by 

Management. Directors receive regular updates on relevant new 

laws and regulations, and evolving commercial risks and business 

conditions from the Company’s relevant advisors. 

Newly appointed directors are provided with background information 

about the Company and the Group, and are invited to visit the 

Group’s operations to enrich their understanding of its business 

operations. The Company’s Articles of Association also provide for at 

least one third of the Directors to retire from office by rotation at each 

Annual General Meeting (“AGM”). Retiring directors are eligible for 

re-election at the AGM. 

BOARD COMPOSITION AND BALANCE 

Principle 2: Strong and independent element on the Board 

The Board comprises the following members: 

1. Capt. Wei Jia Fu (Non-Executive) 

2. Mr Ji Hai Sheng (Executive) 

3. Mdm Yao Hong (Executive) 

4. Mr Li Jian Hong (Non-Executive) 

5. Mdm Sun Yue Ying (Non-Executive) 

6. Mr Zhou Lian Cheng (Non-Executive) 

7. Mr Tom Yee Lat Shing (Non-Executive/Independent) 

8. Dr Wang Kai Yuen (Non-Executive/Independent) 

9. Mr Er Kwong Wah (Non-Executive/Independent) 

10. Mr Gu Qi Chang (Alternate to Mr Wei Jia Fu) 

Resigned on 31/12/2004 

11. Mr Li Jian Xiong (Alternate to Mr Li Jian Hong) 

12. Mr Ye Bin Lin (Alternate to Ms Sun Yue Ying) 

13. Mr Liu De Tian (Alternate to Mr Zhou Lian Cheng) 

The majority of the directors are non-executive and independent of 

management. Together with a clear distinction between the roles of 

the Chairman and the President, this ensures an appropriate balance 

of power and authority at the top of the Group. 

The current size of the Board is appropriate for the facilitation of 

decision making. The Board will continue to review the size of the 

Board on an ongoing basis. 

The Board has three board committees, namely an Audit Committee, 

a Nominating Committee and a Remuneration Committee to assist 

in the effective discharge of specific functions in the Company. All 

Committees are chaired by an independent Director and consist 

mainly of independent directors. 


42 




As a team, the Board collectively provides core competencies in the areas of accounting, finance, business and management, as well as 

industry knowledge. The Directors’ academic and professional qualifications are shown on pages 34 and 35. 

During the year, the Board met, formally, a total of nine times, and also as warranted by particular circumstances or deemed appropriate by 

the Board members. 

Directors’ attendance at meetings of the Board and other Committees during the year is as follows: 

Name Board Audit Nominating Remuneration 

Committee Committee Committee 

Number of Meetings held: 9 Number of Meetings held: 5 Number of Meetings held: 1 Number of Meetings held: 2 

Number of Meetings attended Number of Meetings attended Number of Meetings attended Number of Meetings attended 

Wei Jia Fu – NA NA NA 

Sun Yue Ying – NA NA NA 

Ji Hai Sheng 9 NA 1 2 

Yao Hong 8 NA NA NA 

Zhou Lian Cheng – NA NA NA 

Li Jian Hong – NA NA NA 

Tom Yee Lat Shing 8 5 1 2 

Dr Wang Kai Yuen 8 5 1 2 

Er Kwong Wah 7 5 1 2 

Gu Qi Chang 

(Alternate to Wei Jia Fu) 4 NA NA NA 

Ye Bin Lin 

(Alternate to Sun Yue Ying) 9 4 NA NA 

Liu De Tian 

(Alternate to Zhou Lian Cheng) 9 NA NA NA 

Li Jian Xiong 

(Alternate to Li Jian Hong) 8 NA NA NA 

NA: Not Applicable 

CHAIRMAN AND CHIEF EXECUTIVE OFFICER 

Principle 3: Clear division of responsibilities at the top of the Company 

There is a clear division of responsibility between the Chairman and the President. 

The Chairman is responsible for the workings of the Board, ensuring the integrity and effectiveness of its governance process. In his absence, 

his appointed alternate and/or the President would act on his behalf. 

The President is the most senior executive in the Company and has full executive responsibilities over the business directions and operational 

decisions of the Group. He works closely with the Board to implement the policies set by the Board to realise the Group’s vision.

43 




BOARD MEMBERSHIP 

Principle 4: Formal and transparent process for appointment 

of new directors 

To create a formal and transparent process for the appointment of 

new directors, the Board has formed a Nominating Committee. This 

comprises the following members, a majority of whom, including the 

Chairman, are independent: 

Dr Wang Kai Yuen (Chairman) (Non-executive/Independent) 


(Executive/Non-Independent) 

Mr Tom Yee Lat Shing (Non-executive/Independent) 


(Non-executive/Independent) 

The role of the Nominating Committee is to make recommendations 

to the Board on all Board appointments. The Nominating Committee 

is responsible for re-nominating directors after reviewing their 

performance and contribution to the effectiveness of the Board. 

In addition, the Nominating Committee reviews and determines 

annually whether or not a director is independent, and makes the 

appropriate disclosures. 

In accordance with the Company’s Articles of Association, 

one-third of our directors retire by rotation and subject themselves 

to re-election at every AGM. The President who is a member of 

the Board must also subject himself to retirement by rotation and 

re-election by shareholders. This is to ensure that no director stays 

in office for more than three years without being re-elected by 

shareholders, and to enable shareholders to exercise their right to 

scrutinise and select all Board members. 

The Nominating Committee held one meeting during the year 

under review. 

BOARD PERFORMANCE 

Principle 5: Formal assessment of the effectiveness of the Board 

and contributions of each director 

The Board’s performance is ultimately reflected in the performance of 

the Company. In addition to its fiduciary duties, the Board is charged 

with setting the strategic direction of the Company, and ensuring that 

the Company is ably managed. 

The Nominating Committee uses objective and appropriate 

quantitative and qualitative criteria to assess the performance 

of individual directors, and the Board as a whole. Assessment 

parameters include the attendance records of the directors 

at Board or Committee meetings, the level of participation at 

such meetings,the quality of Board processes and the business 

performance of the Group. 

ACCESS TO INFORMATION 

Principle 6: Provision of Board members with complete, 

adequate and timely information 

Board members are provided with management information 

pertaining to such areas as detailed divisional performance, variance 

analysis, budgets, forecasts, the funding positions and cashflow 

projections of the Group, to help them carry out their responsibilities 

effectively. In addition, all relevant information on material events and 

transactions are circulated to directors as and when they arise. 

All Board members have separate and independent access to the 

advice and services of the Company Secretary, who is responsible to 

the Board for ensuring that board procedures are followed and that 

applicable rules and regulations are complied with. The Company 

Secretary is present at all Board meetings. All Board members also 

have separate and independent access to the senior management of 

the Company and the Group. 

Board members are aware that they, whether as a group or 

individually, in the furtherance of their duties, can take independent 

professional advice, if necessary, at the Company’s expense. 

REMUNERATION MATTERS 

Principle 7: Procedures for developing remuneration policies 

Principle 8: Level and mix of remuneration 

Principle 9: Disclosure on remuneration 

The Board has formed a Remuneration Committee comprising 

the following members, a majority of whom are independent of 

management and free from any business or other relationship: 

Mr Er Kwong Wah (Chairman) (Non-executive/Independent) 


(Executive/Non-Independent) 

Mr Tom Yee Lat Shing (Non-executive/Independent) 



The Remuneration Committee held two meetings during the year 

under review. 

The Remuneration Committee is also responsible for the 

administration of the Cosco Group Employees’ Share Option 

Schemes of the Company. 

Details of the Cosco Group Employees’ Share Option Schemes 

are found in the Directors’ Report. 

The role of the Remuneration Committee is to recommend to the 

Board, in consultation with the Chairman of the Board, a framework 

of remuneration for the Board and key executives, and to determine 

specific remuneration packages for each executive director. 


44 




In its review, the Remuneration Committee’s objective is to establish and maintain a level of remuneration that would be appropriate to attract, 

retain and motivate the directors and key executives to run the Company successfully. 

The Company currently adopts a remuneration policy for staff consisting of a fixed component and a variable component. The fixed 

component is in the form of a base salary. The variable component is in the form of a variable bonus that is linked to the Company and 

individual performance. Another element of the variable component is the grant of share options under the Cosco Group Employees’ Share 

Option Schemes. 

The remuneration of non-executive directors is determined by the Chairman together with the other executive directors, and is based on the 

effort and time spent and the responsibilities of the non-executive directors. 

Non-executive directors are paid a basic fee and additional fees for serving on any of the Board Committees. The Chairman of each of these 

committees is compensated for his additional responsibilities. Such fees are approved by the shareholders of the Company as a lump sum 

payment at the AGM of the Company. 

The details of the remuneration of the Directors and key executives are as follows: 

DIRECTORS’ REMUNERATION 

Benefits 

Other from Stock 

Fees Salary Bonus Benefits Option Total Remark 

Executive Director above the Band of S$750,000 Note 2 

Ji Hai Sheng 16.75% 22.91% 12.08% 16.94% 31.32% 100% 

Executive Directors in the Band of S$500,000 to S$750,000 

Li Jian Xiong 8.97% 25.04% 13.55% 16.79% 35.65% 100% 

Ye Bin Lin 14.36% 25.34% 13.00% 11.23% 36.07% 100% 

Yao Hong 1.88% 27.05% 13.89% 18.67% 38.51% 100% 

Executive Director above the Band of S$250,000 

Liu De Tian – 29.00% 17.50% 15.00% 38.50% 100% 

Non Executive Director in the Band of S$250,000 to S$500,000 

Zhou Lian Cheng NA NA NA NA 100% 100% 500,000 shares were exercised in 2004 

Non Executive Directors below the Band of S$250,000 

Wei Jia Fu NA NA NA NA Note 1 NA Has not exercised the share options 

Sun Yue Ying NA NA NA NA Note 1 NA Has not exercised the share options 

Li Jian Hong NA NA NA NA Note 1 NA Has not exercised the share options 

Independent Directors in the Band Below S$250,000 

Tom Yee Lat Shing 100% NA NA NA Note 1 100% Has not exercised the share options 

Dr Wang Kai Yuen 100% NA NA NA Note 1 100% Has not exercised the share options 

Er Kwong Wah 100% NA NA NA Note 1 100% Has not exercised the share options 

Executive in the Band of S$250,000 – S$500,000 

Teo Chuan Teck – 39.10% 15.30% 2.60% 43.00% 100% 

Note 1 

No benefits have been received as the stock options were not exercised in the year. 

Note 2 

Share options granted and accepted in 2004 are not reflected as they exercisable after 2004.

45 




ACCOUNTABILITY AND AUDIT 

Principle 10: Accountability of the Board and management 

The Company has adopted quarterly results reporting since the first 

quarter of 2003. The Company holds a media and analysts briefing of 

its quarterly, half-year and full-year results. The results are published 

through MASNET/SGXNET and news releases. All information on the 

Company’s new initiatives is first disseminated via MASNET/SGXNET, 

and subsequently via press releases. 

The Company communicates with its investors on a regular basis 

through press releases. All shareholders of the Company receive the 

annual report and notice of AGM. Notices for shareholders meetings 

are advertised in newspapers and made available on MASNET/ 

SGXNET. 

At General Meetings, shareholders are given the opportunity to 

express their views and ask Directors or the Management questions 

regarding the Company and the Group. 

AUDIT COMMITTEE 

Principle 11: Establishment of Audit Committee with written 

terms of reference 

The Audit Committee comprises the following members: 

Mr Tom Yee Lat Shing 

(Chairman) 



Mdm Sun Yue Ying 

(Alternate: Ye Bin Lin) 




(Non-executive) 

The role of the Audit Committee is to assist the Board of Directors in 

the execution of its corporate governance responsibilities within the 

established Board references and requirements. 

The financial statements, accounting policies and system of internal 

accounting controls are the responsibilities of the Board of Directors 

acting through the Audit Committee. In performing its functions 

during the year under review, the Audit Committee reviewed the 

sope of work of both internal and external auditors and the 

assistance given by the Company’s officers to the audits. It met 

with the Company’s internal and external auditors, without the 

presence of the Management, to review their audit plans and discuss 

the results of their respective examinations and their evaluation 

of the Group’s system of internal accounting controls. The Audit 

Committee also reviewed the financial statements of the Group for 

the financial year ended 31 December 2004 as well as the auditors’ 

report thereon and the first quarter, half-yearly, third quarter and 

annual results announcements, before they were submitted to the 

Board for approval. The Audit Committee also, on a quarterly basis, 

reviewed the recurrent interested persons transactions of the Group. 

This was to ensure that the methods or procedure for determining 

the transaction prices have not changed since the last shareholder 

approval and that the methods or procedures are sufficient to ensure 

that the transactions are carried out on normal commercial terms 

and will not be prejudicial to the interests of the Company and 

its shareholders. 

The Audit Committee has full access to, and cooperation from the 

Management including internal and external auditors, and has full 

discretion to invite any director and executive officer to attend its 

meetings. The Audit Committee has also express power to 

investigate any matter brought to its attention, within its terms 

of reference, with the power to retain professional advice at the 

Company’s expense. The Audit Committee met a total of five times 

during the year under review. All members were present during 

these meetings. 

The Audit Committee, having reviewed the amount of non-audit 

services to the Group by the external auditors, is satisfied with 

the independence and objectivity of the external auditors and 

recommends to the Board of Directors, the nomination of the 

external auditors for re-appointment. 

INTERNAL CONTROLS 

Principle 12: Sound system of internal controls 

The Group maintains a system of internal controls for all companies 

within the Group, but recognises that no internal control system 

will preclude all errors and irregularities. The system is designed 

to manage rather than to eliminate the risk of failure to achieve 

business objectives. The controls are to provide reasonable, but not 

absolute, assurance to safeguard shareholders’ investments and 

the Group’s assets. 

With the assistance of Internal Audit, the Audit Committee and 

the Board of Directors review the effectiveness of the key internal 

controls, including financial, operational and compliance controls, 

and risk management on an on-going basis. There are formal 

procedures in place for both the internal and external auditors to 

report independently their findings and recommendations to the 

Audit Committee. 

The Board is satisfied that there are adequate internal controls 

in the Group. 


46 




INTERNAL AUDIT 

Principle 13: Internal Audit 

The Group recognises the importance of the internal audit function 

which, being independent of Management, is one of the principal 

means by which the Audit Committee is able to carry out its 

responsibilities effectively. 

The Group outsources its internal audit functions to the firm 

Foo, Kon & Tan Consultants Pte Ltd. Based on its review, the Audit 

Committee believes that the internal auditor is independent and has 

the appropriate standing to perform its function effectively. 

The internal auditor plans its internal audit schedules in consultation 

with Management and submits its plan to the Audit Committee 

for approval. 

The Audit Committee meets with the internal auditor at least once 

a year without the presence of Management. 

The Internal Auditors report directly to the Audit Committee. 

COMMUNICATION WITH SHAREHOLDERS 

Principle 14: Regular, effective and fair communication 

with shareholders 

Principle 15: Shareholder participation at General Meetings 

The Group strives for timeliness and transparency in its disclosures 

to the shareholders and the public. In addition to the regular 

dissemination of information through MASNET/SGXNET, the 

Company also responds to enquiries from investors, analysts, fund 

managers and the press. Price-sensitive information is always 

released on MASNET/SGXNET after the trading hours of the 

Singapore Exchange Securities Trading Limited. 

At General Meetings, shareholders are given the opportunity to 

express their views and ask the Board questions regarding the 

operations of the Group. 

Securities transactions and compliance with the 

Best Practices Guide 

In line with SGX Best Practices Guide on dealings in securities, the 

Company has adopted an internal compliance code which mirrors 

substantially the provisions of the Best Practices Guide in the Listing 

Manual to provide guidance to its directors and officers in relation 

to dealings in its securities. 

The Company issues circulars to its Directors, principal officers 

and relevant officers who have access to unpublished material 

price-sensitive information to remind them that they are required 

to report on their dealings in shares of the Company. They are also 

reminded of the prohibition in dealings in shares of the Company the 

month before the release of the quarterly, half yearly and year-end 

financial results and ending on the date of the announcement of the 

relevant results, and if they are in possession of unpublished material 

price-sensitive information. 

The Board of Directors confirms that for the financial year ended 

31 December 2004, the Company complied with the principal 

corporate governance recommendations set out in the Best 

Practices Guide issued by SGX. 

Interested Person Transactions (IPT) 

The Audit Committee having considered, amongst others, the scope 

guidelines, review procedures and benefits of the IPT Mandate, is 

satisfied that the procedure for determining the transactions prices 

have not changed since the last shareholders’ approval on 20 April 

2004, and are also adequate in ensuring that the IPTs will be carried 

out on normal commercial terms and will not be prejudicial to the 

interests of the Company and its minority shareholders. 

The Committee reviewed the IPT Mandate which is subject to 

renewal, and is satisfied that the review procedures for IPTs and the 

reviews to be made periodically by the Audit Committee in relation 

thereto are adequate to ensure that the IPTs will be transacted 

on normal terms and will not be prejudicial to the interests of the 

Company and its minority shareholders.

47 




Interested person transactions for FY2004 are as follows: 

Name of Interested Person 

Aggregate value of all interested 

person transactions conducted 

under shareholders’ mandate 

pursuant to Rule 920 (excluding 

transactions less than $100,000) 

S$’000 

FY2004 

Between Subsidiaries and: 

Cosco Container Lines 13,674 

Cosco Bulk Carrier Co. 208 

Cosco Chartering and Shipbroking (UK) Ltd 9,007 

Guangzhou Ocean Crew Co. 1,759 

Nantong Cosco KHI Engineering Co., Ltd 9,390 

Qingdao Ocean Crew Co. 1,289 

Shanghai Ocean Crew Co. 2,199 

Chimbusco (S) Pte Ltd 113 

37,639 

Between Associated companies of the Group and: 

Cosco Shipyard Group Co., Ltd 3,635 

Cosco Nantong Steel Co., Ltd 470 

Cosco Bulk Carrier Co. 2,980 

Cosco Dalian 1,850 

Cosco Hongkong 1,367 

Cosco Container Lines 1,029 

Rikky Ocean Governor Nantong Co. Ltd 258 

Diesel Marine Nantong Ltd 114 

Nantong Cosco Clavon 852 

Antisepsis Engineering Ltd 

12,555 

Risk Management 

The Group regularly reviews and improves its business and 

operational activities to identify areas of significant business risk as 

well as take appropriate measures to control and mitigate these risks. 

The Group reviews all significant control policies and procedures 

and highlights all significant matters to the Audit Committee and the 

Board. The financial risk management objectives and policies are 

outlined in Note 32 of the notes to the financial statements. 

COSCO CORPORATION (SINGAPORE) LIMITIED REPORT 

OF CORPORATE GOVERNANCE ACTIVITIES IN 2004 

The Board of Directors of the Company held a total of nine board 

meetings during the year. These meetings were held to approve the 

release of the full year and the quarterly results, to review interested 

person transactions as well as to consider major acquisitions. 

The Audit Committee, chaired by Mr Tom Yee Lat Shing, held five 

meetings during the year. It reviewed and recommended to the 

Board the release of the year-end and quarterly financial results, 

considered and approved the 2004 External and Internal Audit Plans 

and reviewed, on a quarterly basis, the details of Interested Persons 

Transactions and ensured that the relevant rules under Chapter 9 

of the Listing Manual of the Singapore Exchange Securities Trading 

Limited were complied with. 

The Audit Committee met with the external and internal auditors in 

the absence of Management to discuss issues relating to the audit 

of the 2004 accounts. 

The Audit Committee reviewed the non-audit services provided by 

the external auditors which comprises tax services and is satisfied 

with the independence of the external auditors. 

The Nominating Committee, chaired by Dr Wang Kai Yuen, held 

one meeting during the year to consider the form and guidelines 

to evaluate the performance of the Board as a whole as well as the 

performance of the individual Directors, to recommend to the Board 

the re-nomination of Directors who are retiring by rotation and to 

recommend the re-appointment of Mr Tom Yee Lat Shing, pursuant 

to Section 153 (6) of the Companies Act, Cap. 50 for shareholders 

approval at the AGM. 

The Remuneration Committee, chaired by Mr Er Kwong Wah, held 

two meetings during the year to consider, determine and recommend 

to the Board the matrix for Directors’ fees and the compensation 

packages and incentive plans for key executive positions. As part 

of the incentive package, the Committee also granted share options 

under the Cosco Group Employees’ Share Option Scheme 2002. 


48 




INVESTOR RELATIONS 

COSCO Corporation is committed to providing timely, accurate and clear information to investors, analysts and fund managers. This is to 

enable them to effectively evaluate the investment merits of the Company. The Company is focused on achieving the highest standards 

in corporate governance and transparency. 

COSCO Corporation’s senior management takes an active interest in investor relations and communicates regularly with investors, 

analysts and fund managers through a variety of means. These include frequently updated corporate brochures, corporate and financial 

results announcements and news releases distributed by fax and mail. These are also made available on the COSCO Corporation website 

for convenient access and downloading. The media, fund managers and analysts are invited to our quarterly results presentations. 

At these meetings, our senior management provides updates on the Company’s plans, financial and operational performance, and 

business environment. 

AGMs and EGMs additionally provide an opportunity to gather feedback from investors through question-and-answer sessions that facilitate 

discussions between the directors and management of COSCO Corporation and the investment community. 

The Company’s annual report aims to give investors a deeper understanding of the Company’s business, growth strategies and financial and 

operational performance. To ensure the timely reception of the annual report by our overseas investors, the annual report is posted online 

on our corporate website in tandem with its distribution in Singapore. 

During the year under review, COSCO Corporation participated in 82 investor meetings. The Company also participated in investor 

conferences in New York, Boston, Chicago, Washington DC, Arlington, San Francisco, Frankfurt, Luxembourg, Amsterdam, London, 

Hong Kong, Beijing and Singapore. Analysts and fund managers also visited our shipyards in China for a better understanding of 

our operations. 

In addition, COSCO Corporation’s President was frequently interviewed on television news and business programmes on Bloomberg TV 

and MediaCorp’s Channel News Asia, as well as newspapers and magazines such as The Edge, The Straits Times, Business Times and 

Lianhe Zaobao, and newswire services, Reuters and Dow Jones. 

Looking ahead, COSCO Corporation will continue to maintain clear dialogue with its investors, analysts and fund managers so as to 

sustain high standards of corporate governance and transparency, and to ensure that the Company consistently acts in the best interests 

of its shareholders.

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