CIMC profit plunges 73pc to US$78.5 million as sales slide 13pc
THE world's biggest container maker Shenzhen's China International Marine Containers (CIMC) saw 2016 net profit plunge 73 per cent to CNY540 million (US$78.5 million), drawn on revenues of CNY51.1 billion, down 13 per cent.
CIMC's other businesses such as the energy, chemical and liquid food equipment business remained stable, but was also hit by impairments for the termination of the acquisition of Sinopacific Offshore & Engineering (SOE).
The key container business was also hard hit. CIMC recorded a sharp decline in orders in a weak market and revenue and net profit substantially decreased.
Total sales of ordinary dry containers fell 48 per cent to 587,300 TEU from 1.12 million TEU in 2015 while reefer container sales fell 56 per cent to 79,700 TEU.
This resulted in the container business revenue falling 48 per cent to CNY11.07 billion and net profit sliding 64 per cent to CNY363 million year on year.
CIMC however noted that "the container business develops its own demands and cyclical effect", saying that after prolonged flat demand and tightened container liquidity resulting from the Hanjin bankruptcy, container demand saw greater improvement from the fourth quarter of last year.
Going forward, CIMC said "globalisation may encounter ups and downs but the trend will remain unchanged, it is predicted that the demand of containers in 2017 will improve as compared with that of 2016".