Asia/Pacific News
Chinese Shipbuilder Warns of Loss for 2012
Chinese shipbuilder China Rongsheng Heavy Industries Group [1101.HK] (China Rongsheng Heavy Industries) is warning that it expects a loss for 2012 compared with last year.
"The Company believes that the net loss is primarily attributable to the decline in the shipbuilding market during the eleven months ended 30 November 2012, which led to the sharp decrease in the orders and prices of vessels compared with the same period last year," it said.
The anticipated loss represents a surprise to analysts, who predicted a 584 million yuan ($93.76 million) net profit for the year, according to Reuters.
Zhang Zhirong, the private company's largest shareholder, resigned last month after an insider trading scandal last year.
China Rongsheng Heavy Industries has said it is diversifying its product offerings and designs to cope with market uncertainties, and it announced earlier this month that it has delivered its first containership.
The company also said it is aiming to offer containerships with "green designs" to boost its place in the market.
A report earlier this year found that a depressed Chinese shipbuilding market could push as many as half of the nation's 1,600 shipbuilding companies into bankruptcy over the next two to three years, which could ultimately help the industry recover.
