Jiangnan Heavy Industry reports loss for 2012

CSSC Jiangnan Heavy Industry Co Ltd posted sales revenue of 1 billion yuan in 2012, down 30.71 percent year-on-year, and its net profit tumbled 299 percent year-on-year after booking a loss of 76.05 million yuan, the company said on Thursday.

The Shanghai-based shipbuilder saw operating difficulties last year due to the shrinking whole-set machinery equipment market and intensifying competition in the company's steel products business.

"It's getting hard to win contracts, and contract values continue to drop due to the falling exchange rate of the euro against the yuan. These factors have severely eroded our profit margin," the company said.

The company was contracted to undertake 195 projects last year, with a total value of 1.2 billion yuan. Of the orders, 66 percent are shipbuilding-related contracts.

With the murky outlook unchanged, Jiangnan Heavy Industry has lowered its revenue target to 1.15 billion yuan in 2013. In 2011, Jiangnan Heavy Industry set a target to generate 1.6 billion yuan in revenue for 2012.

wang_ying@chinadaily.com.cn