5.85 billion net profit + 10 ship orders! Yangzijiang Shipbuilding celebrates double blessings

Third-quarter profitability, securing another order for 10 container ships worth US\$396 million. Against the backdrop of a sharp global decline in new ship orders this year, Yangzijiang Shipbuilding's order intake has already surpassed its total for last year, achieving "counter-cyclical" growth in both performance and orders.

585 million yuan! Yangzijiang Shipbuilding continues to be profitable in the third quarter.

On November 4, Yangzijiang Shipbuilding Group released its financial performance and related announcements for the third quarter of 2020. Nine ships were delivered in the third quarter of 2020. Although the reduction in ship prices and the number of deliveries put pressure on revenue, the gross profit in the third quarter of 2020 still reached 13 billion yuan, a year-on-year increase of 19%.

Financial reports show that total revenue in the third quarter of 2020 decreased by 34% year-on-year, from 5.4 billion yuan in the same period last year to 3.6 billion yuan. Core shipbuilding revenue was 2.6 billion yuan, lower than 3.2 billion yuan in the same period last year; 9 new ships were delivered in the third quarter, lower than 13 in the same period last year. Revenue from other ship-related businesses, including shipping logistics & chartering, ship design services, and shipbreaking, increased to 194 million yuan, slightly higher than 186 million yuan in the same period last year, attributed to the expansion of the fleet.

In the third quarter of 2020, Yangzijiang Shipbuilding Group's net profit attributable to shareholders was 585 million yuan, down 17% compared with 702 million yuan in the same period last year. Fully diluted earnings per share were 14.95 cents, lower than 17.84 cents in the same period last year. As of September 30, 2020, Yangzijiang Shipbuilding Group maintained a strong financial position, with net asset value per share increasing from 7.94 yuan at the end of 2019 to 8.17 yuan.

Since the first half of 2020, Yangzijiang Shipbuilding Group has received new orders totaling US\$317 million, including orders for 6 1800TEU container ships and 2 82,000-ton dry bulk carriers, totaling US\$178 million; and 5 bulk carriers and 1 chemical tanker, totaling US\$139 million. As of September 30, 2020, the Group's total order intake this year was 29 vessels worth US\$834 million, with an order backlog of 67 vessels worth US\$2.4 billion. These orders will provide the Group with a stable source of income and ensure healthy and stable production for at least 1.5 years.

      Ren Litian, Executive Chairman and CEO of Yangzijiang Shipbuilding Group, said: "Although global market new orders have decreased, there have been some encouraging signs in the shipping market in recent months. Major shipping companies have stabilized charter rates by reducing available capacity, achieving better-than-expected financial performance. We are pleased to see that container freight rates have reached their highest levels in years due to increased demand on major routes. In addition, the Group has also noticed a trend towards increasing regionalization of global shipping, and customers prefer flexible shipping services, so the demand for smaller vessels, especially smaller container ships, has increased. Yangzijiang Shipbuilding will seize this favorable opportunity during the epidemic."

US\$396 million! Yangzijiang Shipbuilding receives order for 10 container ships.

This morning (November 5), Yangzijiang Shipbuilding Group announced that it has signed an order with a Japanese shipowner to build up to 10 3500TEU feeder container ships.

This order includes 5+5 3500TEU container ships. The total value of the first 5 confirmed ship orders is approximately US\$198 million, which will be built by New Yangzi Shipbuilding and delivered successively from January 2022. If all optional orders are confirmed and take effect, the total value of the entire order will reach US\$396 million.

With the latest container ship order, Yangzijiang Shipbuilding Group's order intake this year has reached 34 vessels, with a total value of US\$1.03 billion (excluding optional orders). This figure has already exceeded the total order intake of US\$830 million for the whole of last year.

Ren Litian, Executive Chairman and CEO of Yangzijiang Shipbuilding Group, said: "To date, we have received more than US\$1 billion in new ship orders this year, exceeding the total for last year. This is a remarkable achievement, especially considering that the global new ship order volume in the first three quarters of 2020 decreased by 50% amid market weakness. We thank our customers for their trust in us, and I believe that the quality of our ships and the reputation of Yangzijiang Shipbuilding Group are the solid backing of our customers' trust. This gives me great confidence that our order backlog can be further increased despite the weak market."

"Recent trade tensions and the novel coronavirus pandemic have boosted the demand for regional and express shipping services, and small and medium-sized energy-efficient vessels are well-suited to this demand. This order will enrich our track record of building various types of advanced container ships. Like many of our other customers, this Japanese customer has been a satisfied long-term customer of Yangzijiang Shipbuilding Group. We look forward to building harmonious business relationships with our customers by providing high-quality vessels."