In addition, Yangzijiang recorded a gain of RMB 31.3 million from share of results of associated companies and a joint venture in 3Q17, compared to a loss of RMB 95.8 million incurred a year ago.
Revenue grew 13% to RMB 4.38 billion in 3Q17, from RMB 3.88 billion a year ago.
Revenue derived from its shipbuilding business increased slightly by 4% to RMB 2.81 billion in 3Q17, as nine vessels were delivered during the quarter, one more than a year ago.
Revenue from its trading business grew to RMB 1.27 billion in 3Q17, from RMB 874 million a year ago, due to higher volume of trading activities during the quarter.
However, gross profit fell 23% to RMB 673.6 million in 3Q17, as gross profit margin of the group’s shipbuilding business fell 9 percentage points to 15%.
The lower margin was mainly due to the appreciation of the RMB against US dollar since the beginning of this year, and an increase in raw material costs.
As at end September, cash and cash equivalents stood at RMB 5.35 billion.
The group has an outstanding order book of US$4.3 billion ($5.9 billion) for 103 vessels as at Sept 30, 2017.
In a filing to SGX on Thursday, Yangzijiang says the market conditions for the shipbuilding industry have continued to improve in the third quarter, especially for dry bulkers, on the back of the recovery of the Baltic Dry Index to a three-year high.
However, the group cautions that it will still take some time for the overcapacity in the shipping industry to be resolved despite the recovery in economic growth and international trade.
Yangzijiang adds that it commands a favourable position in a recovering market, due to its robust financial position, stringent risk management, strong delivery track record and reputation as a leading shipbuilder.
Shares of Yangzijiang closed 1 cent lower at $1.565 on Thursday.
