Beleaguered Chinese shipyard Rongsheng Heavy Industries issued a profit warning today to shareholders that the company is “expected to incur a significant increase in net loss for the six months ended 30 June 2014 as compared with the corresponding period in 2013.”
A year ago, the company laid off 8,000 employees as a cut cutting measure following a $93 million loss in 2012 and a $213 million loss in the first six months of 2013. Full year losses in 2013 were USD $1.4 billion.
In the statement issued by Rongsheng today, “Shareholders of the company and investors are advised to exercise caution when dealing in the shares,” the company noted.
As of 31 March, the company’s debts had reached 22.41 billion yuan ($3.61 billion), with 13.7 billion yuan due within 12 months.
Shares in the company were down 2.5 percent today on the Hong Kong exchange.