Chinese shipyard group China Rongsheng Heavy Industries said that its majority-owned subsidiary Jiangsu Rongsheng Heavy Industries posted a net loss of about RMB3.36bn (USD 548.6m) for the nine months ended 30 September 2014.

Rongsheng said the net loss was primarily due to the low prices of shipbuilding orders in depressed market conditions and the diminishing profitability of the conventional shipbuilding business.

Jiangsu Rongsheng Heavy Industries has been adopting measures to improve operational performance and financial position by negotiating with principal banks in the PRC on the terms and conditions of the extension and renewal ofborrowings.

The shipbuilder has also been trying to obtain financial support from a shareholder of its holding company.