Shipbuilder Guangzhou Shipyard saw first quarter net profit fall by more than half to RMB79.41m ($12.6m) from RMB174.89m previously.
The company said the decline in the shipbuilding market caused the prices of ships under construction to drop sharply compared to the first quarter of 2011, and this adversely affected both operating income and gross profit margins. and caused a decline in profits from its shipbuilding operations.
Guangzhou Shipyard warned that lower prices would continue to prevail and the "operation situation of the company will be serious in 2012".