CSSC Shipping reports mixed half-year results amid global trade shifts
Chinese ship leasing firm CSSC (Hong Kong) Shipping Company reported mixed financial results for the first half of 2025 as it navigated a volatile global shipping market. The company saw a rise in revenues but a drop in overall profit compared to the same period in 2024.
The firm's total revenue for the six months ending on June 30 was HK$2.02 billion ($258.1 million), a slight increase of 2.7 per cent year-on-year. This was primarily driven by a 15.4 per cent increase in operating lease income from its integrated shipping services. However, this was partially offset by a 12.2 per cent decline in revenue from financing services as some projects were completed in late 2024 and early 2025.
Total expenses saw a significant drop of 24 per cent to HK$833.3 million. This was mainly due to a 19.3 per cent decrease in finance costs and a substantial positive swing from a HK$105.7 million impairment provision in 2024 to a reversal of HK$132.3 million in the first half of 2025.
Despite the reduction in outgoings, the company's profit for the period fell by 14.1 per cent to HK$1.151 billion. The company attributes this decline to a one-off tax provision of HK$137.7 million related to the OECD pillar two model rules.
In their management discussion, the company acknowledges the broader market challenges, citing analyst forecasts that global maritime trade will face uncertainties in the latter half of the year due to geopolitical tensions and weak economic growth.
The company’s focus for the second half of 2025 is on “seeking progress while maintaining stability”. This includes expanding its high-quality ship asset portfolio, strengthening asset risk disposal, and controlling financing costs. The firm intends to utilise a new CNY10 billion credit agreement with CSSC Finance to ensure it has sufficient low-cost capital for future investments.
