Mission & Vision
We plan to implement the following strategies to enhance our overall competitiveness and to achieve our goals:
Expand our annual designed capacity through the construction, development and operation of a new phase of Zhengyuan Terminal and improve our operational efficiency
According to the Ipsos Report, the transportation volume of cargo at ports in the PRC is expected to increase considerably from 7,337.5 million tonnes in 2018 to 8,613.2 million tonnes in 2021, representing a CAGR of 5.5%. The “Belt and Road Initiative” policy aims to increase infrastructure investment in developing areas around China and hence increased international trade between China and other countries. Therefore, this government initiative is likely to further drive industry growth.In addition, as the annual designed capacity is generally defined at the design and construction phase of a port terminal and approved by the relevant PRC authority and is usually subject to the engineering design of a berth, we aim to expand our annual design capacity through construction of new berths. In respect of our uploading and unloading services, our terminals recorded high utilization rates during the Track Record Period. For 2015, 2016 and 2017, our Tianyuan Terminal had a utilisation rate of 100.8%, 106.7% and 109.1%, respectively. For the same periods, our Zhengyuan Terminal had a utilisation rate of 204.3%, 216.4% and 233.9%, respectively. In anticipation of increasing market demand in the Port of Maoming and as part of our development plan, we are currently constructing of a new phase of Zhengyuan Terminal, which will add 100 metres to our facilities along the waterside between Zhengyuan Terminal and Tianyuan Terminal. With the new phase, we intend to develop Zhengyuan Terminal into a continuous deep-water berth with the capacity to dock a single general cargo vessel of 10,000 DWTs or docking two general cargo vessels of 5,000 DWTs and 2,000 DWTs, respectively. This is expected to help alleviate the high utilisation rates and increase the overall operational efficiency of both terminals. The new phase will also provide additional flexibility to the Group when arranging vessels for berthing and subsequent uploading or unloading, and is also expected to decrease the waiting time of vessels waiting to berth. We also intend to acquire or lease adjacent land area for the purpose of constructing facilities and installing equipment to accommodate our existing and new cargo types. Following the completion of the new phase, we expect that Zhengyuan Terminal will occupy a total of 244.5 metres of quay length, and the annual designed capacity of the terminal will be approximately 1.7 million tonnes, an increase of approximately 1.0 million tonnes. Upon the completion of construction and the testing and trial period of the new phase, we intend to apply for an approval to handle foreign trade at Zhengyuan Terminal, which we expect will be granted approximately one and a half years after completion of construction and the testing and trial period of the new phase.
Maintain our customer base and enhance our long-term relationships with our key customers
We have an established sales coverage throughout the PRC, primarily through internal sales personnel. Our sales efforts allow us to capture market opportunities and reach a large base of existing and potential new customers. We intend to enhance our sales efforts to maintain our customer base. As an increasing number of manufacturing companies have been relocated to West Guangdong and Guangxi due to an increase in labour costs in coastal cities, we intend to capture the opportunity and develop these potential new customers. In addition, we have successfully established stable relationships with certain of our key customers and we are committed to providing satisfactory services to them. We plan to enhance such stable relationships with our key customers. We believe the stable relationships with our key customers will enable us to maintain a sustainable growth.
Continue to build, develop and promote management
We believe that good management is one of the key factors which lead to our success. We seek to support our employees in their career development and to achieve their personal goal. We have attracted a group of experienced management and employees to assist us in our business expansion. We will continue to recruit individuals and provide training to improve the skills and knowledge of our employees.