Yangzijiang Shipbuilding profit slipped 10% to $136.23m in Q3

Gross profit margins from its shipbuilding and others segments declined.

Yangzijiang Shipbuilding’s (Yangzijiang) net profit dropped 10% YoY to $136.23m (RMB702.26m) in Q3 from $151.05m (RMB778.63m) in 2018, according to its financial statement. Revenue grew 1% YoY to $1.05b (RMB5.42b) from $1.04b (RMB5.37b) over the same period.

Profit after tax and minority interests (PATMI) margin also have declined to 13% from 15%. Gross profit margin in the group’s shipbuilding business came at 14% in Q3 from 20% in Q3 2018 due to higher raw material and labour costs.

Trading business had a gross profit margin of around 1.5%, whilst other shipbuilding related businesses such as shipping logistics & chartering and ship design services registered a gross profit margin of 38% in the same quarter, higher than 33% in the corresponding period.

Furthermore, Yangzijiang’s core shipbuilding segment had generated revenue of $620m (RMB3.2b) in Q3, higher than the $520m (RMB2.7b) posted in Q3 2018. Trading business recorded lower revenue of $291m (RMB1.5b) compared to $410m (RMB2.1b) over the same period. Revenue generated by other shipbuilding related businesses was at $36.08m (RMB186m) from $28.91m (RMB149m).