Yangzijiang Shipbuilding (Holdings), one of China’s leading and shipbuilders, says earnings for the threemonths that ended 30 September 2010 (3Q2010).surged 32% to RMB730.4 million ($142 million) y-o-y.

Yangzijiang says production in its new yard was enhanced during the quarter, resulting in 7 vessels being delivered from the new yard in 3Q2010, as compared to 4 vessels in 3Q2009. Hence, in total the group delivered 14 vessels in 3Q2010 (compared with 7 vessels in 3Q2009) that pushed the group’s revenue 19% higher to RMB3.1 billion ($602 million).

The group managed to keep those shipbuilding contracts that were secured prior to the financial crisis. With successful execution of these higher-margin contracts in 3Q2010, gross profit rose 38% to RMB724.6 million whilst gross profit margin improved from 20.2% to 23.5% in 3Q2010.

Other income comprising of interest income generated from held-to-maturity investments and cash deposit more than doubled to approximately RMB203.0 million in 3Q2010 as compared to RMB88.0 million in 3Q2009.

The other gains increased about 127% to RMB80.6 million in 3Q2010. Besides the positive mark-to-market variation for the outstanding orders denominated in EUR, RMB25.8 million incentive received from the local tax authority and another RMB17 million being received by the Changbo yard as compensation from termination of two shipbuilding contracts were the main factors that pumped up the other gains.

The group had announced 28 ship building contract wins worth US$914.98 million on 30 August 2010, out of which 5 were effective orders, 15 orders that were yet to be effective and 8 outstanding options. The total numbers of effective orders for this series of contract wins were boosted to 18 as of this date. The delivery of 14 vessels in 3Q2010 brought the total deliveries for 9M2010 to 36 vessels. Hence, the group’s order book stood strong at 128 vessels amounting to US$5.3 billion ($6.9 billion) as of today. These orders will keep the yards busy till late 2012.