Stripping out exceptionals, the results are even more positive, with profit of RMB1.25bn expected as opposed to the net loss of about RMB1.64bn previously, the company said in a stock market announcement.
It attributed the stronger performance to the completion of its major restructuring exercise in 2016, which saw the disposal of the then loss-making container shipping business “as a result of the deep adjustment of the international shipping markets in early 2016”.
Cosco Shipping Development, has been transformed from the container line arm of the China Shipping Group and after the merger with Cosco, emerged as the group’s integrated financial services platform.
The group said it also benefitted from the gradual recovery of the container leasing and manufacturing markets as they rode on the improvement of the global economy and the international shipping markets since the fourth quarter of 2016.
This had a positive impact on the profitability of the container leasing and container manufacturing segments of the company, Cosco Shipping Development said. The group has stakes in China International Marine Containers and it has a container fleet of 3.65m teu.
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