Tough environment drives down Yangzijiang's profit by 14%
Chinese firm Yangzijiang Shipbuilding posted a 14 per cent decline in net profit to 877.25 million yuan (S$171 million) on the back of a challenging operating environment led by weak demand and excess capacity.
Revenue fell 1 per cent to 3.6 billion yuan for the three months ended Sept 30.
Revenue from the firm's core business of shipbuilding fell 4 per cent to 3.3 billion yuan (S$641 million) from a year ago largely led by lower vessel delivery. Shipbuilding continued to be a key driver, contributing 92 per cent to overall revenue.
Yangzijiang's executive chairman Ren Yuanlin said he expects the downtrend in the sector to persist in the near future.