17
Annual Report 2014
Key Messages
Meeting the Challenge
Since 2006, COSCO Corporation has developed into an
integrated marine engineering solutions provider with
the capability for a wide range of marine engineering
products, as well as marine transport vessels. The
quality and diversity of our new contracts have improved
over the years, with encouraging orders of higher
specification semi-submersible rigs and jack-up drilling
rigs, and a greater variety and size of offshore support
vessels and cargo carriers.
The Group continues to build a wider variety of products
than most others in China. This gives us the advantage
of accommodating varied customer requirements. We
believe our shipyards’ wide repertoire of competencies
for various marine engineering products puts us on a
steady course to meet the challenges of the global
market.
Our research and development team has also been
working hard on honing our design capability and
preparing for new challenges brought by more
demanding specifications, especially in the marine
engineering areas.
We have further strengthened the foundation of our
marine engineering capability, and will continue to gear
ourselves for higher quality and more cost-effective
output from our yards.
As one of the larger players in China’s marine engineering
space, we have capitalised on our first-mover advantage
to address the ever-changing needs of our clientele.
In spite of all these efforts, the pressure of increasing
costs has in some ways negated much of the benefits in
the year under review. Moving forward, we will continue
to focus on the improvement of our productivity and
cost control measures. We will also exercise greater
prudence to ensure that business risks are continually
better managed to further support the sustainability of
the Group.
We will continue to enhance our project execution
capability by further improving our work processes and
up-skilling our workers and at the same time keeping a
tight lid on costs across our shipyards in China.
We continue to be vigilant with the ebb and flow of the
market and increase our responsiveness to the needs
of our customers in the ship repair, ship building and
marine engineering segments.
We take a cautious approach into the new financial year,
with a keen eye on global economic conditions. Going
forward, the COSCO team will work even harder to
strengthen our relationship with core clients and explore
various avenues to offer better value propositions for all
our customers.
Dividend Announcement
In these trying times, the Board is proposing a first and
final dividend of 0.5 cent per share to be approved at
the upcoming Annual General Meeting. On behalf of the
Board of Directors, I would like to take this opportunity to
thank all our valued shareholders for your understanding
and continued strong support.
We would also like to record our appreciation to the
management and staff for their contributions in 2014
and their continued determination and hard work in
support of the Group’s efforts to manage change and
address new challenges.
Li Yun Peng
Chairman
