CSSC disposes of shares in loss-making subsidiary

CSSC disposes of shares in loss-making subsidiary

CSSC-affiliate Waigaoqiao Shipbuilding has sold its entire 26% equity shares in CSSC Shenghui Equipmet, a marine equipment manufacturer to Zhejiang Rongsheng Holding Group in an auction sale on Shanghai United Assets and Equity Exchange. Total value of the deal is RMB51.11m ($7.98m).

According to CSSC, CSSC Shenghui Equipmet has been suffering consecutive losses in the recent years, which has brought negative impact on the parent company’s financial status, while it doesn’t believe the situation would improve for the subsidiary in the short term.

Waogaoqiao Shipbuilding is expected to gain a profit of RMB20.84m from the equity sale deal.

In April, Shanghai Stock Exchange implemented a delisting risk on CSSC’s shares due to it suffering losses for two consecutive years. CSSC has been making effort to get back to profit this year in order to avoid delisting.

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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