It posted a deficit of CNY 223.6m ($36.4m), compared to a profit of CNY 16.2m in the first half of 2013.
Revenue rose from CNY 2.63bn to CNY 3.88bn, mainly thanks to the 100% takeover of Longxue, which improved GSI’s capacity and product range.
The shipbuilder also blamed owners' unwillingness to order new vessels for its red bottom line.
For the second half of the year, GSI plans to construct 16 vessels.