China: Guangzhou Shipyard’s First-Half Profit to Dip by 50 Percent ?

July 26, 2012

Based on the preliminary estimation by Guangzhou Shipyard International Company Limited，the unaudited net profit of the Company and its subsidiaries (the Group) for the first half of the year 2012 prepared in accordance with the PRC Accounting Standards for Business Enterprises and Relevant Regulations (PRC Accounting Standards and Regulations) is expected to decrease by more than 50% compared with the published net profit for the same period in 2011.

During the first half of the year 2012, as affected by the decline of the shipbuilding market, the prices of the ships under construction dropped sharply as compared with the same period last year, which resulted in the decrease in profits of the Company derived from shipbuilding. Moreover, in order to maintain normal production and operation, the Company secured a batch of 6 vessels in the first half of the year 2012, and could make an impairment loss for these vessels.

The information contained in this announcement is only based on the preliminary calculations by the Company’s management in accordance with the management accounts of the Company which have not yet been confirmed or audited by the Company’s auditors. Investors are advised to carefully read the interim report 2012 of the Company, which is expected to be published on August 23, 2012.

[mappress]

Shipbuilding Tribune Staff, July 26, 2012