Yangzijiang Shipbuilding (Holdings) Ltd. posted a 28.4% year-on-year rise in net profit to 5.37 billion yuan for the six months ended Jun 30, supported by the progressive construction and delivery of ships secured at higher contract prices and a more profitable vessel mix.
The Chinese yard’s revenue climbed 36.2% to a record 17.53 billion yuan. Gross profit expanded 42.8% to 6.35 billion yuan, lifting the gross margin to 36.2% from 34.5% a year earlier. Net profit margin, however, eased to 30.6% from 32.5%, reflecting a higher contribution from lower-margin non-core activities. The company did not declare any dividends for the period.
Performance was underpinned by shipbuilding, which generated 16.46 billion yuan of revenue, up 34.8% YoY. Segment gross margin improved to 37.1% from 35.2% as the yard worked through orders for ultra-large containerships and very large ethane carriers. Shipping revenue increased 14.5% to 585.4 million yuan, and the segment’s gross margin widened 9.6 percentage points to 35.1% on stronger charter rates. Revenue from other businesses, including trading and steel-pipe manufacturing, rose to 435.7 million yuan from 117.1 million yuan, helped by raw-material sales to Tsuneishi Zhoushan and the consolidation of Chengkang. Share of profit from associates and joint ventures contributed 483 million yuan, led by the Yangzi-Mitsui joint venture and the group’s new stake in Poseidon Corp.
Despite the stronger top line, overall profitability was tempered by a 1.9-percentage-point decline in net margin, partly due to a larger share of lower-margin trading revenue.
During the half, the group secured 1.75 billion US dollars in new orders for 38 vessels, lifting its outstanding order book to 22.4 billion dollars across 256 ships scheduled through 2030. July added a further 210 million dollars of tanker contracts, bringing year-to-date wins to about 1.96 billion dollars. Delivery slots for 2029 are almost filled, and the company has opened its 2030 schedule as it pursues a full-year order-win target of 4.5 billion dollars.
Strategically, Yangzijiang accelerated work at its new Hongyuan Yard, which contributed 545 million yuan of revenue in the second quarter. It also deepened cooperation with long-time customer Seaspan through a 10% stake in holding company Poseidon and advanced an LNG terminal conversion project alongside preparations for a new dry-docking and retrofitting facility at Jiangsu Yangzi Hongda Shipbuilding and Repair.
Executive chairman and chief executive Ren Letian said the first-half record performance reflected disciplined cost control and the group’s ability to construct more complex vessels. He noted that order momentum “remains healthy” and that management is negotiating additional contracts to fill newly opened 2030 delivery slots, with 27 of the 58 vessels slated for 2026 already delivered. According to Ren, the company’s 12.5 billion-yuan net cash position underpins its capacity to execute current orders and invest in long-term growth initiatives despite geopolitical uncertainties affecting global shipping demand.