The Hong Kong-listed port group said that net profit for the six months ended 30 June 2016 would drop by 80 – 90% compared to the same period in the previous year. In the first half of 2015 the group reported a net profit of RMB929m.
Qinhuangdao Port primarily blamed an increase in coal volumes which slid 34.7% in the first half of 2016 to 75.1m tonnes.
“Such decrease was mainly attributable to the decrease in revenue of the group resulting from the decline in throughput of coals of Qinhuangdao Port, which was caused by the weakened supply and demand in the coal market, the increase in the number of southbound transportation channels for coals from northern region and the intensified competition from surrounding ports in the first half of 2016,” the company said.
Reduced cost of domestic coal production in China has resulted in a sharp drop in coal imports into the country.
Overall throughput at the group’s ports was down 18% in the first six months of 2016.
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