Marine fuel supply is the largest revenue contributor to the Group’s revenue, but its profit contribution is the smallest due to its business nature. COSCO SHIPPING International has a wholly-owned subsidiary in Singapore, namely Sinfeng Marine Services Pte Ltd. (“Sinfeng”), which is mainly engaged in the provision of marine fuel supply, trading of marine fuel and related products and brokerage services for the clients. Sinfeng does not own any barges nor inventories, its profit is based on the commission income of bunker supplied per tonne.
Sinfeng acts as the trader to help the shipowners solicit marine bunker from renowned oil companies or bunker suppliers to supply to their ships at different ports. Its business network mainly covers ports in Singapore and Malaysia, as well as other major ports around the world. Leveraged on its extensive business network and professional management team, Sinfeng has good business relationship with internationally renowned oil companies, shipping companies and ship owners.
Double Rich is one of the major suppliers of the largest company in China specialising in the supplies of water and oil in the sea, namely China Marine Bunker (Petro China) Co., Ltd. Double Rich has a relatively wide customer base and sales network in the industry and has established extensive and good business partnership with renowned oil companies, shipping companies and ship owners around the world.
The ultimate controlling shareholders of Sinfeng and Double Rich are the world’s largest shipping conglomerate, COSCO SHIPPING and China’s largest water supply and marine fuel supply company China Marine Bunker (Petro China) Co., Ltd. With the strong support of the two major shareholders, Sinfeng and Double Rich will grasp the opportunities arisen from gradual recovery of global shipping market and solicit business from new customers prudently while retaining its existing quality customers, so as to expand its business under the premise of strict risk control and ensure stable profit growth.