Hong Kong-listed cargo shipping and terminal logistics operator Chu Kong Shipping Development (CKSD) has reported HKD 41.6 million ($5.4 million) in profit attributable to equity shareholders for H1 2009, a 43.5% slump from the same period last year.

Consolidated revenue for the group which specialises in river trade transportation fell 19.7% over the corresponding period last year to HKD 367.6 million.

Despite decreased profit and revenue however, its board of directors has still declared an interim dividend of HKD 0.5 cents per ordinary share for the year ending December 31, 2009 to equity holders whose names appear on the register on October 12, 2009.

CKSD said on Wednesday that “with the continuous influence from the financial tsunami”, box shipping volumes in H1 2009 dipped 18.3% while break bulk cargo shipping volumes recorded a “substantial” decrease of 34.9%.

However, as the group increased equity holding in existing investment businesses and acquired new terminals in 2008, box handling volumes overall recorded a 24.2% increase in H1 2009.

According to CKSD, Q1 2009 still saw “a substantial decline in the global economy”.

CKSD pointed out that Hong Kong, “being one of the most important transshipment ports for the international trade of mainland China, was inevitably hit with a double digit decrement in logistics volume.”

Hence “it was very difficult for the group to be immune from the impact in this adverse environment. Our cargo throughput and profit both declined.”

CKSD said weak consumer confidence led to shrinking demand which cut Hong Kong's import and export trade volume by 17.5% in H1 2009.

It did add however, that “as different governments stepped up their efforts to boost measures to save the economy, the economies in Europe and the United States had signs of stabilizing in the second quarter of 2009.

“Meanwhile, the PRC government launched the plan of revitalizing the ten major industries as well as introduced loose monetary policy to provide large amount of credit in the economy which eased the serious impact of the financial crisis,” it said.

With regards to its financial health, CKSD said that “after considering its cash and cash flows from operating activities, as well as the credit facilities available to the group, it is believed that the group has sufficient capital to fund its future operations and for business expansion and development.”

CKSD was established in 1996 by parents Chu Kong Shipping Enterprises (Holdings) to take over its river trade transportation business, including its shipping agency, river cargo direct shipments and transshipments, wharf cargo handling (including mid-stream operations), cargo consolidation and godown storage as well as container hauling and trucking operations in Hong Kong.

Through a series of acquisitions after its listing in 1997, CKSD currently holds interests in more than ten river trade container terminals with ownership ranging from 25% to 55%.

These container terminals cover major cities in the Pearl River Delta such as Dongguan, Foshan, Sanshui, Nanhai, Heshan, Sanbu, Gaoming, Deqing and Qingyuan among others.

CKSD also operates a private wharf located in Tuen Mun, Hong Kong, comprising of two berths, a 380,000 square feet warehouse and a fleet of 50 tractors.

In March 2001, CKSD also obtained the operating rights for the Marine Cargo Terminal at the Hong Kong International Airport.

With this "wide range of facilities and services", CKSD says it is by far the most significant operator in the Pearl River Delta.