China CSSC Holdings Ltd., the country's leading shipbuilder, announced Thursday evening that its net profit shrank by 62.91 percent year on year in the first half of 2012 to 475 million yuan(75.4 million U.S. dollars).
The Shanghai-based firm said in a report filed to the Shanghai Stock Exchange that its business revenue totalled 13.14 billion yuan in the first six months, accounting for 51.75 percent of the annual plan.
Earnings per share stood at 0.345 yuan, down from 0.93 yuan in the first six months of 2011, said the company.
CSSC attributed the profit slump to a decline in ship prices and a relatively narrower decline in production costs, as well as losses from ship alterations and lower diesel engine prices.
Due to a significant decrease in the prices of shipping products this year, the company expects its profit in the first three quarters to drop by about 80 percent from the same period last year, it said.
Shares of CSSC ended 3.11 percent down to 18.41 yuan per share on Thursday at the Shanghai Stock Exchange.
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