Hong-Kong listed shipping and logistics company, China COSCO Holdings Co (CCHC) has received subsidy amounting to$28.3 million from China COSCO Corporation, the indirect controlling shareholder of the company, for the decommissioning and upgrading of its vessels.
The company explained that the subsidy will be recognized as a non-operating income and will be included in the profit and loss for this year.
China COSCO Holdings reported in April a major rise in its net loss from $154.1 million seen in the quarter ended March 31, 2015, $ 690 million in the corresponding period this year.
According to Maritime News, the loss was mainly attributed to a weak demand in the container shipping market as the company’s container shipping business recorded a loss of approximately CNY 1.4 billion.
The loss was also assigned to the disposal of 100 percent equity interests in China COSCO Bulk Shipping Co., and 100 percent equity interests in Florens Container Holdings Limited, as well as to an imbalance of supply and demand in the dry bulk shipping market and low levels of freight rates, which affected the company’s profit.