Yangzijiang Shipbuilding (Holdings) Ltd. 1H2025 Financial Analysis

Yangzijiang Shipbuilding (Holdings) Ltd. has delivered its 1H2025 results, highlighting significant improvements in profitability and operational performance. This review will summarize key financial metrics, analyze historical trends, and discuss forward-looking strategies, based strictly on the company’s reported data.

Key Financial Metrics

*HoH = Half-on-Half, comparing 1H2025 to 2H2024.
**Inferred, as 1H2024 and 2H2024 figures are not specifically provided; estimates based on available annual data.

Historical Performance Trends

• Profitability: Yangzijiang achieved record-high margins in 1H2025, with PATMI margin rising to 32.5% from 25.0% in FY2024. Gross margin also improved to 34.5%, up from 28.7% in FY2024. The improvement was driven by lower steel costs, successful execution of higher-priced contracts, and efficient dual-fuel containership deliveries.
• Revenue: Revenue remained resilient, with a slight YoY decrease, but profit outpaced revenue growth due to margin expansion.
• EBIT and EBITDA: Both EBIT and EBITDA margins reached new highs, reflecting operational efficiency and favorable market conditions in shipbuilding.

Operational and Segment Highlights

• Orderbook: The outstanding orderbook stands at USD23.2 billion as of June 30, 2025, with clean-energy vessels accounting for 74% of total value. The orderbook provides revenue visibility through 2028 and beyond.
• Deliveries: 23 vessels were delivered in 1H2025, with the full-year target at 56 vessels. Delivery progress is on track, with six more vessels delivered in July.
• Order Wins: 1H2025 order wins amounted to USD0.54 billion, primarily small to mid-sized vessels. The company remains confident in securing new orders for 2028-2029 delivery slots.
• Core Shipbuilding Segment: Shipbuilding remains the largest revenue contributor, with containerships dominating. Gross profit rose due to lower input costs and higher contract prices.
• Shipping Segment: Charter income showed some volatility, but the company continued to lock in attractive time charters while maintaining exposure to spot rates for fleet agility.
• Balance Sheet: The company maintains a robust balance sheet with a net cash position of RMB18.3 billion, lower gross gearing (21.7%), and reduced borrowings following net repayments.

Strategic Initiatives and Outlook

• Capacity Expansion: Yangzijiang is expanding its shipyard capacity and investing in LNG terminal infrastructure, with projects under construction and scheduled for completion by end-2026 and 1H2027, respectively.
• Green Transition: The company is capitalizing on ESG-driven demand, with the majority of its orderbook comprising clean-energy vessels.
• YAMIC Performance: The repositioning of YAMIC (subsidiary) towards high-end gas carriers has more than doubled its net profit contribution in FY2024. Gas carriers now account for ~51% of YAMIC’s contract value.

Events and Risks

• No mention of exceptional earnings/expenses, legal disputes, asset revaluations, or major fundraising initiatives in the report.
• No disclosure of dividends, director remuneration, or share buybacks in this half-year report.
• No reference to natural disasters, macroeconomic policy changes, or other extraordinary events impacting results.

Conclusion

Yangzijiang Shipbuilding’s 1H2025 performance is robust, with record profitability and continued operational execution. The margin expansion and strong orderbook provide significant revenue and earnings visibility. Strategic investments in green shipping and LNG infrastructure position the company to capture ESG-driven growth. The financial position remains strong with ample net cash and low gearing, supporting ongoing expansion and risk resilience. Overall, the outlook appears positive, grounded in operational strength, a healthy balance sheet, and proactive positioning for long-term industry trends.

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