SITC International : ANNOUNCEMENT OF INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2022

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SITC International Holdings Company Limited

海 豐 國 際 控 股 有 限 公 司

(Incorporated in the Cayman Islands with limited liability )

(Stock Code: 1308)

ANNOUNCEMENT OF INTERIM RESULTS

FOR THE SIX MONTHS ENDED 30 JUNE 2022

Financial Highlights

• Revenue for the six months ended 30 June 2022 was approximately US$2,257.7 million, increased by approximately 69.2% as compared to approximately US$1,334.2 million for the corresponding period in 2021.
• Gross profit for the six months ended 30 June 2022 increased by approximately 116.2% from approximately US$557.2 million for the six months ended 30 June 2021 to approximately US$1,204.4 million, which translated to an increase in gross profit margin to approximately 53.3% for the six months ended 30 June 2022 from approximately 41.8% for the six months ended 30 June 2021.
• Profit for the six months ended 30 June 2022 increased by approximately 139.9% to approximately US$1,170.3 million from approximately US$487.9 million for the corresponding period in 2021.
• Basic earnings per share for the six months ended 30 June 2022 amounted to US43.95 cents (30 June 2021: US18.24 cents).
• An interim dividend of HK$2.40 per share (equivalent to US$0.31 per share) was declared for the six months ended 30 June 2022.

The board (the "Board") of directors (the "Directors") of SITC International Holdings Company Limited ("SITC" or the "Company", together with its subsidiaries, the "Group") is pleased to announce the unaudited consolidated interim results of the Group for the six months ended 30 June 2022, together with the comparative figures for the corresponding period in 2021 as below.

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FINANCIAL INFORMATION

INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

		Six months
		ended 30 June
	Notes	2022		2021
		US$'000	US$'000
		(Unaudited)	(Unaudited)
REVENUE	3	2,257,663	1,334,237
Cost of sales		(1,053,244)	(777,016)
Gross profit		1,204,419		557,221
Other income and gains, net		53,284	8,859
Administrative expenses		(79,214)	(66,446)
Other expenses, net		(1,183)	(2,479)
Finance costs	4	(7,780)	(7,850)
Share of profits and losses of:
Joint ventures		11,519	6,983
Associates		240	156
PROFIT BEFORE TAX	5	1,181,285		496,444
Income tax	6	(11,003)	(8,523)
PROFIT FOR THE PERIOD		1,170,282		487,921

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		Six months
		ended 30 June
	Note	2022		2021
		US$'000	US$'000
		(Unaudited)	(Unaudited)
OTHER COMPREHENSIVE INCOME/(LOSS)
Other comprehensive income/(loss) that may
be reclassified to profit or loss in subsequent
periods:
Cash flow hedges:
Effective portion of changes in fair value
of hedging instruments arising during the
period		14,575	8,949
Reclassification adjustments for
losses/(gains) included in profit or loss	5	(447)	2,876
		14,128		11,825
Exchange differences on translation
of foreign operations		(7,588)	416
Share of other comprehensive loss
of joint ventures		(906)	(133)
Share of other comprehensive loss
of associates		(464)	(31)
Net other comprehensive income
that may be reclassified to profit or loss
in subsequent periods		5,170		12,077

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		Six months
		ended 30 June
	Note	2022		2021
		US$'000	US$'000
		(Unaudited)	(Unaudited)
OTHER COMPREHENSIVE INCOME FOR
THE PERIOD, NET OF INCOME TAX		5,170	12,077
TOTAL COMPREHENSIVE INCOME FOR
THE PERIOD		1,175,452		499,998
Profit for the period attributable to:
Shareholders of the Company		1,167,351		485,588
Non-controlling interests		2,931		2,333
		1,170,282		487,921
Total comprehensive income for the period
attributable to:
Shareholders of the Company		1,173,129		497,599
Non-controlling interests		2,323		2,399
		1,175,452		499,998
EARNINGS PER SHARE ATTRIBUTABLE
TO SHAREHOLDERS OF THE COMPANY	8
Basic (US cents per share)		43.95		18.24
Diluted (US cents per share)		43.51		18.10

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INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

		30 June	31 December
	Notes	2022		2021
		US$'000	US$'000
		(Unaudited)	(Audited)
NON-CURRENT ASSETS
Property, plant and equipment		1,126,235	1,087,704
Right-of-use assets		236,248	233,189
Advance payments for acquisition of vessels		179,259	145,152
Goodwill		1,058	1,111
Other intangible assets		1,579	1,579
Investments in joint ventures		58,434	49,929
Investments in associates		10,270	10,494
Derivative financial instruments		9,483	1,907
Total non-current assets		1,622,566		1,531,065
CURRENT ASSETS
Bunkers		62,652		41,476
Trade receivables	9	236,000	157,038
Prepayments, deposits and other receivables		48,560	34,929
Derivative financial instruments		2,520	329
Financial assets at fair value through profit or
loss		23,732	32,105
Cash and bank balances		1,213,557	919,481
Total current assets		1,587,021		1,185,358
CURRENT LIABILITIES
Trade payables	10	273,272		201,857
Other payables and accruals		149,260		173,445
Derivative financial instruments		684	51
Bank borrowings		42,013	83,211
Lease liabilities		48,495	48,186
Dividend payables		-	270,829
Income tax payables		5,612	7,695
Total current liabilities		519,336		785,274
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