rongsheng heavy industries holdings limited factory

China Rongsheng Heavy Industries Group Holdings Limited is an investment holding company. The Company has four segments: shipbuilding, offshore engineering, marine engine building and engineering machinery. The Company commenced the construction of its shipyard in Nantong, Jiangsu Province. As of December 31, 2009, the Company鈥檚 shipyard covers approximately four million square meters and occupies 3,058 meters of Yangtze River shoreline. The Company operates its marine engine building business through Rong An Power Machinery. In October 2009, Rong An Power Machinery delivered its marine engine product, a Wartsila 6RT-flex68D low-speed marine diesel engine. The Company through Zhenyu Machinery offers 16 varieties of hydraulic excavators and two varieties of hydraulic crawler cranes. Its products include bulk carriers, crude oil tankers, containerships, offshore engineering products, low-speed marine diesel engines and small to mid-size excavators and cranes for construction and mining.

Ch Rongsheng isa leadinglarge-scaleheavy industry enterprisegroup.It possesses of two manufacturing bases of shipbuilding and offshore engineering in Nantong of Jiangsu Province and diesel engine in Hefei of Anhui Province both approved by NDRC, coveringwide services ranging from shipbuilding, offshoreengineering,power engineering, engineering machineryandetc. Until Dec.With thevision of “cultivate world first-class employees and create world first-class enterprise”,the spirit of “integrity-based, the pursuit of excellence”, and the responsibility ofrevitalizingnational industry, it runs fast toward the great goal of world first-class diversified heavy industry group.

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(24 November 2013, Hong Kong) - China Rongsheng Heavy Industries Group Holdings Limited ("China Rongsheng Heavy Industries" or the "Group"; stock code: 01101.HK), a large heavy industries group in China, is pleased to announce the delivery of its 380,000

Vale is an important strategic partner of China Rongsheng Heavy Industries. The Group has formed a close and seamless partnership with Vale, and the Brazilian mining giant is a reputable firm with a strong track record in risk management. Among the 16

The 380,000 DWT class VLOC built by China Rongsheng measures 360 meters in length, 65 meters in breadth and 30.4 meters in depth, and is currently the world"s largest VLOC. The self-developed and high-tech vessel type represents the most advanced technology of VLOCs in the world. It adopts an environmentally friendly design focusing on lowering fuel consumption and reducing CO2 emission, while its operating efficiency exceeds most existing ore carriers. With Energy Efficiency Design Index ("EEDI") recorded at approximately 1.99 during sea trials, Rongsheng-built VLOCs are in line with low-carbon green product initiative and meets the benchmark requirements on emission reduction set by International Maritime Organization ("IMO"), which came into effect as of 1 January 2013.

China Rongsheng Heavy Industries Group Holdings Limited and its subsidiaries are a leading diversified large heavy industries group in China. Our headquarters is located in Hong Kong, with manufacturing bases in Nantong (Jiangsu Province) and Hefei (Anhui Province). Rongsheng Offshore & Marine was established in Singapore to promote our offshore engineering business. Our business segments include shipbuilding, offshore engineering, marine engine building and engineering machinery. According to Clarkson Research, China Rongsheng Heavy Industries was the largest non-state-owned shipbuilder in the PRC in terms of orders on hand measured by DWT as at the end of June 2013. The Group operates the largest shipyard in the PRC and is a global leader in the manufacture of the very large ore carrier.

RUGAO, China/SINGAPORE (Reuters) - Deserted flats and boarded-up shops in the Yangtze river town of Changqingcun serve as a blunt reminder of the area"s reliance on China Rongsheng Heavy Industries Group, the country"s biggest private shipbuilder.A view of the Rongsheng Heavy Industries shipyard is seen in Nantong, Jiangsu province December 4, 2013. REUTERS/Aly Song

The shipbuilder this week predicted a substantial annual loss, just months after appealing to the government for financial help as it reeled from industry overcapacity and shrinking orders. Rongsheng lost an annual record 572.6 million yuan ($92 million) last year, and lost 1.3 billion yuan in the first half of this year.

While Beijing seems intent to promote a shift away from an investment-heavy model, with companies reliant on government cash injections, some analysts say Rongsheng is too big for China to let fail.

Local media reported in July that Rongsheng had laid off as many as 8,000 workers as demand slowed. Three years ago, the company had about 20,000 staff and contract employees. This week, the shipbuilder said an unspecified number of workers had been made redundant this year.

“Without new orders it’s hard to see how operations can continue,” said one worker wearing oil-spattered overalls and a Rongsheng hardhat, adding he was still waiting to be paid for September. He didn’t want to give his name as he feared he could lose his job.

“Morale in the office is quite low, since we don’t know what is the plan,” said a Rongsheng executive, who declined to be named as he is not authorized to speak to the media. “We have been getting orders but can’t seem to get construction loans from banks to build these projects.”

While Rongsheng has won just two orders this year, state-backed rival Shanghai Waigaoqiao Shipbuildinghas secured 50, according to shipbroker data. Singapore-listed Yangzijiang Shipbuildinghas won more than $1 billion in new orders and is moving into offshore jack-up rig construction, noted Jon Windham, head industrials analyst at Barclays in Hong Kong.

Frontline, a shipping company controlled by Norwegian business tycoon John Fredriksen, ordered two oil tankers from Rongsheng in 2010 for delivery earlier this year. It now expects to receive both of them in 2014, Frontline CEO Jens Martin Jensen told Reuters.

Greek shipowner DryShips Inchas also questioned whether other large tankers on order will be delivered. DryShips said Rongsheng is building 43 percent of the Suezmax vessels - tankers up to 200,000 deadweight tons - in the current global order book. That"s equivalent to 23 ships, according to Rongsheng data.

Speaking at a quarterly results briefing last month, DryShips Chief Financial Officer Ziad Nakhleh said Rongsheng was “a yard that, as we stated before, is facing difficulties and, as such, we believe there is a high probability they will not be delivered.” DryShips has four dry cargo vessels on order at the Chinese firm.

Rongsheng declined to comment on the Dryships order, citing client confidentiality. “For other orders on hand, our delivery plan is still ongoing,” a spokesman said.

At least two law firms in Shanghai and Singapore are acting for shipowners seeking compensation from Rongsheng for late or cancelled orders. “I’m now dealing with several cases against Rongsheng,” said Lawrence Chen, senior partner at law firm Wintell & Co in Shanghai.

Billionaire Zhang Zhirong, who founded Rongsheng in 2005 and is the shipyard"s biggest shareholder, last month announced plans to privatize Hong Kong-listed Glorious Property Holdingsin a HK$4.57 billion ($589.45 million) deal - a move analysts said could raise money to plug Rongsheng"s debts.

Meanwhile, Rongsheng’s shipyard woes have already pushed many people away from nearby centers, and others said they would have to go if things don’t pick up. Some said they hoped the local government might step in with financial support.

The Rugao government did not respond to requests for comment on whether it would lend financial or other support to Rongsheng. Annual reports show Rongsheng has received state subsidies in the past three years.

HONG KONG (Reuters) - Trading in shares of China Rongsheng Heavy Industries Group Holdings Ltd, China"s largest private shipbuilder, was suspended on Thursday in the wake of media reports that said it had laid off 8,000 workers in recent months.A view of the Rongsheng Heavy Industries shipyard is seen in Nantong, Jiangsu province, in this file photo taken May 21, 2012. REUTERS/Aly Song/Files

No further details were available and China Rongsheng declined to comment, but analysts said the company’s balance sheet was under pressure. On Wednesday, its shares closed down 10 percent at HK$1.06.

“Moreover, Rongsheng has been suffering due to a major receivables past due problem, thus liquidity is a major concern. I think they are being forced to slash their workforce due to the extreme circumstances the company finds itself in.”

The Wall Street Journal said the job cuts at China Rongsheng represented some 40 percent of the firm’s workforce. The cuts sparked protests by workers earlier this week, according to media reports.

China Rongsheng is a major supplier of bulk carriers that ship iron ore from producer nations such as Brazil to China. Brazil"s Valeis one of its customers.

“We expect a continuing deterioration in the balance sheet given weak overall demand growth for bulk vessels, Rongsheng’s core product,” Barclays analyst Jon Windham said in a report.

According to its December 2012 annual report, issued on March 26, China Rongsheng’s cash and cash equivalents fell to 2.1 billion yuan ($342.53 million) from 6.3 billion yuan a year ago. It had borrowings of 16.26 billion yuan that were due in less than a year, said the report, the latest financial statistics available on the company’s website.

China Rongsheng is the country’s largest private shipbuilder by accumulated order books. It is based in eastern Jiangsu province, near Shanghai, and went public in Hong Kong in 2010.

China"s Sany Heavy Industrylaid off more than 10,000 people in the first half of 2012, although China"s overall job market has been fairly robust so far, explaining in part Beijing"s ease with the country"s slowing economic growth.

China Rongsheng Heavy Industries Group Holdings Limited (“China Rongsheng Heavy Industries” or the “Group”; stock code: 01101.HK), a large heavy industries group in China, announced that it has delivered its first 380,000 DWT Very Large Ore Carrier (VLOC) to Vale S.A. (“Vale”). The 380,000 DWT VLOC is a high-tech vessel self-developed by the Group. It is not only the world’s largest dry bulk carrier with the largest cargo capacity, but also incorporates the Group’s most advanced shipbuilding technology in very large bulk carrier. Successful delivery of the new vessel marked an innovative breakthrough for the shipbuilding industry in China.

Mr. Zhang Zhi Rong, Chairman of the Board and Non-executive Director of China Rongsheng Heavy Industries, said, “The successful delivery of the VLOC not only has extraordinary significance for the development of the shipbuilding industry in China, it also marks an important breakthrough of China Rongsheng Heavy Industries in moving towards its goal of developing into one of the world’s top diversified heavy industries group. The Group wishes to pave the way forward for private enterprises within China’s heavy industry to wield greater influence in the global market.”

Mr. Chen Qiang, Chief Executive Officer and Executive Director of China Rongsheng Heavy Industries, said, “‘VALE CHINA’ represents the most advanced bulk carrier in the world. The technologies needed for building the vessel are far more challenging than those for building the typical 200,000 DWT VLOCs. Far more advanced technologies are required to meet more demanding specifications on its structure, pressure endurance and fluid dynamic design. The delivery of the new vessel demonstrates the Group’s leadership in the global VLOC shipbuilding market.

Mr. Marcus Moura, General Manager of Shipbuilding and Conversions of Vale China, said, “‘VALE CHINA’ is professionally designed and built by China Rongsheng Heavy Industries, and is tailored to address VALE’s trade pattern and terminals requirements in Brazil. This fantastic vessel certainly will enhance our competitiveness in the iron ore market, also help our company to cope with our ambitious iron ore export plan to Asia. We would like to thank China Rongsheng Heavy Industries for its hard and dedicated work and for keeping the commitment to deliver this vessel to our fleet within the required quality standards.”

The main engine of “VALE CHINA”, the 7RT-flex 82T, is self-built by China Rongsheng Heavy Industries and produced by Hefei Rongan Power Machinery Co. Ltd., the Group’s marine engine building division. The engine has not only gained a high degree of recognition from shipowners, but is also the first Warsila low-speed diesel engine with maximum power manufactured by a Chinese enterprise independently.

The new engine boasts the advantages of huge power output, low oil consumption, compact structure, and reduced emission of SOx and NOx. All these features demonstrate the Group’s all-round shipbuilding ability while addressing the operational and environmental protection concerns of shipowners. In August 2008, the Group signed shipbuilding contracts for twelve 380,000 DWT VLOCs with Vale, having a total contract value as high as US$1.6 billion. The work under the contracts attracted wide attention at the time as it set three world records in the contract value of a single shipbuilding order, carrying deadweight tonnage of single bulk carriers and total deadweight tonnage of orders. “VALE CHINA” delivered today is the first vessel for the VLOC series. In 2009, Vale also announced that it would rent four VLOCs of the same type from Oman Shipping Company which were also to be built by China Rongsheng Heavy Industries.

--FILE--A shipbuilding plant of China Rongsheng Heavy Industries Group Holdings Ltd is seen in Nantong city, east Chinas Jiangsu province, 23 May 2012. 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.

HONG KONG, June 28, 2011 - (ACN Newswire) -China Rongsheng Heavy Industries Group Holdings Limited ("China Rongsheng Heavy Industries" or the "Group"; SEHK: 1101), announced that Rongsheng Machinery Limitied ("Rongsheng Machinery")(previously Anhui Rongan Heavy Industries Machinery Company Limited), its new plant in Hefei, has commenced production today and the Group"s first-ever excavator has also been produced on the same day.

Officiating at the plant"s opening ceremony were leaders of the Hefei Municipal Government as well as top management of the Group including Mr. Deng Hui, Executive Director of China Rongsheng Heavy Industries and Mr. Yu Zheng, Chairman and President of Rongsheng Machinery Limited. Suppliers and agents of Rongsheng Machinery also attended the ceremony that day. Rongsheng Machinery also formally signed contracts with suppliers and agents at that time and completed the sale of its first dynamic compactor.

Mr. Chen Qiang, Chief Executive Officer and Executive Director of Rongsheng, said, "With the new Hefei plant, the Group is boosting its engineering machinery business, further implementing diversification of its four major business segments while enlarging its share of RMB-denominated business. Through its diversification strategy, China Rongsheng Heavy Industries has kept in step with the industrial planning policy of Anhui Province to develop Hefei into a "City of Engineering Machinery". Also, guided by its own overall strategy of "co-developing the marine and offshore businesses", the Group has entered into the engineering machinery market by acquiring a majority equity interest in Hefei Zhenyu Enginnering Machinery Company Limited ("Zhenyu Engineering Machinery") in March 2010. The Group has also established and registered Rongsheng Machinery in the same month. It has actively expanded its production base with an aim to increase production capacity."

Rongsheng Machinery"s new plant is located in Hefei Economic and Technology Development Zone. The excavator project covers an area of approximately 850 acres. The construction began in November 2010 with production commencing on 28 June 2011. The project was completed in just over than seven months, much shorter than the industry average of 18 months for constructing a general assembly workshop. It indeed has set a standard for engineering construction across the industry.

Rongsheng Machinery"s small excavator production line has commenced operation on 18 May this year, and its engineering machinery business is entering a stage of comprehensive development. The new production facility will have a production capacity of 30,000 hydraulic excavators. Every stage of the excavator production base project, from proposal, and submission for approval to preparation for construction, has enjoyed the close attention and strong support from all levels of leaders in the province and the city as well as the economic development zone. Anhui Provincial Government has designated the project as a major construction project in its "861 Action Plan". The Hefei Municipal Government has also included it as a major implementation project under the Twelfth Five-Year Plan.

Rongsheng Machinery currently produces 16 varieties of hydraulic excavators and two varieties of hydraulic crawler cranes. While constructing a new production base, Rongsheng Machinery has also shifted from direct sales outside province to distribution, increasing the number of its distributors to 10. Rongsheng Machinery has also enhanced its cooperation with financial institutions. In addition, the acquisition of Quanchai Group in April this year has enabled it to secure a stable supply of engines for the engineering machinery segment.

Development of the engineering machinery business will also facilitate China Rongsheng Heavy Industries to increase its RMB-denominated business as an effective means to combat against foreign exchange risk. Mr. Chen Qiang said, "Given the continued appreciation of the RMB compared to the US dollar, the Group will actively expand the shipbuilding and engineering machinery businesses in the PRC. The Group intends to establish a RMB settlement business, with the comprehensive development of the engineering machinery business, the Group is expected to have a more diversified income stream and achieve a more balanced mix of RMB- and US dollar-denominated income."

Trading of shares and all structured products related to the company was suspended pending clarification of “news articles and possible inside information,” Rongsheng said in filings to the Hong Kong stock exchange. The Wall Street Journal reported yesterday, citing Lei Dong, secretary to the Shanghai- based company’s president, that more than half of the employees laid off were subcontractors and the rest full-time workers.

Rongsheng shares slumped 10 percent yesterday after the company said some idled contract workers had engaged in “disruptive” activities by surrounding the entrance of its factory in east China’s Jiangsu province. China’s shipyards are suffering from a global slump in orders as a glut of vessels and slowing economic growth sap demand. Brazil and Greece accounted for more than half of Rongsheng’s 2012 revenue.

“Rongsheng’s move reflects the bad market,” said Lawrence Li, an analyst at UOB-Kay Hian Holdings Ltd. in Shanghai. “More small-to-medium sized shipyards, especially those that lack government support, may take the same actions or even close down.”

Rongsheng spokesman William Li declined to comment on the Journal report. Four calls to Lei’s office at Rongsheng went unanswered. Rongsheng Chairman Chen Qiang also declined to comment today.

Rongsheng had as many as 38,000 workers including its own employees and contract staff at the peak of the industry boom a few years ago, UOB-Kay Hian’s Li said.

China Rongsheng posted a loss of 572.6 million yuan ($93 million) last year, after three consecutive years of profits, according to data compiled by Bloomberg. It had short-term debt of 19.3 billion yuan as of the end of 2012, the data show.

Rongsheng received orders to build a total of 16 Valemax vessels from Brazilian miner Vale SA and Oman Shipping Co. and had delivered 10 as of April. The commodity ships, among the biggest afloat, are about twice the size of the capesize vessels that have traditionally hauled iron ore from Brazil to China.

The company’s cash conversion cycle, a gauge of days required to convert resources into cash, more than doubled to 582 last year from 224 in 2011, the data show. China Rongsheng shares have fallen 15 percent this year in Hong Kong, compared with a 11 percent decline for the benchmark Hang Seng Index.

Since Beijing appears intent on telling investors it is serious about changing the investment-led growth model of the world’s second-biggest economy and controlling a credit splurge, it may seem like the writing is on the wall for China Rongsheng Heavy Industries Group.

Yet analysts say the government is more likely than not to judge that Rongsheng, which employs around 20,000 workers and has received state patronage, is too big and well connected to fail.

Supporting Rongsheng will not mean China’s economic reform plans are derailed, they say. Instead, it will mean reforms will be gradual and the government will cherry-pick firms it wants to support, which will exclude the small, private shipbuilders that have been folding in waves.

“Rongsheng is a flagship in the industry,” said Lawrence Li, an analyst with UOB Kay Hian in Shanghai. “The government will definitely provide assistance if companies like this are in trouble.”

Analysts say Rongsheng is possibly the largest casualty of a sector that has grown over the past decade into the world’s biggest shipbuilding industry by construction capacity. Amid a global shipping downturn, new orders for Chinese builders fell by half last year. In Rongsheng’s case, it won orders worth $55.6 million last year, compared with a target of $1.8 billion.

Rongsheng appealed for government aid on Friday, saying it was cutting its workforce and delaying payments to suppliers to deal with tightened cash flow.

In the prospectus for its initial public offer, Rongsheng said it received 520 million yuan of subsidies from the Rugao city government in the southern province of Jiangsu, where the company is based.

The state funds paid for research and development of new types of vessels, and were based in part on the “essential role we play in the local economy”, Rongsheng said.

Suntech Power Holdings, a solar panel maker also based in Jiangsu, is waiting to be bailed out by the government after it was crushed by falling demand and a supply glut, a source with knowledge of the matter said in March. The government wants to find a way to rescue Suntech to avoid an embarrassing collapse that damages its reputation, the source said.

China’s shipbuilding woes are partly of its own making. A global downturn in demand has hammered the sector since 2008, but a national obsession for global dominance in some industries led China to declare in the early 2000s that it wanted to be the world’s top shipbuilding nation by 2015.

As the world’s largest shipbuilder, it had 1,647 shipyards in 2012, data from China Association of the National Shipbuilding Industry showed. Over 60 percent of its shipbuilders are based in Rongsheng’s province of Jiangsu.

Despite this, the government is providing support for the industry, a sign it will also support Rongsheng given its prominence in the sector, analysts said.

Just last week Premier Li Keqiang said the government wanted to bring about orderly closures of some factories plagued by overcapacity. A statement from the State Council, or cabinet, did not specify any particular industries or companies.

Analysts say what separates Rongsheng from many other companies are its connections with the government and state banks. Rongsheng’s Chief Executive Chen Qiang, for example, enjoys “special government allowances” granted by China’s cabinet, the firm’s annual reports say.

Rongsheng also said in its IPO prospectus that it has two five-year financing deals with Export-Import Bank of China that end in 2014 and in 2015, and a 10-year agreement with Bank of China starting from 2009.

After all, local government coffers will suffer the biggest blow if Rongsheng goes bust. The firm had 168 million yuan of deferred income taxes in 2012.

The No 4 dock at Jiangsu Rongsheng Heavy Industries Co Ltd"s Nantong shipbuilding base on May 26, 2012. With a dimension of 139.5*580m，the dock is equipped with a 1600-T gantry crane, the world"s largest. [Photo/chinadaily.com.cn]

China Rongsheng Heavy Industries Group Holdings Ltd, the nation"s largest private shipbuilder, may seek "cooperation with one or two ship builders" in 2013 or 2014, grasping the opportunity emerging from an industry recession, according to Xu Yifei, assistant president of Jiangsu Rongsheng.

In response to this round of recession, Rongsheng has been actively upgrading technology and design. It has also put more focus on the offshore engineering sector to further diversify its business.

Rongsheng is setting up its offshore engineering company in Singapore, aiming to take advantage of Singapore"s technology and existing market to deepen its penetration in the global offshore engineering market, according to Xu.

The company entered the marine engineering sector years ago. China"s first deepwater pipe-laying crane vessel, known as Hai Yang Shi You 201, was built by Rongsheng. The vessel can lay pipes at depths of 3000 meters and lift 4000 metric tons and will operate at the South China Sea"s Liwan 3-1 gas field.

Rongsheng"s president, Chen Qiang, said in an earlier interview that he hoped orders from marine engineering will make up about 40 percent of the company"s new orders this year.

HONG KONG, May 24, 2011 /PRNewswire-Asia/ -- China Rongsheng Heavy Industries Group Holdings Limited ("China Rongsheng Heavy Industries" or the "Group"; stock code: 01101.HK), a large heavy industries group in China, has collaborated with China National Offshore Oil Corporation ("CNOOC") to construct the world"s first-ever 3,000-meter deepwater pipe laying crane vessel ("DPV") "Ocean Pec 201". A national major science and technology project conference and a christening ceremony to celebrate the completion of the vessel were held in Rugao City, Jiangsu today.

The DPV "Ocean Pec 201" was the culmination of the first joint offshore engineering project of CNOOC and China Rongsheng Heavy Industries. The project started in May 2005 and construction of the vessel commenced in September 2008. Offshore Oil Engineering Co., Ltd. ("COOEC"), a listed company held by CNOOC, was responsible for all construction cost as well as the operation upon completion. The christening ceremony today symbolised that the construction of the DPV has completed the outfitting and testing stages and is at the final stage of trial voyage and delivery.

Guests including top management of China Rongsheng Heavy Industries and its partners together with leading officials of the local Government presided over the occasion and officiated at the ribbon-cutting ceremony. Business executives included Mr. Zhou Shouwei, Vice President of CNOOC and academician at the Chinese Academy of Engineering; Mr. Zhou Xuezhong, President of COOEC; Mr. Zhang Dehuang, Chairman of Jiangsu Rongsheng Investment Group Co. Ltd; Mr. Chen Qiang, Chief Executive Officer of China Rongsheng Heavy Industries and Mr. Chen Guorong, President of Jiangsu Rongsheng Heavy Industries Co., Ltd. Local officials included Mr. Qinyan from the Jiangsu Economic and Information Technology Commission and Ms. Chen Huijuan, Deputy Mayor of Nantong & Secretary of Rugao Municipal Committee of the Communist Party of China.

Mr. Chen Qiang, Chief Executive Officer and Executive Director of China Rongsheng Heavy Industries, said, ""Ocean Pec 201" is an important part of the demonstration engineering projects. It includes major equipment and ancillary engineering technology for offshore deepwater engineering projects among the major national science and technology programmes under China"s Eleventh Five-Year Plan. The entry of CNOOC in deep water exploitation creates opportunities for the offshore engineering sector in China and enhances the overall capability of the related manufacturing and metallurgy industries in China. The christening and impending trial voyage of the semi-submersible drilling rig "Ocean Pec 981" and DVP "Ocean Pec 201" highlights China"s ability to develop sophisticated equipment in the offshore engineering sector and its competitiveness in the international market."

"Ocean Pec 201" is the world"s first deepwater pipe laying crane vessel featuring 3,000-meter deepwater pipe-laying, 4,000 tonnes of lifting capacity and DP-3(1) dynamic positioning capability(2). The vessel is able to operate in any navigable area globally except for the Arctic regions. It is equipped with a series of advanced equipment including electric propulsion, VF electric drive, DP-3 dynamic positioning, "S" type deepwater dual node pipe-laying system as well as a 4,000-tonne heavy offshore crane. The vessel was designed and built in China. With a crew of 380, it is the first offshore engineering vessel in Asia and China capable of laying pipes at a water depth of 3,000 meters. The overall technology and capacity are also superior to similar vessels overseas.

Mr. Chen added, "Offshore engineering has been the major focus of the Group. We now own China"s largest offshore engineering dock equipped with China"s largest gantry crane with a lifting capacity of 1,600 tonnes. The DPV is the first collaborative project between CNOOC and China Rongsheng Heavy Industries. In the future, we expect to further strategically cooperate with CNOOC in the offshore engineering field. Upon completion of the "Ocean Pec 201", China Rongsheng Heavy Industries intends to further strengthen its design and construction capabilities, and lay a solid foundation to expand its offshore engineering business."

Mr. Chen concluded, "Looking ahead, the Group will continue to gradually expand our operating scale as stated in the prospectus and focus on high-end manufacturing and the development of large containerships to maintain our leadership in the shipbuilding engineering sector. We will also make marine engine building and offshore engineering our new growth drivers. Our aim is to develop the Group into a leading global heavy industries group and take the heavy industries in China onto the international stage."

Established in 2005, China Rongsheng Heavy Industries advanced to become a market leader in the Chinese shipbuilding industry within five years. According to Clarkson Research, China Rongsheng Heavy Industries was the second largest shipbuilder and the largest privately-owned shipbuilder in the PRC in terms of total order book measured by DWT as of end of 2010, and had the largest shipyard in the PRC. China Rongsheng Heavy Industries was also a global leader in manufacture of VLOCs of over 400,000 DWT. Headquartered in Hong Kong and Shanghai, China Rongsheng Heavy Industries has production facilities in Nantong of Jiangsu Province and Hefei of Anhui Province. Currently, China Rongsheng Heavy Industries" business spans four segments: shipbuilding, offshore engineering, marine engine building and engineering machinery. China Rongsheng Heavy Industries" products include bulk carriers, crude oil tankers, containerships, offshore engineering products, low-speed marine diesel engines and small to mid-size excavators for construction and mining uses. It has established strategic cooperations with renowned international classification societies including DNV, ABS, LR, GL and CCS, and has built a customer base including enterprises such as CNOOC, Vale, Geden Line, Cardiff Marine Inc., MSFL and Frontline Ltd. The Group"s products have been sold to 11 countries and regions including Turkey, Norway, Germany, Brazil, Singapore and China.

On June 28, China Rongsheng Heavy Industry Group Holdings Co., Ltd. announced that the new construction machinery factory in Hefei Economic and Technological Development Zone was officially put into operation, and the first excavator was also successfully rolled off the line that day. With the commissioning of the new plant, in the future, construction machinery, as a growth point for new businesses, will also play an important role in the group"s diversified development and strengthening of the RMB business strategy.

On the 28th, relying on the front-end excavator to slowly drive off the production line also means that China Rongsheng Heavy Industry"s construction machinery sector has entered a stage of comprehensive development.

The new plant in Hefei is one of the production base projects of China Rongsheng Heavy Industry"s construction machinery sector. The production base is listed by the Anhui Provincial Government as a key construction project of the "861 Action Plan" and is a key promotion of the Hefei Municipal Government’s "Twelfth Five-Year Plan" The project, the excavator project covers an area of 850 mu. According to reports, the construction of the new factory has also created a new Rongsheng speed. From the official start of construction in November 2010 to the start of production on June 28, 2011, it only took more than 7 months. The 18-month assembly workshop construction cycle was shortened to 6 months, creating a miracle in the engineering construction of the same industry.

At the beginning of the establishment of China Rongsheng Heavy Industry, it was recognized that the risks of the shipbuilding industry fluctuate greatly with the economic cycle. The development of diversified industries with high added value and diversified profit growth is a good way to resist systemic risks. According to this strategy, and in response to the industrial planning policy of Anhui Province to build Hefei into the "Construction Machinery Capital", in March 2010, China Rongsheng Heavy Industry registered and established "Rongsheng Machinery Co., Ltd." (Rongsheng Machinery) in Hefei. ), mainly engaged in the manufacturing and sales of construction machinery. 10% of the planned listing and financing will be used in the construction machinery sector

In 2010, through the acquisition of Hefei Zhenyu, Rongsheng Machinery currently produces 16 types of hydraulic excavators and two types of hydraulic crawler cranes. While building a new production base, Rongsheng Machinery has also entered the pre-development stage and will replace the original The direct sales model was changed to an agency model and expanded to 10 companies, and the overall cooperation with financial companies was strengthened. Through the acquisition of Quanchai Group, the construction machinery sector has obtained a stable supply of engine parts. With the commissioning of the new plant, Rongsheng Machinery will enter a stage of comprehensive development. In the future, the new production base will have a production capacity of 30,000 excavators.

At the same time, the development of construction machinery business will also help China Rongsheng Heavy Industries develop RMB business and effectively resist exchange rate risks. Chen Qiang, president of China Rongsheng Heavy Industry, said that the company will vigorously expand its domestic shipbuilding and construction machinery business due to the continuous appreciation of the RMB against the US dollar.

At present, a considerable part of China Rongsheng Heavy Industries" orders are from overseas. Therefore, most of the shipbuilding contracts are settled in U.S. dollars, while the costs are calculated in RMB. How to effectively control exchange rate risks has always been the focus of China Rongsheng Heavy Industries. At present, China Rongsheng Heavy Industry has consciously increased its RMB settlement business. It is expected that with the full development of construction machinery, the group"s future income sources will also show a diversified trend, and the income of RMB and US dollars will be more balanced.

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.