In a statement to the stock exchange, China Cosco said it has been informed by the controlling shareholder China Ocean Shipping (Group) Company that Xu Minjie, an executive director of the company, is “under investigation by a relevant regulatory body.”
In a brief statement, China Cosco said the board will “assess the impact of the investigation on the group from time to time based upon the development of the investigation.”
It added that the investigation “will not have material adverse effect to the group and the business and operations of the group remain normal.”
Xu joined Cosco in 1980 and has worked in various management positions for several Cosco group companies since then, according to his resume on Cosco's website.
The graft probe came at a time when China Cosco itself is struggling to reverse its weak financial position as it faces delisting after two years of consecutive net losses.
In the first nine months of this year, China Cosco remained in the red on deficit of RMB2.03bn. It will accumulate three consecutive years of losses if it fails to return to profit in the 2013 financial year, meaning that it will be delisted under the listing regulation.
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