Cosco gets off delisting watchlist

The company had posted full-year losses in 2011 and 2012 and was facing the prospect of being dropped this year with a third consecutive year of losses, but managed to pull a rabbit out of the hat to turn in a net profit for 2013.

The company said in a stock market announcement that the application had been accepted and its shares would resume trading on April 3, however with a widened trading fluctuation band of 10% from 5% previously.

"None of the indicators such as the net profits, net assets and operating revenue of the company will give rise to conditions of imposing
delisting risk warning or any other circumstances stipulated in the Rules Governing the Listing of Stocks on the Shanghai Stock Exchange. Meanwhile, there are no circumstances which may expose the company in other risk warnings pursuant to the Rules Governing the Listing of Stocks on the Shanghai Stock Exchange," Cosco said.

It however warned that although there were net profits in 2013, it would still have turned in a loss without non-recurring gains. As such, "the withdrawal of the delisting risk warning by the xompany does not imply any significant change in the fundamental factors of the company. Investors are advised to make rational investment decisions and be aware of the investment risks", Cosco said.