China: Busy First Quarter for Guangzhou Shipyard

During the first quarter of the year 2012, the Guangzhou Shipyard International Co.(GSI) and its subsidiaries completed and delivered 3 vessels, launched 5 vessels and commenced construction works on 5 new vessels. As at March 31, 2012, the Company has secured orders for building 38 vessels, with a total tonnage of 1,530,000 DWT.

During the period under review, the operating income of the Company was RMB 1.852 billion (approx USD 293.7 mln), including the operating income of principal operations amounting to RMB 1.835 billion, representing an increase of 6.34% comparing with the same period last year.

As influenced by market, it is estimated that such phenomenon will continue. The operating income of shipbuilding operation was RMB 1.551 billion, representing a decrease of 3.08% compared with that of the same period last year, and the gross profit is 2.00%, representing a decrease of 10.6% compared with that of the same period last year.

The consolidated gross profit of products is 3.7%, representing a decrease of 8.69% comparing with the same period last year, which is mainly due to the decline of the shipbuilding market, the prices of the ships under construction dropped sharply during the first quarter of 2012, as compared to the same period last year, which resulted in the decrease in profits of the Company derived from shipbuilding.

The operating income of steel structure operation was RMB 106.0851 million, representing an increase of 91.58 % compared with that of the same period last year, and the gross profit was 7.58%, mainly due to the Company’s vigorous development of the market and the strategic adjustment in heavy machinery operation of the Company. The operating income of other mechanical and electrical products was RMB 177.5695 million, representing an increase of 154.99%, which was mainly due to the increase of the shied machines and the mechanical and electrical products.

(1 Chinese yuan = 0.158587 U.S. dollars)

Guangzhou Shipyard International Co., Ltd. (GSI), founded in 1954, which was parented by China State Shipbuilding Corporation is the largest modern integrated shipbuilding enterprise in South China and one of the 500 biggest enterprises in China. GSI has formed several pillar business including shipbuilding, ship repairing, large-size bridge & building steel structure engineering, port machinery, elevator, refrigerator production line, hydraulic machinery and pressure vessel.

[mappress]

Shipbuilding Tribune Staff, May 4, 2012; Image: chinagsi