SHANGHAI Aug 1 Shares of China Rongsheng Heavy
Industries Group, the country's largest private
shipbuilder, fell 4.4 percent on Friday after the company said
it expects to post a significantly higher first-half loss
compared to last year.
The shipbuilder, which faced possible insolvency last year
before agreeing in March with banks to extend loans and other
financing worth 10 billion yuan ($1.62 billion) to 2015,
attributed the widening loss to a further fall in production
activity as shipowners revised or cancelled their contracts.
"The Group is expected to incur a significant increase in
net loss for the six months ended 30 June 2014 as compared with
the corresponding period in 2013," it said in a statement after
the Hong Kong stock exchange shut on Thursday.
Rongsheng, which has suffered as orders slumped amid a
global shipping downturn, posted a first-half net loss of 1.3
billion yuan last year. It reported a net loss of 8.68 billion
yuan for its fiscal year ended December 2013.
($1 = 6.1742 Chinese Yuan)
(Reporting by Brenda Goh; Editing by Kazunori Takada)