rongsheng heavy industries holdings limited pricelist

HONG KONG, Nov 12 (Reuters) - China Rongsheng Heavy Industries Group Holdings Ltdpriced its initial public offering at HK$8.00 per share, raising $1.8 billion, IFR reported on Friday.

Rongsheng, which plans to use the proceeds for its shipbuilding and offshore engineering business, had set a marketing range of HK$7.30-10.10 per share for the offering.

The company is expected to post a net loss this year based on unaudited accounts for 11 months ended Nov. 30, China Rongsheng said in a stock exchange filing today. It didn’t disclose any numbers.

First-half profit of the company plunged 82 percent as a global overcapacity and lower charter rates deterred shipowners from ordering more vessels. China Rongsheng is setting up a new offshore-energy equipment unit as it seeks contracts for oil rigs and tender barges to offset slowing ship demand.

China Rongsheng dropped 1.5 percent to HK$1.35 as of 2 p.m. in Hong Kong trading. The city’s benchmark Hang Seng Index rose 0.2 percent. The forecast was released during the lunchtime trading break.

(Bloomberg) — China Rongsheng Heavy Industries Group Holdings Ltd., which hasn’t announced any 2012 ship orders, may find winning deals even harder as a company owned by its billionaire chairman faces an insider-trading probe.

Rongsheng, based in Shanghai, has tumbled 87 percent since a November 2010 initial public offering because of concerns about delivery delays and a global slump in ship orders caused by a glut of vessels. The shipbuilder, which operates facilities in Jiangsu and Anhui provinces, also said yesterday that first- half profit probably dropped “significantly” because of falling prices and slowing orders.

The probe won’t affect day-to-day operations run by Chief Executive Officer Chen Qiang, as Chairman Zhang only has a non- executive role, Rongsheng said in a statement yesterday. Zhang wasn’t available for comment yesterday, according to Doris Chung, public relations manager at Glorious Property Holdings Ltd., a developer he controls.

Chen isn’t aware of Zhang’s personal business dealings and he has no plans to leave Rongsheng, he said yesterday by text message in reply to Bloomberg News questions. The CEO may help reassure potential customers as he is well-known among shipowners, said Lawrence Li, an analyst at UOB Kay Hian Holdings Ltd.

Zhang owns 46 percent of Rongsheng and 64 percent of Glorious Property, according to data compiled by Bloomberg. The developer dropped 1.7 percent to close at HK$1.16 in Hong Kong today after falling 11 percent yesterday. Zhang’s listed holdings are worth about $1.2 billion, according to data compiled by Bloomberg.

Zhang, who holds a Master’s of Business Administration degree from Asia Macau International Open University, started in building materials and construction subcontracting before getting into real estate. Construction of his first project, in Shanghai, began in 1996, according to Glorious Property’s IPO prospectus. He got into shipbuilding after discussing the idea with Chen at a Shanghai Young Entrepreneurs’ Association event in 2001, according to Rongsheng’s sale document. He formed the company that grew into Rongsheng three years later.

“People in his hometown think Zhang is a legend as he expanded two companies in different sectors so quickly,” said Ji Fenghua, chairman of Nantong Mingde Group, a shipyard located next to Rongsheng’s facility in Nantong city, Jiangsu province. The billionaire maintains a low profile, said Ji, who has never seen him at meetings organized by the local government.

Rongsheng raised HK$14 billion in its 2010 IPO, selling shares at HK$8 each. The company’s market value has fallen by about $6.1 billion to $1 billion, based on data compiled by Bloomberg.

Rongsheng, which also makes engines and excavators, had outstanding orders for 98 ships as of June 2012, according to Clarkson. It employed 7,046 people at the end of last year, according to its annual report. The shipbuilder has built a pipe-laying vessel for Cnooc and it has a strategic cooperation agreement with the energy company.

China Rongsheng Heavy Industries Group Holdings Limited announced unaudited consolidated earnings guidance for the twelve months ended December 31, 2012. For the period, the company expected to incur a net loss as compared with the published net profit for the year ended 31 December 2011. The company believes that the net loss is primarily attributable to the decline in the shipbuilding market during the eleven months ended 30 November 2012, which led to the sharp decrease in the orders and prices of vessels compared with the same period last year.

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. CHINA RONGSHENG HEAVY INDUSTRIES GROUP HOLDINGS LIMITED

The company said that the struggles of its shipbuilding arm, Jiangsu Rongsheng Heavy Industries, had been hampering efforts to expand in energy services

China Rongsheng Heavy Industries Group Holdings Limited [1101.HK] has announced that it has signed a memorandum of understanding that will see its shipbuilding business, Jiangsu Rongsheng Heavy Industries, sold to an undisclosed potential purchaser.

According to the company, the depressed shipbuilding market had led to operational difficulties at Jiangsu Rongsheng Heavy Industries, while its highly-leveraged state was also interfering with the company"s efforts to expand in oil and gas exploration elsewhere.

It was reported in 2012 that in the face of market difficulties, China Rongsheng Heavy Industries had turned its focus to building containerships with a "green design" as one its key products.

Hyundai Heavy Industries Co., the world’s biggest shipbuilder, plans to raise prices as demand for fuel-efficient vessels helps it skirt the global supply glut hurting Chinese yards.

Hyundai Heavy’s optimism helped drive up shares of Korean shipbuilders today and contrasts with gloom over Chinese shipbuilders. A third of China’s yards may shut down in about five years as they struggle to win orders, an industry group said last week. South Korean yards, which have dominated the construction of mega ships, are benefiting as lines including A.P. Moeller-Maersk A/S order bigger, fuel-efficient vessels.

Hyundai Heavy climbed 4.5 percent to 186,500 won at 10:17 a.m. in Seoul trading, paring this year’s drop to 23 percent. Hyundai Mipo Dockyard Co. surged 6.5 percent. Samsung Heavy Industries Co. and Daewoo Shipbuilding & Marine Engineering Co. also rose.

China Rongsheng Heavy Industries Group Holdings Ltd., plummeted 16 percent in Hong Kong trading, extending its loss after plunging to a record low in the previous trading session in Hong Kong. The country’s biggest yard outside state control is seeking government financial support as orders and prices decline and may post a loss in the first half, it said July 5.

Rongsheng Heavy Industries Group Holdings Ltd, China"s largest private shipyard, said on Friday it predicted net losses in the first half of this year amid media reports that suppliers and subcontractors were taking matters into their own hands.

During the year ended 31, December 2013 China Rongsheng, the largest non-state-owned shipbuilder in the PRC, reports that revenue of the Company was RmB1,343.6 million, a decrease of 83.1% from RmB7,956.3 million for the year ended 31 december 2012. Excerpts from the report follow:

China Rongsheng Heavy Industries Group Holdings Limited explain that In 2013, the unfavourable operating environment for ship owners persisted amid the unsatisfying performance of the global shipping market in spite of the tepid recovery from 2012. As a result, ship owners requested shipyards to postpone the delivery of new vessels.

In 2013, the overcapacity in the global shipping market was not curbed, with shipping enterprises stuck in the loss-making position, exacerbating the overcapacity in shipbuilding industry and leaving the prices for new vessels low. In response to the adverse market environment, Rongsheng adopted a defensive sales strategy and abandoned some extremely low price orders.

Rongsheng anticipates that the elimination of outdated overcapacity and lifted market entry barriers will result in an increase in market concentration and thus benefit leading large-scale shipbuilders in the long term. leveraging on the government policies. They say they will carry on implementation of established strategy of “Transformation and advancement” to further strengthen and expand the company for the long-term development.

China Rongsheng Heavy Industries Group Holdings Limited and its subsidiaries are a leading diversified large heavy industries group in China. Business segments include shipbuilding, offshore engineering, marine engine building and engineering machinery.

--FILE--Visitors look at the machines of Anhui Rongan Heavy Industry, the subsidiary of China Rongsheng Heavy Industries Group Holdings Ltd in an Expo in Shanghai, China, 25 November 2010. China Rongsheng Heavy Industries Group Holdings Ltd may report its first annual loss in four years amid a slump in the shipbuilding market. The decline in demand has led to the sharp decrease in orders and prices of vessels compared with the same period last year, Rongsheng Chinas largest private shipbuilder, said in a filing to the Hong Kong stock exchange yesterday (24 December 2012), without giving figures. The shipbuilder in August reported an 82 percent plunge in first-half earnings as a global economic slowdown and overcapacity sank demand for vessels.

China Rongsheng Heavy Industries Group Holdings Limited announced its audited a nnual results for the twelve months ended 31 December 2012 , said in the company"s press release.In 20 12, the Group recorded approximately RMB 7.96 billion in revenue, a year-o ver-year decrease of 50% from RMB 15.9 billion. Losses attributable to equit y holders of the Company were RMB 572.6 million, compared to earnings of RMB 1.7 billion in 2011.

Mr. Chen Qiang, Chairman of the Board of Directors and Chief Executive Officer of China Rongsheng Heavy Industries , said, “The sluggish global shipping market continued to reduce new shipbuildin g prices and deteriorate payment terms, as global new shipbuilding orders pl unged to their lowest level in a decade. Under adverse market situation, construct ions and deliveries in our core shipbuilding segment have suffered from delays , leading to a decline in our revenue. The diminished economies of scale also imp acted our results. We responded by implementing our ‘Transformation and A dvancement’ strategy, designed to transform ourselves into an integrated heavy industry conglomerate that focuses on energy enterprises. In 2012, the Group established Rongsheng Offshore & Marine (“RSOM”), our offshore engineerin g business center in Singapore, and has already made a number of breakth roughs in the offshore engineering market. The Group aims to capture oppor tunities in the high-end equipment industry to steer us clear of the market downturn.”

According to Clarkson Research, orders on hand accounted for 11.9% of market share in China and 5% of worldwide market share measured by DWT, ranking first in China and third in the world. Offshore Engineering For the Period, there was no revenue contribution from the offshore engineering segment as the construction of the deepwater pipe-l aying vessel (“DPV”) was completed in 2011 and was successfully delivered in early 2012. However, the Group has established Rongsheng Offshore & Marine in Singapore and secured our first deepwater tender barge in 2012, which was also company"s first international offshore engineering order.

Rongsheng Heavy Industries Group Holdings Ltd"s shares have been suspended on the Hong Kong Stock Exchange after a media report said that the company cut 8,000 jobs in recent months.

Last year, Rongsheng Offshore & Marine was established in Singapore to seek new market growth points. Its business segments include shipbuilding, offshore engineering, marine engine building and engineering machinery.

"In 2011, the market was so-so, but 2012 was bad and the situation this year is cruel," said Li Aidong, president of Daoda Heavy Industry Group, an 8,000-worker shipyard in Jiangsu.

China Rongsheng Heavy Industries Group Holdings Ltd rose in Hong Kong trading after saying it applied to withdraw a plan to buy a diesel engine maker for 2.15 billion yuan ($338 million) because of the European debt crisis.

"If the withdrawal is successful, the investors will be happy and the cash pressure on Rongsheng will be relieved as there will be savings for Rongsheng," said UOB-Kay Hian Holdings Ltd analyst Lawrence Li.

China Rongsheng, which hasn"t announced new shipbuilding contracts this year and is releasing interim results on Tuesday, said it expects a significant drop in its first-half profit. The stock advance on Monday pared Rongsheng"s decline this year to 48 percent and the index gained 8.4 percent in the same period.