China Shipping Development has taken a small stake in a 100 million yuan (about HK$93.69 million) logistics company recently formed by its parent and other state-owned shipping companies.
News of the stake came as the company posted 50.71 per cent growth in net profit to 111.49 million yuan for the first half.
Chairman Li Kelin said the oil and coal shipping H share has indirectly taken a stake in China Shipping Logistics Co (CSLC) through its 25 per cent-held associate China Shipping Container Lines, which holds about 10 per cent in CSLC.
The parent China Shipping Group owns 51 per cent and the remaining shares are held by state-owned shipping firms of Shanghai, Guangzhou and Dalian.
The move signals the shipping firm's interest in diversifying into land cargo transportation. The logistics firm operates four piers in Shanghai, Dalian, Lianyungang Port in Jiangsu province and Zhanjiang in Guangdong province. It also runs fleets of cargo trucks and ships as well as coastal and inland warehouses.
Turnover dropped to 1.52 billion yuan from 1.61 billion yuan previously as the company's aggregate shipping capacity was reduced.
Earnings per share rose to 3.75 fen from 2.49 fen. No interim dividend will be paid.