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Avic Maritime slips into the red in 2015

Avic Maritime slips into the red in 2015
China’s Avic International Maritime Holdings (Avic Maritime) has slipped into the red in 2015 despite a rise in revenue.

Singapore-listed Avic Maritime booked a full year net loss attributable to equity holders of RMB4.21m ($638,570) as against a profit of RMB14.44m in 2014.

Revenue, however, rose by 30% year-on-year to RMB591.4m due mainly to contributions from shipbuilding, ship design fees and agency service fees.

The loss was blamed primarily on other operating expenses amounting to RMB13.08m in 2015, compared to just RMB528,000 in 2014, due to foreign exchange loss, allowance for doubtful debts, bad debts written off, and loss arising from disposal of a subsidiary.

“On the background of a lower shipping demand and an overcapacity weighing on new orders, it has been a difficult time for the entire shipbuilding industry,” commented Diao Weicheng, executive chairman of Avic Maritime.

“Looking ahead, Avic Maritime believed the shipbuilding market is expected to remain challenging, and there is a continuing trend for orders to be placed only at shipyards of decent size and capabilities.