China’s large private-owned shipbuilder China Rongsheng Heavy Industries Group announced on December 4 through a regulatory filing of Hong Kong stock market that it expected to experience huge net losses in 2013.

This year, Rongsheng carried out a large layoff of its staff and recorded CNY 1.3bn ($213m) net losses during the first half amid long-protracted industry recession.

The Chinese builder explained that the anticipated losses were mainly driven by decreased revenues in line with the company’s conservative business strategy to survive depressed global shipbuilding industry.

Particularly, Jiangsu Rongsheng Heavy Industries, a Rongsheng subsidiary, posted CNY 1.3bn in net losses during the third quarter (July-Sep) and saw expanded losses from the second quarter when CNY 1.2bn was recorded.

The Chinese builder delivered seven 1.50m dwt newbuildings in the first half of the year and two 380,000 dwt very large ore carriers (VLOC) since the second half to date.