In the six months ended 30 June 2014, Singapore-listed JES narrowed its losses from a deficit of RMB206.83m in the same period of 2013. First half revenue plunged 79.9% year-on-year to RMB88.21m.
In the second quarter, JES earned a profit of RMB17.53m as against a loss of RMB114.31m.
The quarterly revenue fell 66.6% year-on-year to RMB69.73m due mainly to decrease in production activity and continued construction of two vessels under disputes for which revenue are no longer recognised in the second quarter income statement.
JES has embarked to make strategic investment in non-core asset and business, diverting from its core shipbuilding business due to the ongoing slump in the global shipbuilding industry.
But the group’s diversification into mining through an investment in Mineriver did not materialise, and Mineriver is now assisting JES in divestment of its investment.
JES has also ventured into the forestry business with a 51% acquisition in SCIBOIS, which through its subsidiary indirectly possesses a concession right over a 229,400-hectare forest in Congo.
While JES is moving away from its shipbuilding operations, fellow Chinese yard Yangzijiang Shipbuilding is disposing of its non-core businesses to refocus on its core shipbuilding business, which it believes that the sector’s recovery has started.
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