Yangzijiang Shipbuilding has reported earnings of RMB1.73 billion ($321.7 million) for the 1HFY2023 ended June 30, 26% higher than earnings of RMB1.37 billion in the same period the year before.
Earnings – or net profit – from continuing operations surged by 47% y-o-y to RMB1.73 billion from RMB1.17 billion previously.
Total revenue for the 1HFY2023 rose by 16% y-o-y to RMB11.3 billion due to increased shipbuilding activities. Revenue from the group's core shipbuilding business and from its shipping business rose while revenue from other businesses, such as terminal services, trading, and ship design services fell.
Gross profit surged by 48% y-o-y to RMB2.1 billion with gross profit margin (GPM) growing by four percentage points y-o-y to 19%.
Other income, which comprised interest income from bank deposits, interest income from ship finance leases, and income from the sale of bunker stock, rose by 44.4% y-o-y to RMB234 million. This was due mainly to the higher interest income from bank deposits. As a result, cash and cash equivalents as at June 30 rose by 18.6% y-o-y to RMB10.7 billion.
Share of profits from associate companies and joint ventures (JV) rose by 0.4% y-o-y to RMB50.2 million, mainly contributed by the JV company, Yangzi-Mitsui Shipbuilding.
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“1HFY2023 has been a successful half for us, both with respect to financial performance and new order wins. With 181 vessels to be delivered, we are looking at multiple ways of improving our operational efficiency and overall project management,” says executive chairman and CEO Ren Letian.
“Now with concrete targets and milestones laid out by the International Maritime Organization, we will no doubt see an accelerated pace of fleet decarbonisation among global ship liners. Equipped with green technological know-how, Yangzijiang will continue to benefit from this paramount transition where we expect sustained demand for clean fuel vessels for the years ahead,” he adds.
As at June 30, the group secured new contract wins of US$5.76 billion ($7.73 billion) for 72 vessels. Its total outstanding order book amounted to US$14.70 billion for a total of 181 vessels as at end-June.
Shares in Yangzijiang closed 2 cents lower or 1.27% down at $1.55 on Aug 3.
