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    China Daily Website

    CSSC Jiangnan sees 39% slump in H1 operating revenue

    Updated: 2013-07-29 20:23
    By ZHONG NAN ( chinadaily.com.cn)

    CSSC Jiangnan Heavy Industry Co said its first-half operating revenue dropped 39 percent year-on-year to 319 million yuan ($52 million).

    The Shanghai-based company, which mainly produces steel products, machinery and ship fittings, earned 527 million yuan in the first half last year.

    The company said that the continued downturn in the global shipbuilding market, and shrinking demand for machinery and steel products have severely cut the company's revenue growth.

    The low gross profit rate was another factor squeezing the company's profit in the first half. It has also faced rising materials costs over the same period.

    The Chinese Association of the National Shipbuilding Industry reported that the nation's shipbuilding activities and profitability continued to drop in the first half of this year, due to a decline in the global shipbuilding market.

    The total profits of the 80 major Chinese shipbuilders monitored by the association totaled 3.58 billion yuan, down 54 percent year-on-year.

    A total of 20.6 million deadweight tons of new vessels have been completed for both domestic and international ship owners in the first half, down 36 percent year-on-year.

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