SIMIC

After the initial downturn in the upper half of 2020, the container shipping market saw a boost in demand since mid-August, said the company statement accompanying the annual results.

"The rebound was supported by the change in consumer behavior during the Covid-19 lockdown, including the accelerated adoption of e-commerce, and the increased needs for hygiene products, housewares and work-from-home essentials." the statement said.

"Due to sudden inventory build-up, the surge in demand resulted in a global shortage of empty containers and capacity constraints, which led to the increase in freight rates on east-west and intra-Asia trade routes. The upward trend continued in the last quarter of 20," it said.

Yang Ming said it implemented necessary measures to secure adequate capacity and expedite the turnaround time for empty containers. Meanwhile, the company had taken delivery of a total of six 2,800 TEU self-owned new vessels and three 11,000 TEU chartered-in vessels in 2020.

Driven by higher freight rates and relatively low bunker fuel prices, despite a 6.63 per cent year-on-year decline in business volume, Yang Ming gained 1.4 per cent in revenue, indicating a robust growth in profit after-tax in 2020.

Yang Ming said it intends to launch domestic cash capital increase with issuance of no more than 300,000,000 new common shares, and conduct public underwriting by the way of book building. With the greatly strengthened financial structure, Yang Ming will be in a strong and resilient position to achieve sustainable development.