Yangzijiang Shipbuilding Holdings (YZJ) has reported earnings of RMB4.18 billion ($750 million) for the 1HFY2025 ended June 30, up 36.7%.
The group’s revenue for the period declined 1.3% y-o-y to RMB12.9 billion, while gross profit grew 27.6% y-o-y to RMB4.45 billion.
YZJ says that the decline in revenue was mainly attributable to slightly lower contribution from its core shipbuilding segment due to a change in product mix. Specifically, revenue was impacted by the commencement of construction for oil tankers which carry a lower average unit price compared to containerships.
This decline was largely offset by revenue contribution from the construction of large dual-fuel containerships which are more technically sophisticated and command more favourable pricing.
The group’s shipping segment specifically posted a 15.4% y-o-y deceline in revenue due to weaker charter rates, while revenue from other businesses including trading, ship design services and investment property increased 153.2% y-o-y.
The strong growth was mainly driven by increased trading activity associated with the sale of raw materials to Tsuneishi Group (Zhoushan) Shipbuilding Co, a 34%-owned associated company of the group.
Meanwhile, gross profit increase was due to lower steel costs, successful execution of secured contracts with improved pricing and the smooth delivery of large dual-fuel containerships.
YZJ says that it has begun unlocking value in its investment in Tsuneishi Zhoushan which was completed in 1QFY2025. As a result, share of results of associated companies and joint ventures jumped by 79.0% y-o-y to RMB481.4 million for 1HFY2025, mainly driven by profit contribution of RMB320 million from YAMIC and RMB160 million from Tsuneishi Zhoushan.
As at June 30, the group’s net cash position stood at RMB18.3 billion.
See also: Lum Chang Holdings net profit up 102% y-o-y for FY2025 to $18.7 mil
During the period ending June 30, the group’s new order-wins amounted to US$537.2 million for 14 vessels, with approximately 85% attributed to containerships. These new orders brought the group’s total outstanding orderbook to US$23.2 billion.
Shares in Yangzijiang Shipbuilding closed 6 cents higher or 2.335% up at $2.63 on Aug 6.
