The listed trading shares of Nanjing Tanker, a subsidiary of CSC Sinotrans, have been officially suspended from today.

Nanjing Tanker announced a net profit loss of RMB1.24bn for the year of 2012, its third consecutive year of losses. According to China’s listing rules, the stock trading of the company has been suspended.

A shipping analyst said the excessive expansion of capacity is one of the main reasons behind the company’s huge losses. Nanjing Tanker’s total capacity has surged more than 17 times in six years from 400,000dwt in 2006 to 7.35m dwt in 2012.

The asset-liability ratio of the company has reached 80%, and its parent company CSC Sinotrans also made it clear that it had no plans to inject funds into two of its loss-making subsidiaries Nanjing Tanker and CSC Phoenix. The parent company even stopped providing bank loan guarantees to the two companies.

Nanjing Tanker said in its annual report that it plans to improve the company’s financial status through various financing measures and asset disposals.