CIMC issues profit warning

The world’s largest manufacturer of shipping containers has advised shareholders and potential investors to exercise caution when dealing with its shares.    China International Marine Containers (CIMC), the world’s largest manufacturer of shipping containers, issued a profit warning saying its consolidated net profits for 2016 will range from being nonexistent to, at best, just half of what they were for 2015.
   The announcement, submitted to the Hong Kong Stock Exchange, said in 2015, the company had a profit of 1.97 billion yuan renminbi (U.S. $288 million).
   For 2016, profit is expected to be between zero and RMB 987 million.
   CIMC said, “Shareholders and potential investors are advised to exercise caution when dealing in the shares of the company.”
   CIMC attributed the decrease to shrinking international trade and a planned acquisition that was called off, in which CIMC Enrich Holdings, an equipment manufacturer for the energy, chemicals and liquid food industries, had terminated its acquisition of the entire equity interest in a Chinese government-owned company called Sino Pacific Offshore & Engineering Co., and made a provision for impairment of about RMB 1.21 billion. “It is expected that a relatively large amount of provision for impairment will be made to the consolidated financial statements of the company for 2016, which will affect the net profit attributable to shareholders and other equity holders of the company for 2016,” CIMC said.
   Headquartered in Shenzhen, CIMC supplies containers, vehicles, energy, chemicals and food equipment, logistics services, offshore oil drilling platforms and airport facilities.