Yangzijiang Shipbuilding reports higher 1HFY2022 earnings from continuing operations
Yangzijiang Shipbuilding (Holdings) has reported earnings of RMB1.37 billion for its 1HFY2022 ended June 30, down 17% y-o-y. However, earnings from continued operations for the same period was up 32% y-o-y to RMB1.2 billion.
Earnings from the company’s financing and investment businesses were largely no longer included following the separate listing of Yangzijiang Financial Holding in April this year.
Revenue for the six-month period was up 70% y-o-y to RMB 9.74 billion, as the company rode on a shipbuilding boom and delivered a record number of vessels.
The company also recorded other gains of RMB306 million largely from favourable forex.
Gross margin for 1HFY2022 was 13%, down slightly from 14% enjoyed in 1HFY2021. However, in a sign that raw material prices have somewhat eased, the 13% margin is a h-o-h improvement over 11% managed for 2HFY2021.
As at June 30, the company had net cash of RMB3.7 billion – that’s after distributing almost RMB20 billion worth of assets to shareholders via the spin-off of YFH in a one-for-one ratio.
The company sees resilient demand ahead, with new orders of some US$1.09 billion year to date, bringing its total orderbook to US$8.13 billion.
“From an operational perspective, this set of results was particularly meaningful to all of us at Yangzijiang Shipbuilding,” says executive chairman Ren Letian.
“We delivered a record number of vessels in 1H2022, despite an extremely challenging environment due to COVID-related supply chain disruptions. With our yards at full capacity, our new work-flow systems showed a clear improvement in productivity and efficiency,” he adds.
Ren notes that the company’s recent win to build 4 units of 8,000 TEU LNG dual-fuel containership is a sign that it is making inroads in the green vessel space thus far dominated by the Korean yards.
“Looking ahead, we confident of moving up the value chain and building larger and more complex vessels,” he adds.
Yangzijiang Shipbuilding closed at 93 cents on Aug 5.
Source: The Edge Singapore