Yangzijiang Shipbuilding has reported earnings of RMB3.06 billion ($564.9 million) for the 1HFY2024 ended June 30, 77% higher y-o-y and a record high for the group.
Revenue rose by 15.3% y-o-y to RMB13.05 billion due to higher shipbuilding activities and better shipping charter rates.
The shipbuilding segment reported revenue of RMB12.4 billion, 16.3% higher y-o-y due to increased progressive construction activities and better pricing of overall newbuild vessels. The group delivered a total of 35 vessels for the 1HFY2024. Including the two ships built for its own fleet, Yangzijiang Shipbuilding achieved 59% of its annual delivery target of 63 vessels.
The shipping segment saw revenue increase by 13.5% y-o-y to RMB604.4 million due to the increase in charter rates.
Other businesses, which comprise terminal services, trading, ship design services and investment property fell by 64.3% y-o-y to RMB46.2 million mainly due to lower volumes related to the group’s trading businesses and lower interest income from debt investments at amortised costs.
Gross profit surged by 65.1% y-o-y to RMB3.48 billion as gross profit margin rose by 8.1 percentage points y-o-y to 26.7%.
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Net profit margin was also up by 8.2 percentage points y-o-y to 23.4%.
As at June 30, cash and cash equivalents stood at RMB22.2 billion.
“The energy transition push continues to be the focal point in the maritime industry given the accelerated regulatory developments in the past few years. Our recent success is a testament to the forward-looking mindset of the leadership team. Today, we are well-equipped to deliver cutting-edge vessels that meet the environmental criteria of our customers and the industry,” says Ren Letian, executive chairman and CEO of Yangzijiang Shipbuilding.
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“We are not resting on our laurels just yet as we set our eyes on capacity expansion to match the robust demand trajectory anticipated for clean energy vessels. Furthermore, we are also looking at diversifying our revenue stream with the operations of an LNG (or liquefied natural gas) terminal, which provides recurring and defensive income in the long run. These will ensure that we remain at the forefront of the maritime industry and maintain our market leadership position,” he adds.
Shares in Yangzijiang closed 10 cents lower or 4.03% down at $2.38 on Aug 12.
