Yangzijiang Shipbuilding chalks up 73% surge in Q2 profit

YANGZIJIANG Shipbuilding (Holdings) on Monday posted a 73 per cent year-on-year jump in net profit to 719.92 million yuan (S$146 million) for the second quarter ended June 30, 2017.

Revenue increased 27 per cent year on year to 3.79 billion yuan in Q2 due to higher contributions across its different businesses. In particular, the revenue derived from its shipbuilding business increased 25 per cent mainly due to higher volume of shipbuilding activities with construction of larger-sized vessels.

As at June 30, the group had an outstanding order book of US$4 billion, comprising 85 vessels. This is after taking into account the termination of an order for a unit of 82,000-DWT bulk carrier in Q2. The construction for that vessel had not started yet, and the group will recognise the downpayment in line with its accounting policy.

"Through innovation and introducing new vessel products, we maintained a healthy order book backlog when the market was weak, and we are making good progress in order taking when market starts to recover," said executive chairman Ren Yuanlin.