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"China's most profitable shipyard" is true to its name

"China's most profitable shipyard" is true to its name

Column:Industry News    Date:2021/3/2 8:39:32    Viewed:

2020 full-year orders received 1.82 billion U.S. dollars, more than 2019 nearly 1 billion U.S. dollars, the fourth quarter net profit of more than 750 million yuan, gross profit margin increased significantly to 24%, in the global shipbuilding market was hit hard by the new crown epidemic, the decline in the performance of shipping companies in a serious situation, Yangtze River Shipbuilding Group still delivered an excellent report card, "China's most profitable shipyard "is really true to its name.

On February 25, Yangtze River Shipbuilding Group released its financial results for the fourth quarter of 2020 and related announcements. in the fourth quarter of 2020, the Group's total revenue decreased by 38% year-on-year to RMB 3 billion. Among them, core shipbuilding business revenue was $2.1 billion, down from $3.3 billion in the same period of 2019, due to a total of 8 new vessels delivered in the fourth quarter of 2020, down from 13 vessels in the fourth quarter of 2019. Revenue from other ship-related businesses such as shipping logistics & chartering, ship design services and ship breaking was $200.6 million, down from $260.7 million in the same period of 2019, mainly due to lower charter rates.

In the fourth quarter, the gross margin of the shipbuilding business of Yangtze River Shipping Group was 24%, higher than 12% in the fourth quarter of 2019, mainly due to the Group building more container vessels with higher profitability in the fourth quarter of last year. Other ship-related businesses reported a gross margin of 28% in the fourth quarter, down from 30% in the fourth quarter of 2019. The Group's gross profit in the fourth quarter was $973.8 million, up 8% year-on-year.

The Yangtze River Shipping Group's net profit attributable to shareholders for the fourth quarter of 2020 was $753.5 million, an improvement of 17% compared to $642.3 million for the same period in 2019. As of December 31, 2020, Yangtzekiang Shipbuilding Group maintained a strong financial position, with net asset value per share increasing to $8.40 from $7.94 at the end of 2019.

According to the financial report, in fiscal 2020, Yangtzekiang Shipbuilding Group's total revenue was approximately $14.84 billion, down 37% year-over-year, and net income attributable to shareholders was $2.516 billion, down 19% year-over-year. fully diluted earnings per share for fiscal 2020 were 64.39 cents.

Although the New Crown epidemic brought great uncertainty to the shipping industry in 2020, dampening shipowners' sentiment and leading to a downturn in the shipbuilding market and a plunge in global new ship orders; however, Yangtzekiang Shipbuilding Group achieved an excellent order intake performance in the past year. in 2020, Yangtzekiang Shipbuilding Group received orders for a total of 54 new ships worth a total of $1.82 billion, far exceeding the full-year 2019 order intake of $830 The order intake volume of USD 0.83 billion for the whole year of 2019. As of December 31, 2020, Yangtzekiang Shipbuilding Group held orders for 83 vessels worth US$3.09 billion. These orders will provide the Group with a stable revenue stream and ensure a healthy and stable production for at least the next 1.5 years.

Since December 2020, Yangtze River Shipping Group has taken delivery of six of the world's largest 24,000 TEU ultra-large container ships, which are the largest container ships in terms of container volume and deadweight tonnage in Yangtze River Shipping's construction history, making Yangtze River Shipping the first private shipbuilding enterprise in China to build 24,000 TEU ultra-large container ships. Yangtze River Shipping Group will also continue to consolidate its capability and competitiveness in the ultra-large vessel construction market.

Ren Le Tian, Executive Chairman and Chief Executive Officer of Yangtzekiang Shipping Group, said, "Despite the outbreak experienced in 2020, we are pleased to have delivered a good set of results and we will continue to create value for our shareholders. The Group is proposing a final dividend of 4.5 Singapore cents for FY2020 and the financial position of the Yangtzekiang Shipping Group remains strong. Although 2020 faces unprecedented challenges with fewer new ship orders, market demand and market sentiment have improved towards the end of the year. Yangtzekiang Shipbuilding Group's relentless pursuit of research and development to innovate and introduce quality and efficient vessels to the shipbuilding market puts us in a strong position to capture emerging market opportunities as major economies begin to embark on a gradual recovery path."

Looking ahead to 2021, Ren Yuanlin, Honorary Chairman of Yangtze River Shipbuilding Group, has set a target for the company to "exceed its target of US$2 billion in new orders by 50% to reach US$3 billion".

Entering 2021, Yangtze River Shipping Group has continued its strong momentum in receiving orders, and has so far received orders for 29 new vessels, with a total value of USD 1.3 billion. Most of them are container ship orders, totaling 22 vessels worth USD 1.13 billion. With the global shortage of containers and soaring container shipping rates to multi-year highs, the demand and orders for container ships have surged. For Yangzijiang Shipbuilding, a good start means half the success.

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