The parent of China Shipbuilding Industry Co (CSIC) has ditched plans to inject six of its units into the daughter company.
CSIC said the project will be terminated as the transfer candidates are not potential competitors any more.
Some of the six units have been facing financial difficulties and plans to inject them into CSIC were part of a broader restructuring.
The Chinese government wants to streamline the management of CSIC facilities and make them more specialised.
In early January, CSIC raised its profit forecast and said it expected to return to profitability for the full financial year 2016.
It has also launched a share sale scheme that could help the company repay its debt.
