China Rongsheng Heavy Industries announces 2014 interim results
China Rongsheng Heavy Industries Group Holdings Limited today announces its unaudited interim results for the six months ended 30 June 2014, the company said in its press release.
For the first half of 2014, company revenue was RMB340.6 million, representing a year-o n-year decrease of 78.4%. Comprehensive loss attributable to the equity holders of the Company were RMB3,063.1 million. For the Period, the unfavourable operating environment for ship owners persisted amid the unsatisfying performance of the global shipping market. As a result, ship owners requested shipyards to postpone the delivery of new vessels. The reduction in the production activity of the company’s core shipbuilding segment led to a significant decline of our revenue .
Mr. Chen Qiang, chairman of board of directors of the Company, said, “For the Period, despite a significant year-on-year increase of the global new shipbuilding orders, the new shipbuilding prices remain low with a decreased prepayment ratio under a sluggish global shipping market. In this adverse market environment, we adopted a prudent sales strategy by avoiding low-price orders or orders with unfavourable payment terms. Meanwhile, to encounter the unfavorable operating environment, we are actively implementing a variety of mitigation measures, including reviewing the orders on hand to analyze and handle orders with different risk levels separately, upgrading the management model to improve operational efficiency, optimizing the structure of shipbuilding products to adapt to the implementation of the new regulations and standards in shipbuilding, and seeking new sources of revenue to improve financial position.”