Yangzijiang Shipbuilding 9M15 Net Profit Down 15% Amidst Contract Wins

Yangzijiang Shipbuilding (Holdings) has announced a 9M15 net profit of Rmb2.4 billion, a drop of 15 percent from Rmb2.8 billion in the previous year, despite receiving higher revenue.

Revenue leaped 11.4 percent to Rmb12.9 billion partly due to higher number of vessel delivered in 3Q15 according to schedule, contributing to an increase in revenue contributions from shipbuilding business. A bulk of increment in revenue received was generated by other shipbuilding related businesses such as shipping logistics & chartering and ship design services, which increased to Rmb55.1 million from Rmb16.5 million.

However the increment in revenue received was offset by income tax expenses, which increased more than twofold to Rmb792 million (9M14: Rmb341 million), resulting in the erosion of profitability.

The group has also announced that between September to October 2015, it has entered into shipbuilding contract for additional 12 vessels with a total contract value of US$730 million which are scheduled for deliveries in year 2017 and 2018.

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