China Cosco, the flagship unit of state conglomerate Cosco Group, swung to a net loss in the third quarter of calendar 2015 at 1.7 billion yuan. Its revenue fell 19 per cent to 14.1 billion yuan in the third quarter.
For the first nine months of 2015, though, China Cosco’s net profit stood at 188 million yuan, versus a loss of 654 million yuan in the same period a year ago.
In the third quarter of 2015, the overall demand in the shipping market continued to be weak with continous overcapacity on the market landscape.
Though container and dry bulk shipping business shrank in the third quarter, container terminal sector slightly picked up. No explanation was given by the company for why container and dry bulk business went down although most of its global peers endured the same situation.
The shipping firm’s rebound in the first nine months period was because of 4 billion yuan in government subsidies, while saying no more government subsidies were granted in the second half of the year.
Looking ahead, China COSCO will continue to focus on the four strategic aspects of profitability, anti-cyclical effect, globalization and increase in scale.
In the background of China's economic reform and innovation, China COSCO is going to seize the strategic opportunities of the national strategies including “One belt, One road”, Collaborative Development of Beijing-Tianjin-Hebei program, and Yangtze River Economic Zone.
China COSCO is dedicated to promoting comprehensively the execution of the strategy, deepening reforms, and making continuous exploration and innovation to continuously improve business performance, achieve sustainable development of the Company and provide ongoing returns to shareholders.