Shenzhen Stock Exchange has sent an inquiry letter to CSC Phoenix, requesting an explanation on several details within the company’s 2015 annual financial report.
The stock exchange has asked CSC Phoenix to give detailed explanations on why the marketing expenses increased substantially by 34.89% under the circumstance that the company cut over 50% of the marketing personnel.
In addition, the stock exchange also requires explanations on the increasing accounts receivable and ship disposal details during the year.
CSC Phoenix, the former domestic dry bulker shipping arm of state-run Sinotrans & CSC, has become a private-controlled company with main its business switched to dredging after Tianjin Shunhang Shipping took over the company in 2015. It reported revenues of RMB770m ($118m) and a net profit of RMB123m ($18.9m) for the year.
