Yangzijiang Shipbuilding, China’s largest privately-owned shipbuilder, has reported a 47% year-on-year increase in its first half performance.
The Singapore-listed company booked a net profit of CNY 1.7bn ($240m) against the CNY 1.17bn achieved 12 months earlier.
Revenue for the first half of the year rose by 16% year-on-year to CNY 11.3bn on the back of increased shipbuilding activities, according to a regulatory filing.
Revenue from the core shipbuilding business improved in line with the heightened progressive construction activities with top-line contributions reaching a record high of CNY 10.7bn in the first half, up 25% year-on-year, Yangzijiang said.
The gross profit margin for this segment rose to 18% from 13% a year ago, mainly driven by the depreciation of the Chinese currency against the US dollar and a reduction in raw material costs incurred during the period.
Revenue generated from the shipping business dropped by 5% year-on-year to CNY 532m, primarily due to lower charter rates.
In line with the revenue decline, the gross margin for the shipping business decreased to 34% compared to 40% attained in the first half of last year.
Yangzijiang said its bottom line was also boosted to the tune of CNY 91m from the disposal of two unnamed vessels from its fleet.
Yangzijiang said it had secured new contract wins for 72 ships worth $5.76bn in the first half of 2023, taking its order backlog to 181 vessels worth $14.70bn.
The shipbuilder said clean energy vessel orders have experienced a significant increase, and now represent 56% of the total contract value, compared to the 23% recorded 12 months ago.
“The first half of 2023 has been a successful half for us, both with respect to financial performance and new order wins,” said Yangzijiang chief executive Ren Letian.
“With 181 vessels to be delivered, we are looking at multiple ways of improving our operational efficiency and overall project management.
“Now with concrete targets and milestones laid out by the IMO, we will no doubt see an accelerated pace of fleet decarbonisation among global ship liners,” he added.
Separately, Yangzjiang said it had increased its stake in Jiangsu Yangzi-Mitsui Shipbuilding following a deal with a minority shareholder.
It said it acquired an additional 5% stake in the joint venture for CNY 43.2m which lifts its stake from 51% to 56%.
