CSSC sinks into the red for Q1

The state-owned shipbuilder saw its first quarter results sank into the red with a net loss of RMB71.94m ($10.43m) as against the profit of RMB115.72m in the previous corresponding period.

The group suffered a first quarter operating loss of RMB142.41m as against the operating income of RMB105.52m in the year-ago period.

The quarterly revenue went down by 29.8% year-on-year to RMB4.11bn, as the shipbuilding business was hit by customers deferring deliveries of newbuildings and cancellation of orders, according to CSSC.

The group further forecast a loss for the first half of this year due to the sluggish market conditions and tight cash flow.

Compatriot shipbuilder China Shipbuilding Industry Corp, on the other hand, registered a first quarter profit of RMB277.07m on the back of higher production and cost savings.