Rongsheng’s losses widen

Shanghai: Hong Kong-listed Chinese shipbuilder Rongsheng Heavy Industries announced that the company suffered a net loss of approximately RMB3.36bn for the first nine months of 2014, increasing by 258% compared with the same period last year.

Rongsheng said the net loss was primarily due to the low prices of shipbuilding orders and also the decline of production activities in the yard, and it may lead to adverse effects on the production and operation, financial position and repayment capacity of the yard.

Rongsheng is currently in the middle of a major restructuring deal, and has suspended stock trading since the end of August. It expects to complete the potential restructuring before June 2015 with state-run CSSC widely tipped to help the restructuring. [20/10/14]

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