Yangzijiang Shipbuilding has reported earnings of RMB773.9 million for 2Q ended June 30, down 17% y-o-y. Revenue in the same period was down 32% y-o-y to RMB4.77 billion.

The China-based company was able to eke out higher margins for its shipbuilding business and gross profit margin for the quarter was 27%, an improvement from 17% managed in the year earlier period.

However, it booked lower interest income on a US dollar bank deposit due to lower rates, received a lower dividend from financial assets, and as a result, its so-called “other income” dropped from RMB117 million for 2QFYFY19 to RMB74 million for 2QFY20.

Unfavourable foreign exchange rates, higher administrative expenses all added up to a lower bottom line.

Following the end of the lockdown in April, Yangzijiang’s operations have resumed at full capacity.

Even with so, the company was able to book new orders of some US$517 million for 1HFY20, more than double that of 1HFY2019. 

As at June 30 2020, its order book was US$2.6 billion for 62 vessels, to be delivered by early 2022.

“We remain financially strong with a net cash position, providing a vital condition for survival in an economic downturn,” says executive chairman and CEO Ren Letian.

“Our customer base has grown to include more Chinese shipowners, and our shipbuilding portfolio has become more diversified with an increased focus on dual-fuel vessels and LNG-related vessels,” says Ren, who took over the chairman job from his father Ren Yuanlin on April 30.

Yangzijiang shares closed Aug 5 at 94 cents, up 2.75% for the day and down 19% year to date.