Changhang Phoenix, a bulk carrier operating unit of Sinotrans&CSC, predicted on 28 April that it would remain in the black for the first half of 2015, as it seeks to resume the trading of company shares on the Shenzhen Stock Exchange.
In the first three months in 2015, the company’s profit slumped 89% year on year (y/y) to CNY1.8 million (USD600,000) because of severance payment and smaller scale of fixed-assets disposals compared with a year ago, a stock filing of the company said.
Excluding one-off items, its profit increased 7% y/y to CNY3.3 million, while revenue dropped 28% y/y to CNY202 million, the company added.
In 2014 its profit totalled CNY4.3 billion, as the company had reaped CNY4.2 billion in restructuring proceeds. In September 2014, Changhang Phoenix completed its restructuring plan after the paying off debts owed to 129 creditors with CNY229.8 million in cash and 212.9 million shares in the company.
The company submitted application to resume the trading of company shares after reporting its 2014 profit.
The restructuring exercise helped waive Changhang Phoenix’ huge debts and related interest payment. In the same year, the company also improved its operation of shipping business and expanded ship and cargo agency business.