Shenzhen-listed Sainty Marine predicted its losses would deepen to between CNY350 million (USD56 million) and CNY370 million for the first six months of 2015, an increase in the figure that was estimated in April.
The increase in the forecasted loss resulted from higher asset impairment on inventories and receivables of the company. Additionally, Sainty Marine took more provisions as it had estimated losses incurred by its shipbuilding co-operation with Nantong Mingde Heavy Industry (NMHI), as reported in a stock filing from Sainty Marine on 15 July.
Sainty Marine has been in co-operation with NMHI to sell NMHI’s newbuilds since 2013.
On 29 April, the company estimated that the loss would be between CNY119 million and CNY160 million for the first six months in 2015 on higher finance cost.
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In the first six months of 2014, the company posted a profit of CNY42 million.
Also, Sainty Marine has been sued by a third bank over a loan dispute since May.
On 29 June, Jiangsu Zhangjiagang Rural Commercial Bank filed a lawsuit against the company over an overdue CNY63 million bill of exchange.
In May, Sainty Marine defaulted on the bill of exchange drawn for NMHI, which the company was seeking to take over. The bill of exchange, which was drawn on 3 November 2014, had been put up as security by NMHI to raise CNY50 million from the bank.