Changhang Phoenix, a bulk carrier operating unit of Sinotrans&CSC, predicted on 14 July the decrease in profit of between 35.6% and 43.7% year on year (y/y) in the first six months of 2015 on lower one-off income.
In the first six months of 2014, Changhang Phoenix’s profit totalled CNY186.4 million (USD30.1 million), a stock exchange filing by Changhang Phoenix reported on 14 July.
During the first half of 2015, the company recorded a total of CNY104.4 million in one-off items, including CNY55.4 million in subsidies for scrapping old tonnage. This figure was lower than for overall one-off items a year earlier.
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In the first three months of 2015, the company’s profit slumped 89% y/y to CNY1.8 million due to severance payments and the smaller scale of fixed-asset disposals compared with a year ago. Excluding one-off items, its profit increased 7% y/y to CNY3.3 million during the same period. Revenue fell 28% y/y to CNY202 million, it added.
In May, Changhang Phoenix applied for the resumption of trading in its shares on the Shenzhen Stock Exchange after it reported profit for 2014 and positive equity at the end of 2014. Trading in the shares was suspended on 26 December 2013 as the company began to prepare for restructuring.