Yangzijiang disposes of entire stake in warehousing subsidiary

Yangzijiang Shipbuilding has disposed of its entire stake in a warehousing subsidiary in China so as to streamline the structure of the group and to control the overall administrative expenses.

The 100% equity interest in Taixing Tongzhou Warehousing Co was sold at a price of RMB500,000 ($77,800) to an unnamed independent third party.

Taixing Tongzhou Warehousing’s primary business is in the provision of storage handling services for the shipyards of Yangzijiang.

Singapore-listed Yangzijiang said the disposal will not have any significant impact on its earnings for the current financial year ending 31 December 2017.

The privately-owned Chinese shipbuilder has stayed profitable with a first half profit of RMB1.39bn amidst a prolonged severe recession of the global shipbuilding industry.

Last month, Yangzijiang announced a plan to raise approximately $154m by way of private placement of 137m ordinary shares to institutional and other investors.

Posted 18 September 2017

© Copyright 2019 Seatrade (UBM (UK) Ltd). Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Seatrade.

Lee Hong Liang

Asia Correspondent

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