Yangzijiang Q4 net profit falls 30%

YANGZIJIANG Shipbuilding posted a 30 per cent drop in net profit to 642.3 million yuan (S$127.9 million) for its fourth quarter ended Dec 31, from 912.1 million yuan a year ago.

This came as other gains plunged while revenue dipped slightly during the quarter, according to results released by China's largest non-state owned shipbuilder on Friday just after midnight.

The group recorded other gains of 6.9 million yuan for the quarter, down 97 per cent from 276.1 million yuan in the year-ago period, due to lower foreign exchange-related gains.

Revenue fell 2 per cent to 4.85 billion yuan, from 4.94 billion yuan a year ago.

Although the group delivered more vessels in the quarter compared with the year prior, its trading business recorded a decrease in revenue due to a lower volume of trading activities.

A final cash dividend of 4.5 Singapore cents per share was proposed for the full year, down from five Singapore cents a year ago, for shareholders' approval at the upcoming annual general meeting. The payment and books closure dates will be announced later.

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For the full year ended Dec 31, 2019, net profit rose slightly by 1 per cent to 3.11 billion yuan, while revenue was up 2 per cent to 23.6 billion yuan.

Earnings per share stood at 78.88 fen for the year, up from 77.6 fen in 2018.

Yangzijiang chief executive Ren Letian said: "While visibility remains limited as many market dynamics evolve, we are doing our utmost to prevent the coronavirus fiasco from affecting the yards and production activities."

The group will also optimise production resources to minimise any disruption to the delivery schedule, he said.

Yangzijiang announced separately on Friday that deputy general manager of the group Xiang Jianjun, 60, has retired with effect from Feb 28, to pursue other personal interests.

Taking over is deputy general manager and chief accountant of Jiangsu NewYangzi Shipbuilding, Ding Jianwen, 47, who is now responsible for finance, accounting, tax and risk management of the group. He also oversees the group's trading logistics division.

Shares of Yangzijiang were trading at 94.5 Singapore cents as at 2.02pm on Friday, down three cents or 3.1 per cent following the announcements.