Courage Investment Group Limited Reports Increased Revenue and Profit in 2024

Courage Investment Group Limited (HK Stock Code: 1145) (SGX-ST: CIN) released its annual report for 2024, highlighting a significant increase in revenue and profit for the marine transportation business.

Key Financial Highlights

• Revenue increased by 8% to US\$9,183,000 (2023: US\$8,512,000)
• Profit attributable to owners of the Company was US\$1,706,000 (2023: loss of US\$3,974,000)
• Basic earnings per share was US0.16 cent (2023: basic loss per share of US0.36 cent)

Business Review and Outlook

The Group’s market fundamentals for the shipping business showed improvement in 2024, primarily driven by the global economic recovery, which boosted demand for dry bulk commodities. However, vessel supply was constrained by various factors, and the Red Sea Crisis further exacerbated the global shortage of shipping capacity, contributing to the rise in market freight.

Marine Transportation

The revenue of the Group’s marine transportation business increased by 9% to US$9,183,000 (2023: US$8,449,000), while its profit increased by 39% to US$3,097,000 (2023: US$2,227,000). The increases in revenue and profit of the operation were mainly attributable to the general improvement in the market fundamentals and the increase in revenue from the marine transportation business.

Investment Holding

During 2024, no revenue was recognised for the Group’s investment holding business, but with a segment loss of US$389,000 (2023: US$1,186,000). The loss incurred represented mainly the recognition of net allowance for credit losses on debt instruments at fair value through other comprehensive income.

Disposal of Subsidiaries

On 13 September 2024, the Group entered into an agreement for the disposal of its entire issued share capital and shareholder’s loan to an indirect wholly-owned subsidiary at a disposal price of US$13,800,000. The disposal was completed on 25 November 2024.

Use of Proceeds from Open Offer

In January 2021, the Company successfully raised US$9,148,000 before expenses by way of an open offer of 548,851,784 offer shares at a subscription price of HK$0.13 per offer share. The net proceeds from the Open Offer were utilised as intended, with US$8,621,000 used as working capital for the Group’s marine transportation business.

Events after the Reporting Period

Subsequent to the end of the reporting period, China Mark Limited, a limited company incorporated in Hong Kong which is wholly-owned by Ms. Liu Sainan, became the immediate and ultimate holding company of the Company.

Risk Management and Internal Control

The Board has ultimate responsibility for evaluating and determining the Company’s levels of risk tolerance, overseeing the management in the design, implementation, and monitoring of the risk management and internal control systems.

Financial Risk

The Group is exposed to financial risks relating to foreign currency, interest rate, credit, and liquidity. The Group had not entered into any financial arrangements for hedging purposes.

Important Information for Shareholders

• The Company’s shares were held by China Mark Limited, a wholly-owned beneficial owner, with 315,990,132 shares, representing 28.79% of the Company’s issued shares.
• No contract of significance to which the Company or any of its subsidiaries was a party and in which a director of the Company had a material interest, whether directly or indirectly, subsisted at the end of the year or at any time during the year.
• The Board has adopted a Nomination Policy setting out the principles which guide the Nomination Committee to identify and evaluate a candidate for nomination to (i) the Board for appointment; and (ii) the shareholders for election as a director of the Company.

Disclaimer

This article is for information purposes only and does not constitute an offer to sell or the solicitation of an offer to purchase any securities. The information contained in this article is not intended to be a comprehensive or complete analysis of the company’s financial situation or prospects. Readers should not rely on this information as a substitute for their own research or judgment. The article is not a recommendation to buy or sell the securities of Courage Investment Group Limited. Potential investors should consult with a financial advisor or a registered investment advisor before making any investment decisions.
The information provided in this article may not be accurate or up-to-date; it is recommended that you seek independent professional advice before making any investment decisions. By reading this article, you acknowledge that it is not a financial report or investment advice, and you agree to hold harmless the author and publisher from any claims, damages, or losses arising from the use of this information.

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