Shipping

14
President’s Statement
COSCO Corporation
(Singapore) Limited
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