Rongsheng admits it ‘might not be able to continue to operate as a going concern’

Rongsheng admits it ‘might not be able to continue to operate as a going concern’

Shanghai: Hong Kong-listed Rongsheng Heavy Industries reported a net loss of RMB7.75bn ($1.25bn) for the fiscal year of 2014, following losses in 2012 and 2013. The Chinese shipbuilder, which is currently in the middle of a potential restructuring deal, warned again that it might still go bankrupt.

“Operation of the group has been minimal owing to the shortage of funds to complete its existing shipbuilding orders on schedule and the lack of availability of banking facilities required for accepting new orders,” the group said in a release.

The yard suffered RMB4.53bn ($731m) of losses from the cancellation of shipbuilding contracts in 2014.

“Should the group fail to achieve the above-mentioned plans and measures, it might not be able to continue to operate as a going concern,” the group added.

Jason Jiang

Jason worked for a number of logistics firms following his English degree, then switched this hands-on experience to writing and has since become one the most prolific writers on the diverse China logistics industry writing for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week. Jason’s access to the biggest shippers with business in China has proved an invaluable source of exclusives.

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