According to the official website of the Alibaba Asset Auction Platform, Fujian Huanhang Shipping Co., Ltd. successfully acquired the vessel Rongsheng 119 (Hull No.H1155) under construction for RMB 23.89 million (approximately $3.3542 million), representing a direct reduction of RMB 5.34 million from the appraised value.
Auction details indicate that the subject vessel, H1155, is a 76,000 DWT bulk carrier under construction, with an overall length of 224.9 meters, a beam of 32.25 meters, a depth of 19.7 meters, and a designed draft of 12.2 meters. No relevant drawings, equipment certificates, or relevant project inspection reports were found on board or at the shipyard.
The auction concluded with a final bid of RMB 23.89 million after six rounds of bidding between two participants. According to the online bidding confirmation, Fujian Huanhang Shipping Co., Ltd. secured the winning bid with the highest offer on September 29 under bidder number J6788.
According to the H1155 valuation report, Jiangsu Rongsheng Heavy Industries signed the construction contract on June 22, 2010, and the vessel was classified by DNV. Construction began on November 20, 2011, and the keel was laid on December 30. Only the main hull structure has been fully assembled and connected, while the superstructure sections have been fabricated but remain uninstalled to date, leaving the vessel in a docked state. The vessel has been idle in the dock for over 13 years and remains unfinished since construction began.
The assessment report states that due to Jiangsu Rongsheng Heavy Industries’ impending bankruptcy, on August 8, 2017, Jiangsu Rongsheng Heavy Industries entered into the “H1155 Ship Maintenance, Repair, Construction, and Construction Site Equipment Lease Agreement” with Taizhou Donghai Ship Repairing & Building Co., Ltd. Taizhou Donghai Ship Repairing & Building Co., Ltd. commenced work at the yard on August 10, 2017. Subsequently, due to various factors, only partial maintenance was performed on the vessel, and construction has been stalled since then.
Meanwhile, the assessment report also noted that the current condition of the vessel still fails to meet the latest construction specifications and convention requirements. Should construction proceed, not only would approval from the classification society be required, but substantial additional costs would also be incurred to complete the subsequent construction work.
Fujian Huanhang Shipping, which successfully bid for the under-construction vessel H1155, was established in 2018 with a registered capital of RMB 10 million. The company primarily engages in the water transportation industry.
Jiangsu Rongsheng Heavy Industries, the subject of this auction, was once China’s largest privately-owned shipbuilder. At its peak, it operated four large dry docks equipped with six 900-ton gantry cranes, one 600-ton gantry crane, and one 1,600-ton gantry crane—the largest of its kind in China at the time. The facility featured eight outfitting piers and two material piers, with an annual shipbuilding capacity designed for 8 million deadweight tons.
Clarksons data shows that the last ship built by Rongsheng Heavy Industries was delivered in 2017. From 2008 to 2017, Rongsheng Heavy Industries delivered a total of 94 vessels, including 16 400,000 DWT very large ore carriers (VLOCs).
Previous reports indicate that Rongsheng Heavy Industries will resume shipbuilding operations under the name “Jiangsu New Rongsheng Heavy Industries Co., Ltd.” and is rumored to have already secured shipbuilding orders.
Data shows that Jiangsu New Rongsheng Heavy Industries Co., Ltd. was established on May 27, 2024, with a registered capital of RMB 50 million. The company primarily engages in shipbuilding, ship repair, and related businesses.