China Shipbuilding Industry Co (CSIC) has recorded a significant fall in net profit in the first quarter of 2015, and warned of a loss in the first half.

Profit in the quarter ended 31 March 2015 stood at RMB385.39m ($62.17m), down 47.4% compared to the gain of RMB732.5m in the previous corresponding period.

Revenue also declined by 4.2% year-on-year to RMB9bn.

CSIC said the global shipping and offshore segments have been sluggish, resulting in lower contract prices at shipyards.

At the same time, operating expenses including raw material costs, steel prices and wages have all risen, putting pressure on the group’s margins.

The continuing challenging business conditions has led to Shanghai-listed CSIC warning of a net loss for its first half results.