Singapore-listed Yangzijiang Shipbuilding may have delivered fewer ships in 2022 than it did in the preceding year, but the higher value of these vessels had a far more positive impact on its bottom line.

Yangzijiang reported revenue of CNY 24.1bn ($334.7m) for the 2023 financial year, a 16.5% increase over the same period in 2022.

Earnings rose by 57% to CNY 4.1bn against the previous year’s CNY 2.6bn.

Yangzijiang said despite having delivered fewer vessels during its 2023 financial year, its revenue increased due to the construction of larger, higher-value ships.

The shipbuilder delivered 56 vessels in 2023 versus 67 in 2022, when the majority of the ships it delivered were feeder container ships.

Those delivered in 2023 were large container vessels of 7,000 teu to 24,000 teu.

Yangzijiang said its core shipbuilding segment contributed 94.5% of the group’s total sales, which reached CNY 22.8bn. This translated to a 24% year-to-year increase.

Yangzijiang registered a 26% decline in revenue from its shipping business to CNY 1bn due to lower charter rates.

Revenue from other businesses, which include terminal services, trading, ship design services, investment property and investments also fell to CNY 302.7m on lower trading volume and interest income from debt investment, at amortised costs.

Gross profit grew by 69.2% to CNY 5.4bn, which was attributed to favourable exchange rates, a reduction in raw material costs and the strong shipbuilding market.

“Our efforts in enhancing shipyard operational efficiencies and technical capabilities have proven to be a success,” said executive chairman and chief executive Ren Letian.

“This has enabled us to improve our overall mix of products, producing vessels with a higher premium as evident during the period under review.”

Ren added that shipping’s decarbonisation drive will remain the key growth driver for the industry in the mid-term.

“With the tightening of policies being more apparent now, ship operators are accelerating their vessel replacement plans to avoid potential financial impact from non-compliance. With our technical capabilities, Yangzijiang Shipbuilding is well-positioned to ride on this upward trajectory and support the industry’s transition.”

Yangzijiang said it has been contracted to build 12 vessels worth $1.35bn so far this year. The orders include six methanol dual-fuel 13,000-teu container ships from Ocean Network Express.

The shipbuilding group has built up an orderbook of 182 newbuildings worth $14.5bn as of end-2023.