Hong Kong: Shares in Rongsheng, China’s largest private yard, continued to trade sluggishly at around HK92 cents, less than half of its year-high price, on the back of more alarming financial information yesterday. At its interims Wednesday Rongsheng warned its dire financial position could see it wound up.
The company posted a first-half net loss of RMB1.26bn, compared with a profit of RMB215.8m a year earlier.
The yard has been hit by a number of delivery postponements. Sales plunged 71%.
Rongsheng’s cash and cash-equivalents decreased by RMB1.27bn to RMB871m as of the end of June. Total borrowings were RMB24.85bn.
“The above conditions indicate the existence of uncertainties, which may cast doubt on the group’s ability to continue as a going concern,” Rongsheng said.
The yard, which earlier this year asked for government help, said it was seeking alternative sources of funding. [29/08/13]
