Good afternoon, ladies and gentlemen. Welcome to the twenty twenty four of annual results presentation of Singamas Container Holdings Limited. First of all, I'd like to introduce to you the management of the company. Mister SS Tuoh, chairman and executive chief executive officer. Miss Winnie Hsu, executive director and chief operating officer.
And miss Rebecca Chung, executive director, chief financial officer, and company secretary. Mister Thao will now present the company's annual results. All the financial figures in the presentation are in US dollars unless otherwise stated. Mr. Thao, please.
Thank you. Good afternoon, and thanks for coming in this cold day. Thank you for joining us, and we'll go through the of thousand units of tanks and customized container. For our leasing business, we currently own a fleet of about 120,000 TEU of leasing containers. Apart from that, Singamas also runs eight container depots across China major port cities and one logistic company in Xiamen.
Slide six to nine cover our significant product signature product ranging from traditional dry freight and ISO specialized container to our innovative customized container including container for energy storage system, data center, car racks, housing and more. And we also offer container solution. The core product of our Singapore's customized container is what we call ESS, Energy Storage System. ESS container facilitate efficient electricity storage and release benefiting user by allowing electricity consumption at a lower price and more efficient manner. This container ensure stability the and and leverage our expertise in ESS container manufacturing, Green Tanaka was established in Singapore. Green Tanaka is Malay, green as you know is green energy, Tanaka means energy. It is poised to become the key growth engine for the group. We are dedicated to accelerating the journey towards net zero emission and carbon neutral by providing cutting edge sustainable battery energy storage system solution across the industry. Green Tanaga is revolutionizing sustainable energy with our cutting edge battery energy storage system.
Our solution seamlessly integrate renewable energy, optimize energy usage, support EV charging and smart mobility, enhance grid responsiveness and provide reliable off grid power for remote areas. By driving innovation in energy management, we empower businesses and communities worldwide towards a greener future. Slide twelve and thirteen, greener future. Slide twelve and thirteen covers our leasing business. For our leasing business, robust and significant growth was realized in the year under report.
By the December 2024, we owned a fleet of about 120,000 TEU of leasing containers. Specializing in one stop container leasing services, we delivered new container from our factories to our extensive network of of hire location. Singamas is a major operator of eight container depot in China with over thirty years of industry experience. We maintain strong ties with key port operators in China and foster and and let's look at our industry trends. In 2024, worldwide new container production surged to over 8,300,000 TEU, maybe record in history following the closure of Suez Canal and a surge in U.
S. Imports prior to the U. S. Election. However, a significant decline is anticipated in 2025 with production expected to drop to about 2,500,000 TEU.
So from August to 2,024 to 2,500,000 this year expected. This decrease will be attributed to a gradual restoration in the Red Sea Crisis and reducing needs for re routing. Additionally, new U. S. Tariff policy slowing down global trade also contribute to the projected decline in new container demand.
The chart on Page 17 shows the ASP average selling price trend for 20 foot dry freight container and related average steel cost cut over the year. Due to oversupply of dry freight containers in the market and the decrease in steel cost, the ASP in 2024 slightly decreased from US2075 to US1985 despite strong market demand. In '24, the average selling steel cost was USD $5.53 per tonne, 6.1% lower than financial year 2023. According to Drury, leasing we are projected to remain subdued throughout the forecast period. In 2025, a significant drop in lease rate is anticipated across all dry freight equipment due to the weakening demand.
Concurrently, initial cash return are expected to slightly ease following the decline in leasing rates with 20 foot units projected to yield between 9.3 to 9.4% initially up to 2028% while 40 foot high Q is forecast to generate return of 9.4% to 9.5% per year. Now let's move on to our financial review. Revenue increased by 52 to RMB582.8 million due to strong demand of containers during the year reporting. Consolidated net profit due to owners of the company rose by 76% to RMB34.1 million, including fair value losses from investment properties and one off gain on disposal recognized during the year. Basic earning per share reached US1.43 dollars for the year, increase of 74%.
As of 12/31/2024, our net asset value per share was compared to US23.16 dollars end of 20 20 3. A final dividend of Hong Kong zero point zero five dollars per share has been proposed for the year ended thirty one December twenty twenty four. Together with the interim dividend of Hong Kong zero point zero three dollars the total dividend for the year was US0.08 dollars per share, about 72% payout ratio. Now let's move on to business review section. This Slide 26 show the performance of our Manufacturing and Leasing business.
The segment achieved revenue of RMB153.6 million which account for 95% of the Group total revenue. Segment profit before tax and non controlling interest was about RMB44.5 million. This slide shows a breakdown of container units sold under different product categories and accordingly the respective revenue generated. The table on the left show that Singama sold about 216,000 TEU of dry freight container during the year. The pie chart on the right show that the sales of dry freight container made out 72.2% of our manufacturing revenue.
For customized container, a total of 20,000 units were sold during the period. Revenue attributed to this reached reached 21.2%. Leasing revenue also included in the Manufacturing and Leasing segment had a cut out and accounted for 1.5% of the Group total revenue during the year. Financially interest income was RMB2.8 million while operating lease income was RMB5.6 million. This slide, Slide 29 show the performance of logistics service business.
Revenue was 229,200,000.0 and segment profit before tax and non contract interest was 8,500,000.0. This slide present our marketing and operating strategy in the year to come. To improve the anticipated decrease the dry freight container demand, the group will stay agile by adjusting our production schedule to utilize our resources in and to and environment production will remain a key focus to achieve further growth, we'll continue to invest in customized container project with higher growth potential and increase automation initiative to improve efficiency. Page 31 to 35 in appendix of this presentation contain but showed our income statement as well as our factory and depot data for your further reference. That concludes my presentation. Thank you.
Thank you, Mr. Thio. So if you have any questions, feel free to raise your hand. We'll take questions from the floor first, and then we'll see if there's any questions from our online joiners after.
In English, Cantonese, or Mandarin?
In yeah. You can raise questions in Cantonese, Mandarin, or English. Our colleague will pass
Quick question. Two questions regarding e ESS.
Yes.
TSMC has used your ESS. Right?
This is wonderful. Then sorry to ask you very basic question. ESS is normal technology. Why it should be contained? It should in the container.
Right? ESS itself is very normal technology. Manufacture has this, but it's contained, then it's used by TSMC. Right? Any reason why it's
Well, I I hope I wish my Taiwan Sales Guy is here.
Mhmm.
I think, one, is because of mobility.
Okay.
It very easily can move.
I see.
And also, I think because of the container, actually give you certain protection and it's very fast. Mhmm. You can just pull it to the job site. You need three or four you put together
I see.
Versus building a Building on the line. And if the job is over, you get that pulley away. And that's why we also have a container where, for the solar energy. Okay? And so when energy is actually collected, it goes into the container and daylight and is released during the during the the night time.
But of course, it's getting more and more sophisticated sophisticated, right, in terms of, withstanding very harsh environment. We have supplied ESS container actually in Tibet or Xinjiang that can withstand the high altitude and also the extreme temperature. What What the ESS is most concerned is fire. Right? So I think having a very robust and well, we actually, ours is two layer with thermos insulation, actually provide a solution.
I see. And because with our factory, we can manufacture in large quantity and easily transport
them. I see.
Easily transported especially on ships.
Wonderful.
Yeah.
Very quick. Second question, then industry. Do you have any target industry to sell more your container ESS?
Well, we sell to everyone, but I think we also want to see the other party, are they a long term player? Right? So I would say that, as Winnie said, once they lock in with you, it's not so easy to change. It's not like buying a container. Right?
Container for $5, customer will change. Right? It's not rocket science. But you're right, ESS is not rocket science. But if you can manufacture one container versus 1,000 ESS container with same quality and consistency, I think that's where the production discipline come in.
And we are very happy that, you know, we have couple some customer that, you know, could just, one, would place more order with us, but but it's actually managed. In fact, in my presentation, I did say that I want to expand the customized container facilities. Yes. So I think to answer your question, we also want to see who is the customer. Most important, we must be able to to provide a solution for them.
That's why we need to say that to to get a customer in ESS take a longer time. It's a mutual trust. But once they are with you, they don't change so easily. Yeah. Thank you.
Okay. There's one more question here.
Right? Is very liquid.
But I also want to know, so in the four c future one or two years, what item are your, like, maybe, more significant CapEx in the four c maybe in a few years' time?
Leasing, of course, leasing portion is one of the major CapEx for us because it can have a sustainable future revenue generator. So we will reserve part of our cash flow into the leasing portion. Of course, we will also raise funding for this business to expand this further. And other CapEx, major CapEx is to build our new energy facilities in our in our factories because this this is also our our growth driven areas.
Like in in terms of the CapEx, what is the range that you are talking about?
Our project, the CapEx for 2025 is up more than 100,000,000.
But, of course, I have seen a TVA's, actually occasion is that, if we have a good project, if anytime this is the best time to invest because I believe that the careful. I also say in my statement that we are very careful with the CapEx. But when we have a new project, right, actually a viable project, If anything, this is actually the best time to invest.
Very technical. Two questions, simple one. Tax, have you slightly over provided for this year? There's quite a lot of provision this year. Deferred tax is higher than normal. So why is that? That's the first question.
The tax
the tax provision Seems quite high. Very high. Your deferred tax also quite high.
Tax provision. Right? Okay. The effective tax rate of for the PRC company, the tax rate is 25%.
Yep.
And we also need to to provide 5% withholding tax for the dividend paid down. So for the normal tax rate, it should be around 30%. But our one of our company one of our subsidiary is, is a so called high-tech company. So it enjoyed 10% lever on the tax rate. And because one of our operation, the tank operation, everybody knows because it's in difficulty.
So it incurred a loss it is in loss position. So it then the effective tax rate will be a bit higher.
Oh, I see. Okay. Hopefully, this is the last question.
Yes? No. We have a question from the question.
Yes, sir.
You have. Oh, this one, I hope to be lost actually. But anyway, you can answer in any language. Any guidance for next year? I cannot say. Guidance.
I think market is very difficult. As a gentleman say, you know, he said ten years of hardship, and that that really threw me off my chair. But I think we still should we should still be profitable. Right? Yeah.
Okay. Thank you.
I think it's, that's why I I say that, in a way, we don't have too much a burden. We are very light and with a strong balance sheet, you know, it, afford us to, try to lower our overhead cost despite our lack of scale.
Okay.
There's a question from our online joiners, from Il Sung of KVV Capital. He's asking about the inventories by year end of 42,000,000 US compared to, one top about 42,000,000 US compared to twenty twenty inventories would mainly mainly after year end. So we put, it's sitting on our finished goods by the year end. Okay. So any more questions?
Okay. Anyway, thank you for attending and thank you for putting questions. I think compared to last year, we have more questions this year. Interesting questions, right? And I think it shows an interest in the company.
It is a difficult industry. It's actually like boom and bust, right? As reported last year, almost 7,800,000 containers were manufactured, right, unexpected. It shows that you can turn on the production very fast if you want, right, but I actually talked to and I think credit to my team is that they managed to, you know, to find the opportunity. And really when the market is too low, they do not grab cheap orders.
I think for that, I think, we are able to attain a good set of results. This year, as I answered this gentleman, we will still be profitable as to how much more we find out next year this time. But I think it's a if anything, I'm actually very confident, right, the company can those of you who follow us for a long time know that our industry is either you starve or you over eat, right? But I think with our leasing business and our new energy, and I think that will see us through the difficult time with more confidence. Okay?
Thank you.
Bye.