China Shipping Haisheng, a Shanghai-listed unit of state conglomerate China Shipping Group, posted CNY140 million (USD22.5 million) in profit for the first quarter of 2015, returning to black from a CNY48 million loss in the first quarter of 2014.
The company recorded revenue of CNY201 million in the review period, a drop of 11.9% year on year (y/y), and its total assets stood at CNY6.4 billion, down 1.07% y/y.
In the first quarter of 2015, the company obtained CNY204.9 million by disposing of some of its saleable financial assets, which contributed to a large part of its profit, according to the company’s filling to the Shanghai Stock Exchange.
The decrease in revenue was attributed to the company’s disposal of its real estate business in the first quarter of 2014.
China Shipping Haisheng also closed three subsidiaries: Jin Hai Yang Shipping, Jin Hai Tong Shipping, and Jin Hai Wan Shipping, the registered capital of which was only USD2 each.
China Shipping Bulk inked a deal on 29 April with China Shipping Haisheng to charter six 57,000 dwt bulk carriers from May 2015 to December 2015, and the rates will be no more than CNY70 million in total.
The company projects that it will remain in black for the first half of 2015 via the sale of saleable financial assets and cost control.