Chinese state-run shipbuilding conglomerate China State Shipbuilding Corporation (CSSC) has announced an estimated net profit of between RMB435m ($64m) and RMB525m for the year of 2018, following a series of asset sales over the past year.
Shanghai Stock Exchange implemented a delisting risk on the company’s shares last year due to it suffering losses for two consecutive years. According to Chinese stock exchange rules, a listed company suffering losses for three consecutive years will be delisted.
Since then, CSSC has been making efforts to dispose of its assets in an attempt to get back to profit, including the sale of a 36% stake of Jiangnan Changxing Heavy Industry to Jiangnan Shipyard Group, 26% stake in CSSC Shenghui Equipment to Zhejiang Rongsheng Holding and 43.4% of shares in CSSC Cruise Technology to its controlling shareholder CSSC Group.
CSSC said the asset disposals plus government subsidies have added about RMB836m revenue for the company, which has helped the company avoid an estimated loss between RMB311m and RMB401m.