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Yangzijiang's Q2 net profit falls 17% on tax expense and drop in other income
YANGZIJIANG Shipbuilding reported that its net profit for the second quarter ended June 30, 2015 fell 17 per cent to about 1 billion yuan compared to a year ago without the benefit of a tax credit.
In Q2 2015, the shipping group incurred a net tax expense of 310.2 million yuan instead of a net tax credit of RMB85.3 million yuan seen a year ago.
Revenue increased 34 per cent to 5.7 billion yuan. Shipbuilding-related businesses remained the core revenue driver, contributing about 5.2 billion yuan, or 91.6 per cent to total revenue. The group delivered 11 vessels in Q2, compared to the 9 vessels delivered a year ago. Held-to-maturity (HTM) and micro finance business under investment segment contributed 7.8 per cent and 0.6 per cent of the total revenue, respectively.
Yangzijiang recorded other gains of 412 million yuan in Q2 2015 compared to other losses of 29.8 million yuan a year ago, mainly due to the 157 million yuan gain on the disposal of financial assets available-for-sale, higher foreign exchange related gains of 155 million yuan and governmental subsidy of 124 million yuan received during the quarter.
However, the gains were offset by a sharp fall in other income, which tumbled to 64.7 million yuan, from 215 million yuan a year ago due to the lower interest income generated from restricted cash. The group's restricted cash decreased significantly compared to last year, as it gradually repaid bank borrowings backed by restricted cash deposit and shifted to uncollateralized borrowings with longer tenors. At end of Q2 2015, its restricted cash balance has further decreased to 399 million yuan.
As of the end of June 2015, the group had an outstanding order book of US$4.14 billion, comprising 102 vessels. The outstanding order book will keep its yard facilities highly utilized until mid-2017. Yangzijiang said it is also in talks with clients on several pipeline new orders.