china rongsheng heavy industries group holdings supplier

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.

The exodus has left row upon row of deserted apartments, with just a few old garments strewn on the floor and empty name tags to show for what was a bustling community before China’s economic growth began to slow and credit tightened at a time when global shipping, too, turned down.

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

The company, suffering from a downturn in the global shipping industry as well as China’s own economic slowdown, said it had sought the suspension pending clarification of the news articles, according to a filing to the Hong Kong stock exchange.

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.

The holding orders of Chinese shipyards dropped 23 percent in the first five months of this year compared with a year earlier, according to the China Association of the National Shipbuilding Industry. New orders meanwhile dropped to a seven-year low in 2012.

“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.

And an unprecedented cash crunch in China’s financial markets last month, which saw interest rates briefly spike to record highs, may further drag on the economy.

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.

The Hong Kong-listed shipbuilder said in a statement it on Friday submitted an application to the nation’s securities regulator for approval of its plan to withdraw a bid to buy Anhui Quanchai Group Corp., a diesel engine maker, from the local government of Anhui Province’s Quanjiao County. Anhui Quanchai Group’s unit Anhui Quanchai Engine Co. is listed on the Shanghai Stock Exchange.

In the same month, the company’s non-executive chairman and co-founder Zhang Zhirong was accused by the U.S. Securities and Exchange Commission for insider trading ahead of a public disclosure that Chinese state-owned oil company Cnooc Ltd. plans to acquire U.S.-listed Canadian energy producer Nexen Inc. for $15.1 billion. China Rongsheng subsequently issued a statement on July 30 to state that the U.S. regulator’s investigation against Mr. Zhang has no impact on its operations.

[Press Release]CHINARONGSHENGHEAVYINDUSTRIES’ 400,000 DWT VLOCNAMED AND LAUNCHED* * * *LOWERSCOST FORVALE ANDFORGESLONG-TERMCOOPERATIONFIRSTVLOCS TOBEDELIVERED SOON

(10 July 2011, 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, and Vale S.A. (“Vale”), the largest global iron ore supplier from Brazil, held a naming and launching ceremony on 9 July for the first-ever 400,000 DWT Very Large Ore Carrier (VLOC) built in China. This new VLOC, named “VALE CHINA”, is the first VLOC of a few to be delivered in the coming two years. The new vessel can significantly lower overall delivery costs of iron ore for Vale. The attendance of Vale’s new Chief Executive Officer underscored the long-term cooperation between a major shipbuilder and ship owner.

Mr. Chen Qiang, Chief Executive Officer of China Rongsheng Heavy Industries, and Mr. Murilo Ferreira, the new Chief Executive Officer of Vale, attended the ceremony. The Brazilian ambassadress was the godmother in the naming ceremony. Mr. Chen Qiang said, “The early christening of VLOC as “VALE CHINA” reflected the dedication and importance of the cooperation of both parties, as well as Vale’s strong interest in collaborating with Chinese companies.”

As the largest private shipbuilder in China, China Rongsheng Heavy Industries is one of the few shipbuilders in the world with the ability to build VLOCs of 400,000 DWT or larger. Within its shipbuilding segment, VLOCs account for the highest proportion of the contracts on hand in terms of contract value, thus the naming and launching of “VALE CHINA” has special significance for the Group’s future development.

The 400,000 DWT VLOC launched is currently the world’s largest dry bulk carriers. It is a high-tech vessel self-developed by the Group, representing the world’s most advanced technology in very large bulk carriers. The vessel’s main engine was self-built by China Rongsheng Heavy Industries, which is a low-speed diesel engine with the maximum power manufactured by Chinese enterprise independently so far.

After “VALE CHINA” is named and launched, the VLOC is expected to be delivered to Vale soon. Mr. Chen Qiang said, “The coming year will be a significant year of delivery for VLOCs. We expects VLOC construction amount equivalent to eight vessels for

As the largest iron ore supplier and exporter in the world, Vale is not only one of China"s major iron ore suppliers, but also the largest customer of China Rongsheng Heavy Industries. This visit fully affirmed the capability of China Rongsheng Heavy Industries in constructing very large vessel. Vale is seeking to enhance production capacity to meet the increasing demand from Asia. After the delivery of the 400,000

DWT VLOCs, Vale would be able to address the issues presented by the long voyage from Brazil to China and can then ship cargo to China and other regions in Asia with a fleet offering stronger economies of scale, thereby reducing its transportation costs.

The first China visit by Mr. Murilo Ferreira, the newly appointed Chief Executive Officer of Vale, demonstrated the high value attached by Vale to a long-term partnership with the Group. Mr. Chen Qiang said, “The revenue contribution from China for Vale is very high. The visit is built on the solid collaborative relationship among Vale and the Chinese Government as well as private enterprises. With the construction and delivery of VLOCs, the Group intends to actively explore new areas for cooperation with Vale such as helps in obtaining export buyer"s credit.”

400,000 DWT VLOCs with Vale, with a contract value of US$1.6 billion. The work under the contracts set three world records in carrying deadweight tonnage of single bulk carriers, total deadweight tonnage of orders and total contract value. The Group currently has orders for 16 VLOCs on hand with a total value of over US$2.1 billion. Four VLOCs amongst the 16 was placed by Oman Shipping Company.

10 July 2011 / Page 3Photo 1: Mr. Chen Qiang, Chief Executive Officer of China Rongsheng HeavyIndustries, giving a speech in the naming and launching ceremonyPhoto 2: The naming and launching ceremony ofChina’s first-ever 400,000 DWT VLOC “VALE CHINA”

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. Rongsheng 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.For press enquiries:China Rongsheng Heavy Industries Group Holdings Limited

(31 March 2015, Hong Kong) - China Rongsheng Heavy Industries Group Holdings Limited ("China Rongsheng Heavy Industries", the "Company" or "We", and together with its subsidiaries, the "Group"; stock code: 01101.HK) announced its audited annual results for the twelve months ended 31 December 2014 (the "Period").

Launched a fresh start, China Rongsheng Heavy Industries implemented its strategy of business transformation in 2014 and completed the acquisition of oilfield project in Kyrgyzstan in September. We are proactively transforming into an oil and natural gas exploitation and production operator.

Meanwhile, we demonstrated the strong production capacity of our shipbuilding facilities and outstanding technical expertise of the Group. Our shipbuilding segment has delivered 11 vessels, with a total volume of 2,059,660 DWT, successfully in 2014. More proactively sorting and optimising our order book, we decisively reduced the number of vessels under construction and cancelled some shipbuilding orders. We believe this action not only was in alignment with the Group"s strategic plan to optimize the production and operation of its shipbuilding business during the Period, but also effectively reduced our burden on working capital and the credit risk of our order book, in spite of the fact that we have recorded a relatively larger amount of comprehensive net loss for the Period and a reversal of revenue of RMB4,530.7 solely resulted from the cancellation of shipbuilding contracts.

For the Period, the Group recorded a negative revenue of RMB3,802.4 million, which is attributable to the abovementioned reversal of revenue from cancellation of shipbuilding contracts and the decrease of revenue from shipbuilding and other contracts, compared to the revenue of RMB1,343.6 million for the same period of 2013. Losses attributable to the equity holders of the Company were narrowed from RMB8,685.2 million for the same period in 2013 to RMB7,754.9 million in 2014.

By delivering 11 vessels (2 more comparing with previous year) in 2014, with a total volume of 2,059,660 DWT, we demonstrated the strong production capacity of our shipbuilding facilities and outstanding technical expertise of the Group. Since the Group has planned to optimise the production and operation of its shipbuilding business as well as sort out the order book of the shipbuilding business, new shipbuilding contracts for 3 250,000 DWT very large ore carriers and 6 64,000 DWT bulk carriers that we entered into in 2014 have not been made effective.

Anhui Province. Plus, the debt optimization framework agreement we have entered into with a syndicate formed by more than ten banks in Jiangsu Province, including Bank of China, The Export-Import Bank of China and China Minsheng Bank, such measures effectively mitigated liquidity pressure of the Company.

Global economic recovery will remain a challenging course in 2015. Freight fees will remain at lower levels as any fundamental improvements to the situation of surplus capacity in the shipping market will be unlikely. It is well within expectations that the China"s shipbuilding industry will generally enter into a stage of structural realignment and rebuilding of strengths.

The directors of the Company are considering a potential sale and purchase transaction involving the related core assets and liabilities of its onshore shipbuilding and offshore engineering business of the Group in the PRC (the "Potential Transaction"). On 10

March 2015, the Company and an independent third party (the "Potential Purchaser") have entered into a memorandum of understanding (the "MOU") in relation to the Potential Transaction. The Potential Transaction shall adjust and optimise 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 utilisation, better implement the strategy of business transformation and transformation into an energy service provider

The China Rongsheng Heavy Industries (RSHI) Group Holdings is a leading large-scale heavy industry conglomerate with operations covering shipbuilding, marine engineering, power engineering, construction machinery and other related fields. The China RSHI Group was successfully listed on the Main Board of The Stock Exchange of Hong Kong on 19th November 2010.

Liang studied for a Master’s in Corporate Management at Tongji University and undertook a period of work experience at Berlin Technical University. He is Deputy Treasurer at China Rongsheng Heavy Industries Group Holdings.

Rongsheng has a vertically centralised treasury structure. We have two production bases located respectively in Rugao, Nantong and Hefei, Anhui Province. The group headquarters are in Hong Kong and Shanghai, with treasury department composed of seven employees, responsible for FX and interest rate risk management, financing, cash management and bank relationship management.

Our main cash management banks include Bank of China, the Export-Import Bank of China and China Development Bank, which are also our biggest credit banks.

The ship-building industry differs significantly from ordinary manufacturing industries in that even a single product can have great value and the building cycle is very long. Therefore, during the building process the shipyard will authorise a bank to issue a refund guarantee to the ship-owner based on building milestones. Currently, the guarantee issuing banks that are most acceptable to overseas ship-owners are Bank of China, the Export-Import Bank of China and China Development Bank.

Meanwhile we also leverage the combined advantages of different banks, such as the trade financing of Bank of China, the project loans of China Construction Bank, and the project mortgage of China Everbright Bank.

Due to the nature of our industry, we are not able to physically pool our cash yet, because most of our collections have to be swept to the specified account of ship-building business. However, we do use centralised management to get a real-time understanding of group cash position and future cash flow.

Rongsheng Heavy Industries Group Holdings Limited is pleased to announce the establishment of Rongsheng Offshore & Marine Private Limited (“Rongsheng Offshore & Marine”), the Group’s new offshore engineering base, in Singapore. The company will focus on research and development, marketing and “Engineering, Procurement and Construction” (“EPC”) projects in offshore engineering, drawing on Singapore’s superior industry advances and human resources. On the same day, Rongsheng Offshore & Marine also officially announces that it has secured an EPC contract for a 2,000-meter deepwater tender barge. With sound developments made in the high-end offshore equipment manufacturing field, the Group will seek to accelerate its all-round transformation into an offshore engineering service provider.

Rongsheng Offshore & Marine, a wholly-owned subsidiary of China Rongsheng Heavy Industries and registered in Singapore, is set to become a light asset, high technology and first class offshore engineering talent base. It will play an important role in the Group’s offshore engineering strategy; the sales team is positioned to help the Group to gain market share in the international offshore engineering market, and the operational team will help the Group to achieve greater breakthroughs by engaging in high-end operational activities such as research and development, EPC project management and international procurement.

Mr. Chen Qiang, Executive Director and Chief Executive Officer of China Rongsheng Heavy Industries, said: “The opening of Rongsheng Offshore & Marine marks an important milestone towards the Group’s goal to upgrade and transform into an offshore engineering service provider. Combined with the company’s new, innovative operating model and technological platform and Jiangsu Rongsheng Heavy Industries Company Limited’s (“Jiangsu Rongsheng”) strong manufacturing base, China Rongsheng Heavy Industries has gained access to the global market and can now make their presence felt in the high-end marine equipment manufacturing field. By improving efficiency and lowering cost through synergizing the Group’s various business areas, we are confident that we can build Rongsheng into a world-class offshore engineering brand.”

The project in question is an EPC project, covering Engineering, Procurement, Construction. Rongsheng Offshore & Marine is the general contractor, and Jiangsu Rongsheng is the manufacturer. China Rongsheng Heavy Industries is one of the few shipbuilders in China capable of undertaking an EPC project, and the winning of this tender highlights the technological and manufacturing strength of China Rongsheng Heavy Industries in the marine engineering field. It also demonstrates the recognition received by the Group in the international shipbuilding and offshore engineering industries.

Mr. Don Lee, Director and Chief Executive Officer of Rongsheng Offshore & Marine, has made great achievements in offshore engineering and commands a considerable reputation, having established extensive contacts and close cooperation with offshore rig owners and petroleum companies over the course of 40 years in the field. Prior to his appointment at Rongsheng, Mr. Lee served as an Senior General Manager at Sembcorp Marine’s subsidiary Jurong Shipyard, Senior Vice President of the Marketing of Sembcorp Marine,Director of Jurong Brazil, Director of Brazil Netherlands BV, and Director of PPL Shipyard.

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.

The Group believes that urbanisation and infrastructure investment in railways, highways and utilities in China will continue. Consequently, this will create enormous demand for the engineering machinery segment, especially excavators, and thus a rapid growing phase for the industry together with opportunities for emerging producers are expected.

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."

Since the acquisition of Zhenyu Engineering Machinery in March 2010, the engineering machinery business has contributed a total revenue of RMB327.3 million to the Group, mainly derived from the sale of excavators and crawler cranes.

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”.

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.

Last October, the company entered into an agreementto sell 98.5% equity interest of Rongsheng Heavy Industries, the entire interest in Rongsheng Engineering Machinery, Rongsheng Power Machinery and Rongsheng Marine Engineering Petroleum Services, to Unique Orient, an investment holding company owned by Wang Mingqing, a creditor of Huarong Energy, for a nominal price of HK$1.

Once the largest private shipyard in China, Rongsheng ceased shipbuilding operations in 2014 after it was hit by a major financial crisis and the shipyard rebranded into Huarong Energy in 2015.

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.

The company, suffering from a downturn in the global shipping industry as well as China"s own economic slowdown, said it had sought the suspension pending clarification of news articles, according to a filing to the Hong Kong stock exchange.

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 ($0.17).

"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.

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.

"We have the intention to form strategic cooperation with one or two well-established shipbuilders next year or the year after if conditions are right," Xu told chinadaily.com.cn, "we"d like to find some coastal docks for our offshore engineering products."

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.

Rongsheng admitted to Xinhua that it had terminated the contracts of those workers on low production utility rate due to a lack of new orders this year. But it denied withholding their wages.

Meanwhile, the China Shipbuilding Industry Corp (CSIC) has signalled an interest in taking over Rongsheng, subject to an attractive offer, according to a report by Chinese business newspaper 21st Century Business Herald, which quoted a source at CSIC.

Rongsheng was cast into the limelight in 2008 after it won a $1.6 billion order from Brazilian iron ore miner Vale for a dozen 400,000-deadweight-tonne very large ore carriers.