Lianyungang Port setting up financing arm

Lianyungang Port setting up financing arm

Shanghai: Shanghai-listed Lianyungang Port Company has announced that it plans to establish a financing arm, Lianyungang Port Group Finance Company, with its parent shareholder Lianyungang Port Group.

The company recently received approval from the local banking regulatory commission for the establishment of the financing company.

Lianyungang Port Company and its parent will invest RMB200m ($32.24m) and RMB300m ($48.36m) respectively for 40% and 60% equity shares in the new financing arm.

Lianyungang Port said it is expected to make investment of RMB7.4bn ($1.2bn) in total for various projects in the next three years and the current financing mode could no longer meet the increasing cash flow demand of the company. The establishment of a dedicated financing arm will enhance the risk controllability and lower annual financing interest by around RMB72m ($11.6m) for the company.

Lianyungang Port reported a net profit of RMB15.14m ($2.44m) for the first quarter of 2015, down 36.43% year-on-year.

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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