Central China sees 1H net loss of 1.1B yuan to 1.5B yuan

Central China sees 1H net loss of 1.1B yuan to 1.5B yuan

Central China's financial performance during the first half of 2025 has been marked by a significant net loss, with estimates ranging between 1.1 billion and 1.5 billion yuan. This period has been characterized by a challenging economic environment, geopolitical conflicts, and growing uncertainty caused by US trade policies.

According to the latest financial report, the net loss for the first half of 2025 is attributed to several factors, including a weak economy in Germany and route adjustments due to the military conflict in the Red Sea. Despite these challenges, the company has shown resilience and has managed to increase its revenue and operating result compared to the previous year.

Revenue in the HHLA Group rose by 16.3 percent to € 884.5 million, while the Group operating result (EBIT) climbed by 34.8 percent to € 79.4 million. The EBIT margin increased to 9.0 percent, reflecting the company's ability to maintain profitability despite the adverse conditions.

The Port Logistics subgroup also reported a strong increase in revenue, up by 16.6 percent to € 865.7 million. The operating result (EBIT) for this subgroup rose by 40.1 percent to € 72.4 million. The EBIT margin for the Port Logistics subgroup increased by 1.4 percentage points to 8.4 percent.

The Container segment saw a significant increase in container throughput, rising by 7.9 percent to 3,172 thousand TEU. This growth was driven by an increase in road and rail transport and was particularly notable for the Far East shipping region, especially for China.

The Intermodal segment also performed strongly, with container transport increasing by 19.6 percent to 997 thousand TEU. Revenue for this segment rose by 22.2 percent to € 400.5 million.

The Real Estate subgroup reported stable growth, with almost full occupancy in both the Speicherstadt historical warehouse district and the fish market area. Revenue for this subgroup rose slightly by 1.8 percent to € 23.4 million.

The outlook for the 2025 financial year remains positive, with the Executive Board forecasting an EBIT range of € 195 million to € 215 million for the Group and € 180 million to € 200 million for the Port Logistics subgroup.

In summary, Central China's financial performance in the first half of 2025 was marked by a net loss, but the company demonstrated resilience and growth in several key areas. The company's ability to navigate through challenging economic conditions and geopolitical conflicts underscores its strength and potential for future growth.

References:

[1] https://www.tradingview.com/news/eqs:726ee6758094b:0-hhla-closes-first-half-of-2025-very-successfully/