Guangzhou Shipyard International is expecting a 50% year-on-year plunge in net profit for the first quarter as at 31 March 2012 due to the decline of the shipbuilding market.
The shipyard had recorded a net profit of RMB174.89m ($27.7m) in the first quarter of 2011.
“During the first quarter of 2012, as affected by the decline of the shipbuilding market, the prices of the ships under construction dropped sharply as compared to the same period last year, which resulted in the decrease in profits of the company derived from shipbuilding,” Guangzhou Shipyard said in a profit warning statement.