On July 11, Phoenix Shipping (Wuhan) Co., Ltd. (Stock Code: 000520, Stock Abbreviation: Phoenix Shipping) announced its plan to scrap two aging bulk carriers.
According to the announcement, the two vessels slated for dismantling are the *Chang Liang Hai* and the *Chang Jing Hai*. The *Chang Liang Hai* is owned by Phoenix Shipping (Wuhan) Co., Ltd., with a construction date of May 15, 2002, a gross tonnage of 27,176 tons, a lightweight tonnage of 8,485 tons, a vessel age of 23 years, and a net book value of 45.2676 million yuan. The *Chang Jing Hai* is owned by Wuhan Changhang New Phoenix Logistics Co., Ltd., with a construction date of April 2, 2002, a gross tonnage of 30,928 tons, a lightweight tonnage of 10,584 tons, a vessel age of 23 years, and a net book value of 43.5581 million yuan.
Phoenix Shipping expects total scrap steel disposal revenue of approximately 30 million yuan (*Chang Liang Hai*: 13 million yuan, *Chang Jing Hai*: 17 million yuan) and government subsidy income of approximately 40 million yuan (*Chang Liang Hai*: 19 million yuan, *Chang Jing Hai*: 21 million yuan).
Phoenix Shipping stated that this transaction is expected to generate disposal revenue of approximately 70 million yuan (including government subsidies), with an estimated total profit of approximately -18 million yuan. Although this will negatively impact the company’s current earnings, it will improve cash flow and reduce future vessel operating costs. The company will replace these two vessels through market acquisitions, and the scrapping will not affect existing production plans.
Data shows that Phoenix Shipping was listed on the Shenzhen Stock Exchange in 2006. It primarily engages in coastal, ocean, Yangtze River, and canal bulk cargo transportation, special heavy-lift logistics, crew labor dispatch services, and shipping agency operations. It is the only domestic shipping logistics company capable of providing end-to-end logistics services across rivers, seas, oceans, and canals.
In the same-day *2025 Interim Performance Forecast Announcement*, Phoenix Shipping projected a net profit attributable to shareholders of 1.4 million to 1.9 million yuan for the first half of this year, compared to a loss of 14.912 million yuan in the same period last year. After deducting non-recurring gains and losses, the net profit was forecasted at 1 million to 1.5 million yuan, versus a loss of 14.92 million yuan in the prior year.
Phoenix Shipping attributed the performance improvement to:
1. **Business and Operational Optimization**: During the reporting period, the company continued to focus on high-margin business areas, particularly its core ocean transportation segment. By strengthening internal refined management systems, it effectively achieved cost control and operational efficiency improvements.
2. **Industry Recovery**: In the first half of 2025, the average Coastal Coal Freight Index (CBCFI), closely tied to the company’s operations, showed an upward trend, with market freight rates rising accordingly. The company actively capitalized on this favorable industry opportunity by optimizing resource allocation and supplier selection, reducing production costs and administrative expenses, ultimately turning losses into profits.
