Yangzijiang net profit sails by 89% with record high order book

The China-based shipbuilder recorded a net profit of RMB717.7m for the first quarter of 2021.

Shipbuilding giant Yangzijiang, which is lilsted on the SGX, reported an 89% increase in their net profit for the first quarter of 2021.

In a disclosure to the Singapore Exchange, the China-based firm said its net profit for the first quarter was at RMB717.7m

Despite lower revenues from shipbuilding activities for the quarter, the company has hit a 12-year high when it comes to outsanding order book. Standing at US$6.6b, Yangzijiang has an order log for 146 vessels.

"Yangzijiang was the key beneficiary to the strong demand for orders placed for containerships since the fourth quarter of 2020, backed by its strong capabilities in this market. Our current outstanding orderbook is at its highest levels since 2009 and to increase capacity, the Group will resume operations at its Changbo yardin the second quarter of 2020," said Yangzijiang Shipbuilding Executive Chairman and CEO Ren Letian.

As of end-March, Yangzijiang has secured orders for 75 new vessels, with a total contract value of $US4.01b, the highest since 2008. Fifty-one of these new orders were for containerships.

Yangzijiang said this outstanding orderbook could provide a stable revenue stream for at least two years.