Paris: Box analysts Alphaliner estimate China Cosco Holdings' losses for 2012 will exceed RMB8bn. In the first three quarters of last year the leading Chinese line posted losses totaling RMB6.4bn. It will be China Cosco Holdings second straight year of losses, meaning it is put on the ‘special treatment’ list at the Shanghai Stock Exchange. If it reports a third straight year in the red then by Chinese stock market rules it can be delisted. The company is also listed in Hong Kong, where the delisting threat does not exist.
China Cosco Holdings poor performance has created a shareholders’ revolt with a small but vocal number of shareholders demanding that veteran chairman Capt Wei Jiafu steps down.
Alphaliner said that Cosco’s parent, the State-owned Assets Supervision & Administration Commission (SASAC) has thus far shown no appetite to reform either Cosco or the nation’s other big line, China Shipping. Furthermore, Alphaliner maintained SASAC has no immediate replacements for senior management at the two lines.
18 months ago, significant executive changes at both companies saw Wei and his counterpart at China Shipping, Li Shaode, move upstairs to newly created chairmen roles, and new presidents at both lines were parachuted in to try and staunch the huge losses at both firms. [12/02/13]