Apr. 9, 2012 (China Knowledge) –China COSCO Holdings Co Ltd<601919
>, the largest shipping company in the country, has posted a net loss of RMB 10.4 billion attributed to shareholders last year, compared with RMB 6.76 billion in net profit attributable to shareholders in 2010.
This is the most serious loss since COSCO established in 2005.
In 2012, COSCO saw its operation revenue fell 12.3% to RMB 68.91 billion.
As of Apr. 8, 2012, nine listed shipping companies posted a combined loss of RMB 11.7 billion in 2011, including a net loss of RMB 2.74 billion by China Shipping (Group) Co<601866
> and a net loss of RMB 870 million in Chang Jiang Shipping Group Phoenix Co<000520
Zhang Shouguo, vice-president of China Shipowner's Mutual Assurance Association, said that the huge loss in shipping industry is mainly caused by overcapacity and cutthroat competition.
Overcapacity in shipping industry will not be improved in a short period of time and this year will be a tough year for shopping companies, Zhang added.