SIMIC

Both groups have applied for an Initial Public Offering (IPO) on the Hong Kong Stock Exchange with fund-raising targets and a timeframe for the listings not firmed up as yet.

TS Group declared it needs funds for the carrier's newbuilding orders, charter ships, lease containers, upgrade the company's IT systems, and execute its digitalization programme.

"We will consider the purchase of both new and second-hand vessels in a favourable condition. We take a disciplined, counter-cyclical approach to the order of new vessels and purchase used vessels because we generally order or purchase vessels when we believe vessel prices are relatively low, either at or close to the bottom of the market price cycle or at the early stage of an up-trending market," said TC Group.

"When vessel prices and long-term charter rates are high, we choose instead to expand shipping capacity using short-term charters. We believe this approach confers a significant cost advantage to us to maintain a lower-cost fleet in the long run."

In 2021, TS Group revenue doubled to US$1.84 billion, while net profit rose to $1.08 billion, with shipping volumes up five per cent to 1.58 million TEU.

Meanwhile, LC Logistics declared it hopes to set up warehouses and container yards and enhance its logistics services, in particular targetting cross-border e-commerce.

"Since the peak, freight rates have begun and continued to fall as a result of slowing demand growth and easing of supply chain disruption and port congestion, which increased effective [vessel] capacity," said TS Group.

"Considering the weak macroeconomic outlook for 2022 and 2023, freight rates will continue to be under downward pressure. We cannot assure we will achieve similar results or growth rates in future. Our business growth for 2021 and H1 22 was partially driven by global supply chain disruption and soaring demand, which may not sustain in the future."