Cosco Shipping has reported FY2020 earnings of $8.3 million from $7.4 million in the FY2019.

Group sales revenue for the full-year ended December stood 8% y-o-y higher at $185.8 million, mainly due to the inclusion of revenue from the newly acquired subsidiaries in Malaysia, and revenue from the chartered in of bulk carriers.

The higher revenue was also due to higher revenue contribution from the group’s logistics and shipping activities, and offset by revenue from property management and ship repair and marine engineering.

Gross profit fell by 25% y-o-y to $30.1 million due to lower rental revenue as a result of rental waiver and lower gross margins.

Other income increased by 574% y-o-y to $13.6 million due to government grants of $12.4 million.

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Other gains and losses in FY2020 comprised mainly gain on disposal of an investment property and gain on bargain purchase of subsidiaries.

The gain on bargain purchase of subsidiaries of $2.7 million arose from the differences in the purchase consideration against the fair values of assets and liabilities of the New Malaysia Subsidiaries as at the completion date on Feb 14, 2020.

Share of profit of associated companies of $1.9 million was contributed by the group’s 40% shareholdings in PT. Ocean Global Shipping Logistics (PTOGS) and the 30% shareholdings in Tan Cang-COSCO-OOCL Logistics Company Limited.

Share of profit of associated companies decreased by 8% or $0.1 million mainly due to lower profits from PTOGS due to Covid-19.

Cash and cash equivalents as at end-December stood at $76.3 million.

Cosco says it is establishing a logistics network in Singapore, Malaysia, Indonesia and Vietnam through its wholly-owned subsidiary, Cogent Holdings.

Separately, the group says it is facing a delay in the construction of a warehouse in Malaysia’s Port Klang due to the declaration of a state of emergency in the country.

For the construction of the JICLF Facility, the Company has obtained a partial temporary occupation permit from the Building and Construction Authority for the first to third stories of the JICLF. The construction of other parts of the JICLF is expected to complete in the first half of 2021.

Shares in Cosco closed 0.5 cent higher or 1.9% up at 27.5 cents on March 1.