china rongsheng heavy industries group holdings limited pricelist

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 country’s largest shipyard outside state control is in discussions with the cities of Rugao and Nantong and some ministry-level departments related to the shipping industry, Rongsheng spokesman William Li said by phone today. The company said July 5 it was seeking financial assistance from the government after a plunge in orders forced it to reduce production and “restructure” its workforce. Li declined to elaborate.

“It will be difficult to see an obvious recovery before the end of next year” in demand for ships, Zhang Shouguo, vice president of the China Shipowner’s Association, said in a telephone interview today. “The shipping industry has been in a downturn for at least three years.”

Rongsheng and other Chinese shipmakers are struggling as a global vessel glut makes orders more difficult to win and pushes down prices. China has also identified shipbuilding as an industry with overcapacity, for which authorities won’t approve new projects and will limit financing as part of Premier Li Keqiang’s campaign to reduce the economy’s reliance on exports and investment for growth.

Two calls each to Rugao and Nantong local governments’ media offices seeking comment went unanswered today. Rongsheng has a production base in Nantong, a prefecture-level city that has administrative jurisdiction over Rugao.

“We expect shipyard failures could become a reality in China if current conditions persist,” Barclays Plc analysts Jon Windham and Esme Pau wrote in a report to clients yesterday. “Those yards not facing such harsh financial difficulties could increase their market and pricing power.” The Hong Kong-based analysts lowered their rating on Rongsheng’s shares to “underweight” from “equalweight.”

A third of the shipyards in China, the world’s biggest shipbuilding nation, may be shut in about five years, the China Association of National Shipbuilding Industry said last week. The order book of Chinese shipbuilders fell 23 percent at the end of May from a year earlier, according to data from the shipbuilders’ group.

Rongsheng said last week it may post a net loss for the first half. The Shanghai-based company reported an annual loss of 573 million yuan ($93.5 million) last year and a 50 percent drop in revenue. The Wall Street Journal reported on July 3 that the shipbuilder had laid off about 8,000 workers.

Shares of Rongsheng rose 3.8 percent to 82 Hong Kong cents at close of trading in the city. The stock has plunged 34 percent this year, compared with a 9 percent decline for the benchmark Hang Seng Index.

Overcapacity is at the “core” of the plunge in profits for China’s shipbuilders, the shipowner association’s Zhang said. The group’s membership is made of the nation’s largest shipping companies, including China Ocean Shipping Group, China Shipping Group Co. and Sinotrans Ltd.

Vice Premier Zhang Gaoli said in May that China must “strictly forbid” approvals of projects in industries with overcapacity, including those in the ship-building sector, state broadcaster China Central Television reported. The Economic Information Daily reported today that China will implement “strict” financial policies to curb overcapacity.

“There is a saying in Chinese: ‘Save the one that needs it the most, not the poorest,’” Zhang said. “If Rongsheng’s troubles are temporary, and the company’s other management controls are good, and the company still has a promising future, then yes, the government can step in and give it a helping hand.”

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.

Shipyards in China won 12.6 million deadweight tons of orders in the first nine months of the year, compared with 23.9 million a year earlier, according to Clarkson Plc, the world’s biggest shipbroker. Their backlogs fell to 116.4 million tons at the end of September from 169.3 million tons at the end of 2011.

HONG KONG (Reuters) - Shares in China Rongsheng Heavy Industries Group Holdings Ltdtumbled 16 percent on Monday after the U.S. securities regulator accused a company controlled by the shipbuilder"s chairman of insider trading ahead of China"s CNOOC Ltd"sbid for Canadian oil company Nexen Inc.Labourers work at a Rongsheng Heavy Industries shipyard in Nantong, Jiangsu province May 21, 2012. REUTERS/Aly Song

The U.S. Securities and Exchange Commission filed a complaint in a U.S. court on Friday against a company controlled by Rongsheng Chairman Zhang Zhirong, and other traders, accusing them of making more than $13 million (8.2 million pounds) from insider trading ahead of CNOOC’s $15.1 billion bid for Nexen.

“The news around the chairman comes on the back of other operational and credibility issues,” Barclays said in a note to clients. “We think China Rongsheng presents significant company-specific risk.”

In a filing with the Hong Kong stock exchange, Rongsheng - which entered a strategic cooperation agreement with CNOOC in 2010 - said it did not expect the U.S. investigation to affect its operations. It said Zhang did not have an executive role in the company.

Rongsheng, controlled by Zhang, also issued a profit warning on Monday, saying first-half earnings would fall sharply as a result of the shipbuilding downturn.

Zhang was ranked the 22th richest Chinese person by Forbes Magazine in September 2011. But his net worth fell by more than half in the past year to $2.6 billion in March 2012 as shares of Rongsheng tumbled.

Shares of Glorious Property Holdings Ltd, a Chinese real-estate developer controlled by Zhang Zhirong, also fell sharply. The stock was down 12.9 percent as of 0304 GMT.

CNOOC said on July 23 it had agreed to acquire Nexen for $15.1 billion, China’s biggest foreign takeover bid. Shares of Nexen jumped almost 52 percent that day.

The unnamed Singapore traders used accounts in the names of Phillip Securities and Citibank C.N, while Well Advantage made its trades through accounts held at UBS Securities and Citigroup Global Markets. Neither of the Well Advantage accounts had traded Nexen shares since January 2012, and the Citigroup account had been completely dormant for over six months, the SEC says.

HONG KONG (Reuters) - Jiangsu Rongsheng Heavy Industries Co Ltd has appointed Morgan Stanleyand JP Morganto finalize plans for its long-awaited IPO in Hong Kong, aiming to raise up to $1.5 billion in the fourth quarter, sources told Reuters on Tuesday.

This is Rongsheng’s latest bid to go public after it failed to raise more than $2 billion from a planned IPO in Hong Kong in 2008, mainly as a result of the global financial crisis.

Rongsheng"s early main shareholders included an Asia investment arm of Goldman Sachs, U.S. hedge fund D.E. Shaw and New Horizon, a China fund founded by the son of Chinese Premier Wen Jiabao.

The three investors sold off their stakes in Rongsheng for a profit early this year, said the sources familiar with the situation. Representatives for the banks, funds and Rongsheng all declined to comment.

Rongsheng’s revived IPO plan comes at a challenging time. Smaller domestic rival, New Century Shipbuilding, slashed its Singapore IPO in half last week, planning to raise up to $560 million from the originally planned $1.24 billion due to weak market conditions.

Given uncertainty in the global shipbuilding business environment as well as growing concerns over a huge flow of fund-raising events in Hong Kong, investment bankers suggest the potential size for Rongsheng could be $1 billion to $1.5 billion, according to the sources.

Investors have turned cautious on the industry after it was dealt a heavy blow by the economic downturn, with orders shrinking last year and the sector yet to fully recover.

Rongsheng is seeking to tap capital markets to fund fast growth and aims to catch up with bigger state-owned rivals such as Guangzhou Shipyard International Co Ltd.

Rongsheng won a $484 million deal to build four ships for Oman Shipping Co last year. The vessels would carry exports from an iron ore pellet plant in northern Oman which is expected to begin production in the second half of 2010.

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.

"The Potential Transaction shall adjust and optimize the assets and business of the Group, and divest the relevant assets and liabilities of the shipbuilding business and offshore engineering business, which shall help to ease the debt burden of the Group, enhance the flexibility of fund utilization, better implement the strategy of business transformation and transformation into an energy service provider focusing in the oil and natural gas market," said the company.

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.

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.”

Shipbuilding Shipbuilding is the Group’s core business and its m ajor revenue contributor. During the Period, revenue from the shipbuilding se gment reached RMB 7.56 billion, representing 95% of revenue. According to Clarkson Research, global new shipbuil ding orders decreased 44.5% year-on-year measured in deadweight tonnage ( “DWT”), and new shipbuilding orders in China fell 45.2% year-on-yea r for the Period. New shipbuilding prices also suffered a drop of 9.2%.

During the Period, thanks to the enhancement of the Group’s production efficiency and management capabilities, company"s delivery volume reached a record-high of 21 vessels with 3.9 million DWT, representing a year-on-year increase of 49.7%, and which includes 6 Very Large Ore Carriers and the Group’s first 6,500-TEU containership. As of today, company delivered 8 Very Large Ore Carriers, reaching half of Very Large Ore Carriers order book. Company"s total orders on hand as at 31 December 2012 consisted of 91 vessels, representing a total volume of approximately 13 mil lion DWT with a total contract value of approximately USD 5 billion. All the vesse ls in order book are scheduled to be delivered within the period from 20 13 to 2015, as stated in the contracts.

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.

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.

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.

Delays in constructions and deliveries of the Company’s orders on hand in the core shipbuilding segment led to a significant decline of the group"s revenue. In addition, the results of the period were directly dented by

Shipbuilding was the group"s major business and also its primary revenue source. Revenue from the shipbuilding segment decreased 84.2% year-on-year to RmB1,195.7 million for the period, representing 89.0% of the total revenue. the significant decrease in revenue was primarily attributable to the downturn in the shipbuilding industry.

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.

China Rongsheng Heavy Industries Group Holdings Limited (“China Rongsheng Heavy Industries"), a leading heavy industries group in China, on Wednesday announced its unaudited interim results for the six months ended 30 June 2011.

During the first half of2011, the Group’s revenue was approximately RMB8.7 billion, a surge of 81.1% from RMB4.81 billion in the same period last year. Earnings attributable to equity holders of the Company surged by 639.0% to RMB1.22 billion. Gross profit margin increased significantly from 13.5% in the first half of 2010 to 23.2% in the first half of 2011.

Mr.Chen Qiang, Chief Executive Officer and Executive Director, said, “Our outstanding results performance in the first half of this year once again demonstrated the undoubtedly and immense growth potential of China Rongsheng Heavy Industries. During the period, earnings attributable to equity holders of the company reached RMB1.22 billion, six times over the same period last year. The continued significant revenue growth of the core business of the shipbuilding segment and the steadily emerging contribution from new marine engine building and engineering machinery business segments have enabled the Group to deliver promising returns to our shareholders. In terms of DWT, our new orders in the first half of the year accounted for 9% and 21% of global market and China market respectively. Orders on hand continued at the top position in China and fifth place globally measured by DWT. Benefiting from the rising market demand and the Group’s larger operating scale, we believe that the Group will continue to lead the domestic shipbuilding industry to the forefront of the global market”.

Addressing a potential economic downturn, the Group has adopted a differentiated strategy to ensure sustainable growth in a competitive market. The Group believes that forging win-win relationships with strategic partners is essential to its long term growth. This approach has benefitted the Group this year as it progressively obtained a considerable number of new orders. The Group has adjusted to market conditions through advantageous product development focusing on market segments that are likely to be only slightly affected by any potential downturn. The Group has been continuously moving up the industry value chain by building an order book with more high-value vessel types.

Mr. Chen Qiang added, “China’s growing demand for oil and gas has stimulated an upgrade of offshore equipment. We are aligning with the national energy strategy in the domestic market, and are actively bidding for domestic projects in accordance with established strategies. Meanwhile, we are cooperating with MAN Denmark in the field of dual-fuel diesel engines as we believe the demand for these engines is the market trend. Leveraging our technical strength and excellent performance of our products, we enjoy early-mover advantage as a market pioneer”.

China’s government-subsidized residence and hydraulic engineering programme implemented by the Central Government will push up the demand in the engineering machinery market. The Group’s expanded production capacity and sales network enable it to capture such growth.

Against the situation of tight monetary policy, the Group is continuing to enhance its strategic collaboration with financial institutions to sustain its continuous growth. In June 2011, the Group signed a strategic cooperation agreement with China CITIC Bank which granted it a total credit line of RMB11 billion. On 11 August 2011, with the guarantee of the Export-Import Bank of China, the Group secured a syndicated loan, with a facility credit of USD 220 million, from a syndicate led by the Crédit Agricole Corporate and Investment Bank. The Group also received a total credit line of RMB 28 billion from the Agricultural Bank of China on 18 August 2011.As at 23 August 2011, the Group has been granted a total credit line of over RMB 49 billion this year, accoridng to a China Rongsheng report.

Mr. Chen Qian concluded, “In the second half of 2011, the Group will capitalise on its integrated resources advantages to strengthen cooperation strategic partners such as financial institutions and actively respond to market changes , as it grows into a manufacturer focusing on value-added high-end equipment. Meanwhile, the Group will strive to enhance its management, improve efficiency, reduce costs and boost profitability and production capacity for expanding the Group’s businesses with the aim to transform China Rongsheng Heavy Industries into the world’s leading heavy industry group in the near future. In this way it will bring fruitful returns to shareholders while leading the heavy industry of China towards the global market”.

--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.