CSSC continues asset sell off to avoid delisting

CSSC continues asset sell off to avoid delisting

China State Shipbuilding Corporation (CSSC) has announced that subsidiary yard Waigaoqiao Shipbuilding plans to sell its 43.4% equity share in CSSC Cruise Technology to its controlling shareholder CSSC Group for RMB400m ($60.3m).

Following the sale, Waigaoqiao Shipbuiding will no longer include the loss making CSSC Cruise Technology in its financial results.

CSSC Cruise Technology suffered a net loss of RMB36.87m in the year of 2017, and a loss of RMB11.39m in the first five months of this year.

CSSC has been making efforts to dispose of its loss-making assets in an attempt to get back to profit by the end of this year and avoid delisting, following Shanghai Stock Exchange implemented a delisting risk on the company’s shares in April this year due to it suffering losses for two consecutive years.

In June, CSSC also sold its entire 26% stake in CSSC Shenghui Equipment, a marine equipment manufacturer to Zhejiang Rongsheng Holding Group for RMB51.11m.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

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