CIMC Faces Unprecedented Loss

China International Marine Containers (CIMC) warned that it may turn to a loss for the first nine months of the year.

News ID: 69579

Date: 19 October 2016 - 14:01

The size of the loss could range from RMB86.2m ($12.8m) to RMB344.9m compared to a net profit of RMB1.72bn in the previous corresponding period, MANA correspondent reported.

"During the first nine months of 2016, the global economy endured weak recovery as the international trade was shrinking, the Chinese economy continued to slow down, the exports remained sluggish and the RMB exchange rate became more volatile," CIMC said in a stock market announcement.

It continued: "The continuously weak market environment had different degree of impact on each of the group’s principal businesses. In particular, affected by the depressing global container trade, the imbalance of demand and supply in the market and other factors, the sales volume and operating income of our container business recorded substantial decline as compared with those for the corresponding period of the previous year."

Singamas Container Holdings, the other significant player in the container manufacturing business, had earlier reported a $36.6m first half loss on a 42% drop in revenue to $410.3m.