2022-03-01 views 444
Recently, the listed company released its 2021 annual financial report and related documents. The financial performance is as follows:
2021 is the Best performance in a decade
In 2021, the total revenue of the Group was 16.767 billion Yuan, with a year-on-year increase of 13%. Net profit attributable to shareholders was 3.698 billion Yuan, up 47% from the same period last year and the highest since 2021, declared a dividend of S $0.05 per share in 2021. The core shipbuilding business revenue was 13.198 billion Yuan, an increase of 32.37% compared with 9.97 billion Yuan in the same period in 2020. Ren Letian, the Chairman and CEO of the Group, said: "Despite multiple headwinds such as COVID-19 disruptions, domestic power shortages and soaring raw material costs, we achieved several milestones in fiscal 2021, including record bookings and the highest profit since 2011, which speaks volumes about our operational strength."
Focus on the main business of shipbuilding☆Focus on eco-friendly ships
As of December 31, 2021, the Group received 124 orders in 2021, with a contract value of US$7.41 billion. A total of 157 orders were placed, including 110 container ships, 37 bulk carriers, 10 LNG/LPG carriers and oil tankers, with a total contract value of $8.5 billion.
In 2021, the International Maritime Organization (IMO) introduced existing Ship Energy Efficiency Index (EEXI) and Carbon Intensity Index (CII) ratings, and these stricter environmental regulations are likely to increase the need for ship replacement and increase the demand for green energy ships. This is an encouraging trend following strong global new ship orders in 2021. The Group will continue to strengthen its shipbuilding capabilities in the clean energy sector and remain confidence of securing green energy ship orders. Looking ahead, the Group believes that the long-term prospects for the shipbuilding industry remains positive, supported by the need to meet new environmental regulations, improved efficiency and new technologies.
The investment business is to be separated and listed independently
As the group aims to become one of the world’s top shipbuilders, it has positioned itself as a pure shipbuilder and proposed to spin off its investment business through a separate listing on the main board of the SGX-ST. The spin-off will allow the Group to focus on its core shipbuilding business, strengthen corporate governance by accelerating its the repositioning of environmental, social and Enterprise governance (ESG), and is likely to attract new investors, particularly those who prefer to confine their investment to shipbuilding. It could also lead to a revaluation of the Group as it can be directly compared with other listed peers such as South Korean and Japanese shipbuilders. A successful spin-off is also expected to unlock deep value for all shareholders, giving both entities greater flexibility to pursue growth opportunities and create maximum shareholder value.
The group proposes that the Honorary Chairman Ren Yuanlin led the investment arm after spin-off. The new spin-off group will also be led by an independent board, striving to achieve strong governance, transparency and independence of the two entities.
Ren Yuanlin, the Honorary Chairman of the Group, noted: "In an evolving and challenging environment, the management team of YZJ Shipbuilding Group has played an important role, enabling the Group to achieve record order volumes in the past year and the highest net profit in a decade. I remain confident in the strength of our management team and their ability to find new ways to grow, particularly in green energy. Based on the performance and capabilities of our investment division over the past few years, the spin-off group will further expand its fund and wealth management business through the acquisition of a fund management company with a capital markets services licence in Singapore and will continue to acquire or add new capabilities. The spin-off group will no longer be restricted to a limited number of asset classes or types and will see the development of diversification into fast-growing industries and new asset classes, including private debt, mezzanine funds and REITs, and will expand its geographic coverage in Greater China and Southeast Asia. "