Mainland conglomerate Shougang Concord International Enterprises has been saved from reporting a first-half net loss after reaping a $42.3 million exceptional gain on the sale of three ships.
Yesterday, the company announced attributable earnings of $11.05 million, down 55 per cent from the previous year. On an operating basis however, the red chip reported a loss of $36.84 million, down from an operating profit of $50.81 million.
Shougang attributed the downturn in its operating performance to a re-organisation of its shipping business.
Shougang said it would try 'to implement tighter cost controls and improve its operational efficiency to minimise the impact of the economic downturn' in the second half.
Earnings per share fell to 0.6 cent from 1.5 cents per share last year, while turnover declined 17 per cent to $2.18 billion.
Shougang said Asia's economic crisis had knocked the results of affiliates.
None will pay shareholders an interim dividend.
Steel trading subsidiary Shougang Concord Century Holdings reported a net loss of $3.82 million for the six months, against a $9.39 million net profit last year. Losses per share were 0.5 cent from last year's 1.2 cents earnings.
Net profits at electronics manufacturing subsidiary Shougang Concord Technology Holdings fell 6.8 per cent to $15.13 million, down from $16.22 million.
Property arm Shougang Concord Grand (Group) posted a 65 per cent slide in net gains to $11.52 million.