Major Revenue Segments of the Group
Overall business environment
The Group’s principal activities are investment in and development, operation and management of
container ports which are conducted through the WIT Port, which is 85% owned by the Group. As a
deep water regional container hub port at the mid-stream of Yangtze River and a feeder port to the
ports in Shanghai, the WIT Port plays a key role in the transportation of container cargo to and from
Wuhan and surrounding areas along the Yangtze River corridor, including the upstream areas of
Chongqing and neighboring provinces.
The strong and well established industrial base of Wuhan featuring operators in major industries
including automobile and its components, chemical, steel, textile, machinery and equipment as well
as those in the construction materials businesses have been and will continue to be the principal
providers of gateway cargoes to the WIT Port.
Due to the inherent water-depth limitations along the upstream regions of the Yangtze River, it
precludes bigger ships from navigating directly between those areas and Shanghai. The transshipment
service provided by WIT offers a more economical alternative to ship container cargoes
using bigger ships carrying more containers to and from Shanghai and overseas. Surrounding areas
which are serviced by WIT include Hunan, Guizhou, Chongqing, Sichuan, Shanxi, Henan, Hubei and
Shaanxi Provinces. Strategic initiatives by the government for shipping companies and WIT promote
direct shipment to Yangshan Port in Shanghai (江海直達) have further strengthened the position of
WIT Port as a trans-shipment port at the mid-stream of the Yangtze River.
With the development and growth of the container business on track, the Group has also developed
port related services including agency and integrated logistics businesses to expand its revenue
sources, including bonded warehousing, customs clearance, break bulk and distribution.
The Group has built a multi-purpose port to maintain competitiveness in the market. The construction of the multi-purpose port is expected to be finished by the end of the second quarter of 2015 and it will add an additional 20,000 TEUs to the existing handling capacity when operation commences in the third quarter this year. With increased capacities and facilities, the Company is confident to achieve a new high for breakthrough in the container throughput.
In terms of market share, during the year 2014, the WIT Port’s market share maintained at approximately 40% (2013: 40%) based on the aggregate of 1,006,580 TEUs (2013: 860,412 TEUs) handled in 2014 and 2013 respectively for the whole of Yangluo.
Total throughput achieved by WIT for 2014 was 402,748 TEUs, an increase of 55,565 TEUs or 16.0% over that of 347,183
TEUs for 2013. Of the 402,748 TEUs handled in 2014, 264,012 TEUs (2013: 207,372 TEUs) or 65.6% (2013: 59.7%) and
138,736 TEUs (2013: 139,811 TEUs) or 34.4% (2013: 40.3%) were attributed to gateway cargoes and trans-shipment cargoes,
respectively. The gateway cargoes throughput increased by 27.3% to 264,012 TEUs (2013: 207,372 TEUs) and the transshipment
cargoes throughput slightly decreased by 0.8% to 138,736 TEUs (2013: 139,811 TEUs)
Integrated logistics businesses of the Group include freight forwarding, customs clearance, transportation of containers, and the provision of bonded and general warehousing, stacking yard storage and repackaging. Revenue from integrated logistics increased by 19.9% to HK$74.61 million (2013: HK$62.21 million), which accounted for 40.0% (2013: 41.2%) of the Group’s total revenue. From the third quarter onwards, the provision of logistics service to a major customer ceased due to the expiration of contract by the end of July 2014. The resultant loss in business was partially compensated by the business from new customers of which the Group has secured during the year.
General cargoes dropped by 19.8% to 40,031 tons (2013: 49,895 tons) in 2014. However, the contribution of general cargoes
was minimal and accounted for less than 1% of the Group's revenue for the year under review.
Gross profit and gross profit margin
Profit attributable to Shareholders for the year
Earnings per share was HK2.17 cents (2013: HK0.40 cents), representing a significant increase as compared with 2013.
The recovered economies globally should boost international trading. The Group has prepared for the emerging opportunities through the development of the multi-purpose port. Located in Wuhan, the biggest city delivers promising and stable GDP growth. In order to remain competitive, the Group has been developing the new multi-purpose port. The construction work of the multi-purpose port is expected to be finished by end of second quarter of 2015 and it will add an additional 20,000 TEUs to the existing handling capacity when operation commences by the third quarter 2015. The Board is confident that WIT should achieve at another record high in the container throughput with increased capacities and facilities.