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Sainty Marine Tells Stock Exchange of Only 4 of its 29 Lost Orders

Maritime Activity Reports, Inc.

August 6, 2015

 Shenzhen-listed shipbuilder Sainty Marine withheld news of 29 lost orders from said exchange, Caixin reported, citing data from industry research firms and information from a shipbuilding executive. 

 
The firm told the stock market that buyers had canceled four orders in May, but the remainder - worth RMB6 billion (US$966.3 million) - remained undisclosed. 
 
Data from industry research firms and information provided by a shipbuilding executive reveal that Sainty Marine Corp. Ltd., based in the eastern province of Jiangsu, lost 33 orders for ships that it had received from 2013 to March this year.
 
Regulators had warned the company in April that it could be delisted at the end of the year if it did not address its financial problems. 
 
A downturn in the shipping industry has forced some buyers to drop orders, the British shipping consulting company Clarksons Plc. said. New orders fell by half over the first six months of the year compared to the same period of 2014.
 
Chinese shipbuilders in general received nearly three-quarters fewer orders in the first half of 2015, according to the China Association of the National Shipbuilding Industry.
 
Sainty Marine's overdue financing rose USD 2.96 million on August 2. The company's overdue financing reached CNY 528.5 million, holding units' overdue financing was CNY 88.39 milion, and the company's and holding units' reached CNY 617 million as of August 4.
 
The listed company has also said it has to repay ship buyers around 800 million yuan in prepaid money and interest on the orders that were lost due to Nantong Mingde's bankruptcy and that it could lose up to 2.9 billion yuan over its dealings with Nantong Mingde.
 
Meanwhile, Sainty Marine  has announced the appointment of Zhang Shunfu as its chairman.
 
Zhang, 53, is also the chairman of Sainty International Group, chairman and general manager of Sainty Metals & Minerals Company, as well as the general manager of China National Nonferrous Metals Import and Export Jiangsu Company.
 

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