China Rongsheng Heavy Industries announces 2012 annual results
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.
