News:Asia

CIMC expected to return to the black in H1

China International Marine Containers (CIMC) says it expects to turn a net profit of between RMB700m ($103.4m) to RMB900m compared to a net loss of RMB378m in the previous corresponding period.

The group said the turnaround was due to better sales from the container manufacturing business, as a result of the revitalization of the global container shipping industry, the improvement in operating conditions for shipping enterprises and the recovery in container market demand, resulting in its revenue and profits rapidly picking up.

CIMC acknowledged that the container manufacturing business was in a slump in the  previous corresponding period, with relatively low revenue and profit base.

Other positive factors contributing to the turnaround were a satisfactory performance for the group’s road transportation vehicle business as it benefitted from various positive factors such as the lingering effect of the new anti-over loading policy and the recovery of the US economy.

In addition, under the current reporting period, CIMC Enric Holdings, its 71%-owned unit had also terminated its acquisition of SinoPacific Offshore & Engineering and was free from the burden of providing financial assistance, for which, approximately RMB1.21bn in charges were previously made.

Posted 17 July 2017

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Vincent Wee

Hong Kong and SE Asia Correspondent, Seatrade Maritime News