14 August 2014

Scrap cash for Yangzijiang:

Yangzijiang Shipbuilding has continued to raise cash from non-core asset sales by selling half of its stake in a shipbreaking yard.

Singapore-listed Yangzijiang has collected CNY 140m ($22.75m) after shedding 50% of its holding in Jiangsu Huayuan Metal Processing (JHMPCO).

The company explains the deal is the latest in a line of moves to tighten focus on its central shipbuilding business.

Yangzijiang, China’s top performing yard in 2014, bought into JHMPCO in 2011 when it invested CNY 240m for its then 80% stake.

It has since taken full control of the shipbreaker with 70% of the stock controlled by subsidiary Jiangsu New Yangzi Shipbuilding and the balance by Baoling Investments.

Of the 50% slice cash in today, 20% came from Jiangsu New Yangzi’s holding while Baoling has sold out.

Yangzijiang saw its bottom line climb by 52% to CNY 1.24bn ($150m) in the three months to the end of June.

In the first half of 2014, Yangzijiang has won orders for 32 vessels, including four FMG VLOCs. It has 122 ships in its orderbook worth $5bn in total.

In July, the shipbuilder collected over $30m from the sale of shares in Wujiang Jinke Yangzi Real Estate Development, Jiangsu Leyuan Innovation International and Taixing Tongzhou Warehousing.

Source: trade winds news. 13 August 2014

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