Hong Kong-listed Rongsheng announced that it expects to incur a “significant increase” in net loss for the six months ended 30 June 2014 compared to the same period of last year.
Rongsheng expects that the decrease in revenue is due to a reduction in production activity.
The drop in shipyard production was consequently because of “the company’s conservative operation strategies on sales, pricing, construction and delivery of vessels on new orders and existing orders upon renegotiation, revision and/or cancellation of contracts with shipowners under the current trough stage of the shipbuilding market.”
The Chinese shipbuilder did not provide any figures for the profit warning.
In the first half of 2013, Rongsheng recorded a loss of RMB1.26bn ($204.08m) and the full year 2013 deficit ballooned to RMB8.7bn.
