It is reported that Tianjin Port Development Holdings Limited released its interim report on August 26th 2009, showing that it incurred a loss of HKD 15.72 million compared with net profits of HKD 141 million a year earlier.
According to the interim report, the loss resulted from the withering exports and weakening demand for port services caused by the global economic recession. In spite of the dissatisfying performance, Tianjin Port Development does make progress in the acquisition of a 56.81% stake in Tianjin Port Co Ltd.
The deal has received approval from the State owned Assets Supervision and Administration Commission and is expected to be complete in the Q4. Tianjin Port Development has made a provision for HKD 22 million agent fees for the transaction which is another reason for its loss.
Previously on March 16th Tianjin Port Development and its subsidiary Grand Point Investment Limited inked an agreement with Tianjin Port Co Ltd according to which the former will issue shares valued at HKD 7.031 billion to Tianjin Port Group and pay the latter HKD 3.93 billion in cash in exchange for a 56.81% stake in Tianjin Port.
Tianjin Port is an international port in north China, handling the imports and exports of containers, crude oil, ores, coals, steel products and foodstuff. It is the largest port in Pan-Bohai Sea Area a container trunk line port in north China as well as the largest coke exporting port, second largest iron ore importing port and a large oil products port in China.
(Source from www.cnstock.com)
