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Dalian Port first half profit declines on China’s slowing economy

Dalian Port first half profit declines on China’s slowing economy
Dalian Port (PDA) Company Limited saw its first half profit has declined on the back of China’s slowing economy, which is anticipated to extend into the second half of this year.

Net profit for the six months ended 30 June 2016 was recorded at RMB221.09m ($33.16m), down 22.7% from RMB286.03m in the previous corresponding period.

The profit was attributed to stronger contributions from the bulk grain segment, ore segment and general cargo segment, but offset by lower contributions from the oil segment, container segment, passenger and ro-ro segment, and the value-added services segment.

“Due to signs of stabilisation in the global economy, the confidence in financial markets rebounded in the first half of 2016 with rallying bulk commodity prices,” Dalian Port commented.

“However, the real economy remained weak with sluggish market demand. Impacted by the continuing downward pressure on China’s economy, the growth in investment, consumption, and import and export trade slowed down.”

First half revenue for the group, however, rose by 58% year-on-year to RMB6.48bn.

In the second half, the recovery of the global economy will remain slow, according to Dalian Port. “In China, the economy will have steady growth and continue its restructuring, while downward pressure will remain.

The group further noted that “the enduring sluggish domestic and overseas demand, the low commodity prices and other factors are expected to drag down the growth rate of total imports and exports of China.”